More than 4 in 10 UK consumers say that they are still negatively impacted by financial mistakes they made in the past, according to new research from Aviva. A greater number still say they wish they had managed their finances differently (64%) and almost the same number (63%) wish they had learnt more about financial matters when they were younger.
- 43% say they are still paying for mistakes they made in the past
- 64% of consumers say they wished they had managed their finances differently
- 63% wish they had started learning about finances when they were young
- Many struggle to explain straightforward money matters such as credit card repayments (30%) and overdrafts (28%)
The survey looked at how UK consumers learn about financial issues, and whether they felt their financial education had started early enough. They were also asked whether their lack of knowledge and experience had impacted them negatively and whether it still continued to do so. The results show that most feel they would have benefited from more knowledge, from an earlier age.
On a more positive note, however, most consumers think that they manage their finances well now, with 78% saying they are ‘good’ or ‘very good’ at this. Not surprisingly, the over 65s are more confident about their financial management skills (87% agree) than the youngest in the survey (73% of 18 – 24 year olds).
Despite 43% of people saying they are still affected by past mistakes, 73% now feel that they are sufficiently knowledgeable about financial matters. However, confidence in explaining straightforward money matters is lower than this, with less than half the people in the survey feeling confident explaining tax allowance on personal pensions (40% confident), how inflation impacts on savings (47%) and tax allowance on Cash ISAs (49%). Nearly a third couldn’t confidently explain interest payments on credit cards.
SOURCES OF EDUCATION
Parents are the most important source of information and education, with 44% of people saying they were one of their top 3 sources. Once people get to 55, more than half say they are self-taught, more than double the number of 18 – 34 year olds. Schools are a top 3 source for 15% of people in the survey, and this is higher for the younger age groups; 19% of 18 – 24 year olds say it was a main source, compared with 13% of 45 – 64 year olds, and 11% of over 65s.
Tim Orton, CEO Aviva Adviser Platform, says,
“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.
“There’s certainly a role for providers to play in this. We are delighted to be able to support new initiatives such as KickStart Money, led by TISA (the Tax Incentivised Savings Association). KickStart Money promotes financial education in primary schools, and as we have seen from our survey, most people of all ages would have welcomed more financial education when they were younger.
“Aviva does have a track record in working with school-age children to promote financial education, to help provide a foundation which they can continue to build on throughout their lives.
“In March this year, we launched Aviva Footy Finance, aimed at children from 11 years old. This brings business to life by using the challenge of the day-to-day running of a football club. It aims to bring an interest in business skills, and improve confidence in financial, business and risk management.
“We have also run Aviva Tackling Numbers, an initiative for lower Key Stage 2 children aiming to make learning about numbers and basic financial literacy fun and rewarding, using rugby as the vehicle to deliver a range of numeracy challenges in a new and exciting way. More than 550 primary schools were involved, with over 27,000 children participating in a range of activities.
“We also recognise the role that we as a financial services provider can play, as people get older and turn to other sources for their information. A key part of this is providing support for financial advisers so that they can have the right conversations with their clients.”
Find out more about KickStart Money at www.kickstartmoney.co.uk
Go to www.aviva-for-advisers.co.uk for information about our products and planning tools and tips.
Find out more about our education programmes at www.aviva.co.uk/footyfinance and www.aviva.co.uk/tacklingnumbers
Research carried out in April 2017 by Censuswide, amongst a nationally representative sample of 2,166.
ENDS
Enquiries:
Media: Catherine Comben, Aviva UK Media Relations Manager; T:01904 453394; M:07800 692087; E:catherine.comben@aviva.com
Notes to editors:
- Aviva provides life insurance, general insurance, health insurance and asset management to 33 million customers, across 16 markets worldwide
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- Aviva helps people save for the future and manage the risks of everyday life; we paid out £34.4 billion in benefits and claims in 2016.
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