what do you save for ? - Savings

[flutterby1]

Just that really, what are your savings for ?

Holidays.

Although annoyingly we need a new car and at some point a new roof.

Short term - paying off my mortgage when my fixed rate ends later this year

Long term - retirement including money in s&s ISAs in the hope I can retire before my pension is accessible.

Medium term - emergencies, work on the house (mainly energy efficiency rather than cosmetic), car replacement, holidays

More things than we have money for:
School fees from secondary on (that's my thing as I'm not sure my husbands sold on the idea)
A new kitchen and bathroom
University/house deposits for the kids (they're 2 & 5)
Retirement

We don't save a certain amount each month, but just whatever is left over if we don't think we'll need it the next month. Lump sums have been withdrawn in the past towards another car, new boiler and roof repairs. We had quite a lump sum about ten years ago, which came in very handy for a 10% deposit when moving! Desperately need a new bathroom, so that'll be the next thing.

Child benefit IS means tested! (Although I agree the system is ridiculous and unfair)

Ours just goes into our account as general income. But then my kids have swimming lessons and do dance/football and obviously need new clothes, shoes, uniforms, coats etc periodically. So I suppose I could say I spend the 150 approx per month child benefit on those things. I’m pretty sure I could still feed them without it though.

Otherwise we try and save for oil, car expenses, Christmas, holidays and new appliances or home repairs. also have an ISA for long term savings for retirement/mortgage etc as well as work pension.

I just have one general savings account though so I’m thinking I should try this pot system out as I like the idea of it.

Different pots for different things. My priority after bills are paid etc is holidays. So mine weekly monthly is

Holidays £125
Christmas £80
Mortgage over payment £150
New kitchen/bathroom £100

Often, if I have any money left over I will top up the holiday fund. I like 2-4 cheap get aways a year. A city break, a cheap eurocamp and the occasional reduced cruise. Used to be that holidays were way more expensive with ask the kids at home but now I seem to be tagging along with family with younger kids on my own so my money goes much further.

I've recently retired so have quite a lot of savings. Part of me wants to spend it so it doesn't get eaten up in care home fees later on and nobody knows how long they're going to live. But then I realise this is all the money I've got to live on for the rest of my life,
I don't want to end up like my mother and her cronies who died with over £100K in the bank because back in the day that was the sign of a successful life.

Emergencies

Specific things like yearly costs, holidays

Next car deposit etc

Pay off overdraft

Would like to set up a house moving fund but need to sort some other things first

Similar to most people. Every month we save into:

1. Kids' savings accounts, in their name so theirs when they're 16.

1. Insurance- life, building and contents paid annually.

1. Car maintenance, insurance, tax.

1. Holiday.

1. New car fund. We've had to drastically up this amount since the used car market went bonkers. We set the initial amount based on how much we bought our last car for nine years ago, and now we need a new car it isn't enough 😅

1. Emergency fund. We've recently used most of our emergency fund to overpay the mortgage, will probably spend another two years building it up again and hoping we don't lose our jobs in that time

1. All the above are joint with DH but I also save a little into my own individual savings account every month, it isn't earmarked for anything so is like a back up emergency fund.

We also both pay into pensions, but probably not enough.

Once the emergency fund is back I want to save to knock through a couple of rooms, get a new kitchen and a new bathroom, new carpets, decorate etc. Feels a long way off though while we're still paying high childcare fees.

To cover a years salary if made redundant/ lose job. Very unstable work in consultancy, highly paid, but high turnover. Have had several non-working episodes over the years, so always try to keep that amount spare, especially as you get older.

It sort of is, albeit very ineptly. Although the idea that it could ever be tested via 'need' is fanciful when parents will have such massively varying costs.

Personally I think it should be universal, and our household have taken steps to ensure we remain eligible despite one parent earning above 50k.

I love your idea of saving up the Child Benefit for the future, I wish I had done that as boy are driving lessons expensive! 😬

Our savings aren't set out in different pots, if we need something that can't be covered from the current account then it comes out of an instant access account.

We are retired (did so very early) but our income more than covers day to day expenses and any extra sits in the current account until it tips over a certain amount when the excess is put into savings.
Savings themselves are set out as immediate access and long-term (excluding things like shares which are not "cash"). Immediate access is simple saving accounts and PB's whereas long-term is ISA's etc where money cannot be accessed without penalty.

Works for us.

This thread makes me feel poor ☹️

Expanding our btl business, holidays, helping out DC, DGC, and FS and being comfortable in older age.

OP can choose to spend her children's CB however she chooses. She wants to help her DC with a car and driving lessons so perfectly sensible. She's not wasting it on drugs and alcohol.

We had bought our first home 7 months ago and have managed to wipe out our Emergency Fund!

I’m only now able to start saving a small amount again. I invest £225 every month in my S&S ISA in hope of being able to retire early. Then I save £50 in my Emergency Fund and £50 for a new bath and shower too.

I save to get through periods of unemployment as I work on a contractor/fixed term basis - this is great for learning new skills and experiencing new environments but not so great for a stable income.

Spare money and emergency money.

Future car
Future home
New kitchen
Holidays
emergency fund

I save into pensions for my kids (personal pensions with Virgin Money).
I pay in £50 a month for each of them.
This picture is an investment projection putting into the calculator that my son has 10k at the moment and will continue to pay £50 a month for 40 years.

We are recently retired, so no more savings really, just moving money to different pots!

I work PT so most of that goes to a holiday pot.
Our house tax and insurance is $10k per year, so that gets put in a pot. And then a pot for car costs, insurance taxes etc.

When we were young, we saved for our kids university. It costs an arm and a leg here (US).

We also started an investment portfolio which will now supplement any pensions.

We at various times saved for house deposits, and then a house move.

And always a pot for emergencies, holidays etc.

I’m so surprised at how many people are saving for their kids. I feel a bit guilty! Our goal was to give our kids a free education, and a small donation for either a wedding or a house deposit, depending which came first. After that, they’ll have to figure it out until we croak and they can have whatever is left!

Reading this thread just makes me feel so bloody sad about my work colleagues who literally work one month ,working 48 hrs per week to pay next month’s bills !! Savings are not an option for them.Absolutely fear their retirement TBH .

If people can save their child benefit then why do they get it?I used child benefit to subsidise packed lunch and school trips!

Me too.