Family finances: are you beating the UK average?

A new report sets out exactly how much the average UK household earns, owes, spends and saves.

Favourites

by Michelle McGagh on May 31, 2012 at 08:47

Looking forward

Over the next three months people are most concerned about a significant increase in the price of basic necessities, losing their jobs and unexpected expenses.

Driven by these concerns people are willing to make more cut backs and save more, with 67% of families admitting they could make further cut backs, If spending is cut back to the bone, most families could afford to save an extra £53 per month.

Although this is a relatively small amount Kelsall said families should not be deterred from saving more.

‘While 67% of families believes they would be able to make cuts to their expenditure if necessary, there is not much room for manoeuvre,’ he said.

'If they cut spending to the bone the typical amount families could afford to save is an extra £53 per month – less than a typical tank of fuel. However, even small amounts can grow into substantial sums over time, so we’d encourage families to consider carefully whether to spend or save any spare cash.’

Email a friend

Email me when someone comments on this article Print

9 comments so far. Why not have your say?

But surely this average family will be in receipt of benefits - what impact does that have?

report this

Re. benefits, I think most of the economy is kept afloat by government borrowing. I have often wandered just what the government could afford to pay public sector workers, pensioners and benefit claimants if we said tomorrow, no more borrowing. Incidentally, I believe current government borrowing far from going down, is at historically high levels. I'm afraid the pain will only get worse and last a lot longer than we are being told.

report this

£9000 on credit cards? What on earth were they thinking?

report this

I personally at any one time can have £7-8K on credit cards but most of this will be on 0% interest deal (paid off when deal ends|) and the rest paid off each month. It's a useful way of getting free credit; I wander how much of the £9K average is on that basis.

report this

4% of £1,680/month is £67 a month or £806.40 a year for all entertainment and all holidays for the average family (of say 2 adults 2 children).

That equates to 2 trips to the cinema/bowling/other per month OR

2 cheap meals out per month OR

1 x 14 day holiday at £57/day accommodation travel and food.

Hardly the high life is it and that's only the average? Really??

report this

is that £25800 gross or net ?

report this

Britain needs to be more like the old days when thrift and saving were virtues, and debt a crime unless for something really essestial that has productive output for the country as well as the individual.

Until people learn to save and invest wisely then they and the country will always be poor.

report this

I sometimes wonder where these numbers come from or are they, like 83% of most statistics, made up on the spur of the moment.

report this

kenneth douglas

Jun 01, 2012 at 11:04

I agree with Dennis. The average Net income per person for England/Wales is way below £25,800 per annum, more in the region of £23,500. In Wales the average pensioner income is in the region of £8,800. Statistics can be so misleading

Do Citywire do any research themselves or do the just push out the scribblings of others.

report this

Please sign in here or register here to comment. It is free to register and only takes a minute or two.