Numeracy is an essential everyday skill. At National Numeracy our aim is to help people improve their number skills and confidence in order to get on at home, work and in life.
A large part of everyday life concerns financial matters and low numeracy can increase vulnerability to debt, fraud, financial exclusion and unemployment.
Numeracy and the importance of understanding personal finance
Number skills and confidence go hand in hand with financial literacy, and a good understanding of personal finance is integral to helping people manage their money.
This could include understanding monthly income and outgoings as well as having the ability to understand and be able to apply for any benefits one may be entitled to.
Low numeracy is one of the greatest barriers to financial inclusion and has been described by the Financial Conduct Authority (FCA) as the largest consumer vulnerability affecting the nation.
Research carried out by National Numeracy and the Money & Pensions Service showed that the higher an adult's level of numeracy, the better their ‘Financial Capability Mindset’ was likely to be, relating to self-confidence, self-control and attitudes to better managing money.
The FCA's ‘Financial Lives’ survey meanwhile, shows that at least 34% of adults have either low or poor levels of numeracy involving financial concepts.
Low numeracy can affect earning potential
Low numeracy can also have very real consequences when it comes to earnings and career opportunities.
More than half of young adults say they have avoided applying for a job, going for an interview or pursuing a qualification because it might have involved maths.
Meanwhile, over a third (35%) of adults say they would be put off a job role if it mentioned having to deal with numbers and data.
More than two thirds of those unemployed in 2020 were estimated to have low numeracy and it is strongly connected to wage levels, contributing to up to £25bn each year in lost earnings.
What can be done to improve the link between numeracy and financial inclusion?
Numeracy is the strongest predictor of financial literacy.
National Numeracy offers training and workshops which aim to improve people’s number confidence – businesses and organisations wishing to help staff can find out more here.
Skills learnt by staff can then have a ripple effect by being passed on to customers and communities.
The National Numeracy Challenge meanwhile, is a free online tool that can be used on any device and which uses everyday maths questions to help improve number skills and confidence.
On Tuesday 12 November National Numeracy ran a webinar in conjunction with the Building Societies Association (BSA), for BSA members, which explored the importance of numeracy for financial inclusion.
National Numeracy CEO Sam Sims spoke about the issue of low numeracy in the UK, its implications, why we should all care about improving numeracy levels and the work and impact of National Numeracy, while Head of Impact and Evaluation Paul Foss explained the UK Numeracy Index, a tool built in collaboration with Experian that maps numeracy levels across the UK.
Data shows that addressing the widespread issue of low numeracy in the UK could boost jobs, careers, earnings and productivity. It could also support regional growth, all while fuelling social mobility.
Therefore, improved numeracy has benefits not only to individuals, but to society and the economy also and is an issue well worth addressing.
