Almost half of all adults in the UK reportedly struggle with financial literacy, often not understanding key concepts such as compounding returns, inflation, and risk. This lack of understanding can hinder financial independence.
Lizzie Gaisman, chief executive of The Richmond Project, a charity founded by former prime minister Rishi Sunak, suggests that poor numeracy skills in schools can be linked to the rising number of young people not in education, employment, or training (NEETs).
A report by former minister Alan Milburn found approximately one million young people, or one in eight, are NEETs, and this figure is increasing. Gaisman states that a lack of confidence with numeracy contributes to this rise, describing it as a "huge national challenge."
Research by The Richmond Project indicates significant socioeconomic, age, and gender disparities in financial literacy across the UK. The charity has partnered with the Department for Education to help children learn more about financial concepts in classrooms, including testing a new curriculum.