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Brits not prepared to expensive milestones

February 22, 2011

According to new research, British people vastly underestimate the cost of big life events, such as having a baby, getting married or going to university. According to the HSBC bank, which conducted the study, Brits expect to spend just £190,000 on life’s big milestones while in actuality the can cost as much as £314,000.

Estimations were out by the most when it came to guesses on how much it cost to raise a child, with the average person suggesting just £85,000. In reality, however, most families shell out a massive £201,809 on every offspring.

The study also found that a lot of people are putting off such milestone events due to the fear of the cost. Many Brits were found to be delaying marriage until their 30s, while the average age for having a baby has risen from 27 to 32.

Head of Savings at HSBC, Richard Brown, warned that many people are underestimating the cost of life’s biggest events. He added that people will have to delay plans if they have not budgeted for things like babies and marriage.

The study also revealed that while fewer people are using their savings to pay a deposit on a house or pay off their student loan, more are dipping into them to pay for their wedding or buy their first car. A similar survey by Scottish Widows also uncovered that 70 percent of Brits feel the recession has caused them to disregard their previous priorities in life.

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