Contrary to popular opinion, recent research shows that seven in ten UK adults are puzzled by financial jargon, while three quarters are baffled by the term “the economy”.
The research does find that those aged under-25 are least likely to feel puzzled by financial jargon, compared to other age groups, with 52% of those aged 18-24 stating this, compared to 69% across all age groups.
However, younger respondents are most likely to find managing money puzzling, with around three fifths of 18-24s admitting this (58%), versus less than a quarter (23%) of those aged 55+.
The survey of 2,000 UK adults, carried out for Aviva, was designed to help customers better understand financial products and provide them with solutions to meet their needs, now and in the future.
Interestingly, the study may offer an explanation as to why under-25s may be less confused by financial jargon; they are also less likely than other age groups to have heard of certain financial products and terms.
If you have a head for figures then the following statistics are fascinating.
The survey finds, when faced with a list of financial terms, less than two thirds of UK adults (61%) aged 18-24 report they have heard of the term “pension”, compared to 97% of respondents aged 55 and above.
Only a quarter of 18-24s are aware of the term “contents insurance”, compared to 92% of those aged 55+, while the phrase “inflation” is known to less than three fifths (57%) of 18-24s.
However, in spite of having heard of certain terms, people aren’t always confident about what they actually mean.
Less than half (43%) of people who have heard the term “gilt” understand its meaning, while two fifths (59%) of those who have heard of an “annuity” know what is meant by the word. Just 61% of people who are aware of an “ESG fund” feel confident of the phrase’s meaning.
Phoebe Barter, Brand Director, Aviva, said: “We understand that financial matters can be puzzling and our research highlights exactly this. It’s easy to stick our heads in the sand and ignore something we find complex and confusing. But we also know that when things are resolved and clear, it’s a huge weight off our minds.”
You can find the full breakdown of the survey here: