This uncertainty with financial jargon, or over-complication, isn’t a comical matter. Over a third of Britons (37%) admit to ‘nodding along’ when in a financial meeting because they didn’t understand what was being said – on the most part because they didn’t want to look stupid (67%). A fifth (17%) also say there's “no need to understand the terminology”.
People in Northern Ireland are the most likely to go along with financial conversations they don’t understand, while those in the East Midlands are the most likely to put a stop to a conversation when they’re not familiar with the terms being used.
Perhaps unsurprisingly, it’s those on low to middle incomes (up to £25,000) who are most likely to have suffered difficulty (15%) because they weren’t clear on financial acronyms – and the issue is far more prevalent among young people (18 -24) (23%).
Andrew Baddeley-Chappell (ABC), Head of Mortgage and Savings Policy, said: “Organisations such as banks, building societies and insurers have been using abbreviations for many years, but it’s alarming to see that people still don’t have a grasp of the basic financial terminology. In fact, according to our latest research, text speak is more widely understood, with people likely to know a LOL rather than a LTV.”