PTSB Reflecting Ireland research reveals gap in financial literacy amongst adults in Ireland

• 90% of respondents think they have ‘average’ or ‘high’ financial literacy but 40% fail to correctly answer Junior Cert level questions
• 42% of respondents incorrectly think that high inflation is positive for them, makes their personal finances more stable, or has no effect
• 80% of respondents could not demonstrate an understanding of the impact of DIRT on their savings

PTSB’s latest Reflecting Ireland research series has shown that there is a significant gap in Irish consumers’ perception of their own financial literacy.

While over 90% of respondents said they have an ‘average’ or ‘high’ level of financial literacy, more than 40% could not correctly answer a Junior Cert level Business sample exam question on the impact of inflation on household purchasing power. Furthermore, c.80% of respondents could not demonstrate an understanding of the impact of Deposit Interest Retention Tax (DIRT) on their savings.

The research revealed only 58% of respondents identified that high inflation is bad for their purchasing power, with 27% incorrectly saying it is positive for them, 10% incorrectly saying it would remain the same, and 5% saying it makes their personal finances more stable. When asked about the impact of DIRT on their savings, only c.20% of respondents were able to correctly calculate the total amount of savings they would earn after DIRT is applied. [Note: - examples of the questions asked are in the Note to Editor at end of this release].

These findings were consistent with other aspects of the survey, which also asked respondents to assess for themselves their ability to understand financial terms, concepts and products.

Just under 10% said their financial literacy is low. This cohort reported feeling down about their finances and feeling uncomfortable talking about money to family and friends. 40% of respondents cited the belief that feelings of embarrassment can be a key barrier to improving financial understanding.

Willingness to use technology, such as AI, to help financial understanding

On a more positive note, the research also found that advancements in technology (e.g. digital banking, AI) have supported almost half of all respondents in improving their financial literacy, and this is more so evident amongst young people.

Technology has helped on average 47% of all respondents to better understand fees and charges, financial products and services available, and their personal spending habits. This increases to an average of 57% for 18-24-year-olds. Those over-55 are the least likely group to have used technology to help understand their finances better.

Regarding AI specifically, the research has found signs that people are becoming more comfortable with AI, though they are still more comfortable talking to a human being about their spending habits.

• 27% of respondents said they would be comfortable getting AI-generated advice on how to better manage their money (up from 24% last year). This increases further to 42% for 25-34-year-olds
• 34% are worried that AI might pose a risk to their job in the future (down from 40% last year)
• 61% are worried that the increased use of AI will lead to more sophisticated financial fraud (down from 72% last year)
• 63% say that while AI might be capable of analysing their spending patterns, they are more comfortable with talking to a human about it (down from 70% last year)

PTSB committed to supporting customers with their financial wellbeing

PTSB is committed to playing their part in supporting customers with their financial wellbeing and has a continued focus on improving the financial literacy of its customers through education, inclusion and digital tools.

Some recent initiatives include

• Financial Wellbeing Hub on ptsb.ie, offering tools and resources for everyday money management
• Partnership with LIFT Ireland to deliver the ‘‘Minding Our Futures” Schools Programme, which supports students with building good financial habits and behaviours
• New in-app feature to allow customers to book a free financial review, in partnership with Irish Life

Other key findings

• Only 53% of people are comfortable talking to a friend or family member about money
• Younger people aged 18-24 feel much less confident than over-55s about their ability to understand finance
• 51% feel that ‘financial jargon’ is a barrier to people understanding their finances better. Other perceived barriers include the process being overwhelming (48%) and lack of motivation to understand (36%)
• There is strong evidence that more than half manage to keep within their budget, with only 12% saying they always go over budget and a further 32% saying they often do this.
• Those who report low financial literacy are the least likely to plan to budget or manage their income and expenses, keep track of spending or to look for financial advice.

Drop in consumer sentiment towards the economy

• Over half (56%) believe the country is on the wrong track, a number which has grown significantly since the start of the year (51%)
• 42% say their financial situation has deteriorated over the past 12 months
• 34% say they expect to be worse off in a year’s time and a further 38% saying they will be no better off
• Cost of living issues remain a challenge for many (identified by 70% of people as one of the top 3 issues to be addressed), followed by the price of housing (48%) and access to healthcare (39%)
• Despite these concerns, attitudes towards savings are still relatively strong. If given €1,000 in the morning, 60% of respondents say they would save or invest it, while the remainder would spend it
• However, 32% of people say they would rather spend money to enjoy themselves now instead of saving for the future

The research was conducted on PTSB’s behalf by Core Research.

Leontia Fannin, Chief Sustainability & Corporate Affairs Officer at PTSB said

“These results highlight that support is needed to educate people on the importance of financial literacy in order to increase financial resilience, inclusion, and protection against financial scams.

While there is a strong preference for human support when it comes to managing finances, interestingly those rating themselves with high financial literacy are more confident about the benefits of AI and technology in building knowledge and generating advice. This suggests an opportunity for people to embrace digital tools to support them in their day-to-day budgeting and financial awareness.

While economic uncertainty has become more significant after a period in which we saw the risk of trade tariffs and supply chain disruption increasing sharply, we find that those who rate their financial literacy as low, are more likely to have negative feelings towards the economic situation. Improving financial understanding is a key step in helping people feel more in control of their financial decisions.”

Claire Cogan, Behavioural Scientist at BehaviourWise, said

“Good financial literacy leads to better financial wellbeing, an important element of our overall wellbeing. It promotes financial resilience, helping us manage through financially tough times.

It helps protect us from financial scams, frauds and bad practice. At a societal level, the more of us that have a good level of financial literacy, the more inclusive our financial system is.”

Read the full Reflecting Ireland report here

Note to Editors

PTSB’s Reflecting Ireland research is conducted every quarter and is based on an online survey of 1,000 adults across Ireland. The sample was nationally representative of the population based on age, gender, social class and religion. Fieldwork was conducted between 16 and 30 May 2025.

The Junior Certificate Business questions asked in the study were

• What happens to household purchasing power during high inflation?

(Options given: Purchasing power is reduced; it increases; it stays the same; it becomes more stable. Correct answer: Purchasing power is reduced.)

• Kevin plans to save €8000 this year. Using the information above, calculate the interest he will receive and the total value of savings after one year?

(Information provided: €8000, savings rate 4%, DIRT 33%. Correct answer €8,214.40)