Brits would score low in finance test

Brits need to swot up on their personal finance knowledge as an estimated 4.7 million would score low less than 40 per cent in a simple personal finance test, according to research conducted by a bank.

Abbey Current Accounts found that a test of GCSE standard proved challenging for some, with many straight-forward questions on credit cards, loans and mortgages baffling participants.

Among the misunderstandings displayed in the exam papers of the entrants to the test, was that 47 per cent did not know that negative equity is when your mortgage is higher than the value of your house.

As many as 87 per cent did not know that the period before a credit card begins to accrue interest is six weeks long.

Steve Shore, Abbey’s head of banking, described the results as "quite worrying given we selected questions that we felt everyone with a bank account should know".

Government plans to amalgamate personal finance into the Maths GCSE appear to have been vindicated, as 18 to 24 year-olds faired badly with a 50 per cent average score.