38% of Brits struggle with financial knowledge: Here’s what they’re Googling most
The Financial Conduct Authority surveyed UK adults and found that 38% felt they had lower levels of knowledge about financial matters. With so many adults feeling unsure about financial matters, it is no surprise that millions are turning to Google for guidance.
New research, carried out by brokerage comparison site Investing in the Web, has determined the top 10 most Googled investment terms and questions in the UK and worldwide, and provided expert tips for each.
1. FTSE 100—2,490,000 average monthly UK searches and 2,770,000 average monthly global searches
The FTSE 100 is the stock market index that includes the 100 largest companies listed on the London Stock Exchange by market value. The index is used as a gauge of the overall performance of the UK stock market and the economy. One of the most searched-for questions by investors is “how is the FTSE 100 calculated?” The FTSE 100 is calculated based on the market capitalisation of the companies and the weight of each company is determined by its market value.
2. Bitcoin—590,000 average monthly UK searches and 15,930,000 average monthly global searches
Bitcoin ranks second, with “how Bitcoin works” being one of the most Googled questions. Bitcoin is a type of cryptocurrency that allows users to send and receive payments over the internet without relying on banks. To start using Bitcoin, users need to set up a wallet, which is like a digital bank account. The transactions are recorded on a public ledger called the blockchain and verified by computers (miners).
3. S&P 500—531,000 average monthly UK searches and 6,040,000 average monthly global searches
S&P 500 is a stock market index that tracks the performance of 500 of the largest and most influential companies in the United States. The S&P 500 is a good indicator of market performance because it tracks the performance of the 500 largest companies in the U.S. Investors are Googling, “can S&P 500 crash?” The S&P 500 is susceptible to large-scale market downturns—economic recessions, geopolitical events, and interest rate hikes are a few reasons the S&P can drop.
4. Hargreaves Lansdown—340,000 average monthly UK searches and 351,000 average monthly global searches
Hargreaves Lansdown is a British investment services company that helps individuals with investment management, retirement planning, and stockbroking. Investors commonly search “can Hargreaves Lansdown go bust?” If Hargreaves Lansdown were to fail, all clients’ investments would have trust status and are covered by the FSCS (Financial Services Compensation Scheme) up to certain limits, meaning investments are protected from creditors.
5. Tesla Stock—266,000 average monthly U.S. searches and 7,150,000 average monthly global searches
Tesla Stock refers to shares of Tesla, Inc., which became more affordable for the average person to buy in 2020. Recent search trends are a result of the popularity of electric vehicles and the public profile of Elon Musk. Investors often search “why is Tesla Stock down?” As the market fluctuates, the performance of Tesla Stock seems to be dependent on how the public perceives the CEO’s involvement in U.S. politics.