Financial Capability - Evidence Review

Abstract

This report provides a brief overview of current evidence on financial capability as it relates to disadvantage in Scotland. It was commissioned by the Scottish Government and carried out by the Employment Research Institute, Edinburgh Napier University in order to provide an evidence platform for stakeholders, with an interest in financial inclusion, to develop a more strategic approach in their support for financial capability. Current high levels of individual indebtedness, an increasingly complex and rapidly changing financial landscape, an increased focus on individual responsibility and the effects of the current financial crisis, indicate there is a growing need for improved financial capability. However, as demonstrated by Scottish Household Survey (SHS) data, large parts of the population such as many young or unemployed people lack full financial capability. This report does not consider the availability and regulation of financial services as these are generally reserved matters and not directly the responsibility of the Scottish Government.