Okay guys, I just completed another class for the Financial Planning Certificate which leads to the certification. And I came to the conclusion that there’s a language barrier. I struggled a little until I realized the material was in a different language. For me, I had to translate from financial jargon, to common sense every day words. For example they loved the words deferred. Now this is a perfectly good word, however how many of use it in day to day language. So I kept having to translate deferred compensation to delayed or postponed compensation. My other favorite word was nonqualified. You can tell it’s a foreign langue when you discover no one can agree on the spelling. When trying to find the translation for the word I found some groups use Non Qualified, others use Non-Qualified and the text book used nonqualified. When in doubt on financial matters I go with the IRS. I also used the no-nonsense IRS description.
Keep this in mind the next time you’re chatting with your financial person. The advisor may not be speaking over your head, they’re just speaking a different language. Think of it this way. You’re high school Spanish and they’re advanced or a native speaker. In high school you may use the word "maleta" to describe a suitcase, but perhaps in the advanced class you use the word “velija” which is more descriptive. You may in fact be discussing the same item just in different terms.
It’s time we all increased our financial vocabulary. You don’t have to be fluent to function; however you do need to know some basics. There’s tons of information out there. To get you started check out 23 Financial Terms Everyone Should Know.
Lastly, don’t be afraid to ask people to explain or define a term you’re not familiar with especially if they’re using an acronym. There’s no shame in not knowing something. The shame is not doing something about it.
Wishing you the best in all you do.