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Our Approach
What
we want to achieve
We share a vision of better informed, educated and more confident citizens,
able to take greater responsibility for their financial affairs and
play a more active role in the market for financial services.
Improving the financial capability of people in the UK will be a big
challenge, but the prize is enormous.
Numerous studies have shown that many people find personal finance
difficult. The subject can be complex and people can find thinking about
their long-term financial security dispiriting or even distressing.
But most people can become more confident if enough effort is made at
the right time to help them help themselves. Part of the challenge lies
with relatively poor numeracy and literacy skills in a significant part
of the population. Government initiatives to raise national standards
of numeracy and literacy are a welcome and important foundation for
efforts to improve financial capability.
Personal finance education, taught in a compelling and practical way,
can make all the difference later in life. Information and advice services
that are presented in the right place and at the right time to be most
useful can offer support to people who might otherwise feel out of their
depth or powerless. A population well-served in this way and well-versed
in personal finance will be one that is more capable, competent and
self-reliant.
People who understand their financial circumstances are more likely
to make sensible choices and adequate provision for their futures. They’ll
use a range of financial services that can make their lives easier.
They're more likely to have a sensible level of insurance. And they
ought to reach retirement age with more to live on than the State pension.
They won't pay more interest than they need to when borrowing, or get
less than they should when saving. They're less likely to find themselves
tied into a product when they would be better off going elsewhere. They
won't have insurance they don't need, or be exposed to risks that they
don't understand.
And, because a capable customer is a less vulnerable customer, the
FSA will have less need to intervene with detailed rules on financial
promotions and conduct of business.
All of the above can also have benefits for other parties (including
Government and a whole range of advice and support services) dealing
with the consequences of poor financial decision-making. It can help
reduce levels of debt, poverty, repossessions, stress, illness and even
crime.
