The FSA says tackling low financial literacy needs to be a long-term aim which demands a concerted effort from financial advisers, government and other parties.
The call follows last week's publication of a report by the National Association of Citizens' Advice Bureaux, which highlights the impact of financial literacy on individuals' financial security.
Head of consumer education Deborah Arnott says: “The Nacab report confirms how easy it can be for people to get into dire financial straits through a lack of understanding. We have an objective from the Government to improve consumer awareness of financial matters. There is much to do. It will take considerable resources and a sustained commitment from all quarters- government, trade associations, educational organisations, the money advice sector and firms themselves to make a real difference.”