BusinessCompany News‘Personal finance too complex’

'Personal finance too complex'

Is the general public financially literate enough to cope with the complexity of modern personal finance?

Link: FDs turn on international standards

Nearly eight out of 10 finance directors think modern personal finances are so complex that the general public has little chance of being able to deal with them, writes Paul Grant.

This week’s Accountancy Age/Reed Accountancy Big Question found that 79% of those asked felt the public was not financially literate enough to cope with the increasingly complex world of personal finance.

‘Modern pensions, taxes and such are so complicated that the general public don’t stand a chance,’ said one respondent. ‘There are too many products, too many alternatives, conflicting reports and government advice and interference,’ said another.

‘If accountants struggle to sort these things out – as most do – then how do non-financial people manage?’

However, some felt it was ultimately down to the individual to maintain financial stability. ‘Store cards charge very high interest but people still purchase on them rather than using a cheaper bank loan,’ said Paresh Samat of Croner Consulting.

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