Alarm as financial literacy fails to add up for many

More than half of respondents to a survey could not answer basic financial literacy questions. (Dan Peled/AAP PHOTOS)

Cost of living pressures may have put an increased focus on money issues, but a report has shown large gap emerging in financial literacy skills.

A report by Your Financial Wellness showed 60 per cent of people were unable to answer basic financial literacy questions correctly, such as on interest and inflation.