Many people think they are more financially literate than they appear to be, according to a new survey from PTSB.
Its Reflecting Ireland survey found that 90% of adults rated their financial literacy as 'average' or 'high'.
However 40% of respondents could not correctly answer a Junior Cert-level question about inflation, while just 20% were able to calculate the impact Deposit Interest Retention Tax has on savings.
"What we're seeing is a significant gap in people's own perception of their level of financial literacy," said Leontia Fannin, chief sustainability and corporate affairs officer at PTSB.
"What it's showing is further education, further support needed for people across all cohorts of society to ensure that there is financial inclusion, resilience and financial well-being and health for everybody into the future," she said.
A lower level of financial literacy not only impacts a person's ability to properly manage their finances, but also means they are more vulnerable to scams and malicious actors.
"It's hugely important for people and there are certain barriers to people that they've cited," Ms Fannin said.
"People are somewhat overwhelmed by the amount of information they're getting, they sometimes find it too confusing - and people sometimes talk about financial jargon. That sometimes lead to levels of embarrassment and people won't necessarily raise an issue when they might not understand a specific level of information that's in front of them," she added.
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The PTSB survey found that younger people had a lower opinion of their financial knowledge than older adults - however this could simply be down to them being more honest.
"Younger people are definitely saying they're less confident about their own levels of financial literacy, yet they're less embarrased about talking about it - so I think that's a good sign," Ms Fannin said. "They're more likely to ask question in relation to certain products or services if they don't understand."
The survey also captured a dip in consumer sentiment. 56% of respondents said they believed the country was on the track, up five percentage points on the survey from January.
Two fifths said their financial situation had deteriorated in the past year, while one third expected their situation to get worse over the coming 12 months.
"There's no doubt there are certain challenges for people at the moment," said Ms Fannin.
