Research carried out by Stroud & Swindon claims that for millions of Brits, details of income tax and stamp duty, as well as mortgages and ISAs often prove confusing and unclear.
Furthermore, the study by what is the UK’s 15th largest building society suggests that the problem is more prevalent among the nation’s women that it is among men.
Paul Chafer, sales and marketing director at Stroud & Swindon, said: “Understanding basic personal finances is key to consumers making the most of their income and, ultimately, avoiding significant debt problems.
“While it is worrying to see that the UK population has a relatively low financial IQ, it is particularly concerning to see that women are not measuring up to their male counterparts.”
According to figures released earlier this year by accountancy firm KPMG, there were enough Brits entered into an Individual Voluntary Arrangement during 2007 to fill the new Wembley Stadium.