Financial Literacy - The United Kingdom

The United Kingdom

The UK has a dedicated body to promote financial capability - the Money Advice Service.

The Financial Services Act 2010 included a provision for the FSA to establish the Consumer Financial Education Body, known as CFEB. From April 26, 2010, CFEB continued the work of the FSA's Financial Capability Division independently of the FSA, and on April 4, 2011, was rebranded as the Money Advice Service.

The strategy previously involved the FSA spending about £10 million a year across a seven-point plan. The priority areas were:

• New parents
• Schools (a programme being delivered by pfeg)
• Young Adults
• Workplace
• Consumer communications
• Online tools
• Money advice

A baseline survey conducted 5,300 interviews across the UK in 2005. The report identified four themes:

• Many people are failing to plan ahead
• Many people are taking on financial risks without realising it
• Problems of debt are severe for a small proportion of the population, and many more people may be affected in an economic downturn
• The under-40s are, on average, less financially capable than their elders

“In short, unless steps are taken to improve levels of financial capability, we are storing up trouble for the future.”

There are also numerous charities in the United Kingdom working to improve financial literacy such as MyBnk, Credit Action, The Talking Economics Project, Citizens Advice Bureau and the Personal Finance Education Group.