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.
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.
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+.
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%.
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