Musician and TV chef Big Zuu is fronting a new campaign with Klarna to help the nation get to grips with financial jargon in a more tasty and digestible way.
It comes as new research reveals millions of UK adults (40 per cent) think mastering money terms is harder than learning to speak a new language – with young adults feeling the pressure most.
The study of 2,000 adults, commissioned by Klarna, the AI-powered global payments network and shopping assistant, found 64 per cent of Gen Z believe picking up basic foreign words is easier than mastering money terms like APR, capital gains and compound interest.
It emerged that Asset Management Company (51 per cent), Annual Equivalent Rate (28 per cent) County Court Judgement (28 per cent), Adverse Credit (25 per cent) and Compound Interest (26 per cent) are among the terms Britons are most confused by.
While 25 per cent of adults felt the language used by their banks was complicated to understand.
According to the research, roughly 6.3 million adults (12 per cent) believe they have experienced financial losses due to not understanding complex financial jargon in the past 12 months – averaging £1,009.40 per person, equating to losses of £6,419,784,000.
Campaign ambassador, Big Zuu, said: “Deciphering acronyms like AER and APR can be as confusing as reading a restaurant menu in a foreign language.”
“It’s no surprise that talking about finance can sometimes feel as dry as eating biscuits, without a mug of tea. But it doesn’t have to be like that.”
“A trick I use to remember difficult things is linking concepts to relatable things, like food; it’s like giving your brain a taste of something familiar – it sticks better and lasts longer.”
As part of Klarna’s commitment to promoting greater transparency in the financial industry, Big Zuu, along with financial expert Bola Sol, have released a short ‘Financial Takeaway’ series. Developed in collaboration with the AI-powered global payments network and shopping assistant, it aims to simplify financial jargon, making it easier to understand and more digestible for everyone.
Big Zuu takes to the kitchen to explain different financial concepts by relating them to food. Using complex terms such as credit, interest rates and AER as metaphors for making tacos, preparing sourdough for pretzels and baking a sprinkle layer cake, Zuu guides viewers through the cooking process in his own imitable style.
“I’ve had to learn about finance the hard way, it isn’t something that you’re taught at school. But once I got the hang of it and continued to learn, it’s given me much more confidence to hold my own in conversations with banks, accountants and managers. Now I have my own businesses and I think if I can do it, anyone can.” added Big Zuu.
Coinciding with the survey, Klarna announced it will be releasing a redesigned app featuring an AI-powered shopping assistant. This assistant, fluent in over 35 languages, is a game-changer for helping consumers make purchases, manage Klarna payments, and handle customer service inquiries more efficiently.
Earlier this year, Klarna unveiled its refreshed brand, transitioning from a hyper real pink theme to a more mature and refined identity. “We recognise that our earlier branding, although successful in distinguishing us from traditional banks and competitors, may have inadvertently contributed to a general misunderstanding of the BNPL industry.” explained CMO David Sandstrom. “As we’ve grown as a company and expanded beyond just BNPL, our branding needed to evolve too. Our new brand direction and updated app reflect steps we have taken to help consumers better understand and manage their finances.”
The Big Zuu X Klarna Financial Takeaway Series is now available to watch on Klarna UK’s YouTube channel HERE.
[https://www.youtube.com/@klarnauk2181]
THE UK’S TOP 10 MOST CONFUSING MONEY TERMS
- AMC (Asset Management Company)
- IFA (Independent Financial Adviser)
- Adverse Credit
- Nominal Interest Rate
- Debt Relief Order
- AER (Annual Equivalent Rate)
- CCJ (country Court Judgement)
- Equities
- Annuity
- Compound Interest Rate
GET FINANCIALLY LIT – KLARNA’s FINANCIAL TERMS TEST
- What does AMC stand for?
- a) Annual Management Commission
- b) Asset Management Company
- c) Accounting Management Company
- d) Advanced Money Corporation
- An Asset Management Company primarily deals with:
- a) Manufacturing products
- b) Managing investments and assets
- c) Providing personal loans
- d) Selling insurance
- APR stands for:
- a) Annual Payment Rate
- b) Accumulated Payment Rate
- c) Annual Percentage Rate
- d) Average Percentage Rate
- What does Annual Percentage Rate mean?
- a) The annual rate charged for borrowing or earned through an investment, expressed as a percentage
- b) The total interest paid over the life of a loan
- c) The monthly interest rate multiplied by twelve
- d) The highest possible interest rate allowed by law
- An IFA is a:
- a) Investment Fund Analyst
- b) Independent Financial Adviser
- c) International Finance Analyst
- d) Independent Fund Administrator
- AER stands for:
- a) Annual Equivalent Rate
- b) Accumulated Earnings Rate
- c) Annual Economic Rate
- d) Aggregate Earnings Rate
- What does Annual Equivalent Rate (AER) mean?
- a) The total interest earned on an investment annually, assuming the interest is compounded
- b) The simple interest rate for one year
- c) The highest interest rate possible
- d) The interest rate after taxes and fees
- Adverse Credit means:
- a) Having a good credit history
- b) Having a poor credit history
- c) No credit history at all
- d) Having a balanced credit history
- A CCJ is a:
- a) Credit Clearing Judgement
- b) County Court Judgment
- c) Credit Collection Judgment
- d) County Credit Judgment
- Why is a County Court Judgment important to understand?
- a) It can improve your credit score
- b) It can significantly damage your credit rating and affect your ability to get credit
- c) It can lead to lower interest rates on loans
- d) It is required to get a mortgage
- Nominal Interest Rate refers to:
- a) The actual interest rate including inflation
- b) The base rate of interest without inflation adjustment
- c) The annual growth rate
- d) The effective interest rate
- Debt Relief Order is for:
- a) People with high income and low debt
- b) People with low income and high debt
- c) People with no debt
- d) People with significant savings
- Depreciation is the:
- a) Increase in the value of an asset over time
- b) Decrease in the value of an asset over time
- c) Appreciation of an asset over time
- d) Stable value of an asset over time
- Annuity is a:
- a) Lump sum payment
- b) Regular payment made over a period of time
- c) One-time investment
- d) Short-term loan
- Compound Interest Rate means:
- a) Interest calculated on the initial principal only
- b) Interest calculated on the initial principal and also on the accumulated interest of previous periods
- c) A fixed interest rate for the entire period
- d) An interest rate that decreases over time
- The Consumer Credit Act:
- a) Regulates transactions between consumers and businesses for goods and services on credit
- b) Regulates the stock market
- c) Controls corporate mergers and acquisitions
- d) Oversees international trade agreements
- A Credit Reference Agency:
- a) Provides investment advice
- b) Assesses and collects taxes
- c) Provides credit information about individuals to lenders
- d) Sells insurance policies
- A Debt Consolidation Loan is:
- a) A loan to finance business debts
- b) A loan used to combine multiple debts into a single payment
- c) A loan for purchasing a car
- d) A loan for home improvements
- An Unsecured Loan is:
- a) A loan backed by collateral
- b) A loan not backed by any collateral
- c) A loan used to purchase property
- d) A loan for investment purposes
- Default in financial terms means:
- a) Overpaying a loan
- b) Meeting all payment deadlines
- c) Failing to meet the legal obligations of a loan
- d) Having a high credit score
- Being in Arrears means:
- a) Having savings in a bank account
- b) Paying off a debt before its due date
- c) Being behind on payments
- d) Investing in stock markets
- BNPL stands for:
- a) Buy Now Pay Later
- b) Bank Notice Payment Loan
- c) Borrow Now Pay Later
- d) Buy Now Pay Loan
- The Bank of England Base Rate is:
- a) The interest rate at which the Bank of England lends to other banks
- b) The fixed rate for personal loans
- c) The rate for foreign exchange transactions
- d) The interest rate for savings accounts
Answers
- b) Asset Management Company
- b) Managing investments and assets
- c) Annual Percentage Rate
- a) The annual rate charged for borrowing or earned through an investment, expressed as a percentage
- b) Independent Financial Adviser
- a) Annual Equivalent Rate
- a) The total interest earned on an investment annually, assuming the interest is compounded
- b) Having a poor credit history
- b) County Court Judgment
- b) It can significantly damage your credit rating and affect your ability to get credit
- b) The base rate of interest without inflation adjustment
- b) People with low income and high debt
- b) Decrease in the value of an asset over time
- b) Regular payment made over a period of time
- b) Interest calculated on the initial principal and also on the accumulated interest of previous periods
- a) Regulates transactions between consumers and businesses for goods and services on credit
- c) Provides credit information about individuals to lenders
- b) A loan used to combine multiple debts into a single payment
- b) A loan not backed by any collateral
- c) Failing to meet the legal obligations of a loan
- c) Being behind on payments
- a) Buy Now Pay Later
- a) The interest rate at which the Bank of England lends to other banks
