Explaining the 10 financial terms Americans search for most

USA Today

12-07-2025

Money terms and concepts continue to baffle people, many of whom are seeking answers through online searches.
BestBrokers.com, an investment research platform, recently tracked the volume of queries for various financial terms made through ChatGPT. Based on this research, the company hypothesized about what the issues are that give people trouble with these terms and concepts, though many such searches also could be conducted to clarify details or derive more information.
Here are the top 10 most-searched financial terms and concepts, starting with those attracting the most internet attention and heading down the list:
Search term: 401(k)
This was the financial term for which Americans searched the most. If people are confused, much of it appears to focus on the tax benefits, contribution limits and withdrawal rules associated with these accounts, according to https://www.bestbrokers.com/forex-brokers/.
What to know: These are workplace retirement accounts named after a section of the Internal Revenue Code. The accounts are usually tax-sheltered and often include employer-matching funds as incentives. Most Americans don't invest enough to run afoul of the annual dollar contribution limits. Penalties can apply on withdrawals, which typically are taxable, too.
Search term: Inflation
Most people seem to know about inflation but don't necessarily distinguish it from 'rising prices in general,' said BestBrokers.
What to know: Inflation is the percentage increase showing how prices for different goods change from one period to the next, often on a 12-month basis. It doesn't describe high price levels generally. Here's an example: With the typical new vehicle selling for about $50,000, many people would agree that autos are at high price levels. However, the inflation rate on new vehicles was just 0.4% over the 12 months through May.
Search term: Equity
Many people inquiring about this term appear to think it has something to do with "salary or profit sharing," said BestBrokers.
What to know: Equity can be a vague term so it's not surprising that people are confused. Equity usually translates to 'ownership,' as with a person who has $50,000 equity in a $250,000 condo for which the rest represents an unpaid mortgage balance. It doesn't help that many people refer to stocks as 'equities."
Search term: GDP
This abbreviation stands for Gross Domestic Product but is 'misused as a personal prosperity indicator,' said BestBrokers.
What to know: GDP represents the bottom-line number for the broad economy and is never properly used to describe an individual's wealth or income. Changes in GDP are the main way analysts determine whether the economy is expanding or contracting, whereby two consecutive down quarters for GDP often signal a recession.
Search term: Credit score
Most people seem to recognize what credit scores are but don't know how they're calculated or how to improve their own scores.
What to know: There are different types of credit scores, such as FICO scores (from Fair Isaac Corp.) and Vantage scores. Basically, they represent quick assessments of how reliable you are in paying debts, based on your payment history. Some confusion lies in how scores are calculated, as these factors aren't always intuitive. For example, people who don't borrow much or don't use credit cards might have lower scores than would be the case if they borrowed and paid their balances promptly.
Search term: ETF
This term, short for "exchange-traded fund," is another troubling one. Many people confuse ETFs with mutual funds and aren't sure about their "unclear trading and tax rules,' BestBrokers said.
What to know. ETFs are close cousins to mutual funds in that both are broad portfolios of stocks or bonds packaged and overseen by financial companies such as Vanguard, BlackRock or Fidelity that can be purchased for modest sums, often $1,000 or so. One key difference: You can buy or sell ETFs at different prices throughout the day, while mutual funds trade only at one price, set at the end of the daily trading session.
Search term: Capital-gains tax
The confusion here seems to lie in how capital-gains tax rates differ from ordinary income tax rates.
What to know: The tax rates on long-term capital gains are typically lower than those on ordinary income, with 'long term' describing assets held more than a year. Most Americans pay a long-term capital-gains rate of 15% on their federal tax return, though the rate can be higher or lower. Adding to the confusion: Your ordinary income is used to determine what capital-gains rate you pay.
Search term: Gross income
There appears to be confusion between gross and net income, according to BestBrokers.
What to know: From a tax standpoint, gross income is what you earn before subtracting deductions or credits. After those subtractions, you wind up with net income. A common type of gross income, as defined by the Internal Revenue Service, is MAGI or 'modified adjusted gross income,' which is used to determine eligibility for various tax benefits such as retirement-account eligibility.
Search term: Compound interest
Many people apparently don't realize how these differ from simple interest.
What to know: Compound interest is the concept of earning interest on interest. For example, a $1,000 initial investment earning a 5% simple rate over five years would generate $250 over that time ($50 a year for five years). The same $1,000 earning 5% compounded would generate roughly $276. Compounding exerts a greater impact at higher interest rates and over longer periods.
Search term: Forex
Many people apparently relate this term with the stock market or cryptocurrency trading, said BestBrokers.
What to know: Forex is short for 'foreign exchange' and has nothing to do with the stock market or crypto. Rather, it refers to the market for trading currencies — dollars, euros, pesos, pounds, yen and so forth. The market for currencies is the largest around, reflecting the substantial amount of global trade.
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