Latest news with #ReflectingIreland
Irish Examiner
a day ago
- Business
- Irish Examiner
Four in 10 adults unable to answer Junior Cert exam question on inflation
An overwhelming majority of Irish adults believe they have an 'average' or 'high' level of financial literacy, but more than 40% could not correctly answer a Junior Cert-level business sample exam question on the impact of inflation on household purchasing power, research shows. The PTSB Reflecting Ireland research revealed 90% of respondents think they have average or high financial literacy, but only 58% identified that high inflation is bad for their purchasing power, with 27% incorrectly saying it is positive for them, 10% incorrectly saying it would remain the same, and 5% saying it makes their personal finances more stable. Just under 10% of survey respondents said their financial literacy is low. This cohort reported feeling down about their finances and uncomfortable talking about money to family and friends. Some 40% of respondents cited the belief that feelings of embarrassment can be a key barrier to improving financial understanding. Only 53% of people are comfortable talking to a friend or family member about money. Protection against scams 'These results highlight that support is needed to educate people on the importance of financial literacy in order to increase financial resilience, inclusion, and protection against financial scams,' said PTSB chief sustainability and corporate affairs officer Leontia Fannin. Some 47% felt technology has helped them to better understand fees and charges, financial products and services available, and their personal spending habits. This rises to an average of 57% for 18 to 24-year-olds. Those over 55 are the least likely group to have used technology to help understand their finances better. Regarding the rise of AI, 27% of respondents said they would be comfortable getting AI-generated advice on how to better manage their money (up from 24% last year). This increases further to 42% for 25 to 34-year-olds. 'People rating themselves with high financial literacy are more confident about the benefits of AI and technology in building knowledge and generating advice. This suggests an opportunity for people to embrace digital tools to support them in their day-to-day budgeting and financial awareness,' Ms Fannin said. Read More Grocery prices now rising three times faster than other goods
Irish Independent
2 days ago
- Business
- Irish Independent
Large numbers of consumers confused about impact of inflation on purchasing power
And many consumers have a limited understanding of how the tax on savings accounts works. That is according to a new survey that lays bare the extent of financial illiteracy in this country. The PTSB 'Reflecting Ireland' research revealed that nine out of 10 of respondents think they have average or high financial literacy. But specific questions asked as part of the survey contradict this view that people understand personal financial matters. The research found that four out of 10 respondents could not correctly answer a Junior Cert level business sample exam question on the impact of inflation on household purchasing power. They were asked if high inflation is bad for their purchasing power – the quantity of products and services available for purchase with a certain amount of money. The research found that only 58pc of respondents identified that high inflation is bad for their purchasing power. Some 27pc got it wrong, answering that high inflation was not bad for their purchasing power. And 10pc incorrectly said their purchasing power would remain the same in a period of high inflation. Some 5pc said high inflation makes their personal finances more stable. ADVERTISEMENT Consumers were also asked about the impact of DIRT (Deposit Interest Retention Tax) on their savings. Only of respondents were able to correctly calculate the total amount of savings they would earn after DIRT is applied. PTSB said these findings were consistent with other aspects of the survey, which also asked respondents to assess for themselves their ability to understand financial terms, concepts and products. Just under 10pc of respondents said their financial literacy is low. This cohort reported feeling down about their finances and feeling uncomfortable talking about money to family and friends. Some 40pc of respondents cited the belief that feelings of embarrassment can be a key barrier to improving financial understanding. The survey, conducted by Core Research, also found that only 53pc of people are comfortable talking to a friend or family member about money. PTSB chief sustainability and corporate affairs officer Leontia Fannin said the results of the survey show that more needs to be done to raise financial literacy levels. 'These results highlight that support is needed to educate people on the importance of financial literacy in order to increase financial resilience, inclusion, and protection against financial scams,' she said. Almost half of respondents felt technology has helped them to better understand fees and charges, financial products and services available, and their personal spending habits. This increases to an average of 57pc for those aged between 18 and 24. Those over-55 are the least likely group to have used technology to help understand their finances better. A drop in consumer sentiment towards the economy was also recorded in the replies. More than half believe the country is on the wrong track, a number which has grown significantly since the start of the year. Some 42pc say their financial situation has deteriorated over the past 12 months. And a third say they expect to be worse off in a year's time, and a similar proportion say they will be no better off.
Irish Examiner
2 days ago
- Business
- Irish Examiner
Is inflation good or bad for your purchasing power? Four in 10 Irish people don't know
An overwhelming majority of Irish adults believe they have an 'average' or 'high' level of financial literacy but more than 40% could not correctly answer a Junior Cert level business sample exam question on the impact of inflation on household purchasing power, a new research showed. The PTSB 'Reflecting Ireland' research revealed 90% of respondents think they have 'average' or 'high' financial literacy but only 58% identified that high inflation is bad for their purchasing power, with 27% incorrectly saying it is positive for them, 10% incorrectly saying it would remain the same, and 5% saying it makes their personal finances more stable. Just under 10% of survey respondents said their financial literacy is low. This cohort reported feeling down about their finances and feeling uncomfortable talking about money to family and friends. Some 40% of respondents cited the belief that feelings of embarrassment can be a key barrier to improving financial understanding. Only 53% of people are comfortable talking to a friend or family member about money. 'These results highlight that support is needed to educate people on the importance of financial literacy in order to increase financial resilience, inclusion, and protection against financial scams," said PTSB chief sustainability and corporate affairs officer Leontia Fannin. Almost half (47%) of respondents felt technology has helped them to better understand fees and charges, financial products and services available, and their personal spending habits. This increases to an average of 57% for 18-24-year-olds. Those over-55 are the least likely group to have used technology to help understand their finances better. Regarding the rise of artificial intelligence, 27% of respondents said they would be comfortable getting AI-generated advice on how to better manage their money (up from 24% last year). This increases further to 42% for 25-34-year-olds. "People rating themselves with high financial literacy are more confident about the benefits of AI and technology in building knowledge and generating advice. This suggests an opportunity for people to embrace digital tools to support them in their day-to-day budgeting and financial awareness," said Ms Fannin.
