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.
More than six in ten 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.
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 almost eight in ten (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).
However, confidence in explaining straightforward money matters is lower, with less than half the people in the survey feeling confident explaining tax allowance on personal pensions, how inflation impacts on savings and tax allowance on Cash Isas. Nearly a third couldn’t confidently explain interest payments on credit cards.
‘People wish financial education had started earlier’
Tim Orton, chief executive officer of the 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.”