A new study from the financial experts at Shepherds Friendly has revealed the state of Britain’s financial literacy, as well as our biggest financial regrets.
- Over half (51%) of people in the UK do not pass the financial literacy test
- 56% of Brits expressed regret over not saving more in their youth
- Over one in six reported that financial worries negatively impact their mental health
As financial literacy becomes increasingly crucial in navigating modern life, a staggering 60% of Brits believe that financial education should be a mandatory part of the school curriculum.
To find out more about the state of Britain’s financial literacy, Shepherds Friendly has conducted a survey of 2,000 Brits on their knowledge of ISAs, life insurance, and general personal finance. The results reveal significant insights into the nation’s understanding of essential financial concepts.
You can view the full research here: https://www.shepherdsfriendly.co.uk/resources/money-literacy-test-2024/
Over half (51%) of people in the UK failed the financial literacy test
While 87% of Brits feel confident in their financial knowledge, just 49% of people in the UK passed the financial literacy test. With 51% of those surveyed failing the test, this indicates that there are substantial gaps in Britain’s financial literacy.
Age played a crucial role in financial understanding, with only 14% of 18-24 year olds passing the test, compared to 67% of those aged 65 and over. Additionally, gender differences were observed, with 54% of men passing the test versus 46% of women.
| The 10 Cities with the Highest ‘Financial Literacy’ Pass Rates | The 10 Cities with the Lowest ‘Financial Literacy’ Pass Rates | ||||
| Rank | City | Pass rate | Rank | City | Pass rate |
| 1 | Wrexham | 77% | 1 | Aberystwyth | 20% |
| 2 | Oxford | 75% | 2 | Belfast | 35% |
| 3 | Portsmouth | 68% | 3 | Swansea | 36% |
| 4 | Worcester | 67% | 4 | Wolverhampton | 37% |
| 5 | York | 65% | 5 | Birmingham | 40% |
| 6 | Brighton and Hove | 63% | 6 | Cardiff | 40% |
| 7 | Norwich | 62% | 7 | Gloucester | 41% |
| 8 | Plymouth | 62% | 8 | London | 42% |
| 9 | Liverpool | 61% | 9 | Bristol | 43% |
| 10 | Cambridge | 56% | 10 | Southampton | 46% |
Wrexham topped the list of cities with the highest pass rate at 77%, followed by Oxford at 75% and Portsmouth at 68%, showcasing a regional variation in financial literacy levels. Meanwhile, Aberystwyth had the lowest pass rate of just 20% followed by Belfast (35%) and Swansea (36%).
56% of Brits expressed regret over not saving more in their youth
The survey also explored common financial regrets among Brits. Not saving enough when younger was the most frequently cited regret, expressed by 56% of respondents. Other notable regrets included not investing money sooner (47%) and not teaching themselves more about money topics (43%).
| Rank | Financial regret | Percentage of people who say this is a financial regret |
| 1 | Not building up my savings when I was younger | 56% |
| 2 | Not investing my money sooner | 47% |
| 3 | Not teaching myself more about money topics | 43% |
| 4 | Not saving into a pension | 39% |
| 5 | Not investing enough | 38% |
| Not saving enough into my pension | 38% | |
| 6 | Not saving for an emergency fund | 37% |
| 7 | Not investing my money | 35% |
| Not budgeting my money | 35% | |
| 8 | Not saving enough for an emergency fund | 32% |
Other financial regrets include using buy now pay later schemes. Almost a third (30%) have used these schemes at some point in their lives (increasing to 40% for 35-44 year olds), however almost a quarter (22%) went on to regret it. This regret was felt most strongly by Gen-Z’s (36%).
Buying a house too soon is Britain’s least biggest regret with just 6% of homeowners stating this. However this increased to 17% of those aged 25-34, making them the most likely age group to have this regret.
Over one in six Brits reported that financial worries negatively impact their mental health
The survey underscores the link between financial well-being and mental health, with over one in six respondents reporting that financial concerns negatively affect their mental state. This issue is particularly pronounced among younger adults, with 29% of 18-24-year-olds feeling the strain of financial pressures.
Graham Drummond, Head of Communications at Shepherds Friendly shares advice on how to improve financial literacy
The findings emphasise the importance of financial education, with 60% of respondents advocating for its inclusion in school curricula. A notable 45% 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.
“Whether you’re looking to improve your money skills or just starting out with building up your savings, there are plenty of ways to learn. You can explore online resources, join a workshop, or chat with a financial advisor. By boosting our financial knowledge, we can all make smarter choices, feel more secure, and build a better future for ourselves and our families.”
