Financial ignorance costs £32,000

The average couple will have lost the equivalent of a years wage through financial ignorance by the time they reach their early middle-age says new research.

The study by the Institute of Public Policy Research (IPPR) showed that an average couple aged between 35 and 49 with two kids loses around £32,000 due to bad decisions.

An equivalent couple with no children loses around £22,000 while a single, childless contemporary loses around £13,000.

The research, commissioned by Norwich Union, said that it highlighted the need for compulsory financial education in the UK.

“It pays to get clued up,” said Miranda Lewis, senior research fellow at IPPR.

“This research shows that when financial education is introduced onto the curriculum next year it could pay real dividends later in life.

“But we also need to go beyond education to support the millions of adults who are currently struggling with their finances.

“More advice and support needs to be made available to all adults.”

The most common reasons for poor financial decisions and failing to find the best rate deals included the complexity of finances, short-termism and a lack of low-cost advice.

© Adfero Ltd

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