Navigating complex money terms and phrases commonly used in the UK can sometimes feel like decoding a secret language, and when it comes to avoiding money mistakes, checking a dictionary is just as valuable as checking your maths, as new research reveals that being caught out by confusing financial terms has potentially cost people in the UK an estimated £26 billion during their lifetime. 

Remitly Global, Inc., a trusted provider of digital financial services that transcend borders, recently surveyed 2,500 individuals across the UK, unlocking fascinating insights about financial literacy. The poll found that more than three fifths (65%) of the sample population have struggled to understand everyday financial terms, with more than a third of those polled (36%) claiming this has cost an average of £1,366 during their lifetime. Among the terms most likely to throw people off are APR (18%), compound interest (17%) and variable interest rate (14%). 

This complex financial language can lead to costly consequences, particularly for individuals living in the UK who speak English as a second language. When participants of the survey were asked about their experiences signing financial agreements, their responses showed that as a result of signing:  

·        Two fifths (40%) have regrets, compared to a third (34%) of native English speakers.  

·        Almost a quarter (23%) ended up paying more for something than they had previously expected, compared to less than a fifth (16%) of native English speakers  

·        One fifth (19%) have paid interest or late fees, compared to a tenth (12%) of native English speakers  

·        Almost a fifth (16%) have paid more tax than expected, compared to less than a tenth (9%) of native English speakers  

Quid’s English 

In addition to complex financial terms, understanding the country’s colourful money slang can be even more confusing, with nearly half (45%) of all Brits and almost three quarters (74%) of the country’s non-native English speakers admitting to being baffled by it. So, to help demystify the confusion that comes with discussions about money, Remitly has created the Quid’s English Glossary.  

This online glossary contains 25 confusing money phrases and slang terms that will support anyone in the UK trying to navigate the many nuances of money language, whether you’re spotting a mate a few “spondoolies” or opening a savings account that offers “compound interest.” This is part of Remitly’s wider campaign to help people navigate the complexities of the money phrases used in Britain, which are potentially costing unnecessary money for millions of individuals every year. By helping to increase financial literacy, Remitly aims to promote financial inclusion and improve outcomes for individuals with cross border financial services needs . 

North South Divide 

From ‘dosh’ in Bristol and ‘wad’ in Newcastle, the research reveals the differing dialects that cities and regions have for money, with almost a third (31%) saying they are unfamiliar with certain money terms because it’s popular in a different part of the UK.  

A North-South divide emerged for certain phrases: just 27% in London describe their cash as ‘readies’, compared to 44% Manchester.  Likewise, 33% in the capital have used the term ‘wonga’ – rising to 46% in Newcastle.  

Across the South East, almost two thirds (61%) have ‘bucks’ in their vocabulary, but just over half (52%) do in the North West. Whereas ‘lolly’ is prevalent in the South West, with 46% having used it in conversation, just 31% have used it in the North East.  

From Gen Z to Gen ‘G’ 

There is also stark contrast between generations when it comes to the slang they use – with Boomers and Gen X most likely to use ‘dough’, ‘bucks’, and ‘tuppence’. Whereas Millennials and Gen Z will use phrases like ‘Gs’, ‘bags’, and ‘cheddar’ in comparison.  

The research also highlighted confusion amongst the younger generation when it comes to describing certain amounts of money. A whopping 90% of Gen Zs and 84% of Millennials either didn’t know the meaning or incorrectly guessed ‘bluey’ is used to talk about £5, compared to 62% of boomers. More than a fifth (21%) believe this general confusion stems as a result of popular phrases from yesteryear still being used by older generations.   

Danielle Treharne, VP of EMEA and APAC at Remitly said:  

"Moving to a new country presents unique challenges, especially when it involves navigating the complexities of new financial systems and learning new financial slang and terminology. The learning curve can be daunting, even costly, and it can often create barriers to accessing essential financial services.  

At Remitly, we’re constantly looking for ways to improve our customers' experience and to better understand their challenges. We believe in providing financial education and literacy resources that address common barriers - which is what inspired the launch of Quid's English. We hope this will help promote financial inclusion and individuals with cross border financial services needs." 

TOP 10 CONFUSING FINANCIAL TERMS 

1.      APR - Annual Percentage Rate 

2.      Sub-prime lending 

3.      In perpetuity 

4.      Compound interest 

5.      Annuity 

6.      Progressive tax rates 

7.      Variable interest rate 

8.      Capital gain 

9.      Liquidity 

10.   Arrears 

TOP 10 SLANG PHRASES USED TO TALK ABOUT MONEY AND FINANCE  

1.      Skint 

2.      A rip-off 

3.      To make ends meet 

4.      Daylight robbery 

5.      Rainy day fund 

6.      Loaded 

7.      An arm and a leg 

8.      Bank of mum and dad 

9.      Quids in 

10.   Burning a hole in my pocket