Jargon, jargon, jargon, everyone complains about jargon. But the root cause of problems in 401(k) investment education goes far deeper than mere jargon. Its source lay at the very feet of our broader educational institutions. Why should we expect our 401(k) education outlines to succeed when, for the most part, they're patterned after the same failed model of secondary school education? 

If you extend the metaphor, it's a lot easier to understand why financial professionals are so frustrated by the lack of action by both employees and plan sponsors following the typical education session. In both the 401(k) education context and the secondary school education context, the educators don't speak the same language as the students. As a result, we have lesson plans developed that work well for educators teaching educators, but flop when translated to their intended audience. 

And when I say language, I'm not talking about jargon. I'm talking about how the educators and the students come with different frames of reference. What's important to one isn't important to the other. Picture a parent explaining to a child why it's important to eat healthy. For the parent, the frame of reference is middle-aged health and how healthy eating often prevents the onset of debilitating diseases. A parent speaking to a child from this point of view will likely only illicit rolling eyes, yawns, and a desire to mentally replay the most recent video game. On the other hand, if "eating healthy" means the child might run faster, jump higher, and become the football player he wants to become, then maybe the parent can get the child's attention. 

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Christopher Carosa

Chris Carosa has been writing a weekly article and monthly column for BenefitsPRO online and BenefitsPRO Magazine since 2011 and is a nationally recognized award-winning writer, researcher and speaker. He’s written seven books, including From Cradle to Retire: The Child IRA; Hey! What’s My Number? – How to Increase the Odds You Will Retire in Comfort; A Pizza The Action: Everything I Ever Learned About Business I Learned By Working in a Pizza Stand at the Erie County Fair; and the widely acclaimed 401(k) Fiduciary Solutions. Carosa is also Chief Contributing Editor of the authoritative trade journal FiduciaryNews.com and publisher of the Mendon-Honeoye Falls-Lima Sentinel, a weekly community newspaper he founded in 1989. Currently serving as President of the National Society of Newspaper Columnists and with more than 1,000 articles published in various publications, he appears regularly in the national media. A “parallel” entrepreneur, he actively runs a handful of businesses, including a small boutique investment adviser, providing hands-on experience for his writing. A trained astrophysicist, he also holds an MBA and has been designated a Certified Trust and Financial Advisor. Share your thoughts and story ideas with him through Facebook (https://www.facebook.com/christophercarosa/)and Twitter (https://twitter.com/ChrisCarosa).