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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

1 in 4 people have less than £100 in savings.

174 replies

cakeorwine · 07/11/2022 08:05

And of those, 1 in 6 have no savings

moneyandpensionsservice.org.uk/2022/11/07/one-in-six-uk-adults-have-no-savings/

www.bbc.co.uk/news/business-63517823

And it's only going to get worse with fuel bills and inflation.

It must be such a worry. And I bet that within that data, there is going to be wider variation (in general) with age, location and income (obviously)

OP posts:
Whynobreadpudding · 07/11/2022 09:40

I have always had saving from age 20 when starting a part time cleaning job whilst uni. Always very frugal. I must be in the minority then.

funnymummmy · 07/11/2022 09:41

But people with no savings are entitled to UC so they will get help.

MarshaBradyo · 07/11/2022 09:42

It seems a long time ago now but cash was paid to a sizeable proportion of people for the increase in energy cost. For the lowest earners it was the same as the doubling.

funnymummmy · 07/11/2022 09:43

Also, the whole system discourages saving as you are then not entitled to any help if you have saved. So people are encouraged to spend money as this keeps the economy going whereas savings are punished via (for example) low return on savings. Saving is so last century.

Hellenswall · 07/11/2022 09:47

Whynobreadpudding · 07/11/2022 09:40

I have always had saving from age 20 when starting a part time cleaning job whilst uni. Always very frugal. I must be in the minority then.

No, you’re in the majority

do you not understand what 1/4 means?

Wishawisha · 07/11/2022 09:47

Hellenswall · 07/11/2022 08:28

Although an alarming figure it’s not representative

the money advice service surveyed the people who use their services. So will already be less likely to be financially secure than average.

It’s also a small sample size

Yes I skim read the BBC article and I don’t see any mention to where they got the sample population from?

If it’s from people using their services … then… obviously people won’t be in a good way financially? Even if they approached 3,000 people in the street or whatever, it won’t be a fair sample.

Tells us nothing.

TheyreOnlyNoodlesMichael · 07/11/2022 09:50

I don't think it's shocking. To me it's normal. We live month-to-month. We had savings, not much to the 6-figure salary posters of MN, but a few grand. It was all wiped out when we had to use it to live when my husband lost his job and then became disabled.

MrsLargeEmbodied · 07/11/2022 09:53

25% is low imo

Magentax · 07/11/2022 09:56

I had no savings until I was about 30. I had a large mortgage, a smallish salary and no dependents. It was fine but no financial cushion. I had to put a boiler repair on a credit card and paid it off over months and months. Now I’ve got a much better job and I am in a position to save much more. At 43 I am only just in credit overall if you take the mortgage into account though.

iloveeverykindofcat · 07/11/2022 09:58

@CaronPoivre amazing how many people fail to understand the basic concept of enlightened self interest. I don't want a strong welfare state because I'm inherently generous. I want one because I can't see the future.

thebellagio · 07/11/2022 09:58

Also, most of us have had a shocking 2-3 years. It's not exactly beyond the realms of possibility that people had to use their savings to get buy during the pandemic - especially if you were part of the Excluded group and not eligible for any financial help whatsoever

CaronPoivre · 07/11/2022 10:01

MissBattleaxe · 07/11/2022 09:28

Some people would never have savings regardless, they spend every penny they earn, and go into debt spending money they don't earn

in many cases this is just spending on bills and food.

The ridiculously high cost of living cannot be ignored as a factor. More and more demands are being made on salaries that have remained stagnant. This is not because people buy too many treats.

Absolutely. If you just have enough for near basics then it only takes a failed MOT or sick child needing hospital care a long way from home to tip you into a cycle of debt.

Some people would love to be able to save but it hasn’t crossed their minds because the electricity needs topping up.

Ekátn · 07/11/2022 10:01

These sorts of surveys are often misleading.

You need to know sample size, what groups they asked (like op said if it’s MAS service users it’s not surprising), then you also need to take into account it’s self reporting.

That doesn’t even start to look at why people don’t. Many people don’t because they can’t afford it. CoL has made that worse. Some people are choosing to live like that for other benefits (not talking UC etc), like living on one wage so one parent can be at home. Loads are doing everything they can and can’t get quite on top and are going into debt.

Plenty of people just don’t save and that could have a load of reasons why. When I divorced exh I used the money as a deposit in a small house. I had a small amount in savings left that slowly dwindled away on living expenses. Until 2 years ago I had no savings, due to wage being eaten up by living costs. Exh spent his money on several holidays to places like New York. Took his new girlfriend and her kids away. Took our kids away etc. I know he has nothing left and had bailiffs round. One of the reasons we split is that he spent money faster than it came in. He has also used the MAS or money advice trust, they might be the same thing. It’s his money and up to him about how he uses it. But he could be in a better position but chooses not to. He is living assuming he will get a good chunk of inheritance.

Then take into account the benefit of them doing the survey. If they can prove predict more and more people will need their service they can try and increase their funding. So they aren’t going to ensure it’s completely impartial.

CaronPoivre · 07/11/2022 10:04

iloveeverykindofcat · 07/11/2022 09:58

@CaronPoivre amazing how many people fail to understand the basic concept of enlightened self interest. I don't want a strong welfare state because I'm inherently generous. I want one because I can't see the future.

I can, I think, see the short term future. It’s not a good place for my children who want to think about having a family and who have mortgages. It’s not good for me because I want to live in a safe, educated society where political and media driven hate isn’t a key driver of behaviours.

KnittedCardi · 07/11/2022 10:04

www.nimblefins.co.uk/savings-accounts/average-household-savings-uk#:~:text=The%20average%20amount%20saved%20each,of%20%C2%A321%2C798%20each%20year.

I don't know how reliable these folk are, but they seem to have a lot of stats.

Usernamen · 07/11/2022 10:04

Magentax · 07/11/2022 09:56

I had no savings until I was about 30. I had a large mortgage, a smallish salary and no dependents. It was fine but no financial cushion. I had to put a boiler repair on a credit card and paid it off over months and months. Now I’ve got a much better job and I am in a position to save much more. At 43 I am only just in credit overall if you take the mortgage into account though.

This is very impressive - well done. :) I’m 30s and when I think about my mortgage it sometimes gives me mild anxiety as it is essentially having a huge six-figure debt! I hope to be able to be in a net credit position like you at some point - I think that would give me peace of mind.

OKild09 · 07/11/2022 10:06

This isn't hard to believe TBH, speaking from experience.

Years ago, before I got married and now have a family, I lived from paycheck to paycheck. I spent all my wages and then used credit cards. I was so BAD with money, I remember one time I took a payday loan with hefty repayment interest fees just to go on holiday!

When my eyes we're finally opened (thanks to my DH) I realized how destructive and irresponsible that was. My DH taught me everything I know now about saving, budgeting etc. We paid off all my reckless debt and started off on a clean state.

I can say now I'm a professional saver 😂and will never go back to my old ways.

KnittedCardi · 07/11/2022 10:06

They base their figures on ONS - so should be good.

MegGriffinshat · 07/11/2022 10:10

We have no savings.

And it’s not because we live an extravagant lifestyle. Last holiday was a decade ago, last meal out was years ago. No luxuries.

We don’t live beyond our means at all.

clpsmum · 07/11/2022 10:12

I do t have any savings and live in my overdraft. Needs must I'm afraid

GloomyDarkness · 07/11/2022 10:14

I think many of us go through stages in life where we have no savings, or just a few scraps in the bank. For a lot of people it’s when you are in 20s

Exactly.

University, house buying, redundancy all wipes out our savings and left us with some debts at different times.

It's always best to have savings as things happen - and having that cushion when you need it avoids debts - but we had about 5 years after buying first house going from 50 K to zero when it kept raining - saving went - we built back up - next thing - rinse and repeat and having no choice but to incur some debts.

It was demoralising and people treating us as if we were fleckless idiots wasn't helpful. The way out for us was using some of our savings again to move got us away from that whole problem - our monthly outgoings dropped like a stone new house meant money pit first house wasn't draining us constantly.

Most of our 30s were a struggle young kids needing to progress careers meaning lower pay and frequent moves - it was late 30s early 40s before we got on a more even keel with again substantial savings.

Turnipp · 07/11/2022 10:15

defi · 07/11/2022 08:45

Yes I can believe. I'm a single parent and had zero savings until I went to uni and managed to save some of my student loan. Was living week to week. If there was an emergency I'd rely on my credit card or finance. Very stressful way to live

I did this...I went to Uni at the age of 27, so I could get a full loan; getting a full loan + bursaries/scholarships + part-time work - got me out of debt + now, any money I have spare, I put towards a house deposit. Luckily, my partner is working, but I will never forget living paycheck to paycheck.

Most people live like this, but I have learnt my lesson. Just hoping I can get a better-paid job out of Uni.

liveforsummer · 07/11/2022 10:18

Have 1p in my savings account. I transfer 40 each month and it's usually back in my current account by the next day. The 1p is from one of the rare times it was there long enough to gain some interest. I also have £96 in my current account but have to pay my electric and gas bill and fill up the car with that, have DD's birthday at the end of the month then Xmas. Fun times 🙃

TorviShieldMaiden · 07/11/2022 10:21

I have no savings. I’m 42 and earn mid £40k. But I also recently divorced and my ex was terrible with money. I took on some debt as part of divorce which I’m paying off. And I’m a single income household.

once I’ve paid debt off I hope to start saving. But my mortgage is increasing in a few months. Then I will literally be living paycheck to paycheck

PauliString · 07/11/2022 10:23

KnittedCardi · 07/11/2022 10:04

God, that’s sobering.

We are bang on average for our ‘household’ category, ignoring house itself and pensions. But my pension is frankly scarily low, the house roof needs work, the car is twelve years old and the boiler is twenty. It could all be mopped up very easily - and we’re the lucky ones.

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