Georgia is Struggling with Financial Jargon

New research of Google search data has revealed the most commonly searched financial terms across the US and the states that are most interested – as a financial expert provides accessible insights into these technical terms. The data exposes a gap in knowledge across the entire nation, suggesting that personal financial jargon should be taught in schools to aid desicion-making as young adults become financially independent.

Business accounting experts Avenues Financial analyzed each term found in the Department of Financial Protection and Innovation’s ‘Glossary of Financial Terms’ using search volume tool Google Keyword Planner. These terms were combined with keywords and phrases such as “what is [term]”, “[term] advice”, and “how to [term]”, among other common searches. The findings identified which terms were being searched the most across the US and which states take to the internet to find advice and information the most. 

Overwhelmingly, searches for FAFSA, or Free Application for Federal Student Aid, is the most searched term analyzed, with over a staggering 3.38 million searches on average every month across America – equating to more than one every second. 

There are also, on average, over 425,000 searches each month for credit cards across the US, with people seeking advice or hoping to secure a source of credit. 

However, Nicole Jensen, CPA, Co-founder, and Chief Financial Officer of Avenues Financial, has shared insights on the more niche jargon people across the US appear puzzled by based on frequent searches:  

‘What is capital?’ 

“Capital can be most simply described as the money and other items which hold value that a person or organization owns. These can include financial assets like cash, stocks and bonds, investments but ‘capital’ can also include tangible assets such as equipment or facilities, rather than purely monetary assets.”  

‘Meaning of annual percentage rate?’ 

“Annual percentage rate, or as it is more commonly known, APR, is a percentage which represents the real yearly cost of borrowing money such as taking out a loan or a credit card. This amount encompasses the cost of both the borrowing fees and interest on the loan.”   

Jensen also highlighted the importance of APR when making financial decisions, sharing: “It is crucial that prospective borrowers note the APR offered by different providers and agreements to make an informed decision and determine which may be most suitable for them and which provide the lowest interest and fees on top of the amount owed.” 

‘What is the definition of collateral in finance?’ 

“In some lending agreements, the borrower must pledge an asset or property to the lender to secure the loan – this asset is known as collateral. This means that if the borrower fails to make the payments due under the lending agreement, the lender can seize the collateral to recover the losses. 

“An example of this would be if a borrower entered a mortgage agreement with a lender to purchase a property, the property would be the collateral for the loan. Then, if the borrower failed torepay the loan as determined by the agreement terms, the lender would have the right to take possession of the property to recover the amount owed.”  

‘What is a Ponzi scheme?’ 

“People should beware of Ponzi schemes as they are a type of fraudulent investment scam. Essentially, this is where early investors in the scheme are paid returns from capital gained from new investors rather than from profits from the business activities or investments.”  

Jensen continued: “These schemes usually collapse when they can no longer recruit new investors or when existing investors seek to withdraw funds, and these demands cannot be met.” 

‘Meaning of forbearance?’ 

‘Forbearance is when a lender allows a borrower to temporarily pause or reduce their loan payments. This is typically granted when the borrower has a temporary financial setback, easing their financial burden and deterring the risk that the borrower will default on their loan.”  

Providing examples of when this may be necessary, Jensen stated: “Times in which forbearance may be granted include a change in marital status, such as when the borrower is going through a divorce or if they are unfortunately suffering medical issues.” 

The most-searched financial terms in the US:      

In addition to finding the financial terms searched the most across the US, the study also identified the states that make finance-related searches the most, indicating the states that may be most eager to become financially savvy. 

Maryland ranks top, with an average of 3,983 searchers per 100,000 of the state population every month related to advice or the meaning of terms appearing in the DFPI ‘Glossary of Financial Terms’. This search volume is around 55% higher than the average across all states. 

Second is Virginia, with an average monthly search volume of 3,705 per 100,000 people, when the average monthly volume of over 322,000 finance-related searches is scaled by the state population. 

The study found that New York residents make the third-most finance-related searches in the US. According to the findings, the state experiences an average monthly search volume of 3,468 per 100,000 population.   

California and Massachusetts round out the top five states in fourth and fifth place, with average monthly search volumes of 3,452 and 3,136 per 100,000 of each state’s population, respectively.  

The top ten states most eager to be financially savvy: