More than half of Britons would treat themselves to a luxury holiday if they won £125,000 on Who Wants to be a Millionaire? according to the latest research from Halifax Financial Services.

Its research found that the most popular destination for some or all of the windfall would be a bank or building society, with a luxury holiday second and paying off some or all of their mortgage first. But only 24 per cent of people would consider investing any windfall in the stockmarket.

However, Britons reluctance to invest for their futures is not surprising, as the majority of UK adults don't understand the benefits of financial planning or the products available.

Only 17 per cent of respondents said they were confident they could definitely explain what a liquid savings account was to a friend or colleague a liquid savings account is a standard bank or building society savings account which pays interest and allows instant withdrawals.

Only 43 per cent of people said they would definitely be able to explain the difference between short and long term savings short term savings are typically liquid savings, long term savings are where money is invested over the longer term, say five years, is not immediately accessible and the aim is to produce higher returns than those available from short term, or liquid savings.

Only 26 per cent of people were aware that financial advisers recommend having enough rainy day money to live on for three months before putting their spare assets into long-term savings. All financial advisers will make sure that customers have a contingency fund, in liquid savings, before recommending customers tie their money up over the longer term.

Halifax Financial Services managing director Ray Milne said: "Making your money work for you is so important but what this research shows is that the majority of people don't know how to. Everyone should have a mixture of short and long term savings designed to meet specific needs. A financial adviser can help people work out how much they can save and support people in achieving their aims, like retiring early.