Adults in the UK appear to have little idea how much their average monthly outgoings come to and how long they would be able to survive on their savings should they lose their income.
This is according to Bright Grey’s Reality Gap Report, which revealed that people believe their typical outgoings to be £892 each month, when it is in fact £1,378.
In addition, 43 per cent are sure they could rely on savings to pay bills if faced with unemployment but 38 per cent would not be able to survive above a month on savings alone.
Proposition director at the company Roger Edwards noted that “it’s clear that Brits are ill-informed when it comes to their finances”, adding that a lack of understanding regarding monthly expenditure makes it “very difficult to budget and plan effectively”.
However, Britons also appear to be the most concerned population in Europe when it comes to debt.
A recent survey from Janus Capital indicated that 35 per cent consider their debt levels to be too high relative to salary.
By Sarah Adie