Following research released by National Savings and Investments (NS&I) claiming nine per cent of British consumers have no understanding of inflation, the investment provider has said such terms are “confusing”.
According to the figures, released earlier this week, a further 31 per cent knew the meaning of “inflation” but not how it affected their savings, while 28 per cent said they did not know how money put aside was influenced by tax.
NS&I advisor Gill Stephens has now said people are trying to manage their savings but terms are difficult to understand.
“I think it’s probably quite common that people are confused by the language in the financial industry, but [with] some of that language it is important that people do get to grips with,” she said.
Ms Stephens added there is financial advice available for people wishing to save. Those facing bankruptcy or debt management problems may also benefit from studying the meaning of financial terms.
NS&I’s figures were described as “concerning” by its sales director this week.
By Morwenna Kearns