Lack of confidence with numbers ‘is hurting people’s finances’

Many of us will remember dreading maths lessons when we were at school, but discomfort with numbers can follow us into adulthood.

And that can have a serious impact on people’s financial choices.

According to Barclays research, more than a quarter (27%) of adults have either avoided financial tasks or faced money issues over the last year because they weren’t confident in their number skills.

And nearly half (43%) believe their finances would be in better shape if they were more confident dealing with numbers.

So what struggles do people face?

The survey showed that half (50%) of adults believe there are specific areas where better number skills could make a big difference, such as:

• understanding interest on credit cards, loans and savings
• making informed financial choices
• planning for the future

Young adults would like better number skills

Interestingly, young adults feel this lack of confidence in their maths skills very strongly.

Nearly two-thirds (61%) of 18 to 27-year-olds said they’d like to improve their number skills.

That’s well above the national average of 39%.

Meanwhile, 76% said they believe stronger number skills would improve their finances.

And significantly, 80% recognise that basic maths skills are vital for making smart money decisions.

“We know that people’s relationship with money starts to be formed around the age of seven,” said Vim Maru, CEO of Barclays UK.

“So it’s crucial that we are providing children with the number confidence to help them manage and grow their finances in later life.”

Could financial education help people avoid falling into debt?

We recently surveyed people we’ve supported with debt advice and found that 94% didn’t get any financial education when they were younger.

But notably, 80% said they thought it would have made a difference to their situation.

When asked what particular topics would have helped them manage their money better, they said

• budgeting - 77%
• understanding what credit and debt is - 68%
• how to save money and why it's important - 62%

We’ve long argued that financial education in schools needs to improve, as it can help people manage their money, make informed decisions and plan for a secure future. 

Having a greater understanding of money-related concepts, such as budgeting, saving and debt management, also helps people make better choices and achieve their financial goals. 

And at a time when money-related products seem to be getting more varied and complex, financial literacy is becoming an increasingly crucial skill to possess.