AvivaJun 2 2017

Consumer regrets spark fresh calls for financial education

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
Consumer regrets spark fresh calls for financial education

More than four in 10 UK consumers say they are still negatively impacted by financial mistakes they made in the past, research has shown.

Some 43 per cent of people surveyed for Aviva said they were still paying for mistakes they made in the past, prompting renewed calls for better financial education.

In addition, 64 per cent said they wished they had managed their finances differently and 63 per cent wished they had learnt more about financial matters when they were younger.

Tim Orton, chief executive of Aviva Adviser Platform, said: “It’s striking that people across all ages say they wish their financial education had started earlier, despite the obviously positive news that most people think they are sufficiently knowledgeable now. 

“There’s also clearly a continued need, throughout life, for people to refresh their knowledge and for them to be able to access information through a variety of sources.

“The more informed people are, and from a younger age, the more they will be able to make the best decisions for their circumstances and avoid making mistakes that may impact on their financial well-being for years to come.”

On a more positive note, 78 per cent said they they were ‘good’ or ‘very good’ at managing their finances now, with the highest levels of confidence among the over 65s.

But less than half the people surveyed said they felt confident explaining tax allowance on personal pensions (40 per cent), how inflation affects savings (47 per cent) and tax allowance on Cash Isas (49 per cent). Nearly a third could not confidently explain interest payments on credit cards.

Parents were found to be the most important source of information and education, with 44 per cent of people saying they were one of their top three sources – significantly higher than the 15 per cent citing schools among their top three.

The findings are based on research carried out in April 2017 by Censuswide among a nationally representative sample of 2,166 people.

simon.allin@ft.com