Money Terms in Plain English.

E

E-money account

An account with a payment firm rather than a bank, without the same protection.

In plain English:An account with a payment app rather than a bank. Your money is kept apart from the firm's own money, but it isn't protected by the FSCS.

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Safeguarding means your money should be returned if the firm fails, but it can take time and costs can be taken off first.

Many apps hold money this way. Some have a banking licence too, or pass money to a partner bank where FSCS cover applies, so check which it is.

For example: When an e-money firm went into administration, customers waited months to get most of their money back.

Early repayment charge (ERC)

A fee for paying off a mortgage early during a deal.

In plain English:If you pay off or leave your mortgage during a fixed or special deal, the lender may charge you a fee.

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Most deals let you overpay up to 10% of the balance each year with no charge. Charges usually fall each year of a fixed deal.

Moving home may not mean paying it if you can take your mortgage with you, called porting.

For example: A 3% charge on paying off £150,000 early is £4,500.

Article inside Foliopeak: Fixes, Trackers, and What Overpaying Really Does

Earned wage access

Taking some of your pay before payday, usually for a fee.

In plain English:Some employers let you get part of the pay you've already earned before payday, usually for a fee.

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It can help avoid a payday loan or overdraft charges. But if used every month, the fees add up and you're always short on payday.

Some services aren't regulated as credit, so there may be less protection if something goes wrong.

For example: Someone takes £200 of pay a week early for a £2 fee. On payday their wages are £200 less.

Earnings guidance

What a company says it expects to earn in the months ahead.

In plain English:A company gives its own forecast of how it will do. If it cuts that forecast, the price usually falls, even if this year went well.

MoreLess about Earnings guidance

A sharp cut to guidance outside results day is often called a profit warning.

Companies sometimes set guidance they expect to beat, so meeting it can disappoint.

For example: A company reports a good year but says next year's profit will be lower than expected. Its share price falls by a tenth.

Earnings per share (EPS)

A company's profit divided by its number of shares.

In plain English:A company's profit divided by the number of shares. It shows how much profit each share earned.

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It's used to work out the price to earnings ratio, by dividing the share price by it. Rising earnings per share over time can show a growing business.

A company buying back its own shares can push it up even if profits don't grow, because there are fewer shares.

For example: A company makes £50 million in profit and has 100 million shares. Its earnings per share is 50p.

Easy access account

A savings account you can take money from whenever you like.

In plain English:A savings account where you can take money out whenever you want, without losing interest. The rate can change at any time.

MoreLess about Easy access account

Interest rates can change at any time, and the best rates often drop after a while. Some have limits on how many withdrawals you can make.

It suits an emergency fund. Money you won't need for a while can often earn more in a fixed-rate account.

For example: Someone keeps £3,000 in an easy access account and takes out £400 the same day when their car needs fixing.

Article inside Foliopeak: Savings Accounts: Comparing Them ProperlyGame: Runway

EBITDA

A company's profit before interest, tax and some accounting costs.

In plain English:A company's profit before interest, tax and the cost of things wearing out. It's useful but can make a company look healthier than it is.

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It shows how much money a business makes from its main activity, before the cost of borrowing and the wear on its equipment.

Some companies report "adjusted" EBITDA, leaving out more costs, which can make results look better than they are.

For example: A company has profit of £5 million after £3 million of interest and £2 million of depreciation. Its EBITDA, before tax, is about £10 million.

Economic abuseUK

When a partner or family member controls someone's money, a form of domestic abuse.

In plain English:When a partner or family member controls someone's money, stops them working or runs up debts in their name. It's a form of domestic abuse, and help is available.

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It can also mean stopping someone using a bank account, controlling all spending, or forcing them to take out loans.

Charities such as Surviving Economic Abuse give free help. Lenders and banks have to treat it seriously.

For example: Someone finds their ex took out loans in their name. Their bank's specialist team helps, and the credit reference agencies remove the financial link.

Economic moat

Something that protects a company's profits from competitors.

In plain English:Something that keeps rivals away, like a famous brand or a big network, so a company can keep making good profits.

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The term was made popular by the investor Warren Buffett, who likened a company to a castle and its protection to a moat.

Moats can shrink, as new technology or rules change an industry.

For example: A software company whose product is built into thousands of businesses' daily work is hard to switch away from, so it keeps its customers.

Economies of scale

Costs for each item falling as a business grows.

In plain English:When a business makes more of something, each one costs less to make, because the fixed costs are shared out.

MoreLess about Economies of scale

Large supermarkets can sell cheaper partly because they buy huge amounts and spread their costs over many stores.

There can also be diseconomies of scale, where a business grows so big it becomes slow and costly to run.

For example: A bakery making 100 loaves a day pays £2 a loaf in costs. At 1,000 a day, its cost falls to £1.20.

Effective tax rate

Your total tax as a share of your total income.

In plain English:Add up all the tax you pay and divide it by all your income. This share is usually lower than your top tax rate.

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It's a useful way to see your overall tax burden. For a business, it can differ from the main rate because of reliefs and allowances.

Comparing it with your top rate helps show how much extra income, such as a pay rise, really adds after tax.

For example: On a £40,000 salary, income tax is £5,486, an effective rate of 13.7%, even though the top rate you pay is 20%.

Article inside Foliopeak: The £100k TrapGame: Cliff Edge

EIS, SEIS and VCTsUK

Schemes giving tax relief for investing in small, risky companies.

In plain English:If you invest in small, young companies through these schemes, you get money off your income tax. You could also lose everything.

MoreLess about EIS, SEIS and VCTs

Income tax relief is 30% of the amount invested for the Enterprise Investment Scheme, 50% for Seed EIS and 20% for Venture Capital Trusts, up to yearly limits.

Gains on EIS and SEIS shares can also be free of Capital Gains Tax if held long enough, and losses can be set against income. VCTs are listed funds that invest in many small companies.

These are among the riskiest investments, and many of the companies fail. They're hard to sell quickly.

For example: Someone puts £10,000 into a VCT and gets income tax relief, then holds it for the minimum time so they keep the relief.

Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)

Article inside Foliopeak: EIS, SEIS and VCTs

Electoral roll

The list of people registered to vote, which also helps lenders check who you are.

In plain English:Being registered to vote at your address helps lenders confirm who you are, which can make it easier to get credit.

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You can register online in a few minutes. You can choose to be left off the open version that companies can buy, and lenders can still see you.

If you can't register, such as some foreign nationals, you can add proof of address to your credit file instead.

For example: Someone moves home and registers to vote at the new address, so a mortgage lender can confirm who they are more easily.

Article inside Foliopeak: Your Report Matters More Than Your Score

Electric Vehicle Excise Duty (eVED)UK

A planned pay-per-mile charge for electric and plug-in hybrid cars.

In plain English:A planned charge for electric and plug-in hybrid cars, paid for each mile driven, to replace the fuel duty they don't pay.

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It's planned from 1 April 2028: 3p a mile for electric cars and 1.5p for plug-in hybrids, paid alongside the yearly road tax.

It's meant to replace some of the fuel duty the government loses as people switch away from petrol and diesel.

How miles will be measured and reported is still being worked out. Business drivers using their own cars may be affected too.

For example: Someone who drives an electric car 8,000 miles a year would pay the per-mile charge on all of those miles, on top of their usual road tax.

Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)

Emergency fund

Cash set aside for unexpected bills or a drop in income.

In plain English:Money you keep aside in an easy-access account for surprises, like the boiler breaking or losing your job. Many aim for a few months of costs.

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Three to six months of essential spending is a common guide, more if your income is irregular.

An easy access savings account is a common home for it. It's different from saving for things you know are coming.

For example: If your essential costs are £1,800 a month, three to six months of cover is £5,400 to £10,800.

Article inside Foliopeak: Sizing an Emergency FundCalculator: Emergency Fund

Emergency tax codeUK

A temporary tax code used when your employer doesn't have your full details.

In plain English:When you start a job and your employer doesn't have your details yet, they use this code. You may pay too much tax until it's fixed.

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Emergency codes look like 1257L W1, M1 or X, often given when you start a job without a P45.

Once HMRC has your details, it sends your employer a new code, and any tax overpaid usually comes back through your pay.

Giving your new employer your P45 or filling in their new starter checklist helps get the right code sooner.

For example: Someone starts a new job without a P45 and is put on an emergency code. Two months later their code is corrected and the extra tax is paid back.

Article inside Foliopeak: Your Tax Code and Your Payslip

Emerging markets

Countries whose economies and stock markets are still developing.

In plain English:Countries whose economies are growing fast but are still developing, like India or Brazil. Their shares can grow a lot but are riskier.

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Many have fast-growing populations and economies. They can also face political changes, weaker rules for investors and swings in their currencies.

A global fund usually holds a small share in them. A separate fund can add more if you want to.

For example: Emerging market shares fell much more than UK shares in 2008, then rose faster in 2009.

Article inside Foliopeak: Funds: ETFs, Index Trackers, and OEICs

EMI (Enterprise Management Incentives)UK

A tax-friendly share option scheme for smaller companies.

In plain English:A share scheme for smaller companies where staff get the right to buy shares later at a set price, with less tax to pay on the gain.

MoreLess about EMI (Enterprise Management Incentives)

EMI stands for Enterprise Management Incentive. The company and the employee must meet rules on size, business type and working hours.

If the shares are bought at their market value when the options are granted, there's no income tax to pay later on the rise in value.

For example: An employee gets EMI options at £1 a share. Years later they buy the shares at £1 and sell them at £5, paying Capital Gains Tax on the gain.

Article inside Foliopeak: Sharesave, SIPs and Employee Share Schemes

Employee Ownership Trust (EOT)UK

A trust that owns a company on behalf of all its staff.

In plain English:A trust that owns a company for all its workers. Owners who sell to one can pay no Capital Gains Tax, and staff can get tax-free bonuses.

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Well-known examples include John Lewis, owned by its staff through a trust for decades.

The company usually pays the owner over several years from its profits. The rules have been tightened in recent years.

For example: A founder sells their engineering firm to an employee ownership trust, and all 40 staff get a yearly tax-free bonus.

Employer match

What your employer adds to your pension when you pay in.

In plain English:If you pay more into your work pension, some employers add more too. Not taking it up is like turning down free money.

MoreLess about Employer match

Taking full advantage of the match is free money, so it's often worth paying in at least enough to get it all.

The match is part of your pay package, so compare it when looking at job offers.

For example: Your employer matches up to 5%: pay in 5% of a £40,000 salary (£2,000) and they add £2,000 too.

Article inside Foliopeak: The Employer Match, and Why It Comes FirstGame: Catch the Match

Employer National InsuranceUK

National Insurance your employer pays on top of your pay.

In plain English:On top of your pay, your employer pays National Insurance to the government. It doesn't come out of your wages.

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Employers pay 15% on pay above £5,000 a year.

It's paid on most earnings, including bonuses and benefits like company cars. The employment allowance cuts it for smaller employers.

It's a reason salary sacrifice is popular, because the employer saves too.

For example: An employer pays someone a salary and also pays employer National Insurance on top, so the job costs the business more than the salary alone.

Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)

Article inside Foliopeak: IR35: Inside or Outside, and Why It Changes EverythingCalculator: IR35: Inside vs Outside

Employers' liability insuranceUK

Insurance employers must have in case staff are hurt at work.

In plain English:Most employers must have this insurance by law, to pay out if an employee is hurt or falls ill because of their work.

MoreLess about Employers' liability insurance

The certificate must be available to staff. A business can be fined for each day it doesn't have it.

Some employers are exempt, such as family businesses where all staff are close relatives.

For example: A café hires its first member of staff and buys employers' liability insurance before they start.

Employment AllowanceUK

A yearly cut in an employer's National Insurance bill.

In plain English:A yearly amount that comes off what an eligible employer pays in National Insurance for its staff.

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It's claimed through payroll software. Some employers can't claim, such as public bodies.

Having another employee earning above the threshold, not just the director, can make a company eligible.

For example: A small shop with three staff claims the employment allowance, so it pays no employer National Insurance until the allowance runs out.

Enduring power of attorney (EPA)Applies in England, WalesEnglandWales

The older form of a document letting someone manage your money.

In plain English:An older type of document that let someone manage your money if you couldn't. New ones can't be made, but old ones still work.

MoreLess about Enduring power of attorney (EPA)

It was replaced on 1 October 2007.

It only covers money and property, not health and welfare decisions. It has to be registered once the person starts losing mental capacity.

Anyone making a new one now uses a lasting power of attorney.

For example: A woman made an enduring power of attorney in 2004. When she later develops dementia, her son registers it and uses it to manage her bank accounts.

Energy price capApplies in England, Scotland, WalesEnglandScotlandWales

The most suppliers can charge per unit of energy on a standard tariff, set by Ofgem.

In plain English:Ofgem sets a limit on how much energy firms can charge for each unit of gas and electricity on standard deals. It's a cap on prices, not your total bill.

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It applies in England, Scotland and Wales, not Northern Ireland. Fixed deals aren't covered, and can be cheaper or dearer than the cap.

Ofgem announces each new cap about a month before it starts, which helps people decide whether to fix.

For example: The cap per unit of electricity rises in January. Someone on a standard tariff using the same amount sees a higher bill.

Article inside Foliopeak: Making a Budget, Alone or Together

Enhanced annuity

An annuity that pays more if your health is likely to shorten your life.

In plain English:If you smoke or have health problems that may shorten your life, an insurer may pay you a higher income from your pension pot.

MoreLess about Enhanced annuity

Conditions that can count include high blood pressure, diabetes and being overweight. You need to tell the provider about your health and lifestyle.

Many people who could get one don't ask. Shopping around for an annuity with a full health check can raise income a lot.

For example: A smoker with high blood pressure gets an annuity paying more each year than a healthy non-smoker with the same pot.

Article inside Foliopeak: Drawdown vs Annuity, in Plain English

Enterprise value (EV)

What it would cost to buy a whole company, debts included.

In plain English:The price of all a company's shares, plus its debts, minus its cash. It's what it would really cost to buy the whole business.

MoreLess about Enterprise value (EV)

Two companies with the same market value can have very different enterprise values if one has much more debt.

It's used in takeovers, because a buyer usually takes on the debt as well as the shares.

For example: A company is worth £100 million on the stock market, has £40 million of debt and £10 million of cash. Its enterprise value is £130 million.

See also: Market capitalisation

EPC (Energy Performance Certificate)UK

A rating of how energy efficient a building is.

In plain English:A certificate that rates how energy efficient a home is, from A, the best, to G, the worst. Sellers and landlords must have one.

MoreLess about EPC (Energy Performance Certificate)

EPC stands for Energy Performance Certificate. It lasts 10 years and comes with advice on ways to improve the rating.

Landlords must meet a minimum rating to let a home. Some lenders offer better mortgage rates for homes with good ratings.

For example: A buyer sees a house has an EPC rating of F and plans for the cost of insulation and a new boiler.

Equity

Shares in a company, or the part of your home you own outright.

In plain English:In investing, it means shares in a company. In a home, it's the part you own outright, which is what it's worth minus the mortgage.

MoreLess about Equity

In a company's accounts, equity is what's left for shareholders after debts are paid. Equity in a home rises as you pay off the mortgage and if its value goes up.

For example: A £300,000 home with a £180,000 mortgage gives you £120,000 of equity.

Article inside Foliopeak: Stocks, Shares and Equities

Equity crowdfunding

Buying shares in small, young companies through a website.

In plain English:Lots of people each put in a little money through a website to buy shares in a small company. Many of these companies fail.

MoreLess about Equity crowdfunding

Platforms must be authorised by the FCA, and you'll be asked questions to check you understand the risks.

Returns usually come only if the company is sold or lists on a stock exchange, which may take many years. Your share can shrink as the company raises more money.

For example: Someone invests £500 in a brewery through a crowdfunding website. Five years later the brewery closes and the shares are worthless.

Article inside Foliopeak: Equity Crowdfunding

Equity release

Ways for older homeowners to take money from their home while living in it.

In plain English:Older homeowners can get money from the value of their home without moving out. It's usually paid back when the home is sold.

MoreLess about Equity release

Interest compounds, so the debt can grow fast. Most plans have a no-negative-equity guarantee, so you never owe more than the home is worth.

It can reduce what you leave and affect means-tested benefits. Advice from a qualified adviser is required.

For example: A 70-year-old takes £50,000 from their home with a lifetime mortgage. With interest rolling up, the debt is much bigger when the home is sold years later.

Equity risk premium

The extra return shares are expected to pay over safe investments, for taking the risk.

In plain English:The extra return investors expect from shares over safe things like cash, as a reward for putting up with the ups and downs.

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It's what makes shares worth holding over the long run despite the risk. In some decades shares have done worse than bonds.

Experts disagree about how big it is, and estimates change with market conditions.

For example: If gilts pay 4% a year and investors expect shares to make 8% a year over time, the equity risk premium is about 4%.

See also: Risk and return

Escrow

Money held by a neutral third party until a deal is done.

In plain English:Money is held by someone in the middle until both sides have done what they agreed. Then it's released.

MoreLess about Escrow

It's common for online sales of expensive items and for business deals. Some scams use fake escrow services, so check a service carefully.

In UK house sales, the buyer's solicitor holds the money until completion.

For example: Someone buys a used car online and pays through an escrow service, which only releases the money to the seller once the car arrives.

ESG

Judging companies on how they treat the environment, people and their own running.

In plain English:Short for environmental, social and governance. It's a way of judging companies on things like pollution, how they treat staff and how well they're run.

MoreLess about ESG

Different ratings firms can score the same company very differently, because there's no single standard.

Some funds have been criticised for using green labels without changing much. In the UK, the FCA has rules on naming sustainable funds.

For example: An ESG fund leaves out tobacco and coal companies and favours firms with good records on how they treat staff.

Estate

Everything a person owns when they die, less their debts.

In plain English:Everything someone owns when they die, like their home, savings and belongings, minus any debts they owe.

MoreLess about Estate

It includes homes, savings, investments, belongings and sometimes life insurance not written in trust. Jointly owned things may pass straight to the other owner.

Pensions often fall outside it for now, but that changes for Inheritance Tax from April 2027.

For example: Someone dies with a house worth £300,000, savings of £50,000 and a car loan of £10,000. Their estate is £340,000.

Article inside Foliopeak: What Actually Happens When You Die

Estate accounts

A record of an estate's money in and out, shown to the people inheriting.

In plain English:When someone dies, the person handling their estate writes down all the money that came in and went out, and shows it to those inheriting.

MoreLess about Estate accounts

There's no set format, but they should be clear enough for beneficiaries to follow. A solicitor can prepare them for a fee.

Keeping receipts and records from the start makes them much easier.

For example: An executor lists the house sale, bank balances, funeral costs and solicitor's fees, then shows each sibling their share before paying out.

Article inside Foliopeak: What Actually Happens When You Die

Estate planning

Arranging your affairs so what you leave goes where you want.

In plain English:Planning what happens to your money and belongings when you die, so they go to the right people and less tax is paid.

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It's not only for the wealthy. A simple will and powers of attorney help almost anyone.

Plans need reviewing after big events such as marriage, divorce, children or a move abroad. Getting advice can help avoid costly mistakes.

For example: A couple makes wills, sets up lasting powers of attorney and names their children on their pension forms in one go.

ETF (exchange-traded fund)

A fund you buy and sell on a stock exchange like a share.

In plain English:A fund you can buy and sell on the stock market, just like a share. Many simply follow an index and charge low fees.

MoreLess about ETF (exchange-traded fund)

ETF stands for exchange traded fund. Fees are often low, and they can be bought and sold through most platforms.

Some ETFs hold the actual shares they track; others use contracts to copy the returns. Dealing charges and the spread can apply.

For example: Someone buys an ETF tracking the FTSE 100 in their ISA and can sell it at any time the market is open.

Article inside Foliopeak: Funds: ETFs, Index Trackers, and OEICs

Ethereum

The second-largest blockchain, built to run programs called smart contracts.

In plain English:A blockchain that can run small programs called smart contracts, as well as its own coin, called ether.

MoreLess about Ethereum

It was launched in 2015. In 2022 it changed how it checks transactions, cutting its electricity use sharply.

Its price swings a lot. Fees to use it can rise when it's busy.

For example: An artist sells digital artwork as an NFT, with the sale recorded on Ethereum.

Article inside Foliopeak: Cryptocurrency

ETP (exchange-traded product)

Any investment traded on a stock exchange like a share that follows a price or an index.

In plain English:An umbrella name for funds and products that trade on the stock market like shares and follow a price or an index.

MoreLess about ETP (exchange-traded product)

ETP stands for exchange traded product. ETNs and ETCs are other kinds, often tracking commodities or crypto.

Read the key documents to see what it holds and who you're relying on. Leveraged ones can lose value fast.

For example: Someone buys an ETP that tracks gold. It's backed by gold kept in a vault, set aside in case the issuer fails.

Article inside Foliopeak: How 3x Daily Funds Work

Euro and eurozone

The shared currency of most EU countries, and the countries that use it.

In plain English:The euro is the money used by most EU countries. Those countries together are called the eurozone.

MoreLess about Euro and eurozone

It started in 1999, with notes and coins from 2002. Twenty-one countries now use it.

Countries can't set their own interest rates or change their currency's value to deal with problems, which was tested in the debt crisis of 2010 to 2012.

For example: A UK family on holiday in Spain and then Italy uses the same euros in both.

See also: European Central Bank (ECB)

Euro Stoxx 50

An index of fifty of the biggest companies in the countries that use the euro.

In plain English:A list of fifty of the largest companies in eurozone countries, used to show how their shares are doing.

MoreLess about Euro Stoxx 50

It includes big names in fashion, banking, energy and technology from countries like France, Germany and the Netherlands.

It doesn't include Swiss or UK companies, as those countries don't use the euro.

For example: A UK investor holds a Euro Stoxx 50 fund to own a slice of Europe's biggest companies.

See also: FTSE 100

European Central Bank (ECB)

The central bank for the countries that use the euro.

In plain English:The bank that sets interest rates for all the countries that use the euro.

MoreLess about European Central Bank (ECB)

It aims to keep inflation near 2%.

It was set up in 1998. Its decisions affect mortgages and savings in the euro area, as Bank Rate does in the UK.

It also buys bonds at times, as the Bank of England has, to support the economy.

For example: In 2022 the ECB raised interest rates for the first time in over a decade to fight high inflation.

See also: Bank of England

Ex-dividend date

The day from which buying a share no longer gets you its next dividend.

In plain English:If you buy a share on or after this date, the seller still gets the next dividend, not you. The share price often drops a little that day.

MoreLess about Ex-dividend date

To get the dividend, you must own the share the day before it goes ex-dividend. The dividend is paid later, on the payment date.

Buying just before and selling just after doesn't usually make money, because the price drops.

For example: A share is £10 and pays a 30p dividend. On the ex-dividend date its price drops to about £9.70.

Ex-gratia payment

A payment an employer chooses to make but doesn't have to, often when a job ends.

In plain English:Money an employer chooses to pay you when you leave, without being made to. Some of it can often be paid tax-free.

MoreLess about Ex-gratia payment

HMRC looks at what the payment is really for, not just what it's called. If it's in your contract, it's usually taxed as pay.

Getting the paperwork clear when a job ends can make a difference to the tax.

For example: An employer adds an extra payment when making someone redundant. Because it's for losing the job, it counts towards the tax-free slice.

Article inside Foliopeak: Made Redundant: What an Employee Is Owed, How It Is Taxed, and Where the Money Can Go

Excepted estateUK

An estate simple enough that no full Inheritance Tax form is needed.

In plain English:If an estate is small or simple enough, the family doesn't need to fill in the full Inheritance Tax forms.

MoreLess about Excepted estate

Even so, the executors must still give HMRC some details through the probate application. Many estates in the UK are excepted.

If the estate turns out to be bigger, a full account has to be sent.

For example: A widow leaves an estate below the nil-rate band to her children. It's an excepted estate, so no full Inheritance Tax account is needed.

Excess

The part of an insurance claim you pay yourself.

In plain English:When you make an insurance claim, you pay the first part yourself. A higher excess usually means a cheaper policy.

MoreLess about Excess

There are often two parts: a compulsory excess set by the insurer, and a voluntary one you choose. You pay both on a claim.

Pick an excess you could actually afford to pay if something happens.

For example: With a £250 excess, a £1,000 claim pays out £750.

Exchange of contractsApplies in England, Wales, Northern IrelandEnglandWalesN. Ireland

The point when buying a home becomes legally binding.

In plain English:When buyer and seller swap signed contracts, the home sale becomes legally binding. Backing out after this can cost you your deposit.

MoreLess about Exchange of contracts

Before it, either side can pull out with no penalty. The completion date, when the money moves and keys are handed over, is usually set at exchange.

In Scotland the system is different, with "missives" making the deal binding.

For example: A buyer exchanges contracts with a 10% deposit and later can't get the money to finish. They lose the deposit.

Article inside Foliopeak: Buying a Home: From Offer to Keys

Exchange rate

The price of one currency in another.

In plain English:How much of one currency you get for another, like how many euros you get for a pound.

MoreLess about Exchange rate

Rates move all the time because of trade, interest rates and news. Banks and card providers add a margin on top of the real rate.

For overseas investments, a fall in the pound raises their value in pounds.

For example: Before a trip, £1 buys $1.30. A month later it buys $1.20, so the same holiday costs more in pounds.

Article inside Foliopeak: Currency Risk on Overseas Holdings

Execution-only

Buying and selling investments yourself with no advice.

In plain English:You choose your investments yourself and the firm just carries out your orders, with no advice. It's cheaper, but you carry the responsibility.

MoreLess about Execution-only

It's usually cheaper than paying for advice. You have no right to complain that an investment was wrong for you, because nobody recommended it.

The firm may still ask questions to check you understand risky products.

For example: Someone picks their own funds on an investment platform. If they lose money, it's their decision, not the platform's.

Executor

The person named in a will to sort out the estate.

In plain English:The person named in a will to deal with everything after someone dies, like paying debts and sharing out what's left.

MoreLess about Executor

An executor can also be a beneficiary. Up to four people can apply for probate.

It can take months or years and is often a lot of work. Executors can pay a solicitor from the estate to help, or step down before starting.

For example: A daughter named as executor sells her mother's house, pays the bills and then shares what's left with her brother as the will says.

Article inside Foliopeak: Wills and Lasting Powers of Attorney: Who Inherits, and Who Acts for You

Exercise price

The price you pay for each share when you use share options.

In plain English:The price you pay for each share when you use your share options. If the share price is higher, you make a gain.

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If the share price is below it, the option is "underwater" and there's no point using it.

For tax, the gap between the exercise price and the share's value when you use the option can be taxed, depending on the scheme.

For example: An employee has options with an exercise price of £2. The shares are worth £6, so each option is worth £4 if used.

Article inside Foliopeak: RSUs and Share Options: EMI, CSOP and Unapproved

Expression of wish (pension nomination)

A form telling your pension who you'd like it to go to when you die.

In plain English:A form you fill in to tell your pension scheme who you'd like to get your pension when you die. Keep it up to date.

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Without one, the scheme decides with less guidance, which can take longer. Update it after big life events.

It can usually be done online in a few minutes.

For example: After getting married, someone updates their expression of wish to name their wife instead of their parents.

Article inside Foliopeak: What Actually Happens When You Die

Extended warranty

Paying extra for repair cover after a product's own guarantee ends.

In plain English:You pay extra so repairs are covered after the maker's guarantee runs out. It often costs more than repairs would.

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Under the Consumer Rights Act you can ask for a repair, replacement or refund for faulty goods, even after the maker's guarantee ends.

If you want one, they're often cheaper from a separate firm than at the till. You can usually cancel within a cooling-off period.

For example: A shop offers a three-year warranty on a TV for £120. The buyer remembers the law already protects them if it fails early, so declines.