Graduating college but not much money in savings & I lived with parents. How much money should a college grad have saved?

Submitted by Cute_Construction928 t3_10p99he in personalfinance

So I worked through out college, lived with my parents, my parents paid for college & the last year I just had to pay for utilities & food which was only 7k.

I made about 20k last year but spent 19k. I feel so ashamed & guilty about this because I spent so much money the past 4 years on shits and giggles when I should’ve been saving. Now I graduate in 5 months & only have a net worth of 8k (3k savings, 5k IRA).

I could’ve graduated with about 50k in savings.

I was posting to this Reddit page to get some sort of insight.

How much should a college student have on average after graduating? Am I really behind now in life?

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goblueM t1_j6j0mnq wrote

Having a positive net worth exiting college is monumentally difficult, so congrats you are in a great position and are far ahead of most of your peers

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almostlucky7 t1_j6j158w wrote

This right here! Just plan to save. Just think that this is the lowest net worth for the rest of your life. Be INTENTIONAL with your spending is another piece of advice.

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Bangkok_Dangeresque t1_j6j0vhn wrote

>Am I really behind now in life?

No. The average 22 year old has negative net worth and has never heard of an IRA. Spend less frivolously (without budgeting for it), and don't get addicted to gambling. You'll be fine.

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data_ferret t1_j6jbmko wrote

Not only this, but please don't think of yourself as "behind in life" based on your net worth. Life isn't about collecting money, which you can't take with you anyway. Life is about living.

Living well means being responsible with your resources so you can use them well. That's it.

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Triscuitmeniscus t1_j6j3o4j wrote

Having exactly $0 to your name immediately after graduating actually puts you significantly ahead of the curve.

>I feel so ashamed & guilty about this because I spent so much money the past 4 years on shits and giggles when I should’ve been saving.

It's hard to beat the dollars/fun ratio of money spent on shits and giggles during your college years. You have your whole life to earn all the money you want, but all the money in the world will never buy you a single new college memory. If you had fun in college and made it out with a degree and $8k, you're rich beyond measure.

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DirectGoose t1_j6j2ffg wrote

Most people graduate college in debt. You're fine.

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greyAbbot t1_j6j32tl wrote

It's not great that you blew that money, but if you have learned the lesson about balancing future needs with current wants and don't make this mistake again, you will come way out ahead from this experience, especially because you are learning it at 22. We've all made dumb mistakes, but the key is to not make the same mistake twice.

As far as how much money you actually should have at this point, the only thing you really need is enough to get yourself set up in your career and whatever your post-college living situation is going to be. By far the most important thing to have invested in at your age is your skills and future earning power, and it sounds like you've done that. Don't beat yourself up any more.

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nkyguy1988 t1_j6j1nv2 wrote

Most college grads are negative, so just being positive is a win

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Interesting_Fox_8571 t1_j6j269p wrote

I know people that graduated college at 22, no grad school, are now in there 30s and still paying them off. You're good. If you still keep in touch with high school friends or at least know of how things are going for your high school classmates, you'll soon understand how well you're doing. In a few years, when comparing yourself to your age group that also finished college around the same time, you'll see you're in a solid spot in life. In the professional world you'll be a 22 year old new employee with people that are like 35 that are new grads and went back to school and you'll better understand that you're in a solid spot in life for your age

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Werewolfdad t1_j6j0nit wrote

>How much should a college student have on average after graduating?

Simply having a positive net worth means you're doing fine

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drockaflocka t1_j6j1cqu wrote

You're not behind (currently) but will be if you continue your spending habits. You've been given an incredible opportunity to build wealth at a young age and no debt. Nothing you can do about the past, but start looking towards the future. Read up and start practicing good financial habits.

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micha8st t1_j6j1yft wrote

How much of that money did you spend on school expenses -- transportation, books, meals between classes -- whatever your parents didn't cover? (I'm not looking for a full accounting -- just a ballpark).

Yeah, you could've saved more. Hopefully you don't need to borrow to start your Adulting job... my son started his last year and had to move to the next city down the freeway.

Hopefully you have good memories from the money you did spend...or some good material goods you can keep for a while. Having fritterred all that money away on spending you considered stupid would be a shame.

emphasis on YOU. It's not for us to judge the value of your spending choices.

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manwnomelanin t1_j6jgzss wrote

Spending $19,000 in a year could win an award. That's like bare minimum living essentials in the US

You have family/a safety net. It's a marathon, not a sprint.

Relax

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maddieg18 t1_j6jjh3w wrote

Me, a new college grad, with 45,000 in debt, being jealous of you.

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Longjumping-Nature70 t1_j6jxve1 wrote

I was worth NOTHING when I graduated. Actually, I owed student loans, so my net worth was negative.

I said the same thing as you. Yes, I worked. Yes, I had money. yes, I spent money.

I should have saved. Now, you know.

You are not late at all.

Start putting money into an S&P 500 index mutual fund today. keep contributing $50 each month for the next 40 years.

Once you have a job and can contribute to a 401K do that. Still contribute your $50 per month though into the mutual fund.

The key is just do it, and let time and compounding do all the heavy lifting.

You will be fine.

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anewconvert t1_j6jv3kq wrote

You are what? 23? Relax. Start saving SOME money, but you are in your twenties once. Travel, have fun. Start thinking about what you want from your life so you can live with intent and not just let the world happen around you. Yes, you can set a solid footing by saving now, but do that by passing up on luxury, not by feeling shame and guilt.

Travel, hang with your friends, make new friends, get laid, watch the sunset then party until it comes up. You have the rest of your life to worry about the small stuff, you have the small window of freedom and enough money to enjoy it.

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