A recent article published in The Guardian highlighted the fact that many of us have a poor understanding of personal finance.
We often underestimate the cost of certain aspects of living or life events:
“The average person thinks that it costs just £50,000 to raise a child from birth to leaving home, when one study puts the actual figure at £229,000”
“We think the average debt for a student coming out of university is only £21,000, when the actual average owed is more than £44,000”
“The average person thinks they only need to have a pension pot of £124,000 to get an annual income of £25,000 per year, including their state pension […] Most people will need well over £300,000”
While it seems that most of us do not like to talk about money, this may lead to problems further down the line. By changing your attitude towards money and taking the time to think about savings and pensions, you can make sure you are best prepared for the future.
If you need help understanding personal finance, please get in touch. We’d be happy to talk to you about structuring and managing your money.