'Millenials' Can't Be Bothered to Save £800 a Month

United Kingdom
February 19, 2016 9:46am CST
This is a, paraphrased, headline from a recent newspaper article. For those unfamiliar with the British, £800 works out to a little over $1100. The term 'millenials' is used to refer to young adults who would have been teens during the first years of the 21st Century so now around 23 to 28 or thereabouts. According to the article in the Independent (a British newspaper) these millenials should be saving around £800 per month in order to not be in debt in later life, and to have money put away for retirement. The article suggested that these 20-somethings were not saving because they were frivolous in their spending. Considering that the average salary is placed around 16000 to 27000, depending on the source and on the demographics, that works out anything from around 1300 to 2300 per month. Of course, if a young adult is earning in the higher end and has no family to support, it's quite possible that they could save 800 each month. However, the lower end of the scale is more common. That means in order to save 800 each month, they would need to live on 500. Of course it depends on individual circumstances whether or not this is possible. Then there is the problem that some are on lower than these 'average' wages, and may not even earn 800 let alone be able to save it. A large problem comes when these people need to pay bills, especially rent or a mortgage. When average rent for most is well over £500 per month, that means anyone who saved 800 out of 1300 would have to pay no other bills, nor buy food, nor pay out to do things like get to work. The article in the Independent seemed to neglect to factor in that most of these 20-somethings would be paying bills and many would have children. Instead, it was suggested that they were wasteful. So, to make this into a discussion, is there a good amount to save or a certain per centage of income? How easy or hard do/would you find it to save? For me, as a 35 year old single working Mum with two children, my income is OK but I don't think I could save anywhere near £800 a month, no matter how hard I budgeted and cut down on things!
4 people like this
5 responses
@skysnap (20152)
20 Feb 16
My earning is over 900 a month. I can't imagine saving 800 out of it. And even worst some of the time earning based on per hour. I go as low as 200$ a month. so saving is harder.
2 people like this
• United Kingdom
20 Feb 16
I don't know who wrote the article to which I referred but I think they must live in a different world from the rest of us! When you get paid by the hour, you often need to do a lot of hours just to earn enough to live on. I can't imagine younger people especially being able to earn anywhere near enough to afford to save 800 unless they have no bills to pay!
1 person likes this
@scheng1 (24649)
• Singapore
20 Feb 16
@skysnap Save 10% of your earning is a good start. There is no need to follow those reporters who pluck a figure from the sky.
1 person likes this
@skysnap (20152)
22 Feb 16
@scheng1 Yes that number is definitely not real and especially with bills to pay. And totally unrealistic with the upcoming changes in the market with expensive food.
1 person likes this
@BelleStarr (61463)
• United States
19 Feb 16
That appears to be rather an unrealistic goal, saving 10% is realistic especially when one is younger. There will be many years when the children are grown and income has gone up to save vast amounts of money.
1 person likes this
• United Kingdom
19 Feb 16
Yes, I thought it was rather unrealistic, especially as a lot of these people would barely earn that amount. I think 10% is realistic for some but there are, of course, still a lot of people who wouldn't be able to do that.
1 person likes this
@BelleStarr (61463)
• United States
19 Feb 16
@pumpkinjam No I am sure many can't, we didn't always, but it is at least a goat to strive for. Making unrealistic goals just discourages people.Even savings 1% is better than nothing.
1 person likes this
@scheng1 (24649)
• Singapore
20 Feb 16
When i read the newspapers about saving or salary or whatever, I hate the fact that they do not differentiate between gross salary and net salary. A salary of 3000 pounds a month is a good salary, but is that a gross or a net? If that is nett salary, and the person cannot save 800 pounds, then something is wrong. If that is gross salary, and after deduction for tax, and medical insurance, and others, a saving of 500 pounds may still be achievable, but 800 pounds a month is still a stretch.
@marlina (154103)
• Canada
19 Feb 16
It is best to save at least 15% of your net income for later on.
1 person likes this
• United Kingdom
19 Feb 16
That's sensible. Of course it's easier for some than others, and, with the figures in my example, 15% would be nowhere near the £800 being suggested.
@Jessicalynnt (50523)
• Centralia, Missouri
21 Feb 16
that was going to be my point exactly, we dont make enough to put that much back!