Explain a financial term in plain English

A letter or webpage threw a term at you. Get a short explanation, why it matters and what to do next.

Updated 17 Oct 2026

The prompt · ChatGPT

Explain this financial term in plain English.

The term: [word or phrase]
Where I saw it: [letter, advert, mortgage offer, workplace pension]
The decision I'm making: [optional]

Ask me up to 3 short questions first if anything important is missing. Wait for my answers.

Then:
1. A two-sentence definition.
2. A simple example with made-up round numbers (not my real figures).
3. Why it matters for a decision like mine.
4. What to read next on MoneyHelper or GOV.UK if I need more.
5. When I should speak to a regulated adviser instead of relying on this explanation.

Only use what I've told you, leave blanks for anything I haven't given, and don't invent facts, figures or products. This is help organising my own numbers and wording, not financial advice; point me to MoneyHelper, GOV.UK or Citizens Advice for guidance, and to a free regulated debt adviser if I'm struggling to pay. UK English.

Stay in this ChatGPT chat. Do not turn on apps or connectors, and do not use memory from another chat.

A short example

Fill the blanks, then paste. word or phrase: a short note you already have. letter, advert, mortgage offer, workplace pension: a short note you already have. Leave the rest of the prompt as written.

This does not give tax advice. The books stay in the accounting system.

You name the term and where you saw it.

The assistant asks what decision you're making.

You get a plain definition, a simple example and a caution if advice is needed.

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What happens

Use ChatGPT to explain a financial term in plain English

A letter or webpage threw a term at you. Get a short explanation, why it matters and what to do next.

Tools

Paste the prompt, fill the blanks, copy the draft.

ChatGPT — required. Drafts from the text you paste. Nothing is sent.

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