ISAs and other financial matters understood less than the offside rule, research finds | Personal Finance | Finance
More Brits know the intricacies of the offside rule than know about tax free ISAs, new research reveals.
On the day of the ISA deadline, new research from smart money app, Plum found that only 47 percent of people know about basic financial concepts like ISAs whereas 51 percent understand how offside works.
The study also found that while 55 percent of people understand the handball rule only 42 percent of people understand tax paid on interest and 40 percent understand tax thresholds.
The research found that majority of the population have heard of different types of ISAs, with almost four in five people (79 percent) familiar with cash ISAs, but only 41 percent could correctly identify that the minimum age to open a cash ISA is 16 years old, set to change to 18 in the next tax year.
Only 28 percent of people knew that the ISA deadline day is 5th April, whereas 44 percent of people can identify when the football transfer deadline day is.
The survey revealed some interesting differences between men and women when it comes to ISAs. Men were more likely to know the ISA deadline than women (32 percent, 24 percent).
Lioness and Manchester City goalie, Ellie Roebuck is one of many who has a better knowledge of football than finances. Roebuck said: “Just as saving goals are crucial on the football field, understanding your savings goals is vital for financial success.
“I remember early in my career, I had to make some tough decisions about my finances. Without a clear understanding of my financial goals and how to achieve them, I found myself in situations where I wasn’t maximising my savings potential.
“As a female footballer, my career is short and my earnings aren’t as high as my male counter-parts, so I need to be extra focused when it comes to looking after my money and protecting my earnings for my future.
“Getting a hold of my finances was a learning curve for me, but once I grasped the fundamentals of personal finance, I was able to make smarter decisions and secure my financial future.”
Only 45 percent of Brits said they were aware of the annual ISA limit of £20,000 whilst only a quarter (25 percent) understood that any money in an ISA exceeding this allowance will be liable to tax. The research found that 40 percent of people plan to put money into a Cash ISA this tax year, with the average savings of over £7,000 over the year.
Rajan Lakhani, money expert at Plum said: “Considering how the football rules are ever changing, it’s surprising to see that people understand more about football than finances. It is essential for people to grasp the fundamentals of personal finance in order to secure their financial futures. Just as football requires strategic planning to get the best outcomes, so does managing one’s finances.
“Through education and awareness, we can help people navigate the financial field with confidence, ensuring people can reach their ambitions and secure a strong financial defence for the future.
“As more people are drawn into paying tax on their savings with the tax thresholds having been frozen, making the most of your tax allowance is even more important. With the tax deadline day looming, saving with ISAs is often the easiest way to set aside money tax-free and meet your financial ambitions.”
