It may be shocking that only 16% of Americans have a high level of financial literacy, according to research by the TIAA Institute, but more surprising is that many don’t have a clue about what relatively simple terms, e.g. recession or annuity, mean. Realizing these lapses can prevent advisors from talking over their clients’ heads and losing them in a rebalancing discussion. The good news is a majority, 88%, understand the term “savings account.”
The Knowledge Academy analyzed findings from a YouGov survey of 1,135 American adults, asking how confident there are in the meaning of common financial terms.
Here are 10 terms advisors might use every day and the share of Americans who said they were confident in their meaning.
— Check out Top 20 Fastest-Growing Financial Services Companies: Inc. 5000 on ThinkAdvisor.