UK Financial Literacy Gaps Persist Across Generations, Studies Find

LONDON, August 19, 2026 — Financial literacy remains uneven across the UK, with research conducted at different points in recent years showing substantial gaps in knowledge among adults and younger people. A 2023 study conducted by the Centre for Economics and Business Research, or CEBR, on behalf of Wealthify surveyed 2,250 Britons on 10 financial subjects, including inflation, taxes, pensions and savings. Participants needed to score at least 6.5 out of 10 to meet the study's Financial Literacy Benchmark. Yet 73% scored below that threshold, while only 5% answered all 10 questions correctly. The study, created to measure financial knowledge across age groups and regions, also found that the UK performed poorly compared with similarly developed countries such as France, Canada and New Zealand.

More recent research provides additional evidence on financial knowledge and capability. The Financial Conduct Authority’s (FCA) Financial Lives 2024 survey collected responses from 17,950 UK adults, with fieldwork conducted from February 5 to June 16, 2024, and the findings first published on May 16, 2025. The survey provides a national view of consumers' financial circumstances, attitudes and experiences, while the London Foundation for Banking & Finance (LFBF) published its Young Persons’ Money Index 2025–2026 on November 27, 2025. The LFBF has tracked the financial attitudes and behaviors of UK 15- to 18-year-olds for more than a decade, surveying 2,000 teenagers annually on their relationship with money and access to financial education.

Financial Knowledge Remains Uneven

The 2023 CEBR research provides a direct measure of financial knowledge. The 10-question assessment covered subjects that affect everyday money decisions, including inflation, taxes, savings, pensions, mortgages and investing. With nearly three-quarters of respondents failing to reach the 6.5 benchmark and only one in 20 answering every question correctly, the findings showed that many Britons struggled with fundamental financial concepts. The study also found an association between financial literacy and financial behavior: seven out of 10 respondents with the highest level of financial literacy contributed to a pension, while those at the top of the benchmark scale had a savings rate 13% higher than those at the bottom.

The FCA’s Financial Lives 2024 survey provides a more recent national dataset covering financial circumstances and experiences among UK adults. Conducted in 2024, the survey examines areas including savings, investments, mortgages, credit and loans, pensions, financial advice, payments and financial resilience. Because the FCA survey covers a wider range of financial experiences than the CEBR knowledge test, the two studies measure different aspects of financial capability and should not be treated as directly comparable scores. Together, however, they provide evidence from different methodologies and periods on how UK adults understand and manage financial matters.

Younger Britons Face Larger Knowledge Gaps

The 2023 CEBR research found a substantial gap between age groups. Respondents aged 16 to 18 averaged just 2.3 correct answers, compared with 6.2 among those aged 71 to 80. Even the oldest group remained below the 6.5 benchmark. Among 16- to 18-year-olds, only 46% correctly answered the question about how inflation affects savings, while just 36% of respondents under 18 answered the mortgage question correctly. The findings are particularly relevant to people approaching financial independence, when decisions involving employment, savings, borrowing, housing and everyday spending can become more immediate.

The LFBF’s Young Persons’ Money Index 2025-2026 offers newer evidence on financial literacy among teenagers. Published on November 27, 2025, the index found that 80% of teenagers wanted to learn more about money and finance, while 53% wanted to improve their financial situation but did not know how. Only 19% could answer all three of the study's “Big Three” questions on interest, inflation, and risk correctly, and just 3% answered all five of the LFBF's financial-capability questions correctly. Parents were the main source of financial information for 61% of respondents, compared with 9% who identified school as their main source and 2% who cited banks.

Photo credit: Wealthify

Regional Differences Add Another Dimension

The 2023 research also found differences in financial knowledge between UK regions. Respondents in the South-West achieved the highest average score, at 5.5 correct answers, while the North-East recorded the lowest average at 4.3. Neither regional result reached the 6.5 benchmark, while respondents in the North-East performed particularly poorly on questions involving inflation and investing. The figures show that financial knowledge varied geographically while remaining below the study's benchmark in the regions measured.

These differences matter because financial literacy covers subjects that influence decisions about saving, borrowing, investing and long-term financial planning. Knowledge of inflation can help people understand how purchasing power changes, while understanding investment risk can inform decisions about where and how to put money to work. The regional results therefore add another layer to the age-related differences identified by the research, showing that financial knowledge is not uniform across the UK population. The FCA’s 2024 survey provides a separate national dataset that can be examined across demographic groups and financial circumstances, although it uses a different methodology from the CEBR benchmark.

Financial Education Remains Important

The research highlights the importance of financial education in developing financial knowledge and improving money management. The 2025–2026 Young Persons’ Money Index found that 80% of teenagers wanted to learn more about money and finance, but only 9% identified school as their main source of financial understanding. The same research found that 64% of respondents experienced anxiety about money. Parents remained the main source of financial information for 61% of teenagers, highlighting the role of informal sources in developing financial knowledge.

The findings from the three research programs cover different populations, dates and methodologies, but they point in the same direction: financial literacy remains an important issue across generations. The 2023 CEBR study found that most respondents failed to meet its financial-literacy benchmark, while the 2025-2026 LFBF research found low financial capability among teenagers and strong demand for more financial education. The FCA’s 2024 survey adds a large, recent dataset covering the financial circumstances and experiences of UK adults. Taken together, the research shows why financial education remains relevant to decisions involving inflation, saving, borrowing, investing, pensions and everyday money management.