Young People Doing Fine When It Comes To Saving Money

[jeffrey]

While those under age 30 do tend to save less than older adults in real dollars, it is important to take into account their stage in life and how much they can afford to save and how much they may earn in the future, according to Sherman Hanna, co-author of the study and professor of consumer sciences at Ohio State University.

When those kinds of factors are taken into account, about 61 percent of 25 year olds and 58 percent of 35 year olds would be spending less than their income, and thus saving, Hanna said.

That compares to about 56 percent of 45 and 55 year olds who would be spending less than they earn...

Young People Doing Fine When It Comes To Saving Money

[simpletron]

that also means 39% of 25 year olds, 42% of 35 year olds and 44% of 45/55 years olds spend more than they make. two-fifths of people spending more than they make isn't doing fine in my book, even though younger people are doing better than their parents.

on second thought, I spent more than I made last year because I bought house(downpayment was more than what I save in a year) and next year I will probably spend more than I make because of the start up cost of my business. also 25 years olds could still be in school, so maybe it isn't a bad as I think.

[StockTrader6080]

I can't imagine where those stats all come from.
Before I was married at 26, I didn't save a dime.

And does saving count if you put it in a Mutual fund for 20 years, and then watch it get cut in half (as it did last year)?

Keith

-----------------------------------------------------------
Goodbye Mutual funds Hello CoolTrade Robotic traders

[disneysteve]

Originally Posted by simpletron

that also means 39% of 25 year olds, 42% of 35 year olds and 44% of 45/55 years olds spend more than they make. two-fifths of people spending more than they make isn't doing fine in my book

My thought exactly. A lot of people continue to live beyond their means. We often hear the stat that 60-70% of Americans are living paycheck to paycheck. Assuming that's true, lots of people are in deep trouble.

[Joan.of.the.Arch]

The article reports that whether or not young people save depends, too, on whether they perceive they are likely to be making more money in the future. Those with an optimistic outlook on future income are less likely to save. Interesting. And sensible of the less optimistic.

[disneysteve]

Originally Posted by Joan.of.the.Arch

The article reports that whether or not young people save depends, too, on whether they perceive they are likely to be making more money in the future. Those with an optimistic outlook on future income are less likely to save. Interesting. And sensible of the less optimistic.

Yes, people borrow now with the thought that they'll earn more in the future to pay it back. Then one of two things happen. Either they don't advance as quickly as anticipated or lose a job or they build themselves a lifestyle that they can't afford to maintain.