4 ms·

Average account balance before the pandemic was 3K for <30yo in Spain. I heard it was even less in the US. That has a lot of implications, and none of them goo

Average account balance before the pandemic was 3K for <30yo in Spain. I heard it was even less in the US. That has a lot of implications, and none of them good IMO.

swiley 6y ago
In most countries holding cache is a net loss due to low interest rates so that's not necessarily a good argument.
- tafox 6y ago
  Yes it is. That 3K is the average young person's only asset and it is just getting eaten by inflation anyway. These people struggle to pay rent each month let alone think about "investments".
  - yelloweyes 6y ago
    ????????????????? Sure you will lose a little bit, like 2 or 3% a year. But if you have nothing saved then what will you do in case of an emergency? such as losing a job?
    - cpursley 6y ago
      29.99% interest credit cards.
- reallydontask 6y ago
  There is the idea of having an emergency fund, which given its nature, should be stored in an instant access savings accounts. This is money for when you lose your job for instance Your appetite for risks and circumstances determine how big it should be (a good rule of thumb is six months worth of salary) but there are countless stories of people trying to be clever with their emergency funds and storing them in ETFs or riskier investments only to find that when the need comes, their fund is not enough and get in financial distress.
  - jcalvinowens 6y ago
    If you're a US citizen, "I Series Savings Bonds" are fantastic emergency fund vehicles. You can cash them out instantly after holding them only one year, mine are paying just under 2% right now.
    - vel0city 6y ago
      Series I Savings Bonds are currently 1.06%. https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm https://www.treasurydirect.gov/indiv/research/indepth/ibonds...
    - dzonga 6y ago
      credit union savings accounts. mine pays 2.5%. you won't have penalty.
conceptme 6y ago
But is that everybody under 30? Makes much more sense to measure 25 - 30. As most will start to have a real job by that age.
- Shared404 6y ago
  I would track 18-30, as that catches those who are likely to be living independently.
  - throwaway0a5e 6y ago
    And it lumps them in with those who are likely still in school and have no real job yet thereby making it basically impossible to draw (useful) conclusions about independent young people.
    - Shared404 6y ago
      > And it lumps them in with those who are likely still in school I won't argue that one, but where do you draw the line with > have no real job yet I would argue that as long as you are working, you have a real job. Probably the best would be to track both 25-30 and 18-30 and see how it changes.
      - throwaway0a5e 6y ago
        >I would argue that as long as you are working, you have a real job. If you're working nights in a warehouse while you finish your degree that will get you into an industry with nearly six figure starting salaries then I would argue that you're not "working yet" you're just a student with income.
        Shared404 6y ago
        What does salary have to do if somethings a "real job"? Or what about blue collar workers who aren't going to school, and are at that same warehouse? Are they not working at a real job?
entropea 6y ago
60% couldn't afford a $1000 emergency in USA, in 2019. $3k? Probably a lot higher number. https://www.cnbc.com/2019/01/23/most-americans-dont-have-the-savings-to-cover-a-1000-emergency.html https://www.cnbc.com/2019/01/23/most-americans-dont-have-the...

Average account balance before the pandemic was 3K for <30yo in Spain. I heard it was even less in the US. That has a lot of implications, and none of them good IMO.

swiley 6y ago

In most countries holding cache is a net loss due to low interest rates so that's not necessarily a good argument.

tafox 6y ago
Yes it is. That 3K is the average young person's only asset and it is just getting eaten by inflation anyway. These people struggle to pay rent each month let alone think about "investments".
- yelloweyes 6y ago
  ????????????????? Sure you will lose a little bit, like 2 or 3% a year. But if you have nothing saved then what will you do in case of an emergency? such as losing a job?
  - cpursley 6y ago
    29.99% interest credit cards.
reallydontask 6y ago
There is the idea of having an emergency fund, which given its nature, should be stored in an instant access savings accounts. This is money for when you lose your job for instance Your appetite for risks and circumstances determine how big it should be (a good rule of thumb is six months worth of salary) but there are countless stories of people trying to be clever with their emergency funds and storing them in ETFs or riskier investments only to find that when the need comes, their fund is not enough and get in financial distress.
- jcalvinowens 6y ago
  If you're a US citizen, "I Series Savings Bonds" are fantastic emergency fund vehicles. You can cash them out instantly after holding them only one year, mine are paying just under 2% right now.
  - vel0city 6y ago
    Series I Savings Bonds are currently 1.06%. https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm https://www.treasurydirect.gov/indiv/research/indepth/ibonds...
  - dzonga 6y ago
    credit union savings accounts. mine pays 2.5%. you won't have penalty.

conceptme 6y ago

But is that everybody under 30? Makes much more sense to measure 25 - 30. As most will start to have a real job by that age.

Shared404 6y ago
I would track 18-30, as that catches those who are likely to be living independently.
- throwaway0a5e 6y ago
  And it lumps them in with those who are likely still in school and have no real job yet thereby making it basically impossible to draw (useful) conclusions about independent young people.
  - Shared404 6y ago
    > And it lumps them in with those who are likely still in school I won't argue that one, but where do you draw the line with > have no real job yet I would argue that as long as you are working, you have a real job. Probably the best would be to track both 25-30 and 18-30 and see how it changes.
    - throwaway0a5e 6y ago
      >I would argue that as long as you are working, you have a real job. If you're working nights in a warehouse while you finish your degree that will get you into an industry with nearly six figure starting salaries then I would argue that you're not "working yet" you're just a student with income.
      - Shared404 6y ago
        What does salary have to do if somethings a "real job"? Or what about blue collar workers who aren't going to school, and are at that same warehouse? Are they not working at a real job?

entropea 6y ago

60% couldn't afford a $1000 emergency in USA, in 2019. $3k? Probably a lot higher number. https://www.cnbc.com/2019/01/23/most-americans-dont-have-the-savings-to-cover-a-1000-emergency.html https://www.cnbc.com/2019/01/23/most-americans-dont-have-the...