Making Up A Shortfall
A new baby in the house is a source of joy, but the unexpected expenses that often accompany the new arrival are anything but.
In fact, a baby can put a strain on the finances of even the most financially savvy parents. Budgeting account provider thinkmoney did some research to see how people would cope with an unexpected £200 bill - whether it's caused by a new arrival or not - and to establish how good UK residents are at managing their finances.
Overall, one in six people admitted that they would have to borrow money if they had to make a £200 payment out of the blue. This is equivalent to 8 million men and women. In addition, one in five respondents to the survey (more than 10.5 million people) said they would be able to find £200 at short notice - but would have to make cutbacks elsewhere. Meanwhile, 9% conceded they would have to borrow from friends and family to pay a £200 bill - and 8% said they simply wouldn’t be able to cope.
Across the UK, it seems Scots are the best at managing their day-to-day budgets - 34% told thinkmoney that they could easily find £200 for an unexpected payment. Just 12% of respondents from Northern Ireland and the North East of England said the same. One thing that can help is better budgeting. When people keep a close eye on their finances, it should be much easier to see what they can afford to spend - and what they can afford to set aside each month for any unexpected expense.
thinkmoney.co.uk, who provide an alternative to a bank account,
Of course, regular bills are one thing, but unexpected expenses are another. There's no 'magic bullet' that can ensure there's always enough for those unexpected bills - but the better you understand your monthly budget (and the more you can set aside for a rainy day) the easier it should be deal with them when they do pop up.
This article was provided by ThinkMoney.
Consumer Intelligence questioned a nationally representative sample of 2,149 adults aged 18 and over between 11th and 14th September 2013. Figures have been extrapolated to fit ONS 2013 population projections of 50,371,000 UK adults.