To think most people have savings...

[mobyduck]

We are not wealthy, we live in a 2-bed semi and run 2 old cars. However, we both keep about £15k to £20k in our (separate) current accounts to take advantage of the 1.5% interest paid (they are 123 accounts).
The money has been saved over many decades (we are both retired now).
I mentioned this to someone in work, recommended it really, but she said no-one she knows has the money to make it worthwhile?
Who is right?

I'm in my late thirties with 3 dc, 2 with ex p. Up until now I've never had enough money to save. I went to uni but never managed to get a decent salary before I had my first dc. I've never had handouts from parents or the option of moving back home to save money. All my wages went on car and living costs and then later the DCs. I do usually save loose change in a jar but I usually used to use that towards 'extras' at Christmas. I was a single parent for a few years and received no maintenance from ex. I'm lucky enough to live in private rented accommodation which is reasonably priced for its size and fairly secure. This year I started some savings as had 2 inheritances. Not a huge amount, but enough to buy a new car and put the rest in a savings account. I've already had to dip into it for family expenses but I hope to add to it now Christmas is out of the way. Some people do have savings but a lot of people are not lucky enough to have anything to save. I've been there when I've had to scrabble together enough money out of the copper pot to buy some milk, so no, not everyone can save even a bit of loose change.

Some people I know have earnt decent wages, but lived a flashy lifestyle, with no savings. Some people I know have lived frugally and have big savings. If you are fortunate to have savings, I'm of the opinion that some of that money should be spent on enjoying life with family and friends. I have a pension, some savings & investments, but I enjoy my life too. I don't want to look back and say I wish I had done that ! I realize that some people don't have the opportunity to save, due to various circumstances. Look on money saving expert website for higher interest savings ideas like peer to peer

Another example my colleagues and I had the opportunity to buy some shares at work at reduced price (shares go up & down). I paid into the scheme on a lower salary than my colleagues. I made a good profit. My colleagues earnt more, but didn't pay into the scheme and were annoyed. I have also paid into a pension since my 20s and I know some people that don't have a pension....

We are in our 30s, two dc and no savings. Very low income, dh earning min wage full time and I’m disabled, one of our dc is also disabled. We just don’t have the income to save anything. However, due to a fairly wealthy family background we our mortgage is incredibly low and due to be paid off in a couple of years due to inheritance in the equity etc. So we don’t tend to worry about savings, if we were ever in a truly dire situation we do have money we could access through downsizing or remortgaging.

I only know one of my sets of friends that has any savings.

I barely ever use cash so no saving 'pennies'.

I hadn't thought of that! The obvious knock on effect for younger / more technologically with it people is that they do use 'an App' instead of money and so won't have any pennies for a jingle jar!

We spent so long with the mantra "If you can't pay cash for it you can't afford it" running through our heads that we still use cash for day to day stuff, don't 'tap and pay' for anything!

We'll have to think up a more modern equivalent of a jingle jar. Is there an app that will put a 'penny change' away for you every time you tap?

Of course they bloody exist! It wasn't likely I'd be the first to think of it

Amazing what Google can find!

Most people won't admit to having savings as it looks show offy.

I'm mid 40s, and I'd say most of my friends have savings. In our 20s we were mostly saving for house deposits or weddings, in our 30s most had probably less savings as we'd bought our properties and we were in the paying for childcare/losing a salary lifestage. But now, as our children are getting older, I think most of us have built a savings pot back up, and a few people have had inheritances too.

I would think by pension age, the majority of people who have been economically active throughout their lives will have built up a savings pot. Not necessarily a fortune, but enough to dip into if the boiler breaks etc.

You can have an app called save the change, it automatically puts odd money into a savings account

You have come out as a marginal winner with modest savings, many younger people will not have any savings and many older people as well. I don’t see why that’s hard to grasp.

I am suprised you discussed your financial situation with others, no one knows what my savings are apart from DH. It’s not so much the showing off aspect someone mentioned if you reveal you have savings then maybe someone will expect you to lend them money.

I have always saved I made a decent amount of money from a very short lived job when young. I started seriously saving as a teenager. My general studies teacher ranting on about the evils of the stock market had the opposite effect on me. What drove me was knowing I would spend my life with no one ever getting my back. There was no loving home to return to, no financial or emotional support from parents. My siblings are apart from one very lovely people but due to our dreadful upbringing they are emotionally like little children. We had the same upbringing but my life is so different to theirs and the financial outcomes of our lives is vast.

The difference is I studied at a red brick university and am a perfect example of social mobility whereas my four sisters have no qualifications. I was the product of an affair, DH jokes your Fathers genes saved you. They worked hard all their lives in low paid roles, being carers and working in laundries and shops. They could never have saved much even if they wanted to. Whereas SIL is appalling with money and has no savings or pension she earns a lot of money and actually had many years working tax free as her job was registered offshore.

It’s a complicated equation as to why people do and don’t have savings.

www.theguardian.com/money/2018/jan/25/uk-workers-chronically-broke-study-economic-insecurity

32% of people have less than £500
41% of people have less than £1000

So given that only 27% have more than £1000, what proportion do you reckon have the £15-20K you've each got?

I've 11k at the moment and plan to have 20k by the end of the year. Just got a promotion that offers loads of overtime so since we don't have a family in the plan is to work this year as much as possible.

My partner is just starting his legal traineeship this year so at the moment doesn't have much savings. Hopefully next year we can put down a joint deposit and whatever's left will go into a savings account.

I've always been a saver which helped when I was unemployed for abit and when the oh was studying.

I have just realised you actually have that amount each so that is going to be more than many people.

That article was interesting there is always a margin of error with research studies obviously. But the rise of zero hours contracts and the ridiculous cost of housing is making millions of people endure really hard lives.

(I dont use apps at all, just a debit card ;) )

Not using cash helps me save - if i want something for £4, i dont have to take £10 note out at a cash machine, so the £6 is available for bills, and can often make the difference on me picking up charges or not

I have 3p in my ISA. Cant make ends meet, let alone save

Always saved, and aimed to have 6 months cushion in the bank from an early age. We tried to save most of the 2nd salary before DC so we didn't miss it when they came along. Partner has worked part time since then but we don't splurge. We overpay our mortgage, drive older (but nice) cars and take reasonable holidays. No keeping up with the joneses but nice to know we've got no debt besides the house and own everything we posses otherwise and have no fear of losing our jobs. Personally I think one of the reason wages are so low is because many people just can't afford to lose their job or not work, so employers can take advantage of this and pay minimal wages knowing people won't leave.

We're in our 40s and most of our friends seem to have savings. We save 1k a month, but realise we're lucky to be able to do this.

Some banks offer cash back on some bills & purchases each month like Santander, Coop, Halifax, Lloyds. It's only a few pence, but over time it adds up. You can also save each month if you have the means into a regular saver or tax free ISA. You can set up save the change on some online bank accounts. My other suggestion is do NOT auto renew any insurance, shop around for cheaper deal eg for house, car, travel, car breakdown etc.

your title doesn't fit with what you've said

did your colleague mean that most people don't have enough savings to make a 123 account worthwhile? there's a monthly fee so that's quite probably true.

@Babdoc mentions inflation - I'm always a bit mystified when it's mentioned in this context, just because inflation is at a certain rate doesn't mean it's not worth having savings? I think a lot of people would love to have savings but can't afford it.

I don’t think they do.

My MIL often is scathing and asks why we don’t have savings, how much do we save per month etc. We both have good professional jobs, I work part time due to childcare costs and we club our money together. Most months we get by, if something goes wrong we’d rely on a credit card or similar. I think when you have money saved yourself it’s easy to think it’s easy for everyone but it’s not. Childcare costs, petrol and parking costs and food shopping bills are constantly increasing but wages don’t increase to reflect that.

I have about 100k in the bank for a rainy day.

Savings? What are those? Double whammy of a car needing replacing and a boiler with the same idea last year.

Prior to going back to work having been a SAHM for 10 years we didn't have savings but in the last two years have cashed in on an investment and also started putting money away each month. I put about £500 a month away in savings at the minute but I think as we only had one salary for so long it has been easy to do as we never had that money in the past so don't rely on it.

I never have cash so don't save pennies but every couple of days I check my bank balance and "sweep" across small amounts to a savings account to bring my balance to an even amount. Sometimes it might just be 50p other times it might be £8.50, soon adds up.

An advocado ???