“I grew up in poverty and will probably always be afraid of having no money and spending too much… I always feel a pang of guilt when I buy good butter.”
Financial literacy is not something we are taught, at least not in an official capacity. If your parents are good with money, they could teach you helpful money and savings strategies and mindsets.
But if you weren’t born into a financially secure family or your parents weren’t particularly “smart” with money, chances are you’ll find yourself floundering when you reach adulthood and you had to start figuring this stuff out on your own.
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We are currently witnessing a huge increase in the cost of living. And as the price of property, rent, gas, groceries and electricity climb ever higher, wages have mostly remained stagnant, making it incredibly difficult to put money on the table. money aside and refrain from dipping into your savings.
Curious about how young people manage their money, we asked our readers to tell us how much money they have in their savings account right now and to share their saving tips. Here’s what they had to say.
Savanna*, she/she, 26 years old
Current savings account balance: $65,000
I work at homespitality, working 75 hours a week as an assistant room manager, paid occasionally. I survive on as little as possible and save the rest.
Tahnee*, she/she, 23 years old
Current savings account balance: $382.90
I work full-time as a marketing coordinator and earn $920 a week, after taxes. I try to save, but I end up dipping almost every week. I feel like there are constantly bills, food, an event, etc. to pay, every week, and I never really end up saving. Kudos to anyone who can save a ton of money by renting, it sure isn’t easy.
Petra*, she/she, 22 years old
Current savings account balance: $1,000
I work in customer service for a brand and make $27 an hour. I work casually and study, so I cut myself a break and figure I’ll save up when I get a full-time job – not the best approach! I am very ashamed of not saving. My money is pretty much everything in my wardrobe and my stomach. I’m living way beyond my means, which isn’t great. I was never really taught to save.
Lizzi*, she/she, 27 years old
Current savings account balance: $71,920
I am an accountant with a salary of $90,000. I have separate accounts in my bank account for rent, expenses, savings, etc. and I invest a little with every paycheque. My approach to saving is to give myself a limit per week to spend and stick to it.
Georgia*, she/she, 23 years old
Current savings account balance: $16,905
I work in public relations and I make $64,300 plus super. At the moment my approach to saving is quite erratic as I have just moved and I am still finding my feet, but I generally try to save around a quarter of each salary. My income has gone up almost 20% in the last six months, but my rent has also gone up about 40%, so I’m still trying to balance it all out.
I try not to be too hard on myself – this time of my life is all about saying yes to experiments and trusting my own ability to make good decisions, while preparing for financial freedom in the future. coming.
Marli*, she/they, 27
Current savings account balance: $42,201 (with a goal of reaching $50,000 by the end of the year)
I work full time and make $90,000 a year, excluding super. I’m not very strict about my savings and budget calculations, but I try to implement behavioral tips to help – things that slow down any reckless spending and make me worry about saving.
For example, the harder it is for me to transfer money into my spending account, the better for me – anything that makes me think twice about spending more than my budget. I have several savings accounts in two banks. On the first day of the month, I roughly calculate a savings rate of 40-60% and make a transfer.
I also try to get involved in the savings experience. I make sure to transfer the money manually, rather than using an automatic payment, so that I can invest a bit more (pardon the pun) in the savings experience – kind of like putting a coin in a piggy bank. I am all for monetary transparency, especially in these troubled times of rising inflation and the generally baked-on vibes of terminally ill capitalism.
Jodi*, she/she, 29 years old
Current savings account balance: $32,000
I work in marketing and make $86,000 a year, before taxes. As soon as my paycheck hits my account (monthly), I split it and put a chunk into an account for expenses (rent, car, bills, etc.), another chunk towards a month’s worth of groceries, and, my favorite, a percentage to my high interest savings account. The rest is my “play” money, but I have to learn how to allocate it wisely for the month.
Saving was a lot easier during COVID and shutdowns and now with the temptation to eat more and spend money on things I love I have to find better ways to balance my spending to eliminate the guilt .
Mila*, her. 32
Current savings account balance: $101,000
I run a retail store and make around $60,000 a year. I’m also a small business owner that makes $75,000 a year, before overhead, which brings it down to around $40,000, if I’m lucky.
Giving up all the simple/social pleasures in life is my key to saving. If you don’t go out [you have] no need to buy pretty things, because they are never worn or seen. But really, I’m saving for a house and a future family, so my priorities just changed and I’m still focused on that.
Money makes happiness. To save, you may need to be sad for a while. I never thought in my life that I could have saved so much, and I’m so proud of myself for having done so. So it becomes a reward in itself.
Jeanne*, she/she, 24 years old
Current savings account balance: $215,000 (about $260,000 including investments)
I am independent. My income fluctuates, but it’s currently $160,000 a year. I save by buying only what I need and by reflecting and justifying my desires, especially when it comes to material goods, whatever the cost. If I make more money a month, it doesn’t affect my spending habits.
All of my income is immediately transferred to my savings account and I only transfer $100 at a time for daily expenses, or more if I need it.
Sarah*, she/she, 30 years old
Current savings account balance: $33,000 including joint accounts and savings that I share with my partner
I’m a fashion designer and I make $75,000 a year, not including super. I feel really lucky to be in a shared income household, it makes saving a lot easier. My partner and I budget and immediately withdraw rent, food, bills, savings, etc. from our account, leaving us each a small amount to spend.
I grew up poor and will probably always be afraid of having no money and spending too much, which makes it easier to save. I still feel a pang of guilt when I buy the right butter. But [I] I am grateful to know how to survive on a shoestring budget if it ever becomes my situation again.
Ava*, she/she, 28 years old
Current savings account balance: $75,000
I have a full time job and two casual weekend jobs. My full-time salary is $95,000 per year including super, and my casual jobs pay $45 and $35 per hour respectively. I also regularly board dogs – the price differs quite dramatically between owners and the different services their pet needs.
I’m a big fan of hustling, even if that means you work full time and then work after work or weekends – you don’t have to do it every week, just once in a while for you recharge. Also, don’t pay rent you can’t afford. Settle for the worst house on the best street/suburb (if you can) while you settle.
Kyra*, she/she, 23 years old
Current savings account balance: $4,366
My income is made up of a combination of salary and self-employment. Every fortnight after taxes, I earn just over $2,000 from my salaried work. I earn around $1500 a month from my freelance work. Every fortnight, when I get paid, sums of money are automatically transferred to different savings accounts.
One for my car expenses, a short term savings account and an emergency account. The cost of living is colossally baked in and I feel really stretched financially. I live within my means, but even buying my usual amount of fresh produce hurts my pocket.
Nikki*, she/she, 29 years old
Current savings account balance: $150,000
I’m a veterinarian and I make $100,000 before taxes, but I’ve only been making that money for three years. I started with $24,000 (USD). I automatically transfer between a third and a quarter of my weekly salary to my savings account. If I’m saving for a trip or something, I take a break.
I really try to avoid dipping into my savings unless I choose to invest them (stocks, exchange traded funds, managed funds, and hopefully eventually property). I recommend having a separate savings account, possibly with another bank so that it is difficult to dip into it. I don’t really understand the popularity of Afterpay and that kind of stuff. Save for something, don’t pay.
Regan*, she/she, 19 years old
Current savings account balance: $471.13
My sources of income are Centrelink and Depop, so it’s different fortnightly but it’s usually around $330, before rent and student loans. I don’t have a savings strategy, I’m just really trying to stop myself from shopping.
For advice on saving, go here.
