People need to start putting money into savings accounts in case they suddenly have to pay out unexpected bills, Legal & General has said.

The latest MoneyMood Survey from the group shows that 11.5 million homes are treading a fine line between meeting monthly outgoings and sinking into debt.

Almost a third (30 per cent) of those polled revealed they have to find extra cash to pay for bills each month as they do not have any stashed away in savings accounts.

Mark Gregory, Legal & General executive director of savings, said: "What we used to call 'Saving for a rainy day' has perhaps never been more appropriate.

"Our figures suggest that saving a modest amount, say £50 to £75 per month, would help most households to 'expect the unexpected'."

Earlier this week, M&S Money recommended that parents should instil good financial habits in their children from a young age.