New research reveals people aren’t as financial savvy as they like to think

1100 people were quizzed about personal and public finances, it seems we don't have a clue how much we spend on things.

New research by Ipsos MORI and King’s College London states that the general public isn’t always bang on the money when it comes to estimating personal and public finances.

They quizzed 1100 people, asking questions regarding the cost of raising a family, the average deposit put down on a house and how much a University education costs. Read on to find out the results…

To take the quiz for yourself click here >

The cost of raising children - Underestimate

As a nation, we massively underestimate the cost of raising a family. Those who took part were asked how much it costs to raise a child to the age of 21 and the average guess was less than a quarter of the true cost.

Average guess: £50,000

Actual figure: £229,000

The cost of childcare – Overestimate

When it came to guessing the average cost to send a child under two to nursery for 25 hours a week, people general overestimated how much it would cost – thinking it was double what it really is.

Average guess: £200 a week

Actual figure: £115.45 a week

The cost of a university education – Underestimate

We all know that going to university these days is more expensive than it used to be, thanks to eye-watering tuition fees. However, the general public still underestimated how much debt the average graduates leave with.

Average guess: £21,000 of debt

Actual figure: £44,000 of debt

The average cost of a house in the UK – Spot on

People generally did know how much the average house in the UK costs. The average guess was almost spot on, only £4,166 off. Those living in London did tend to overestimate, with almost 1 in 3 thinking that the average price in the UK was £300,000+.

Average guess: £190,000

Actual figure: £194,166

The average house deposit – Underestimate

We might know how much the average house costs but when it comes to the average house deposit then we’re way off. Only 1% of those questioned suggested a figure between £70,000 - £79,000.

Average guess: £20,000

Actual figure: £72,202

Current Bank of England base interest rate – Spot on

Average guess: 0.5%

Actual figure: 0.5%

49% of people knew that the current Bank of England base interest rate was 0.5%, but this could be due to the fact that it’s stayed the same for the last six years. When asked what the average Bank of England base interest rate has been over the past 40 years, many people found this trickier, guessing 4% on average which is almost half the actual figure of 7%.