It may be shocking that only 16% of Americans have a high level of financial literacy, according to research by TIAA, 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 they 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.
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Ginger Szala
Ginger Szala is executive managing editor of Investment Advisor magazine. She covered the financial business and alternatives industry for 30 years while editor of Futures Magazine Group. MSJ Northwestern, BA University of Wisconsin-Madison. She is based in Chicago. Go Blackhawks!
