More than half of young adults have no savings. Do you?
Poll
Do you have any savings?
www.bbc.co.uk/news/amp/business-45744552
A few years ago another survey found more than 16 million have less than £100 savings includes all age groups
https://www.bbc.co.uk/news/business-37504449
Seems like most people in the UK either live hand to move or have some savings
A few years ago another survey found more than 16 million have less than £100 savings includes all age groups
https://www.bbc.co.uk/news/business-37504449
Seems like most people in the UK either live hand to move or have some savings
Scroll to see replies
I'm not surprised and the main reason for this is the ridiculous practise of paying for your transport / car on a monthly contract which are very expensive and extremely poor value for something that you will never actually own . Perpetual debt on three year roll over contracts with the allure of a top marque vehicle which you can impress your friends or neighbours with ....
Insane .
Insane .
For a lot of young people you can only save if you’re living at home
Original post by Johnny English
I'm not surprised and the main reason for this is the ridiculous practise of paying for your transport / car on a monthly contract which are very expensive and extremely poor value for something that you will never actually own . Perpetual debt on three year roll over contracts with the allure of a top marque vehicle which you can impress your friends or neighbours with ....
Insane .
Insane .
Really? That's the main reason?
Original post by Captain Haddock
Really? That's the main reason?
Well ...the experts tell us that after buying a house the biggest expenditure is car ownership . The vast majority of new vehicles are bought in this way . It's a massive expense especially for young people who are struggling to make ends meet . It's bound to affect your savings potential second only to buying a house ...
Rents are high (as are all housing costs).
Transport costs compared to much of Europe for local journeys are much higher.
Our clothing retailing is poor value for money and too many people become victims to fashion.
We have loans not grants and a graduate tax.
Not surprising that saving is not large.
Transport costs compared to much of Europe for local journeys are much higher.
Our clothing retailing is poor value for money and too many people become victims to fashion.
We have loans not grants and a graduate tax.
Not surprising that saving is not large.
Yep it’s ridiculous how much car insurance for young people is too
Original post by DSutch
Rents are high (as are all housing costs).
Transport costs compared to much of Europe for local journeys are much higher.
Our clothing retailing is poor value for money and too many people become victims to fashion.
We have loans not grants and a graduate tax.
Not surprising that saving is not large.
Transport costs compared to much of Europe for local journeys are much higher.
Our clothing retailing is poor value for money and too many people become victims to fashion.
We have loans not grants and a graduate tax.
Not surprising that saving is not large.
I agree.
A lot of people having stuff on finance (which costs more in the long run) doesnt help either.
Original post by mattymoo432
Yep it’s ridiculous how much car insurance for young people is too
While i agree that insurance costs for young drivers are crazy, unfortunately there will always be a few young drivers who make it worse for all other genuine young drivers.
Original post by Johnny English
Well ...the experts tell us that after buying a house the biggest expenditure is car ownership . The vast majority of new vehicles are bought in this way . It's a massive expense especially for young people who are struggling to make ends meet . It's bound to affect your savings potential second only to buying a house ...
yes because young poeple are buying houses
everyone above hasn't really answered the question. yes, higher housing/transport costs & everything being financed does reduce our disposable incomes but there is always money leftover which people can save.
people don't save because there has been a culture change.
A. last 8 years, interest rates have been super lower & because they have been low for such a long period it has created this habit of the average consumer to just spend spend spend.
B. there is also a culture of embracing life in the present, living like you won't be alive tomorrow and so just having a good time. so buying that expensive top or eating that really expensive meal is now just the norm and this has been really emphasised by everyone having a snapchat/instagram/etc account to show off through what they're eating/doing so they're even more inclined to eat/do the best.
people don't save because there has been a culture change.
A. last 8 years, interest rates have been super lower & because they have been low for such a long period it has created this habit of the average consumer to just spend spend spend.
B. there is also a culture of embracing life in the present, living like you won't be alive tomorrow and so just having a good time. so buying that expensive top or eating that really expensive meal is now just the norm and this has been really emphasised by everyone having a snapchat/instagram/etc account to show off through what they're eating/doing so they're even more inclined to eat/do the best.
Young people in the UK are losing the savings habit - with more than half of 22 to 29-year-olds living with no savings at all, official figures show.
I get it with early 20s. A lot of people will be graduating with overdrafts that will take a while to clear. I assume a lot of non-graduates do better for savings in that age range.
How would you get to 29 without putting something away, though? If your safety net is <£100 you really need to make saving your absolute priority.
Surely it's possible for the majority.
Martyn Alonzo is 53 and from the West Midlands. He earns £13,000 a year delivering stationery and installing furniture.
Martyn Alonso managed to save £800 in six months and he's making £13k
Interest rates are pitifully low. That has an impact
More than 50% are bad with money?
What is the real solution? I have read many comments about the lack of saving among young people, but how can they begin to save?
It is not news that many young people are trapped in the vicious cycle of rent (aka Generation Rent), which takes a hefty chunk of the monthly wage. Rent has been advised to be about 30% - 40% of your monthly pay, but there are many people where this goes up about 60% or even 75%.
We also have the situation where there are few places where you can make real money and try to get out of the “rat race”. These places are London, Manchester, Birmingham etc. and they are expensive to live in.
It is fine to blame young people for living a “lavish” lifestyle; but if they are stuck in a pit of bills, bills and more bills, they cannot afford to put away a decent amount.
It is not news that many young people are trapped in the vicious cycle of rent (aka Generation Rent), which takes a hefty chunk of the monthly wage. Rent has been advised to be about 30% - 40% of your monthly pay, but there are many people where this goes up about 60% or even 75%.
We also have the situation where there are few places where you can make real money and try to get out of the “rat race”. These places are London, Manchester, Birmingham etc. and they are expensive to live in.
It is fine to blame young people for living a “lavish” lifestyle; but if they are stuck in a pit of bills, bills and more bills, they cannot afford to put away a decent amount.
Original post by Emma:-)
I agree.
A lot of people having stuff on finance (which costs more in the long run) doesnt help either.
A lot of people having stuff on finance (which costs more in the long run) doesnt help either.
What a lot of people realise is that being poor is REALLY, REALLY expensive.
Finance is obviously more expensive, but if you can't pay for something upfront what other option do you have?
For the record, I recently closed my savings account, it had £3.14 in it.
(edited 5 years ago)
Sally lives in a small town and needs to go to her cleaning job that is about 90 mins away. She has to get a car, as the buses and public transport are non-existent in her part of the world. She does not want to go on benefits and loves her job.
She is being paid minimum wage and cannot afford to buy a car upfront, after she has catered for her two children and husband, who works the bar in their local.
My question to you is this: How can Sally afford to live without being in debt? Should we quit her job and go on benefits?
She is being paid minimum wage and cannot afford to buy a car upfront, after she has catered for her two children and husband, who works the bar in their local.
My question to you is this: How can Sally afford to live without being in debt? Should we quit her job and go on benefits?
So she is not be allowed to procreate and live a normal life because she is poor?? She is not living lavish nor spending more than she affords. She is actually living minimally and cuts her coat according to her size.
The key issue is that the car, which is critical for her job, has become a financial burden to her and her family. Without her car, she cannot go to work. Without her job, she cannot feed herself and her family.
Also, buying a car for 200 quid is a massive gamble. There are people, who buy very cheap cars and spend the subsequent years fixing and repairing it. A close friend bought a car for £2,300 and has spent more than £8,000 on repairs. It was a slow killer and it was better to have purchased a higher cost car.
The key issue is that the car, which is critical for her job, has become a financial burden to her and her family. Without her car, she cannot go to work. Without her job, she cannot feed herself and her family.
Also, buying a car for 200 quid is a massive gamble. There are people, who buy very cheap cars and spend the subsequent years fixing and repairing it. A close friend bought a car for £2,300 and has spent more than £8,000 on repairs. It was a slow killer and it was better to have purchased a higher cost car.
Original post by Johnny English
I'm not surprised and the main reason for this is the ridiculous practise of paying for your transport / car on a monthly contract which are very expensive and extremely poor value for something that you will never actually own . Perpetual debt on three year roll over contracts with the allure of a top marque vehicle which you can impress your friends or neighbours with ....
Insane .
Insane .
I agree with the idea of what you're saying, but I think it's the "pay monthly" culture as a whole rather than just cars. So many people buy things they can't afford, and work round it by spreading the cost. As you mentioned, cars are a big culprit, but people who get mortgages often stretch themselves too far, then car insurance is often paid monthly which works out as more than paying in one go, car tax, mobile phone contracts rather than buying the handsets outright, catalogues and credit cards.. it's pretty much endless really, and particularly young people are finding that their wages are swallowed up by their monthly payments, giving them nothing left for anything else.
When I bought my first car I made the mistake of doing it, but I won't be doing it again, and I actually paid the finance off so I own the car. Perhaps not the best price I could have got it for, but at least it's mine now and I can keep it for a few extra years until I need to change it, at which point the money's there already.
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