In 401kSpecialistMag’s recent interview of Heffernan Financial Services’ Blake Thibault, we heard about the importance of 401k financial literacy for somebody’s financial wellness. How can somebody be financially well if they don’t understand many basic principles of financial literacy? The answer is that it’s pretty difficult. Many people still aren’t very educated on how to balance a budget, pay down debt efficiently, and other basic financial principles.
Educating investors on how to properly manage their finances on a fundamental level can be just as important as helping them to properly invest their savings for retirement. In fact it increasingly seems like a bigger barrier to people saving for retirement than ever before. When it comes to feeling financially secure, it’s incredibly important for people have a good grip on their personal finances, budget, etc. If they don’t feel comfortable with the basics, they won’t feel comfortable with investing in the market. The role of financial advisors as educators is a huge theme right now, and going to become more and more important as new investors in younger generations are joining the workforce.
