How much savings should I have at 30?

[sodoffbeforemycupofcoff]

I’m a single mother of 2 and I of course have a pension and my kids have an ok savings account too as they’re only young (5 and 2). I have £4.5k saved up but feel this is a bit… meh. It’s not enough to fall back on, should I need to. But saying this, I have also had the savings pot for around 1 year and not saved it. I am trying to build on my savings but it won’t be much. My 5year old has around 2k and 2 year old has around 700 in theirs. Am I doing ok?
I realise and I am thankful I’m in a better position than some… but am I where I need to be? (According to society)!

Its 6 months expenses your supposed to have.

Oh thank you for that. I didn’t know that. Sorry this sounds very silly. Would this be for example

rent
bills
phone bill
food
Petrol

That is about what I had at that age. I was renting and going through a divorce.

it’s many years later and I’ve managed to grow my savings substantially. It takes time. There will be setbacks. Every bit of progress helps.

The general idea is to first have a £1k emergency fund - so you can easily cover any unforeseen costs. You've done that already, so that's good. Then to work towards building a 3-6 month larger fund that would cover the minimum expenditure you need to give you a pared down lifestyle if you lost your job, for example.

So, work out how much you would need in an average month to cover your vital expenses ... rent/mortgage, bills, food, petrol/fares, etc. If you did lose your job, you would probably cancel or pause any less essential services, like streaming subscriptions and spending on takeaways and so on, so you can discount those. Work out how much a typical month would be and then build savings to cover 3 to 6 months. This fund is also useful for unforeseen events like needing a new boiler or for major car or house repairs.

Watch the Rebel Finance School videos- or look at their facebook page. At 30 they will show you how you have so much time ahead to be financially healthy 😊 But yes- you’re doing well.

There's too many variables to give a figure. Depends on income and your housing situation.

If you earn £10k pm and are aiming to buy a property, it's poor and you should be prioritising saving more.

If you're on a low income, in an expensive area but have a suitable HA property so don't need to buy and it's not a realistic ambition in the next few years, you're doing really well, especially as you'll likely be paying a lot for childcare.

The financial flow chart gives a list of steps you should be aiming to complete, in what order, but bear in mind that getting right to the end in the next decade or two isn't a realistic goal for everyone.

The UK Personal Finance Flowchart - UKPersonalFinance Wiki

in your position I’m not sure I’d be saving for the kids unless that money is coming from grandparents or other sources specifically for the kids. Or unless you’ve maxed out your personal tax efficient savings which you haven’t. 6 months essential expenditure is the ideal minimum to have as above has said.

You will get many responses here OP from people who are not even a single parent themselves. I dont think this post is helpful to you.

Are you where you are meant to be for what? It depends on your aims. If your aim is to be financially comfortable in a rented house and provide for your DCs then yes you’re in quite a good position as you’re able to save and already have savings for yourself adds building up. If your aim is to buy a house then no.

I think you’re doing ok OP. Especially as you say you’re already paying into a pension. You have a lot more than I had at your age!
For me it’s about consistency over the long term. I’m very risk averse but I’ve plodded along paying my mortgage and putting into my pension month after month.
I’m in my late 50’s now (never saw that coming) and suddenly all the plodding has paid off. Mortgage is paid, pension looks quite healthy. Nowhere near as much savings as some but I’ve received no inheritance (nor will I) and at my age it makes more sense to prioritise pension saving for the tax benefits.

I’m saving for my kids because I don’t want them to be where I am in their future. I’d rather feel the burden now while they get everything they need. I don’t need to live in luxury as long as they’re cared for I come second.

Thanks everyone for your pointers. Some really helpful and humble comments here that have made me not be so hard on myself.

Savings encompasses many things. People should aim for 6 months emergency savings. Obviously if you have children or saving for a deposit then minimum 10% deposit plus costs. How much you save for children depends on whether you are saving for university, help for driving lessons etc. bear in mind many junior accounts automatically go to the child at 18 so if they are not money savvy that can be a problem giving thousands to a young adult if they are not responsible. Pensions and long term savings depends on lifestyle. The aim always used to be a half of your age of as a percentage of income depending on when you start. So if you start a pension at 20 then 10% of income. That includes tax benefits so 8% of income plus 2% tax benefit.

As I said before wary of some kids savings accounts? Would you want an 18 year old to be given full access to £20k say?

You are doing better than most. 40% have £1k or less. 1 in 6 have zero savings. Older people tend to have more. I would do a budget and set an amount you can afford away but don’t allow it to go below 6 months savings. You have a car so repairs for those and replacing it is something you should plan for. Do you have a house? What percentage of your income do you put in your pension?

I had no savings at 30. I rented and had a small amount of debt which was being paid down. Earning band 4 Nhs

Im earning 31k ( still band 4) 47, mortgage which is only 30% of house LTV. I’ve only about 15k in savings. No debt other than mortgage. NHS pension/sick pay as needed and more savings once the mortgage is done soon.

Im sure many people have more. But i actually feel lucky. I’m from a family with growing up with not much unless it was bought on credit. I’m happy and financially well can do what we want/need.

I’d aim for 6 months worth of living costs, rent, mortgage, car, utilities, food etc.

The best gift to your kids is being financially secure yourself so don't add to their savings until you have 3preferably 6 months living expenses what good is 5k at 18 if your house was cold or insecure when younger . Also if savings are in your children's names they can access at 18 regardless and they may waste it so I would notionally save for them but keep money in your own name so if you want you can not give it them until 25 or use it slowly for whatever they need driving a car a deposit for flat etc.

I agree.
As a 30 year old single parent of two I had zero savings due to a property purchase wiping them out. I was living in a £3k overdraft and didn't even earn £3k per month. Fast forward 20 years my savings position is very different and I look back with horror at the precariousness of my 30 year old situation but my options were limited back then.

Absolutely not… but I asked about this when I signed up. I can move the money into one of my accounts before their 18tg birthday

I think this is a great opportunity to talk to children about money and the value of it. I gave both mine a large lump sum at 18 for university. I was very clear this was in lieu of me giving them a monthly allowance. We spoke about the amount from when they were both 16 including contingency plans for if they didn't go to university.

I know you don't want to risk what's effectively the fruits of your hard labour but children need to learn if they're going to be well functioning adults.

Educate your children about money and how to manage it. My ds inherited over £400k when he was 22 - he knew how to manage his finances and what he wanted to do with the money because from a young age we talked about money and he managed his allowance etc.

I think you’re right but if my children are not in the right space at 18 they won’t get it til around 20s. If they’re very sensible then they will get it earlier should they wish to invest it

So I am around £1k away from this! That’s excellent. I will feel more secure then. I will then just build on top of that to keep feeling more comfortable. As much as I love to save (after I get through the struggle of the month) I would be heartbroken having to spend any of it! How crazy because money is there for that reason.

You’re doing excellent!
nhs pension = sorted and as you should be!
£15k savings, brilliant!
mortgage - children (if you have any) inheritance sorted, or if you do not have children sell when you get to an age and live somewhere you love with plenty of profit!
You’re extremely lucky well done 🙌🏻