Financial Freaking Out

One of my coworkers came in today utterly freaked out.  Why?  She couldn’t figure out her 401(k) allocations. All she knew was that she had to allocate it.

She said that she had no idea what to do and where to put her money and even if she knew where to put her money, she wouldn’t know whether her investment was doing well or horrible and where exactly her money was.

Thankfully, 401(k)s often have managed categories based on risk in which you put the money in there and the managers decide where to put your money for you. Since she was young, we recommended that she put it in the moderate to aggresive profile or even just in the aggresive profile. There’s a fee that has to be paid for this service but it’s worth it if you really have no idea.

However, what scares me is that she would have no idea how well her money was doing. I applaud her on putting money in her 401(k) but she won’t even know if she’s losing money left and right.

That’s why, I wish there were more financial education in school especially high school so kids could learn the basics before they get out on their own and have to make their own decisions about money. Maybe, then, we wouldn’t have this epidemic of people in so much debt, they can’t even breathe for fear of leaking more money.

Hopefully, today was a wakeup call to my coworker to learn a bit more about her money. But, sadly, I don’t think it really was.

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