As financial literacy becomes increasingly crucial in navigating modern life, a staggering 70% of Brits believe that financial education should be a mandatory part of the school curriculum. To find out more about the state of Britain's financial literacy, Shepherds Friendly has conducted a survey of 2,000 Brits on their knowledge of ISAs, investing, insurance, income protection and general personal finance. The results reveal significant insights into the nation's understanding of essential financial concepts.Fewer than one in four Brits passed Shepherds Friendly’s money literacy testWith just 23% of those surveyed passing the test, this indicates that there are substantial gaps in Britain’s financial literacy. Shepherds Friendly also conducted a money literacy test in 2024 which 49% of people passed, and in 2023 which saw a pass rate of 27%, suggesting that financial understanding has slipped.In the most recent test, men were more likely to pass than women (29% vs 17%), while younger adults are struggling the most, with only 9% of 18-24 year olds achieving a passing score compared to 34% of those aged 55 and over.Nottingham was revealed to have the highest pass overall pass rate at 33%, followed by Bristol (30%) and Brighton (29%). Meanwhile, Leeds had the lowest pass rate at just 15%.The 10 Cities with the Highest ‘Financial Literacy’ Pass Rates The 10 Cities with the Lowest ‘Financial Literacy’ Pass Rates RankCityPass rateRankCityPass rate1Nottingham33.0%1Leeds15.4%2Bristol30.4%2Belfast15.5%3Brighton28.1%3Cardiff15.6%4Southampton28.0%4Manchester19.8%5Sheffield26.1%5Newcastle20.3%Young people face the biggest knowledge and confidence gapsConfidence is also low across key financial topics. Nearly half (48%) of Brits said they don’t feel confident investing, 43% aren’t sure which ISA suits their goals, and 39% lack confidence with pension planning.However, younger generations were consistently found to have the lowest levels of both understanding and confidence across almost every financial topic. Over half (56%) of 18-24 year olds said they don’t understand pension planning, while 55% said they aren’t confident in choosing the right ISA.This lack of financial confidence appears to be having wider effects on wellbeing. 51% of 25-34 year olds said they struggle to manage their finances amidst rising costs, and almost half (46%) said financial worries have caused them to lose sleep. A further 55% said money concerns have negatively affected their mental health.The findings suggest that the absence of financial education earlier in life is leaving younger adults ill-equipped to manage their money and plan for the future.Brits call for personal finance to be taught in schoolsSeven in ten Brits (70%) believe personal finance should be part of the school curriculum, with 72% saying lessons should focus on practical skills such as how to save and invest.A lack of financial understanding may also be preventing people from preparing for emergencies or achieving their long-term goals. Around half (54%) of Brits said they regularly review their financial progress, while just three in 10 (34%) feel confident they’ll reach their financial goals.Experts warn that without improved access to financial education and advice, many people risk falling further behind in their financial wellbeing.Derence Lee, Chief Finance Officer, at Shepherds Friendly says:“Our survey showed that many people feel unsure about different areas of personal finance, from investing to insurance. But understanding key financial topics and the products that can help plan for the future is essential for feeling confident when making decisions about your money. Improving financial literacy can benefit everyone, whether you’re just starting out or already thinking about retirement.“There’s plenty you can do to build your money skills. Even small steps, like exploring online learning tools, using budgeting apps, or reading trusted resources, can make a real difference. For those who feel unsure where to start, speaking to a qualified financial adviser can help turn confusion into clarity.“There’s also a responsibility on providers of financial products to make their offerings easy to understand. At Shepherds Friendly, we aim to be a jargon-free zone, helping people learn about our products and personal finance topics so they can make informed choices. By improving financial knowledge, we can all make smarter decisions, feel more confident, and build a stronger financial future for ourselves and our families.”NoYesPersonal Finance31 Mar, 2026