ABSTRACT

This chapter analyzes financial literacy in the UK. Data from the 2016 Financial Literacy Survey of the Consumer Finance Research Center (CFCR) are used to assess financial literacy in the UK, paying attention to ten areas of knowledge (e.g. payments, bank accounts, loans and debt, investments, retirement and planning, etc.). In the first part some descriptive analysis assesses the financial literacy of the whole sample, taking into account the correlation between different areas of knowledge. The second part presents the results of empirical analysis devoted to investigating the relationship between individual financial literacy and some socio-demographic characteristics (e.g. age, gender, income, education, etc.). Results show that, on average, Britons correctly answered 43% of the 50 financial literacy questions. On the other hand, in some areas the percentage of correct answers is pretty low (e.g. 19% for ‘bonds’), while it is quite above the average in other cases (e.g. 69% for ‘payments’).