Levels of financial capability in the UK

Authors: Adele Atkinson, Stephen McKay, Sharon Collard, Professor Elaine Kempson
Journal: Public Money and Management
Volume: 27
Issue: 1
Pages: 29-36
Published online: January 2007
ISSN: 09540962
DOI: 10.1111/j.1467-9302.2007.00552.x

This article presents a new way of looking at and measuring financial literacy. Financial education work to date has focused on managing money, yet the survey described here shows that this is the area where levels of capability are highest. At least half of the UK population needs reminding that it is dangerous to live for the day and make no provision for changes in circumstance, unexpected expenditure, or retirement. In addition, with the low levels of financial capability identified by the survey, it is likely that mis-selling of financial products will continue in the UK. The authors conclude with policy priorities for the government.