I hope this finds you well. It’s Samuel here, and today, I want to delve into a topic close to my heart: financial literacy in the UK. This isn’t just about numbers and balance sheets it’s about creating a culture where individuals feel empowered to make confident financial decisions, whether they’re navigating their first savings account or exploring investment opportunities.
You might be surprised to learn that financial literacy remains a significant challenge for many across the UK. A recent survey highlighted that around 23 million adults nearly two-fifths of the population struggle with the basics of financial management. Fewer than 20% could answer three simple questions on savings, inflation, and investment diversification. Even more concerning is that 20% couldn’t answer a single one correctly. It’s clear there’s a gap, and it’s one we can’t afford to ignore.
The Youth Challenge
When I think about the future of financial literacy, young people are at the forefront. Our youth face some of the toughest challenges in navigating today’s financial landscape. The Financial Conduct Authority (FCA) has flagged that nearly a quarter of UK adults lack confidence in managing their money, with younger generations feeling this impact acutely. And while schools are incorporating financial education into the curriculum, we’ve found there are still gaps in how consistently and effectively this education is delivered. This is a reality that needs our collective attention.
Education: More Than Just Lessons
Financial literacy isn’t just a subject we teach in classrooms; it’s a foundation for life. There have been great strides in educating over 4 million young people in 2023 alone, thanks to industry initiatives. But even with these efforts, financial knowledge and confidence vary widely depending on where you live and your background. The numbers tell us that individuals in more deprived areas tend to face greater financial challenges, underscoring the need for targeted educational support.
Where We Stand Globally
As someone who’s travelled the world studying finance and markets, I’ve seen how different countries approach financial education. The UK ranked ninth out of 17 OECD countries in financial literacy—placing us behind countries like Indonesia. I find this ranking unsettling, especially considering our resources and potential. We have a remarkable opportunity to lead by example and create a generation that feels confident in managing their finances and making decisions that benefit their futures.
Bridging the Gap: What We Can Do
At Samuel and Co Trading and TAB, we’ve always believed that financial empowerment is for everyone. We’re committed to sharing knowledge, insights, and strategies that make a tangible difference. As we continue to work with clients and community members, our goal is to foster a more financially literate UK, one step at a time. From understanding the basics to developing strategies for complex investments, we’re here to provide the guidance and support needed for everyone to thrive.
Financial literacy is more than a measure of knowledge; it’s a foundation for financial resilience and independence. The journey to improving it is a collective one, and together, we can make a real difference.
Thank you for being part of this community, and here’s to building a more financially empowered future for the UK. As always, please feel free to reach out if you have any questions, ideas, or simply want to chat about the latest in finance.
Warm regards,
Samuel Leach
Director, Samuel and Co Trading
Head of Investor Relations, TAB
