Would you pass a financial literacy test that stumps nearly half of Brits?

Over 5,000 people have been quizzed on their financial literacy knowledge across two separate campaigns with similar results – approximately 50% of Brits have low financial literacy. But while core indicators such as understanding how to calculate interest or budget effectively are important measures of financial knowledge, should financial literacy extend beyond these skills?

Shepards Friendly recently released the results of their extensive survey, quizzing over 2,000 people with 40 questions around money and finances. And earlier this year, global investment company abrdn tested 3,000 people with three key questions about interest rates, inflation and risk. Both campaign reports indicated low levels of financial literacy in the UK.

At JFF, we understand that not everyone in the UK had equal access to quality financial education at school or at home when they were young. This has created challenges for their financial literacy in adult life. That is why we are working with schools and families across the UK to make sure all children today, no matter their personal circumstances, have the opportunity to develop the skills, knowledge and confidence they need to thrive.

The results from both surveys reveal a concerning gap in financial education and knowledge among young people. Only 14% of individuals under 24 passed Shepards Friendly’s test, while 26% of respondents aged 18-34 answered all questions incorrectly in abrdn’s survey.

Compared to other countries, the UK faces significant challenges in financial literacy. The concern that many individuals lack the essential knowledge and skills to manage their money effectively is echoed by these reports from our leading financial institutions.

At JFF, we agree that the knowledge and skills required to navigate an increasingly complex financial work should be taught - and taught as early as possible. But we also believe that meaningful financial education goes beyond knowledge of financial terms and services. Our approach to financial education focuses on how individuals relate to money, the emotions they experience around financial decisions, and the critical thinking required to make informed choices. Through our financial education programmes and resources, we aim to equip young people with these broader skills and prepare them for adult life. By fostering emotional awareness and encouraging critical thinking, we empower students to make financial decisions that are not only smart but also aligned with their values and long-term wellbeing. We believe this holistic approach is key to building a healthier, more sustainable financial future for the next generation.

We’ve asked our financial education experts what three questions they would ask in a similar test.

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