Some 23m adults have poor financial literacy, according to new research.

The survey of 3,000 by Opinium for investment group Abrdn found a level of ignorance or confusion that would make it difficult for people to take even the most simple decisions about managing their money.

In response to the worrying figures, Bath-based Chartered Financial Planning firm Unividual has launched Financial Wellbeing Workshops aimed at businesses, charities, organisations and school students across the UK.

Abrdn’s survey uncovered that only 20% of participants could correctly answer basic questions on interest rates, inflation, and investment diversification, with 40% of UK adults showing poor financial literacy.

The findings highlight the urgent need for comprehensive financial education, said Cherie-Anne Baxter, marketing director at Unividual.

She said: "Financial literacy is a crucial life skill that should be cultivated from a young age. Our goal is to equip students with the knowledge and tools they need to make informed financial decisions, ensuring they are prepared for the future. Without this people are going to just keep making the same mistakes with money over and over again. Without education we cannot expect local communities to foster equity and equality."

The workshops will cover essential topics such as budgeting, saving, managing debt, protecting your family from financial risks and understanding retirement.

By integrating practical financial education into the school curriculum, Unividual said it hopes to foster a generation of financially savvy individuals who can confidently navigate their financial futures.

Simon Jones, Chartered Financial Planner at Unividual said: "As a father of two young children, the thought of them growing up without the knowledge of money management is unthinkable. That's why I'm passionate about delivering these workshops.

“Where I can, I even deliver these workshops for free if it is for existing clients who own a business or work in a school. I have also delivered free workshops to charities too. Ensuring that future generations are better equipped to manage their finances is a cause close to my heart."

Other research from Wealth at work found that more than half (59%) of employers consider poor financial literacy as a major workplace financial wellbeing risk.

Jonathan Watts-Lay, Director, Wealth at work said: “Unfortunately, it’s well known that when individuals do not fully understand their finances and how to address current difficulties and mitigate potential risks, it can result in stress. In turn, this can lead to lower employee productivity and is a major workplace risk.”

He said helping employees to understand the key financial issues that relate to them is an effective way of overcoming the risks of poor financial literacy.

• The survey by Opinium for Abrdn included 3,000 adults and assessed financial literacy based on questions developed by the Global Financial Literacy Excellence Center.