Some 51 per cent of UK adults have failed a financial literacy test with age being a crucial factor.
A survey by Shepherd’s Friendly looked at people’s knowledge of Isas, life insurance, and general personal finance.
Although 87 per cent of respondents felt confident in their financial knowledge, just 49 per cent passed the literacy test.
According to the research, age played a crucial role in understanding with only 14 per cent of 18-24-year-olds passing the test, compared to 65 per cent of those aged over 65.
Gender differences were also highlighted with 54 per cent of men passing the test versus 46 per cent of women.
The city with the highest financial literacy pass rate was Wrexham with a rate of 77 per cent followed by Oxford with 75 per cent.
The cities with the worst pass rate featured Aberystwyth with a 20 per cent pass rate followed by Belfast with 34 per cent.
London also featured on the list of worst pass rates with a score of 43 per cent.
Financial regrets
The survey also looked at the most common financial regrets people had with the top answer among respondents being not saving enough money when they were younger (56 per cent).
Additionally, 47 per cent said they regretted not investing their money sooner followed by 43 per cent who regretted not teaching themselves about money topics more.
Buying a house too soon was the least biggest regret with just 6 per cent of homeowners stating this.
However this increased to 17 per cent amongst those aged 25-34, making them the most likely age group to have this regret.
Graham Drummond, head of communications at Shepherds Friendly said: “The findings emphasise the importance of financial education, with 60 per cent of respondents advocating for its inclusion in school curricula. A notable 45 per cent also believe young people lack adequate opportunities to learn about personal finance.
“Our survey showed that many people are unsure about things like budgeting, investing, and understanding financial products that can help them prepare for the future, such as Isas and investing.
"It's not just about knowing the terms, but really feeling confident in making decisions that affect our financial well-being. To close these knowledge gaps, we believe it's crucial to start teaching financial literacy in schools and continue promoting it throughout our lives.”
The survey also found a sixth of respondents said that financial concerns negatively impacted their mental health.
This was prevalent amongst people aged 18-24 with 29 per cent feeling the strain of financial pressures.
alina.khan@ft.com
