Americans lose an average of $948 a year due to financial mistakes tied to confusing money terms, adding up to $246 billion nationwide.
About 42% of Americans struggle with money management, with terms like APR, ETF, and equity among the most misunderstood.
Experts say small misunderstandings — from high-interest debt to missed 401(k) matches — can quietly lead to major financial losses.
If you’ve ever nodded along while someone talked about APRs, ETFs, or compound interest — while secretly having no idea what they meant — you’re far from alone. Financial jargon can feel like a different language, and for many Americans, that confusion is coming with a real price tag.
New data from BrokerChooser shows that in 2025 alone, the average American lost about $948 due to money mistakes tied to poor financial literacy. Across the country, that adds up to a staggering $246 billion in losses. And it’s not just a small group struggling — about 42% of Americans say they have trouble managing their money.
In recognition of Financial Literacy Month this April, experts at BrokerChooser dug into search trends to find out which financial terms people are Googling the most — and, in other words, which ones are causing the most confusion. The results highlight a clear gap between the financial decisions people are expected to make every day and the knowledge they actually have to make them confidently.
The top 10 most confusing financial terms
Here’s a look at the top 10 financial terms that were searched on Google the most:
Equity
APR (Annual Percentage Rate)
GDP (Gross Domestic Product)
ETF (Exchange Traded Funds)
Annuity
Principal
Capital
Yield
Correlation
Arrears
Avoiding costly mistakes
An expert at BrokerChooser shared some of the most costly mistakes that many consumers frequently make:
Holding cash in low-interest accounts
Misunderstanding APR and taking on high-interest debt
Missing out on employer 401(k) matches
Paying unnecessary fees on financial products
Signing up for buy now, pay later schemes without fully understanding the repayment terms
“These choices might seem minor individually but together they can add up to significant financial losses,” the spokesperson said.
Improving financial literacy
While April is Financial Literacy Month, it’s important for consumers to know how to improve their financial literacy any time of the year.
Here are some of BrokerChooser’s best tips:
Start with the financial products you already use. Most people have a credit card, a retirement account, and savings–but hardly ever review the terms. Check your fees, look at fund expense ratios, and run the numbers on your credit card APR. That makes financial concepts concrete.
Open a simple brokerage account and invest in broad ETFs. This can also help you understand how markets, pricing, and fees actually work.
Do your research. Before choosing any financial product, compare options using objective criteria rather than marketing claims. That habit alone eliminates many of the most common and costly mistakes.