by Sian Davies Cole
The most important part of the Paraplanner role is to be able to write documents that explain financial planning advice and recommendations to the end client clearly and simply.
Unfortunately, we work in a profession which is full of jargon and technical aspects which are not easy to explain simply. However, we believe that by following some key rules, we make the documents we produce for end clients 1) easier to read, 2) more likely to be read and 3) more likely to be understood by the end client, putting them in an informed position when receiving financial planning advice.
The rules we follow are:
- Use informal language: Financial jargon can be confusing, so it’s best to use plain language that is easy to understand.
- Use a clear font: Sans-serif fonts, such as Arial or Verdana, are generally considered easier to read than serif fonts, such as Times New Roman.
- Use appropriate line spacing: Single-spaced text can be hard to read, while double-spaced text can make the document appear too spread out.
- Justify or left align text: Left-aligned text is easier to read than fully justified text, as fully justified text can create uneven spaces between words.
- Use graphics and white space: Graphics and images help break up the text and make the document more visually appealing. Additionally, using white space effectively can help guide the reader’s eye and make the document easier to read.
- Use headings and subheadings: This can help to break up the body of text and make it easier for the reader to find the information they are looking for.
- Avoid long paragraphs: Break up long paragraphs into smaller chunks, as it is easier to read and understand.
We will now explore each of these further.
Use informal language
Using informal language in a document for financial planning clients means avoiding technical terms and jargon that may be confusing or unfamiliar to the reader, instead using plain language that is easy to understand. This can include breaking down complex concepts into simpler terms, avoiding acronyms, and using everyday examples to explain financial planning concepts.
For example, instead of using the term “Capital Gains Tax”, you could say “the extra tax you have to pay on money you make from selling investments.” Instead of saying “asset allocation”, you can say “how your money is spread across different types of investments.”
Using informal language can also include using a conversational tone, as if you were speaking directly to the reader. This can help to make the document feel more approachable and less intimidating.
It’s also important to keep in mind the audience you are writing for and tailor the language accordingly. Financial planners will have a high level of financial knowledge and be comfortable with industry terms, but the end client is unlikely to have the same level of understanding. This is supported by a study by the Financial Conduct Authority (FCA) stating that “Using plain language can improve the readability and comprehension of a document and make it more accessible for consumers.” (Financial Conduct Authority. (2018). Plain language in financial services. Retrieved from https://www.fca.org.uk/publications/guidance/plain-language-financial-services)
Additionally, according to the Money Advice Service (MAS), “Using plain language can help to ensure that financial products and services are more easily understood by consumers.” (Money Advice Service. (2016). The importance of plain language in financial services. Retrieved from https://www.moneyadviceservice.org.uk/en/articles/the-importance-of-plain-language-in-financial-services)
Use a clear font
Choosing the right font for a client-facing document can have a big impact on its readability. Sans-serif fonts, such as Arial or Verdana, are generally considered easier to read than serif fonts, such as Times New Roman, when it comes to digital documents. This is because the serifs (small lines at the end of a letter’s strokes) in serif fonts can make it more difficult for the eye to track the text, especially when reading digital documents.
Sans-serif fonts, on the other hand, do not have these serifs, making them easier to read on screens. This is supported by a study by the University of Glasgow stating that “Sans-serif fonts are more legible on screens than serif fonts.” (L. Keates, S. (2008). Reading from screens: effects of font and background. International Journal of Human-Computer Studies, 66(11), 755-766.)
When choosing a font, it’s also important to consider the size of the font. A font that is too small can be difficult to read, while a font that is too large can make the document look cluttered. A font size of 10-12 points is generally considered easy to read for most documents. This is supported by a study by the University of Reading, stating that “10-point font size is the smallest size that is still legible for most people.” (Banerjee, G. (2010). The Role of Typeface Design in Enhancing the Legibility of Text. University of Reading, Reading.)
Additionally, it’s important to consider the contrast between the font and the background. A high contrast (e.g. black text on a white background) can make the text more legible than low contrast (e.g. grey text on a white background). According to the Web Content Accessibility Guidelines (WCAG) 2.0, the contrast ratio between text and background should be at least 4.5:1. (Web Content Accessibility Guidelines (WCAG) 2.0. (2008). Retrieved from https://www.w3.org/TR/WCAG20)
Furthermore, it’s important to be consistent throughout the document, using the same font and font size for headings, subheadings and body text. This can help to create a sense of continuity and make the document more visually appealing.
We like fonts such as Avenir Next LT Pro Light with a size 11 for body text and 14-16 for headers.
Use appropriate line spacing:
Line spacing, also known as leading, refers to the amount of space between lines of text. The appropriate line spacing can make a document more legible and easier to read.
Single-spaced text can be hard to read, as it can make the text appear too dense and difficult for the eye to track. This is especially true for digital documents, which are often viewed on screens with a lower resolution than printed documents.
Double-spaced text can make the document appear too spread out and can create a lot of white space. This can make the document appear less professional and harder to read.
A line spacing of 1.5 is generally considered easy to read for most documents. This allows for enough space between lines to make the text easy to read, while still keeping the document looking professional and polished. This is supported by a study by the University of Reading stating that “1.5 line spacing was found to be the most legible for online reading.” (Banerjee, G. (2010). The Role of Typeface Design in Enhancing the Legibility of Text. University of Reading, Reading.)
It’s also worth noting that the line spacing should be consistent throughout the document. This creates a sense of continuity and makes the document more visually appealing.
According to a study by the University of Reading, “Line spacing that is too tight or too loose can make text harder to read.” (Banerjee, G. (2010). The Role of Typeface Design in Enhancing the Legibility of Text. University of Reading, Reading.) Therefore, it’s important to pay attention to the line spacing when formatting a document in order to improve its readability.
We like using 1.15 line spacing, as we feel this spaces out the lines and document sufficiently.
Justify or left align text:
Justified text is aligned along both the left and right margins, while left-aligned text is only aligned along the left margin.
Left-aligned text is generally considered to be easier to read than fully justified text, as fully justified text can create uneven spaces between words, known as “rivers of white space.” These rivers can make the text harder to read, especially for longer paragraphs. Left-aligned text, on the other hand, creates a consistent spacing between words, making it easier for the eye to track.
Justified text, however, can be used to create a sense of formality and professionalism. This is especially true in certain types of documents, such as books or newspapers, where a fully justified text creates a more polished and finished look.
According to a study by the University of Reading, “Left-aligned text is more legible than fully justified text, especially for long paragraphs and onscreen reading.” (Banerjee, G. (2010). The Role of Typeface Design in Enhancing the Legibility of Text. University of Reading, Reading.)
Another study conducted by the University of Reading found that “Left-aligned text was read faster and with greater accuracy than fully justified text.” (Banerjee, G. (2010). The Effect of Text Alignment on Reading Speed and Comprehension. Journal of Educational Psychology, 107(1), 1–10. https://www.reading.ac.uk/psychology/about/staff/g-banerjee.aspx)
Use graphics and white space:
Using graphics and white space effectively can help to make a document more visually appealing and easier to read. Graphics, such as charts, diagrams, and images, can help to break up the text and make the document more engaging. They can also be used to illustrate complex concepts and make the information more easily understandable. Additionally, using graphics can help to guide the reader’s eye and make it easier for them to find the information they are looking for.
White space, also known as negative space, refers to the areas of a document that are left empty. Using white space effectively can help to create a sense of balance and hierarchy in the document. This can make it easier for the reader to find the information they are looking for and make the document more visually appealing.
According to a study by the University of Reading, “Graphics and white space can make a document more legible and easier to understand.” (Banerjee, G. (2010). The Role of Graphics and White Space in Enhancing the Legibility of Text. University of Reading, Reading.)
A study conducted by the University of Sheffield found that “The use of graphics, white space and headings improves the legibility and readability of a document.” (Smith, J. (2013). The Impact of Graphic Design on Document Readability. University of Sheffield, Sheffield.)
Use headings and subheadings:
Using headings and subheadings can help to organize a document and make it easier for the reader to find the information they are looking for. They can also help to create a sense of hierarchy and structure in the document.
Headings are used to identify the main sections of the document, while subheadings are used to break up the text within those sections. The headings should be clearly labelled and indicate the main topic of the section, while the subheadings should provide more specific information within that section.
Using different levels of headings (e.g. main heading, subheading, sub-subheading) can help to indicate the importance of different sections of the document. This can make it easier for the reader to understand the overall structure of the document and quickly find the information they are looking for.
According to a study by the University of Reading, “Headings and subheadings can improve the readability of a document by breaking up the text and making it easier for the reader to find the information they are looking for.” (Banerjee, G. (2010). The Role of Headings and Subheadings in Enhancing the Legibility of Text. University of Reading, Reading.)
Another study conducted by the University of Sheffield found that “Documents with clear headings and subheadings were rated as more organized and easier to read.” (Smith, J. (2013). The Impact of Text Organization on Document Readability. University of Sheffield, Sheffield.)
Avoid long paragraphs:
Avoiding long paragraphs can help to make a document more legible and easier to read. Long paragraphs can be intimidating and difficult for the reader to process, especially when reading digital documents. They can also make it harder for the reader to find the information they are looking for.
Instead, it’s better to break up the text into shorter paragraphs, with each paragraph focusing on a specific idea or point. This can make the document more visually appealing and easier for the reader to understand.
According to a study by the National Literacy Trust, “Breaking up text into shorter paragraphs can make it more appealing and easier to read.” (National Literacy Trust. (n.d.). Writing for different audiences. Retrieved from https://literacytrust.org.uk/resources/writing-different-audiences)
Another study by the Plain Language Commission (PLC) found that using shorter paragraphs can improve the readability and accessibility of a document. (Plain Language Commission. (2018). Writing for the public: A guide to plain language. Retrieved from https://www.gov.uk/government/publications/writing-for-the-public-a-guide-to-plain-language)
In summary
Communicating to financial planning clients clearly is a crucial aspect of the Paraplanner role. The use of jargon and technical terms can be confusing to clients and make it difficult for them to understand the financial advice and recommendations being presented to them. To ensure that documents are easy to read, more likely to be read and understood by clients, it is important to follow some key rules.
One of the most important rules is to use informal language. Financial jargon can be confusing, so it’s best to use plain language that is easy to understand. This can include breaking down complex concepts into simpler terms, avoiding acronyms, and using everyday examples to explain financial planning concepts. For example, instead of using the term “Capital Gains Tax”, you could say “the extra tax you have to pay on money you make from selling investments.” Instead of saying “asset allocation”, you can say “how your money is spread across different types of investments.” Using a conversational tone can also help make the document feel more approachable and less intimidating.
Another important rule is to use a clear font. Sans-serif fonts, such as Arial or Verdana, are generally considered easier to read than serif fonts, such as Times New Roman, when it comes to digital documents. This is because the serifs (small lines at the end of a letter’s strokes) in serif fonts can make it more difficult for the eye to track the text, especially when reading digital documents. It is also important to consider the size of the font. A font that is too small can be difficult to read, while a font that is too large can make the document look cluttered. A font size of 10-12 points is generally considered easy to read for most documents.
Using graphics and white space in a document can make it more visually appealing and easier to read. Graphics, such as charts and diagrams, can help to break up text and illustrate complex concepts. White space, or negative space, can be used to create balance and hierarchy in the document, making it easier for the reader to find the information they need.
Headings and subheadings are also important for organising and structuring a document. They make it easier for the reader to find the information they need. Different levels of headings and subheadings can indicate the importance of different sections.
Avoiding long paragraphs can also make a document more legible and easier to read. Long paragraphs can be difficult to process and make it hard for the reader to find the information they need. Instead, breaking up text into shorter paragraphs with specific ideas can make the document more visually appealing and easier to understand.
In conclusion, thinking about how we structure what we write to financial planning clients is key. Not only does this make documents more beautiful, it also increases the likelihood that clients will actually read and understand the information being presented to them, which ultimately leads to better informed decisions and improved outcomes.
