How much should a normal 20yr old have saved?

[shanease134]

Just a curious question. I have never had a PROPER job just done a few bits there and now but always managed to save what I've made.

The question is, what should the normal 18-20yr old have saved with no parental help?

I want to know what job this person has. When I leave school and worked full time I only earned about 500 a month. I need this job NOW

Exclude the 10k a year in clubs that was a broad example and dont use 200 a week as facts
So all complete bullshit then. £20k is only 1400 a month. You say he spends over 800 per month in clubs leaving him only 600 for all his meals out, fuel and designer clothes and that's before he has saved anything! What is the point of this crap?

Someone I know with a full-time job has 30k in the bank, a 15k car finance free, buys designer clothes every few weeks, spends 200 a weekend in clubs and lives the best life! He's only 21.

I think “someone you know” might be having you on about how much financial support they have from elsewhere 😂
From the minute I started working when I was 14 (weekends + school holidays) I used it to fund my own lifestyle - clothes, socialising, hobbies, phone credit etc. From 16 I contributed to household bills, spent money decorating my bedroom how I wanted and even bought my own school uniforms 🤷🏻‍♀️ Saved every other penny to allow myself to move out and start to fund myself through university as soon as I finished school. Worked 20 hours per week all through uni and took maximum student loans to allow me to pay rent and bills, buy supplies, maintain a social life and buy anything else I needed. Only after leaving uni, getting a job, clearing a bit of overdraft debt and starting to rent a property with my partner was I able to even think about saving for longterm!

Staying at home, working full time and saving every penny is not being “financially independent” 🙄 Sure, if people’s parents are able to offer that and people are happy to accept that then it’s a great start to allow some quick savings to build up but I don’t think it’s realistic for most 20 year olds to have that option (or want it for that matter - but maybe that’s just me!) 🤷🏻‍♀️

His outgoings are meals out, alcohol in clubs, gucci clothes and fuel. Apart from that, nothing.

Lol. So his parents are subsiding him then! I'm not sure that spending on meals out and designer clothes, whilst getting handouts from parents in the form of free board and lodgings is my idea of financially responsible either.

@XiCi

Exclude the 10k a year in clubs that was a broad example and dont use 200 a week as facts So all complete bullshit then. £20k is only 1400 a month. You say he spends over 800 per month in clubs leaving him only 600 for all his meals out, fuel and designer clothes and that's before he has saved anything! What is the point of this crap?

I told you the 200 was a broad estimate. I didn't think I had to explain every detail on this forum for people to understand!

Surely you should be telling this friend off for 'wasting their money' and not constantly saving.

I mean: meals out, alcohol in clubs, gucci clothes and fuel, isn't that pretty much the stereotype of what young people 'waste' money on? Or is it okay because your friend made this 'best life' choice when others choose differently? Alcohol is apparently better than other life choices.

And if those are his only expenses, then he has other support because someone is paying for utilities, roof over this friend's head unless he's living in his car, council tax, car taxes and care, likely devices, and so on. Erasing that support is painting a skewed picture.

You don't seem to have a very high opinion of young people. Except the Gucci clad friend.
Nor do you seem to have a very accurate grasp of the reality most young people live in these days.

I've never had any savings. I'm 46.
All I've ever done is pay off loans. By the time I was 20, I was already paying off the loan from my dad which I'd used to get through my art foundation course. Plus I was 2 years into a degree course for which I had to take out student loans. Then I did a masters degree which cost me another 12k in career development loan. I finished paying off those loans at 30. Then we bought a house. So more loans. DH paid the deposit on our house. Now we are also paying off the loan for the flooring in the new house.
I do have a pension plan and our mortgaged home though, so I do have a decent amount of equity tied up in the house.

@BiBabbles

Surely you should be telling this friend off for 'wasting their money' and not constantly saving.

I mean: meals out, alcohol in clubs, gucci clothes and fuel, isn't that pretty much the stereotype of what young people 'waste' money on? Or is it okay because your friend made this 'best life' choice when others choose differently? Alcohol is apparently better than other life choices.

And if those are his only expenses, then he has other support because someone is paying for utilities, roof over this friend's head unless he's living in his car, council tax, car taxes and care, likely devices, and so on. Erasing that support is painting a skewed picture.

I never stated he didn't have parental support. Yes, he still lives with his parents but they have not contributed to his finances. Does he really need a "telling off" when he has that much saved already and can still live that life of excess? I think not and you can agree on that.

I told you the 200 was a broad estimate
If he is clubbing all weekend the 200 will be a gross underestimate. Who is this 'friend' that you speak of?

His parents have contributed indirectly if he lives rent free.

Yes, he still lives with his parents but they have not contributed to his finances. Does he really need a "telling off" when he has that much saved already and can still live that life of excess? I think not and you can agree on that.

He's a sponger! They are paying his rent, council tax, food, utility bills. He's hardly the epitome of responsible. Give him a few years he'll be what we call a cock lodger.

@ShanghaiDiva

His parents have contributed indirectly if he lives rent free.

Not every parent charges their children board! People I know if they do charge them it's only to put that money away for the childrens own future. They don't charge them to actually help them in anyway.

I think not and you can agree on that.

It's total bullshit so I don't think anyone is going to agree with you on that 🤷

A lot of people I have spoken to move out for no reason even if they can't afford just because they're bored.

I think there's been a huge shift of expectation re moving out since when I was young. I had very little in savings, but I moved out when I turned 18 and supported myself.

In your pp you question why people would move out when they can't afford it, but the expectation was that when you became an adult you should support yourself, and that it was normal for young people to rough it a bit and get by on very little. Not supporting yourself would have been seen as quite childish.

Now it is far more normal for young adults to be supported by parents, but maybe it is expected to have huge savings. Neither side is wrong just living by different values.

I would say it's more normal to have none. Doesn't mean someone who has saved is better, just more privileged. At that age I was spending all the moment from my cash in hand minimum wage job alongside being a student towards my living costs and the rest on very cheap unhealthy food and drugs/alcohol. I had no parental support.

There's a world of difference between what you asked and the thread you are referring to. Being given money and saving money yourself are very different things. Trusting DC to be responsible with money they are gifted is very different to them saving it and will often create an entirely different mindset.

I don't believe it's normal now for a 20 year old to have saved £20k themselves. If there is any chance they have they are likely to be burnt out from education and working, have no social life or only be able to do it because someone else has paid for absolutely everything for them up to that point. Either that or they are being paid for sex - I really can't think of any other way it's even remotely possible.

Wow you really are a bit thick arent you. Hes living a life of excess because he is leeching off his parents. Fine if everyone is happy with the arrangements but ridiculous of you to come on here and suggest every 20 year old should be in the same position. I'm sure you are well aware that's not the case

1400 a month

Lets say 400 a month on rent.
30 a week on food
100 a month on bills

These are relatively low estimates. Leaves about 800 a month left

Person has to save approximately 1250 a month to save 45k in 3 years.

Tuey arent buying any gucci or any alcohol on their minus 450 a month

@titchy

Yes, he still lives with his parents but they have not contributed to his finances. Does he really need a "telling off" when he has that much saved already and can still live that life of excess? I think not and you can agree on that.

He's a sponger! They are paying his rent, council tax, food, utility bills. He's hardly the epitome of responsible. Give him a few years he'll be what we call a cock lodger.

I think you used the wrong word. I would call him a lucky success! There is so much jealousy on this forum that you think every young person is broke. I know young people with 100k+ who have founded their own companies with once again NO HELP. You're all deluded.

Oh I see so they have significant parental support

Even then theyve only got £150 a month left for everything to be able to save 45k (including the car)

Not charging board means they are financially helping him: you said they were not helping him.
At least try to stick to your story.

I never stated he didn't have parental support. Yes, he still lives with his parents but they have not contributed to his finances.

By letting him live rent free in their home until he’s 21 when he’s making enough money to live this ‘lavish’ lifestyle, they have directly contributed to his finances 🤔😂 You might want to advise your ‘friend’ that he’ll learn more about life by moving out and paying his own way 🤷🏻‍♀️ He’s going to get a shock when he moves out and the bills start rolling in 😂

Sponging off your parents while you swan around in gucci shoes and 15k cars is hardly a lucky success

Do all these company founders also live at home rent free?