Only 14 per cent of first time buyers and renters are able to accurately calculate how much they will spend when they move out of home, new research suggests.
A study by VoucherCodesPro.co.uk found the majority of young people who rent or buy for the first time underestimate their outgoings by an average of almost £200.
The poll questioned 1,673 people aged 18-30 from around the UK, each of whom had either bought their first home or rented a property for the first time in the last six months. Respondents were asked about their bills in the early stages of living in their property.
The majority of respondents, 63 per cent, said they underestimated how much their first round of monthly bills would be by an average of £198.00.
Bills most commonly underestimated were gas/electricity (42 per cent), followed by water (27 per cent) and ‘TV/entertainment package’ (21 per cent).
However 23 per cent of respondents had overestimated how much their monthly outgoings would be in the initial stages of living in their home, by an average of £167.00. Just 14 per cent of the respondents said they accurately calculated how much their bills would cost.
Vouchercodes chief executive Nick Swan comments:
“Moving out of home into your own place for the first time can be a bit of a learning curve, especially when it comes to bills. Managing your money correctly and making sure you’ve accurately worked out how much everything is going to cost you is really important. When setting budgets and working out the cost of bills, it’s always best to overestimate and then you can put an excess into savings”
