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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

2/5 of people have less than £100 in savings

336 replies

Jorginho5 · 03/08/2018 17:07

your thoughts?

I am not surprised. Everything has gone up in price but many people are struggling to either: find a full time job or better job than the one they currently have.

www.thisismoney.co.uk/money/saving/article-4348544/Two-fifths-UK-s-workers-100-savings.html

OP posts:
dunraven · 07/08/2018 12:19

How can it not include pensions, house equity and stocks and shares? Apart from the pension, you can liquidate those assets. It definitely doesn't make sense to hold that much in cash savings but I'm surprised that households with >£100K income don't have even £100 savings. I bet they have more than that left at the end of the month in their current account and if they don't, they should scrutinise their lifestyle more. Choosing to have a large mortgage is a lifestyle choice especially, if you earn a higher than average income. Childcare costs is a killer admittedly and I viewed it as a short term sacrifice for long term gain.

frenchfancy · 07/08/2018 12:51

I agree it should include equity and pensions. As said I have nothing much in my savings account, but if you count equities and pensions then as a couple, we are well into 7 figures.

I would be interested to see the real figures once everything is taken into consideration.

Want2bSupermum · 07/08/2018 13:32

dunraven To earn my high income I must have childcare for 60 hours a week and I need access to a financial center, which in the UK is London. The cost of that here in the Us is about $3500. In the U.K. this would cost me about £40k a year. My £100k a year as a single parent would amount to about £2k a month for living expenses. That isn't a lot when long hours as a single parent. It's also why childcare should be fully deductible. A taxable income of £60k is vastly different to a taxable income of £100k. If employment is London based everyone would agree that £60k a year isn't a lot. I would be ok. I could use a family home at no cost but I'm not blind to the fact that I'm extremely lucky to have that option and in reality it's not an option for others.

This is why so many families are in poverty. You can't catch up let alone keep up. Only the minority can get ahead and it's normally a combination of grandparents providing childcare and help with a deposit for housing.

As for pensions and home equity being included in savings, I think you miss the point. If your washing machine broke and it's £350 to replace it, how are you going to pay for it the day your machine breaks if you only have £100 in savings or possibly less?

french I guess you own London property purchased before 2000.

frenchfancy · 07/08/2018 20:01

No, I live in France. Ever spare penny we have had has been used to build up our holiday rental business, which is why we have no savings.

Because we are self employed our cash flow is flexible, so if a washing machine broke I would simply replace it.

Caribbeanyesplease · 07/08/2018 20:33

Want2bSupermum
I’m confused
You pay $3500 a year for 60 hours per week childcare?

Want2bSupermum · 07/08/2018 22:16

$3500 a month or $42k a year. Mix of sitter, after school and daycare. I live in the US, just over the river from NYC because of DHs job.

messydesk · 08/08/2018 07:07

NeverTwerkNaked please send me the link you mentioned, many thanks Smile

NeverTwerkNaked · 08/08/2018 08:03

@messydesk: I posted it up thread? Or does it not work?

messydesk · 08/08/2018 08:13

NeverTwerkNaked , I was referring to TalkInPeace’s threads on simple things you can do to get debts down that you mentioned, thanks 😊

NeverTwerkNaked · 08/08/2018 15:39

Oh yes of course @messydesk ! Sorry, had a manic week. Will hunt them out

Jaxhog · 08/08/2018 15:45

I thinks it's got way too easy to borrow money and the media makes us all think we need to buy and more consumer goods e.g. tech. And then they have kids, making it so much worse.

I suspect those of us who grew up with raging inflation, limited tech and a lot less media look on in astonishment at this.

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