THE Institute of Financial Services claimed last night that a growing number of Britons are "financially illiterate" - lacking even the most basic knowledge of money matters.
Research by the institute found that 79 per cent of people did not know what the term APR meant, while 29 per cent could not explain what a standing order was.
Some 18 per cent of people had no understanding of inflation and such ignorance lays people open to being ripped off through unsuitable products or dodgy financial advisers, analysts warned.
Around 40 per cent of people admitted to not really understanding financial products such as mortgages and ISAs.
And 32 per cent said that they were lacking confidence in handling their financial affairs.
Some 30 per cent did not know that products which protected them from unforeseen events were known as insurance products.
Meanwhile, only 30 per cent could calculate 4 per cent interest on £2,000 over two years.
The institute is tackling the issue by offering AS and a new A-level equivalent qualification in personal finance management in 92 schools.
It urged schools nationwide to take up the courses.
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