A recent survey by Wealthify, in partnership with The Centre for Economics and Business Research, shows almost three quarters of the country fall below a new Financial Literacy Benchmark. Aimed at measuring peoples understanding of 10 common money topics, such as inflation, taxes, pensions and savings.
"This means that not having a good grasp of the basics is likely to have a significant negative impact on peoples financial wellbeing. There is also a literacy gap between younger and older generations the score for people in their 50s is over 50% higher than for their childrens generation (18 to 25-year-olds).
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If you are feeling a little sketchy on things you know you ought to know (such as being able to work out how much interest your savings are earning, or what dictates how much you pay each month on a variable mortgage rate), perhaps it's time for a proactive approach, for the long term health of your finances?
Weve rounded-up of some brilliant money mantras from the financial experts and businesswomen weve interviewed for our My Life in Moneyseries. We've also suggested a few ways to up your financial knowledge base:
Spend less than you earn
Claer Barrett, consumer editor and columnist for the Financial Times, author of What They Don't Teach You About Money.
The single most important money habit to master is spending less than you earn. It's that simple! Generate a monthly surplus, however small, and you can build up an emergency fund, save towards bigger ticket items like a holiday or housing deposit and grow your long-term savings over time by investing in tax-efficient pensions and ISAs. We're not taught about how to do these things; as consumers, we're just trained to spend all of our money on stuff! But it's much easier than you might think.
Learn to say no!
Makala Green, chartered financial expert, author of The Money Edit
A 'yes' can be very expensive. I have had many financial regrets because I couldn't say no, and I'm not alone on this one because I hear it from women all the time. I have now learned to weigh my options and prioritise in terms of value both now and in the future. If it doesn't make financial sense, it's a 'no' from me.
Set yourself goals
Davinia Tomlinson, founder of rainchqand author of Cash Is Queen: A Girls Guide to Securing, Spending and Stashing Cash
Get clear on the goals you have for your life and then align your financial plans to fit. Otherwise, its easy to lose focus, get distracted by social media or be influenced by others on what we think we should be doing with our lives based on arbitrary deadlines that may not actually be priorities for us.
Have some self-belief
Financial journalist Laura Whateley, author of Money: A User's Guide
Being on top of your personal finances is a lifelong project - like exercising or eating well. And it's one that I think that all those who are not in poverty can tackle with some basic financial education and a bit of self-belief however allergic you are to spreadsheets or red budgeting books.
Learn to save
PensionBee founder and CEO Romi Savova
Make a savings habit. The earlier you start and the more regularly you do it, the better outcomes you have in the long-term. Future you will obviously thank you.
Practice good work ethics
Selina Flavius, founder of the financial coaching and training company Black Girl Finance
As someone who runs their own business, my mantra is 'do the work and the money will come', which reminds me that as long as I'm willing to work, it will come.
Dont shy away from technology
Louise Hill, co-founder and chief operating officer of GoHenry, the money app for kids
In my twenties, I spent pretty much everything I earned. In my thirties, I had two kids and a big mortgage that seemed to eat up every penny. In my forties, I started to try to save into a pension, but it is only in my fifties that I've started investing. And I have to thank some of the mobile apps that have demystified investing it always sounded like something that old men did in stuffy clubrooms apps like MoneyBox and Nutmeg have made it simple and accessible.
See money as an enabler not an end goal
Merryn Somerset Webb, senior columnist at Bloomberg, former editor-in-chief of Moneyweek and contributing editor to the Financial Times:
It is important to think about money not as a thing in itself but as representative of what it can do for you. For me money is freedom.
Always be involved in financial decision-making
Cath Kidston, founder of homeware brand, Cath Kidston Limited and author of several books including A Place Called Home:
The biggest lesson was when my father died young from cancer my mother had been entirely dependent on him financially and it was a huge shock for her to have to manage her finances. She managed really well but I never wanted to be in that situation myself so it gave me a tremendous drive to work.
Use your money mindfully
Holly Tucker, founder of notonthehighstreet, now championing creative small businesses with Holly & Co:
Vote with your money for the kind of world you want to live in. For me, that's building businesses that do good, its spending with small businesses and independents and its using my money to be creatively fulfilled.
* Money apps worth downloading to help you keep track of your spending include Emma, Plum and Money Dashboard. If you are looking to open a new bank account and keep a better track of your money in one, check out challenger banks like Starling, Chaseand Monzo.
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A recent survey by Wealthify, in partnership with The Centre for Economics and Business Research, shows almost three quarters of the country fall below a new Financial Literacy Benchmark. Aimed at measuring peoples understanding of 10 common money topics, such as inflation, taxes, pensions and savings.
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