The bank’s report shows that on average, life’s ‘big events’ cost around £310,279 in total. However, most of us think that it costs around £178,140 – that’s a massive £132,000 off the mark.
Britons are most oblivious to the expense of raising a child, which they undervalue by £92,000. Student debt is underestimated by £34,000 and weddings are £12,000 more expensive than people expect.
The cost of these events has risen by 14% since 2011, a figure largely attributed to the soaring costs of university fees.
Head of Savings at HSBC Bruno Genovese said: “Life’s big events can require a substantial financial outlay and many of those who are yet to go through them are vastly underestimating the costs involved, particularly in light of the hikes to university fees and high inflation.”
Genovese advises people to start saving or risk having to delay these events. To find out how an accountant can help you prepare for a financially secure future, please take a look at our Personal Finances page.
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