The survey of 3,000 adults in the UK, conducted ahead of National Numeracy Day on Wednesday 22 May 2024, found that a fifth of the respondents struggled with basic maths problems, including calculating discounts, negotiating prices, and understanding loan terms.
Maths skills and the cost-of-living crisis
A quarter of respondents believe stronger numeracy skills could have helped them navigate the current cost-of-living crisis. An additional 42 per cent said they could have saved more for price increases, and 41 per cent could have budgeted more effectively.
Relying on others to manage finances
The study also revealed the increasing reliance on others for financial assistance. 21 per cent of respondents admitted to relying on others to manage their finances due to inadequate maths skills, a slight increase from the 19 per cent who reported the same last year. While 20 per cent admit to avoiding financial management altogether.
Sam Sims, Chief Executive at National Numeracy which runs the National Numeracy Day campaign, said: “Soaring costs for energy, food and other basic essentials have hit those worst off the hardest. The survey results show a lack of number confidence is compounding money worries for millions.
“Clearly, the confidence to understand and work with numbers can no longer be viewed as a ‘nice to have’ but as crucial to navigating not only our finances, but daily life. Good numeracy is a pillar for building a financially inclusive, resilient and socially mobile nation. Join us this National Numeracy Day”.
Bina Mehta, Chair at KPMG in the UK, added: “In today's complex world, numeracy skills are fundamental in promoting financial inclusion and enabling individuals to make informed choices, especially against the backdrop of the current cost-of-living crisis. Those lacking number confidence are even more vulnerable to debt, unemployment and fraud, and those from lower socio-economic backgrounds are disproportionately impacted.
“If we want to build a fairer and more inclusive economy, individuals, businesses, policy makers and education leaders all have a crucial role to play in ensuring numeracy skills are prioritised.”
Mind-bending terms
Common financial terms that respondents find ‘mind-bending’ include stocks, personal contract purchases (PCP), bonds, annual percentage rate (APR) and credit scores. This lack of understanding extends to financial news, with 29 per cent avoiding headlines where possible. 47 per cent of those stated they didn’t find it interesting and 40 per cent thought it was too complex.
