" class="no-js "lang="en-US"> Brits feel at home with their finances despite not knowing what a mortgage is - Fintech Finance
Sunday, May 28, 2023
Point Zero Forum

Brits feel at home with their finances despite not knowing what a mortgage is

The vast majority of the UK population (87%) claim they are comfortable managing their personal finances and are confident in their understanding of financial vocabulary (69%). However, one in four (23%) are unable to explain what a mortgage or interest rate is – according to new research.

The study, carried out by FX trading training company Samuel & Co. Trading, found that less than half (40%) could confidently explain the terms ‘stocks & shares’ and ‘insurance premium’. Meanwhile, when it comes to financial abbreviations, only one in six Brits (17%) could explain what an ISA is, and only a third (35%) are comfortable explaining APR.

Of those claiming to be savvy with their money few are planning for their financial futures – nearly half (46%) don’t know how much they pay into their pension, just under a quarter (24%) don’t have any emergency savings and over half (52%) don’t have a 5-year plan for their finances.

18-24-year-olds are the least comfortable with their finances – less than half of them (46%) understand the T&Cs of their credit card, and over half (57%) don’t know how much they pay in tax each month.

Samuel Leach, Founder of Samuel & Co. Trading, said: “It’s quite shocking to learn that over half of the population don’t have a solid financial plan in place – there’s clearly a difference between thinking you have your finances in order and the reality of your savings!

Understanding basic financial vocabulary is a vital part of learning to be savvy with money, and underpins some of the most important financial decisions we make, like finding an affordable mortgage or signing up for a credit card. While free training on these basics is available, I believe a lack of understanding stems from these terms not being taught at school – more needs to be done to ensure young people grow up with a better understanding of the financial world.

  1. US B2B Payment Tech Firm Plastiq Has Declared Chapter 11 Bankruptcy Read more
  2. Pesto Takes on Pawn Lending, Announcing Launch of the First Asset-Backed Credit Card and New Funding Round Read more
  3. DC BLOX, Inc. Announces 2nd Subsea Cable in Horry County Read more
  4. Fannie Mae Reminds Homeowners, Renters, and Mortgage Servicers of Disaster Relief Options for Those Affected by Typhoon Mawar in Guam Read more
  5. PayrollOrg Announces Recipients of Third Annual Showcase Standout Awards Read more