Psychological rather than informational differences may explain much of the variation in financial capability reported in the FSA (2006) Baseline Survey. This applies both to differences between individuals and across competence dimensions. The Baseline Survey indicates that in most capability categories, scores improve with age and the level of general education. This is consistent with the importance of attitudes rather than teachable specific knowledge. If poor financial capability is mainly a matter of psychology, the information-based approach of the National Strategy for Financial Capability is likely to have only a modest effect in improving outcomes
