Plain-English Financial Translation
Turn intimidating financial language into clear, actionable choices
- Difficulty
- Moderate
- Time to result
- ~weeks to results
- Steps
- 4
- Confidence
- 96%
This framework treats communication as translation rather than simplification for its own sake. Begin by asking questions that reveal what the consumer needs and where understanding breaks down. Replace industry jargon with ordinary language, then explain the mechanism behind each option, including its risks and consequences. The objective is not to push a favored product but to give the listener enough understanding to make an informed decision. Edelman connects this method to journalism, where practitioners learn both to uncover answers and explain them clearly. Accessible formats, a nonthreatening tone, and practical examples reduce anxiety, while an explicit next action turns comprehension into useful behavior. The output is a consumer who understands the choice rather than merely complying with an expert recommendation.
Origin
Edelman developed this approach from his communications and journalism education before entering financial services. He found that asking effective questions and explaining answers in ordinary language gave him an advantage with consumers who lacked formal financial education.
Core principles
- 01Ask questions before offering answers
- 02Translate jargon into familiar language
- 03Explain mechanisms rather than prescribing products
- 04Give people enough clarity to make informed decisions
- 05Make education accessible and nonthreatening
How to run it
- 1
Ask diagnostic questions
Discover the consumer's objective, current knowledge, and source of confusion before explaining anything.
Pro tip Use questions that invite the person to describe the issue in their own words.
Watch out Do not assume that familiarity with everyday money implies familiarity with financial terminology.
- 2
Strip away jargon
Replace technical expressions with common words, analogies, and concrete distinctions the listener can recognize.
Pro tip Define only the terms needed to make the immediate decision.
Watch out Do not replace jargon with an analogy that distorts the underlying mechanism.
- 3
Explain how the options work
Show the relevant inputs, trade-offs, risks, costs, and likely consequences without championing a predetermined product.
Pro tip Contrast two options directly when that makes the distinction easier to grasp.
Watch out Education becomes disguised selling if the explanation is biased toward the expert's compensation.
- 4
Make the lesson actionable
Connect understanding to a specific decision, question, or next step the consumer can take.
Pro tip Ask the listener to restate the decision in their own words.
Watch out Information that cannot guide behavior may leave the consumer informed but still immobilized.
In the wild
An advisor avoids beginning with volatility statistics or security classifications. The advisor explains what ownership in a company means, contrasts it with lending money to an issuer, and then connects those differences to the client's need for growth, stability, and income.
→ The client can compare the choices and participate in an informed portfolio decision.
Common mistakes
Talking shop with consumers
Experts who use the language they use with colleagues can make ordinary clients feel excluded and incapable of acting.
Using complexity to create dependence
Obscurity may support a sale, but it prevents genuine understanding and undermines trust.
Explaining without an action
A clear lesson still fails if the listener cannot connect it to a decision or next step.
Is it for you?
Best for
Advisors, educators, and communicators who must make technical subjects useful to nonexperts.
Not ideal for
Situations requiring exhaustive technical or regulatory documentation rather than consumer education.
From the transcript
“In journalism school, they teach you two things. One how to ask questions and to how to explain the answers in plain English.”
“Instead I'll just teach you how money works.”
“once you understand the difference, which is really easy, you can then make an informed decision.”
From the episode
Ric Edelman on Translating Financial Language for Consumers
Ric Edelman