How Much Will You Spend in Your Lifetime? Data Reveals Where Money Goes and How It’s Rised with Inflation

Data shows the average cost of living in Britain is more than £32,000 higher than the average worker’s income.

According to research by Atom Bank, the average Briton’s life costs just under £1.68 million, or £1,675,399 to be exact.

High inflation in recent years has seen the total amount rise from £1.54 million in 2021 – an increase of around £140,000.

In 1971, the average life cost less than half what it costs today, at £81,453.

The largest expenses for an average life are buying a house, raising children, and vacations.

House prices have risen by more than 5,704 per cent over the past 50 years. This year, the average home costs £299,000, more than eight times the average salary of £34,963, and £32,258 more than in 2021, according to Atom Bank.

According to the research, raising a child costs around £287,570 per child over a lifetime. This is £118,411 more than in 2021, highlighting the impact of inflation.

According to the research, holidays account for £198,093 of our total spending. Britons, the data shows, will spend £90,876 more on holidays in their lifetime than when the figures were last calculated in 2021.

The research found that Britons spend around £140,533 on birthday presents and Christmas in their lifetime.

However, many people indicate that they have spent much less money on gifts in recent years because they are struggling with rising bills.

Recent figures from the Office for National Statistics show that prices rose by 2 per cent in the year to June, unchanged from May and the lowest figure for almost three years.

The interest rate remains at 5.25 percent, but the Bank of England is expected to cut rates later this year.

Working from home reduces transportation costs

It will come as no surprise to commuters that transportation costs account for a significant portion of many people’s total expenses.

Based on recent data, Britons spend around £101,990 on transport in their lifetime.

But the rise in hybrid and home working means that our lifetime transport spend is likely to be £36,658 lower than it would have been in 2021.

The cost of owning a pet has skyrocketed in recent years, with Atom Bank claiming that the average person spends £54,608 on their dogs and £33,300 on their cats over their lifetime.

This means that if someone has a cat and a dog, their total expenditure on pets could be around £87,908.

The highs and lows of life can be expensive too.

On average, Britons spend around £13,500 on weddings in their lifetime, with the cost of divorces also adding to the spending in some cases. However, the cost of weddings and divorces can vary considerably and be much higher or lower than stated.

The lifetime cost of eating out for the average Briton will be around £47,705, compared with £3,979 over a lifetime since 1971, according to Atom Bank. Many service sector businesses have been forced to raise prices to meet the increased costs.

Compared to 2021 data, Britons are spending more across their lifetimes but have cut back in some categories due to the ongoing cost of living crisis and high inflation in recent years.

According to Atom Bank, the average lifetime expenditure calculations are based on an average life expectancy in the UK of 81 years.