A study into the financial commitments of 2,000 adults found one in ten have ‘never’ put money aside for anything, and almost one quarter ‘rarely’ save money to provide a buffer if the worst comes to the worst.

Most blamed the high cost of living, hefty mortgage payments and other debts for their inability to save money and safeguard their financial future, the report by new British bank Aldermore found.

A third said if they lost their job they would have to ask their parents for a hand-out, and one in five would rely on a credit card to get them through a sticky patch.

Meanwhile, one in ten said they want to enjoy their money now and not have it stashed away in a savings account.

Aldermore‘s managing director of savings, Simon Healy said:
“Having absolutely no resources is very high risk indeed.

“Putting aside just £20 a week can tot up to £1,040 – which could be two mortgage or rental payments for the average person, which could really help if things got tight.

“Some financial experts advise on having six months’ worth of mortgage or rent payments in an emergency fund, but for many people that is simply not achievable.”

Combined with council tax, TV licence and all the other utilities, the average household has outgoings totalling £1,105.

Forty-two per cent of adults said there is no way they could keep on top of all the outgoings if either they or their partner lost their jobs.

More than half said that their mortgage was by far the biggest financial strain, followed by credit cards repayments and council tax.

Healy added: “Most people’s rent and mortgage agreements are based on the salary they take home, so if they were to lose their job or have to change jobs and take a pay cut then it will impact considerably on the family’s finances.”