Financial jargon can be confusing and overwhelming. A new study¹ has revealed that seven in ten UK adults are puzzled by financial jargon.
Age gap
The research also found that those aged under 25 are least likely to feel puzzled by financial jargon, with around half (52%) of those aged 18 to 24 stating this, compared to 69% across all age groups.
However, there may be an explanation as to why this age group are less confused by financial jargon – they simply might not have heard of certain financial products or terms. For example, less than two-thirds of UK adults (61%) in this age group report hearing the term ‘pension’ compared to 97% of those aged 55 and above. In contrast, 18 to 24-year-olds are the group most likely to be aware of the term ‘ESG fund’ (Environmental, Social and Governance).
But even if you have heard a term, it doesn’t necessarily show that you understand its meaning. Just 61% of people who are aware of an ‘ESG fund’ feel confident of its meaning.
Lost in translation
One of the biggest challenges when it comes to financial jargon is that it often feels like a language unto itself. Even if you’re a skilled communicator in other areas, financial terminology may use specialist jargon that can leave you feeling lost.
Ultimately, it’s important to remember that financial jargon is a tool for communicating complex concepts and ideas. We can explain everything you need to know in plain English.
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¹Aviva, 2022
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The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Taxation depends on individual circumstances as well as tax law and HMRC practice which can change.
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