A mericans lay much of the blame for all this confusion at the doorstep of the financial services industry.
Of those surveyed, 41% say information from financial services companies is "not so or not at all helpful", and 67% give the financial services industry a "C", "D" or "F" when it comes to explaining saving and investing to consumers.
And it's not just the literature. Almost three-quarters of those surveyed said they believed that car mechanics use less jargon than financial advisors to describe
their work and products. More than half of those surveyed said doctors use less jargon than financial professionals.
Unfortunately, all this jargon is contributing to a feeling of distrust among consumers. Survey findings suggest that many consumers think financial companies' poor communication is intentional (see chart to the below).
| Many believe that the use of jargon is intentional | |
|---|---|
| Jargon is used instead of simpler terms to distract people from focusing on the fees they will be paying | 54% |
| Materials from financial companies are more about selling than educating | 78%** |
| Jargon is used in order to make a product or service seem more impressive | 63% |
| Jargon is used to make the consumer feel less confident they can handle their own finances | 42% |
|
% Agree or Somewhat Agree ** percentage of respondents who replied "major reason" Source: AARP Financial Inc., 2008. |
|
