Don’t ROFL, not knowing what APR means is no cause to LOL

Keith Findlay busts some common jargon associated with finance. And dragons

We have become so saturated by jargon associated with savings we are confusing everyday acronyms for financial terms, according to new research from Barclays.

The study revealed that nearly one-sixth (15%) of people north of the border think “ROFL”, internet slang for “rolls on the floor laughing”, means “risk of financial loss”.

And despite more than one-third (36%) correctly identifying “GOT” as hit TV series Games of Thrones, nearly one-sixth (16%) think it stands for “general ordinance tax” – a term that doesn’t even exist – and one in 10 believe it refers to “Greenwich official time”.

The level of financial confusion goes beyond just acronyms.

Although 93% of those surveyed in Scotland are aware that Isa means “individual savings account”, more than one-third (37%) have no idea when the tax year ends. More than a quarter (26%) think it is in March (it’s April).

And more than half (56%) don’t know what income tax band they are in.

Barclays savings and investment director Clare Francis said: “We know that people struggle to wrap their head around all of the terminology associated with personal finances, however, it’s not always as complex as you first think.

“If you brush up on the basics, you might discover savings opportunities that could make a real difference.” She added: “Everyone should have the tax year end on April 5 pencilled into their diaries, because it’s the last day you can use your Isa allowance before it’s lost forever.

“It’s also useful to know that the annual Isa allowance is increasing to £20,000 for the 2017/18 tax year, meaning that you’ll be able to protect even more of your savings from the taxman.”

Barclays’ study also revealed nearly one-fifth (18%) of 24-34 year-olds across the UK are unclear what APR (annual percentage rate) stands for.

More than half (55%) of baby boomers – those aged over 55 – have no idea what ROFL stands for, while a 10th of this generation think LOL (laugh out loud) stands for “lots of love”.

One Poll carried out the survey of 1,200 adults in the UK earlier this month.

THRONE OFF SCENT: Game of Thrones is known as GOT in jargon, but 16% think it means ‘general ordinance tax’ – which doesn’t exist