More than half of young adults have no savings. Do you? Watch

Poll: Do you have any savings?
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ineedtorevise127
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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
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Johnny English
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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 .
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username2837176
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For a lot of young people you can only save if you’re living at home
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Captain Haddock
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(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 .
Really? That's the main reason?
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Johnny English
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(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 ...
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username3883544
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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.
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username2837176
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#7
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Yep it’s ridiculous how much car insurance for young people is too
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Emma:-)
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(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.
I agree.
A lot of people having stuff on finance (which costs more in the long run) doesnt help either.
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Emma:-)
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(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.
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Weelouise
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#10
Yeah this doesn't surprise me at all to be honest.
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ChaoticButterfly
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#11
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(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 :rolleyes:
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username4148304
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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.
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TimmonaPortella
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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 :dontknow:
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Andrew97
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Interest rates are pitifully low. That has an impact
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DrMikeHuntHertz
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#15
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#15
More than 50% are bad with money?
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Wired_1800
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#16
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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.
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mojojojo101
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(Original post by Emma:-))
I agree.
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.
Last edited by mojojojo101; 1 year ago
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Wired_1800
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#18
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(Original post by ltsmith)
this is why we need to teach finance 101 and careers 101 in schools. i know people on min wage who have tonnes of car debt and an iphone x but struggle pay rent. WELL I WONDER WHY

*facepalm*
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?
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Wired_1800
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(Original post by ltsmith)
sally is not your average cleaner so she represents a statistical outlier.

nonetheless, she can afford to buy a car upfront. my uncle has paid 200 pounds for a car that lasted 3 years. the root of her problem is she has children and a poorly paying job. she should have not have children if she cannot support them. she should have thought about getting a good job before she decided to have children. it's not our problem to pick up the pieces of other people's bad decisions.

tell her to go to r/frugal on reddit. there's loads of advice there about frugal living. if you want to take it a step further, learn about minimalism.
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.
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J Papi
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(Original post by Wired_1800)
These places are London, Manchester, Birmingham etc. and they are expensive to live in.
Yep - not only are you getting fancier accommodation springing up (which is more expensive), but you also tend to get less access to big supermarkets where you can buy in bulk
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