Early money guidance at home and school may support stronger financial confidence in adulthood, survey suggests

A nationwide Financial Literacy Score Index, commissioned by Bank of Ireland and conducted by Red C, suggests that early guidance on money at home and in school may contribute to stronger financial confidence in adulthood. While only a quarter of adults recall learning about money in school or college, the findings indicate that those who did are more likely to be financially managing or thriving today.

Ireland’s average financial literacy score is 54% - with just over half of questions answered correctly - according to the survey, emphasising the need for initiatives such as Ireland’s National Financial Literacy Strategy and Bank of Ireland’s financial literacy programmes to help build money skills from an early age.

Only a minority of adults, 27%, recall being taught about money in school or college, yet the survey suggests a benefit for those who were. Thirty-seven per cent of people in the thriving category and 31% of those who are managing learned about financial skills through education, compared with just 16% of those who are struggling.

The survey also suggests a link between early exposure at home to conversations about money and financial wellbeing in adulthood. Fifty-seven per cent of people in the thriving category and 54% of those who are managing say their parents talked about managing money when they were children, compared with just 29% of those who are struggling.

Other key findings from the research include:

• The survey results suggest that financial education is improving for younger cohorts. Around one in three (34%) of 18–34-year-olds said they were taught about money in school or college, compared with only one in five (21%) of those aged over 55. Similarly, 56% of 18–34-year-olds reported that their parents talked to them about money when they were children, compared with 41% of those aged over 55.
• Although overall levels have remained static, there was some improvement among 18-24 year olds whose financial literacy score increased by five percentage points.
• Financial literacy differs by gender, with men recording an average literacy score of 58% compared with 50% for women.
• Performance varies widely by topic. Respondents scored highest on basic numerical tests (69%) and on understanding the price of items (65%). Knowledge of savings and tax reliefs was lowest, with only 38% of savings questions and 47% of tax relief questions answered correctly.
• Respondents scored better on pensions (50%) than on savings, despite savings being part of everyday money management and pensions often being viewed as more complex.

Áine McCleary, Chief Customer Officer, Bank of Ireland said:

“A strong theme in this research is the importance of early, practical conversations about money in homes and schools. When children hear and see how money is managed day to day, they carry those skills into adulthood. That is why we support families with tools like our Smart Start current account and linked Money Pot savings account, and why we invest in programmes for students such as Money Smarts.

“We were also struck by the topic results. Savings scored lower than pensions, which runs counter to what many might expect. We have often thought of pensions as being daunting for consumers, but this suggests an even bigger challenge in building everyday saving habits and understanding, and in making the basics feel clear and doable.

"It is disappointing to see a gender gap in financial literacy persisting even among younger age groups. Addressing this gap will help build financial confidence, contribution to life choices and outcomes. We are committed to doing our part, working with schools, communities and families to help close that gap.”

Bank of Ireland offers a Smart Start current account for children aged seven and above, together with a linked Money Pot savings account designed to support saving habits from an early age. Our primary school financial literacy programme Smart Start with Ollie links those money conversations happening at home with learning in the classroom.

For secondary schools, our Money Smarts programme is built around the six pillars of financial wellbeing. Covering topics like saving, spending, credit, debt, and financial decision making, it provides teens with the knowledge and skills they need to be more confident with money. The programme also includes an annual all-Ireland financial literacy quiz - the Money Smarts Challenge - which brings financial education to life in a more engaging and experiential way.