A majority of Irish adults believe they are financially literate, but new research reveals a significant gap between public confidence and actual financial understanding, according to PTSB’s latest Reflecting Ireland survey.
The study found that 90% of adults rated their financial literacy as either “average” or “high.” However, when tested on basic financial concepts, many struggled. Notably, 40% were unable to correctly answer a Junior Certificate-level question on inflation, and only 20% could accurately calculate how Deposit Interest Retention Tax (DIRT) affects 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. “It shows that further education and support are needed across all areas of society to ensure financial inclusion, resilience, and long-term well-being.”
Fannin warned that limited financial knowledge not only affects personal money management but can also leave people more susceptible to scams and fraud. “People can feel overwhelmed by the amount of financial information available, often finding it confusing or filled with jargon,” she said. “This can lead to embarrassment and reluctance to seek help when they don’t understand something.”
The survey also revealed generational differences in attitudes toward financial literacy. While older adults were more likely to rate their knowledge highly, younger respondents were more likely to acknowledge their limitations. Encouragingly, younger people were also more willing to ask questions and seek clarification about financial products and services.
“Younger people are definitely less confident in their financial knowledge, but they’re also less embarrassed about discussing it,” Fannin noted. “That’s a positive sign, as it means they’re more open to learning and improving their understanding.”
The findings come amid growing concerns over the cost of living. According to the survey, 40% of respondents said their financial situation had worsened over the past year, and one in three expects things to deteriorate further in the next 12 months. Meanwhile, consumer sentiment remained cautious, with only 56% believing the country is on the right track—an improvement of five points since January, but still indicative of broad economic unease.
“There’s no doubt that there are real financial challenges facing people today,” Fannin said. “That makes it even more important to ensure that everyone has the tools and knowledge they need to navigate their finances confidently and safely.”
