Understand a confusing money term or letter

beginner⏱ Rough guide only: 30 minutes

Last reviewed by Amara Lewis

How can AI explain a confusing financial letter?

Remove personal details, paste the term or letter into Perplexity or Claude, say which country you live in, and ask what it means, whether you need to act, and any deadlines. You get a plain-English summary; confirm anything important directly with the provider.

Copy-and-paste prompt

Swap the bits in [square brackets] for your own details.

Explain this in plain English as if I'm new to money matters: [paste term or letter text with personal details removed]. Tell me: what it means, whether I need to do anything, any deadlines mentioned, and questions I should ask the provider. I live in [country].

How to do it

  1. Copy the confusing text (remove personal details).
  2. Paste it with the prompt.
  3. Ask follow-ups until it makes sense.
  4. Check the official source for anything important.

What a good answer looks like

Illustrative example written by the AI My Day team to show the kind of answer you can expect. Real results vary.

What it means: Your energy supplier is moving you from a fixed tariff to their standard variable tariff on 1 December because your fixed deal ends. Do you need to act? Not legally, but you may pay more. You can compare deals or ask for a new fix. Deadline: None stated for action; the change happens on 1 December. Questions to ask: 1) What will my new unit rate and standing charge be? 2) Are there exit fees if I switch? 3) Do you have any new fixed deals?

Recommended tools

Perplexity shows sources so you can check the explanation; Claude explains clearly.

Perplexity

An AI-powered search engine that answers questions and shows the websites it used.

Free planbeginner

Claude

An AI assistant known for clear, natural writing and handling long documents.

Free planbeginner

Top tips

  • AI is not a financial adviser – for big decisions, speak to a qualified professional.

Frequently asked questions

Can I trust the explanation?

Mostly for general terms, but AI can get details wrong. Check with the provider or an official source.

What should I remove before pasting?

Names, addresses, account and reference numbers.

Useful sources

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