National Insurance, Inflation and APR – they all hit your pocket, but most don’t know what they are

People think they were taught too little about money matters in school, according to a new study. A study by impact investment firm BlueSphere found that more than nine in ten people (92%) had no idea what National Insurance was.

Most also don’t know what inflation (86%) and APR (72%) mean or what ETFs are (84%). It comes as three-quarters of Britons said they didn’t feel they had been trained enough at school or university to manage their finances – and more than half wish they had more knowledge about savings and investments.

The most important things people wish they had known include how to invest your pension, save on utility bills, and trade in the stock market. Mark Armstrong, Founder of BlueSphere, said, “It’s pretty amazing how little people understand their day-to-day finances.

“With people’s pockets set to be tight with the National Insurance hike in April and rampant inflation, it’s more important than ever that people know how to manage their money. We want to end financial illiteracy and encouraging schools, businesses and colleges to teach people at a younger age how to make important financial decisions like investing for the future.

The research further revealed how conscious society has become in a post-covid world, with half saying they would like to invest in businesses that have a positive impact on society. Yet more than two-thirds have not heard of impact investing.

Of those who have heard of it and do understand what impact investing is, a quarter think it avoids fossil fuels and in the tobacco industry – although most impact funds allow indirect investments in these industries.

The soaring cost of living is putting household budgets under pressure, with some having to choose between heating and food.

Here are some resources available if you need help.

Advice to citizens

Citizens Advice is an independent charity providing free, confidential assistance with legal, consumer, housing, debt and other issues. Its website details the help available and where your nearest office is, for face-to-face advice.

Helpline : 0800 144 8848 in England / 0800 702 2020 in Wales (open 9am to 5pm Monday to Friday)

The Trussell Trust

The Trussell Trust supports a national network of over 1,200 food banks, providing free emergency food to those in need. You can use its website to locate support wherever you live.

Hotline: 0808 208 2138 (open 9 a.m. to 5 p.m. Monday to Friday)

Turn2us

Turn2us is a national charity that provides practical support for people in financial difficulty. Its website includes a benefits calculator and details about programs and subsidies in your area, including for energy and water bills.

Hotline: 0808 802 2000 (open 9 a.m. to 5 p.m. Monday to Friday)

Mark Armstrong added: “ACIs should take the lead in helping to educate customers and the public, bringing clarity to what is often a complex and jargon-filled area. In the era of greenwashing, it is more important than ever that we give customers the full picture so they are not misled and can make decisions on their own backs. »

So what do all these terms mean?

National Insurance: National Insurance is money paid to the government by businesses and workers and it pays for things like NHS, unemployment, disability and sickness benefits.

Inflation: Inflation is the term used to describe the increase in prices over time. The rate at which these prices increase is called the rate of inflation and is usually determined by the purchasing power of a currency. So, if the value of the pound goes down, the prices of goods go up because you would need more money to be able to buy them.

APR: The annual percentage rate (APR) is the rate used to help you understand the cost of borrowing money for one year. It includes the standard fees and the interest you will have to pay.

AND F : An electronic funds transfer is the electronic transfer of money from one bank account to another, either within a single financial institution or between several institutions, via computer systems, without the direct intervention of bank staff. Bank.

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