Britons underestimating costs of main events in life
Brits underestimate costs of milestone life events like going to university, having a child, and tying the knot, according to a recent study.
Research conducted by HSBC highlighted that life’s big events can cost anything up to £314,000. Instead of being fully prepared however, Britons expect to shell out just £190,000.
According to the report, the biggest underestimation is how much having a baby costs, with Brits under the illusion it costs £85,788 to bring a child up, compared with the £201,809 that it actually costs.
Due to huge expenses of milestone events, the report also found many Brits are putting procrastinating until later life. This means that many people are not having a child until they reach anything between 27 and 32 while others are delaying getting married until they are in their 30s.
Richard Brown, who is HSBC’s Head of Savings, told how life’s big events are expensive and many yet to complete them are underestimating the huge costs involved. The reality, Brown continued, is that people might have to postpone many of these key milestones and make sure they fully understand budgetary implications before starting to plan their finances.
The study found that more Britons are now using savings accounts to pay for their first car or their wedding. However, less people are dipping into their savings to pay off university debts or raise the deposit required for their first house.
Recent studies by Scottish Widows revealed that just over 70% of people feel they have struggled to put enough time into prioritising their life since the recession.