A recent study of 3,000 Brits found that 20% of them struggle with basic math problems, such as calculating discounts and understanding loan terms. This reflects a larger issue with financial literacy in the UK, as 19% of respondents stated that the cost-of-living crisis has revealed their numerical weaknesses. This comes ahead of the National Numeracy Day, an event aimed at promoting number confidence and skills. Many participants believe that improving their numerical skills could lead to financial betterment by setting budgets, understanding interest rates, and comparing deals.
The survey also revealed that avoiding financial scenarios involving numbers, such as calculating discounts or negotiating prices, is common among adults. Additionally, 29% of respondents admit to avoiding financial news due to lack of interest or understanding. Bina Mehta, chair at KPMG UK, stressed the importance of numeracy skills in today’s complex world, especially in light of the current cost-of-living crisis. People lacking number confidence are at a higher risk of debt, unemployment, and fraud, particularly those from lower socio-economic backgrounds. Mehta highlighted the need for individuals, businesses, policy makers, and education leaders to prioritize numeracy skills for building a fairer and more inclusive economy.
One in five UK adults believe their fear of numbers is hindering their ability to manage their finances effectively. The cost-of-living crisis has further emphasized this issue, with 19% of participants acknowledging their numerical weaknesses. Stronger proficiency in math could have helped many respondents navigate the crisis more effectively by enabling them to budget better and put aside money for price increases. However, financial terms like stocks, APR, and credit scores were deemed challenging, leading 21% of participants to seek assistance with personal finances, while another fifth admitted to avoiding financial management altogether due to their lack of math skills.
Sam Sims, chief executive at National Numeracy, emphasized the impact of a lack of number confidence on people’s money worries, especially in the face of rising costs for essential goods like energy and food. He underscored the importance of numeracy skills in daily life and finances, calling good numeracy a key pillar for a financially inclusive, resilient, and socially mobile society. The survey results indicate that numeracy skills are no longer a luxury but a necessity for navigating today’s financial landscape.
Despite the reluctance to address numeracy issues, a quarter of respondents believe that improving their math skills could have helped them better manage the cost-of-living crisis. Many participants cited the ability to budget more effectively and set money aside for price increases as ways in which numerical proficiency could have benefited them. The survey also highlighted a reliance on others for financial assistance due to inadequate math skills, with 21% admitting to avoiding managing their money altogether. The findings underscore the need for enhanced numeracy skills to enable individuals to make informed financial decisions and address money worries effectively.
The study also revealed a lack of confidence in understanding commonly used financial terms, leading many adults to shy away from managing their finances. This avoidance behavior includes sidestepping scenarios involving numbers, such as calculating discounts or negotiating prices. A significant proportion of respondents admit to dodging financial news due to complex jargon or lack of interest, underscoring the need for better numeracy skills in everyday life. The survey findings raise awareness about the financial challenges faced by those with inadequate math skills and highlight the importance of promoting number confidence and skills across all sectors of society.
