I keep seeing people my age ignore their 401k match

My coworker, 28, told me he doesn't put anything in because it's 'too confusing.' That's literally turning down free money from your job. How do you even start explaining this to someone without sounding like a lecture?

4 comments

4 Comments

ninaowens2mo ago

Totally get where he's coming from. I used to skip mine too because the whole thing felt like a foreign language. Then my older brother sat me down and said it's like your job offering you a free lunch every day, and you're just saying no thanks. He showed me his account, and even with small checks going in, the match money added up fast. Now I just pick the target date fund for when I turn 65 and forget it.

sage3082mo ago

My sister explained the 401k match to me the same way, @ninaowens, and it was a total game-changer.

emmaclark2mo ago

The free lunch thing is a great way to put it. Did your brother have to explain anything else that finally made it click, like how the taxes work or why you shouldn't touch it? Sometimes it's that one extra detail that turns confusion into action.

bennett.evan1mo ago

The free lunch thing clicked for me when I actually did the math. My company matched 4% and I was putting in 3% just thinking I was close enough. But that extra 1% match was literally free money I was leaving on the table. Over a year that added up to like 400 bucks just for bumping my contribution up a tiny bit. Now I treat it like a bill that has to get paid before I see the paycheck.