How much do you thnk the average 25yr. old has money in some type of savings?

**frugalandsimple** · 09-27-2005, 07:36 AM

I heard and read the younger you start saving, the better you will be in the long run. Do you think young Americans have a harder time saving money due to student loans, rising costs of living and wanting material things?

**FreesiaE** · 09-27-2005, 08:51 AM

Well, I'm 26 now, and at 25 we were (and still are) fine in the savings department. We have only 1 car payment and 1 house payment. We have 0 in student loan debt and 0 in credit card debt. I did some grad school and paid for that with cash, which stunk, but better for us than a loan. We have put most of our savings in a CD for the present time. We both have IRA's as well. I don't think we're doing too bad--we're trying to "make hay while the sun shines".

**ecgsmama** · 09-27-2005, 12:21 PM

Although I do believe we are in the minority of young people..we too have a lot of savings and virtually no debt.

We have one house and one car payment. No student loans, no credit card debt, and no other form of debt.

We have multiple savings accounts, IRAs (mutual funds), CDs, and some stock.

CDs, Savings accounts, and college savings (529) accounts for all of our kids.

This is all from frugal living. Though our income now averages around $75,000 a year (before taxes) just three years ago it averaged $33,000. I was fortunate to have my parents pay for my undergrad degree, but I too paid cash for my masters degree and we paid for all of my husband's undergrad out of our own pockets.

It is all a matter of priorities. I like working, but it is extremely important to me to know that I could get by without working..so we have next to no expenses and we put all we can in savings all the time.

It isn't all glamour and fun (i.e. lots of yard sales clothes and next to no eating out), but (as we all on this site know) it allows you to focus on what is truly important.....enjoying each and everyday as a family...and not on "more stuff."

**PrairieRose** · 09-27-2005, 12:39 PM

I know that when we were 25-ish we had no money at all in savings. I'm very impressed with the ladies that responded before me, WTG! You are waaaay ahead of the game.

**thrifty gal** · 09-27-2005, 01:01 PM

We are a little older than 25. But, at 25 we had no savings. We have very little right now. But, some is better than none I guess. Dh does contribute to his 401k every week. We do have quite a bit in there. It is my goal to save at least $1,000. Hopefully, I can do it!

**FreesiaE** · 09-27-2005, 01:28 PM

Originally posted by ecgsmama
Although I do believe we are in the minority of young people..we too have a lot of savings and virtually no debt.

Nice to meet someone in basically the same boat as ourselves. I'm sure all of our friends wonder why I only buy clearance and 2nd hand clothes, as well as my excitement over 10 cans of salmon for $10, but in the long run, it's nice to be comfortable and prepared. Maybe when we're 100 my husband and I will "blow it" on what our friends today like to do--lots of short (but expensive) weekend trips, dinners out, drinks out, new clothes, etc. I can hear the calls of "Shake it Granny!" in Cancun on the bar!

**guest000** · 09-27-2005, 02:40 PM

I'm 27.5 (

) and we're doing great! We have two car payments, a mortgage, but no credit cards. We do have student loans that we pay on, but we still have more than enough for savings! We've been saving since we got married 5 years ago. Every little bit helps. We started out saving as little as $50 a month and now it's A LOT more than that, but we started small.

I don't think a lot of people, young and old, realize that every little bit counts so much. Even if you put away $5 bucks a week, you still will have an extra $20 bucks at the end of the month that you may not have had. Starting small is a good thing!

**Jerseygirl** · 09-27-2005, 07:03 PM

At 25 I was still on my spending spree-beach house, new convertible, debt debt debt. I worked 2 jobs and still lived paycheck to paycheck, I came down from it at 26.

**HandyMom** · 09-27-2005, 11:45 PM

I don't know any 25 year-olds to ask but I do know 2 "kids" who are 30 and close to 30 that have ZERO money in savings and in fact are in debt up to their ears and also have bad credit already.

They are working minimum wage jobs and live with their Mother, who they also have got loans from. They are still paying for car repairs on cars they had fixed which are now in the junk yard wrecked completely.

I was jealous that one of them had a nicer, newer older car than I even had and didn't take care of it and now it's gone, while I continue to drive my old rust bucket that's always in need of repair.

I could go on and on about what they DO choose to blow their money on but you can imagine -- they like to go clubbing, buy designer clothes and so on.

I am delighted to read that some of our village members have a good head on their shoulders and are not part of the majority when it comes to financial responsibility.

**ecgsmama** · 09-28-2005, 08:25 AM

Originally posted by HandyMom

They are working minimum wage jobs and live with their Mother, who they also have got loans from.

Hopefully, they aren't your kids!?!?

**Telephus44** · 09-28-2005, 09:26 PM

I'm 27 and have $19,000 socked away in my portfolio (401K, Roth IRA, and a small ExxonMobile DRIP). I also have $4500 in my savings account. I have just under $10,000 in student loan debt - no other debt.

When I was 25 (Thank-you MSMoney, for being able to tell me what I was worth back them) I had:

Portfolio: $7500
Savings: $7090 (checking and savings combined)
Student Loans: approx $12,500
Car Loan: approx $3000

Had to ballpark the last two, since I re-consolidated my student loans and didn't have anything on record for my car.

I agree that young people who save are in the minority, but my parents (and my father in particular) taught me the value of savings and investing, and good debt (car loan and student loans) versus bad debt (credit cards). I started my RothIRA the year I graduated (22) and have funded it to the max every year, adding more investments to my portfolio as I get older. Thanks to the miracle of compounding, its more important to me to get that money in there than pay off my student loans as fast as I can (mind you, I do overpay and they will be paid off early).

It's funny that my DH is finally getting it - when I asked him if I could invest the in ExxonMobile DRIP he suggested making it a joint thing. Now he's funding in 401K at his max (15%) and scouting for a drug stock for us to buy, after he chews through his CC debt (should have 14K paid off in 8 months).