New research from Hodge Bank has revealed that nearly half (45%) of those between the ages of 18-34 need to borrow from a loved one to be able to pay an unexpected cost of £500.
In comparison, 1 in 5 (19%) of those between 45-54 would have to borrow money, and just 1 in 10 (11%) of 55–64-year-olds. This drops to just 5.8% for those above the age of 65.
When it comes to paying for an emergency cost of £500, nearly half of Brits (46%) would pay this from their debit account, while two in five (41.4%) would have to pay this on their credit cards.
However, the survey by Hodge Bank revealed that 1 in 5 Brits aren’t putting away anything at all from their salaries each month for emergencies.
When it comes to the most frequent unexpected costs that crop up, car and house payments are leading the way for needing emergency funds. The top five unexpected costs that Brits face are:
| Unexpected cost | % of Brits that’ve had to pay this in the past year |
| Car repairs | 37.6% |
| Home repairs | 30% |
| Vet bills | 17.2% |
| Emergency dental/medical treatment | 15.2% |
| Childcare costs | 8.7% |
Christie Cook, Managing Director of Retail at Hodge, says:
“This research paints a clear picture of how everyday life is increasingly unpredictable for many, especially for younger adults. What’s most striking is the regularity of these unexpected costs. For some people, this isn’t a rare occurrence but something they’re dealing with weekly, if not daily.”
With continued pressures from inflation and living costs, many households are finding it harder to maintain a financial buffer. The frequency of unplanned expenses leaves less room for longer-term financial planning and increases the need for accessible, short-term savings options.
As the gap widens between age groups and regions in terms of financial stability, the ability to access savings quickly when needed is more important than ever. It’s prompting people to rethink how they manage their money day-to-day.”
Hodge has responded to these shifting needs by offering a new Easy Access Savings Account, giving savers more flexibility to deal with life’s surprises.
While long-term saving remains important, many are now prioritising quick access to funds for emergencies and irregular expenses.
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