You are here: Home - Saving & Banking - News -

Brits struggle with financial literacy

0
Written by:
15/03/2018
Don’t know your APR from your CPI? You’re not alone. A study from Cambridge University and University College London has found ‘striking weaknesses’ in adult financial skills.

It showed a third of adults in England struggle to work out how much change they should get in a shop (compared to a quarter globally). Half cannot read a simple financial line graph, often used for conveying financial information, and most struggled to calculate a percentage discount.

England sat alongside Turkey, Chile, Israel, Italy and Spain with the weakest financial skills, while Estonia, Finland and Japan performed well.

The study analysed more than 100,000 results from 16 to 65-year-olds from 31 countries. They were asked four questions assessing their ability to apply numerical skills to everyday financial tasks. Sample questions included ‘If a litre of cola costs $3.15, how much will you pay for a third of a litre?’.

The authors of the survey called for ‘urgent policy intervention’, saying financial literacy was essential to ensure consumers don’t get into unmanageable debt or aren’t vulnerable to being misled.

The report stated: “The ability to solve financial problems is critical to the wellbeing of adults across the world since everyday transactions, such as saving, spending and interacting with banks, require significant understanding of key financial concepts.

“Yet, in many countries, there is concern about the lack of financial acumen amongst adults, and whether education systems are equipping individuals with the necessary basic financial skills.

“Our key conclusion is that, in some countries, policy intervention will be needed to ensure adults have the basic skills they need to navigate their way through an increasingly complex financial world.”

The findings echo a report by The Share Centre, which showed 98% of people believe they left school with insufficient financial knowledge and 55% thought financial education should be a separate lesson within the curriculum and that teachers should be provided with the relevant teaching courses.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
fraud crossed out on a chalk board
Almost £1bn lost to fraud in 2017

Banks and card companies prevented £1.46bn in financial fraud attempts over 2017, equivalent to £2 in every £3 of attempted...

Close