This is according to new research from uSwitch.com, the independent price comparison and switching service.
Moreover, almost three quarters of Brits (71%) say that a lack of basic personal financial understanding is to blame for debt. And with the level of personal debt already exceeding £1.5 trillion, the Government's decision to shelve plans to add financial education to the curriculum could be a costly one.
Less than one in ten people (7%) think we are financially educated as a nation. Four in ten people (40%) say we're less financially educated than previous generations, while seven in ten (70%) say that personal finance is a lot more complicated today than it was previously. Consumers now face a vast array of products, from bank accounts and credit cards to different mortgages and high interest pay-day loans. But as personal finance has become more sophisticated, our understanding has shrunk, leaving a knowledge gap that is costing people dear.
Ann Robinson, director of consumer policy at uSwitch.com, said: "Our poor understanding of personal finance is costing us money and now looks to be getting worse with each generation. While our debt is increasing, our knowledge is decreasing - the situation is a ticking time bomb.
“The Government needs to start taking this seriously and should urgently re-instate plans to get financial education onto the curriculum. It's not the only one with a large debt issue to overcome - consumers owe £1.5 trillion in personal debt and need the basic knowledge and understanding to get this back under control.”
