Cutting Financial Jargon


November is Financial Literacy month.
The money management profession has too many buzzwords in its “financial jargon”.

For example, we don’t use phrases with words like “alpha”, “beta”, “black swans” or “efficient market hypothesis” when speaking with clients.
Let’s just say that it’s hard enough to grasp the simpler language.


Having to listen to financial jargon can be intimidating.
For many, it’s like learning a new language.

We try to avoid using the big words that clients may not understand.
Our benchmark is whether someone like my Mother comprehends them.

Professionals are better off shortening the size of the words they use.
The smaller the better.

We try to simplify the use of financial jargon in 3 places:

  • Newsletters and commentaries.
  • Discussions with clients and others.
  • Correspondence.

Big words don’t usually impress prospective or current clients.
Especially, if they don’t understand them.

We try to educate and explain to clients what the bigger words mean.
We believe that is part of our ongoing role and service to clients.

We never want clients to feel embarrassment in asking any question.
No matter how basic it might seem.

Some professionals may use big words in trying to impress.
Our experience is just the opposite.

Adrian’s Jargon Tips:

Here is our experience:

  • Using simple language that clients understand builds more trust and loyalty.
  • Clients are more impressed when professionals make sincere efforts to use simple words.
  • Using big words may cause clients to tune out what is being discussed.

We are always looking for simpler ways to deliver the message to clients.
Cutting financial jargon at every opportunity.


That is our ongoing contribution to improving financial literacy and education all year.


Talk soon,


avatarAdrian Mastracci - KCM Wealth Management posted Monday, November 5th, 2012.

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