Singaporeans most confused by financial jargon: report

Singaporeans searched for the meaning of "equity" an average of 2,170 times per month.

A new study has revealed that financial jargon continues to confuse many Singaporeans, with “equity,” “exchange traded funds (ETFs),” and “gross domestic product (GDP)” ranking as the top three most misunderstood financial terms.

According to data from forex broker experts at BrokerChooser, Singaporeans searched for the meaning of "equity" an average of 2,170 times per month, making it the most frequently queried financial term locally. "ETF" followed closely with 1,800 monthly searches, whilst "GDP" ranked third with 1,500 searches.

Other terms rounding out the top ten included "arrears," "correlation," "yield," "annuity," "capital," "APR (annual percentage rate)," and "principal."

The findings highlighted ongoing gaps in financial knowledge, as over half (55%) of Singaporeans surveyed admitted to being financially illiterate.

In addition, 52% of respondents said they don’t even know how much they spend each month. This lack of financial literacy is estimated to cost the average Singapore household between $1,997 and $5,410 annually.

The study emphasised that financial illiteracy often leads to poorer financial outcomes, regardless of income level.

Those who do not fully understand basic financial concepts risk making costly mistakes, such as misjudging investments, overlooking risks, or missing opportunities to build long-term wealth.

With financial products becoming increasingly complex and scams growing more sophisticated, the study stressed that financial literacy is no longer a "nice-to-have" skill but an essential one for safeguarding personal finances.

Misunderstanding common concepts like yield, ETFs, or equity can leave individuals vulnerable to both poor investment choices and financial fraud.