18yo wondering what to do with savings?

[ktxllc]

Hey, I've currently got around 60k dollars that I've just got sitting in a savings account yielding 5.1%, but I can't help but feel like I'm mismanaging this amount of money at this age. I've always been a great saver, and I make about 20k/y at my part time job + tutoring, and study in a different state to my parents , who are nice enough to cover rent (which includes utilities and internet) for about 9 months a year. My only main expenses are insurance (1200/y), phone bill (around 400/y), groceries (around 100/week while I'm living interstate) and the odd expenses like car servicing.

Everyone I ask about this topic always tells me that 60k is a large amount of money to just be sitting around not being made use of, but everything I can think of doing with it seems out of reach because of my low income and age (like buying a house). Is there anything else I could be doing with this money? Should I just continue saving to hopefully by a house by the time i graduate in 2027? Would love to hear your advice.

 

[promiseokon]

@ktxllc Have to congratulate you on this achievement! It’s a huge amount for an 18 year old. Well done!

 

[kaylaherin]

@promiseokon wondering how an 18 year old gets 60K through anything but having rich parents?

 

[critical_thinker]

@kaylaherin He said his parents cover pretty much all of his living costs

 

[snorks4lyfe]

@critical_thinker No more than the average 18 yo living at home. In fact less as he is paying for his own food which most kids living at home do not pay for.

 

[bulfrek]

@snorks4lyfe

No more than the average 18 yo living at home.

erm, don't most do? if they're working at 18, they're paying board to their parents - me and all my mates did at that age.

 

[bigsurfer63]

@bulfrek Depends. Some are kicked out at 18, some are paying board, some don’t even buy their own clothes. The rule at my house was if you’re studying, that’s your job so no board. If you’re working and studying, no board. If you’re working and not studying, board

 

[keziahnz]

@kaylaherin Working and saving and not going clubbing.

 

[breona]

@keziahnz as an 18 year old who has worked since she could and despises clubbing, even if i had saved every single cent of what i made working i’d have no where near 60k

 

[keziahnz]

@breona I’m assuming the person left school early and started a trade / apprenticeship or did a lot of extra work or OT in the holidays. I started working and put together about $40K. I am 29 now though.

It depends on how much you get paid. I didn’t work at McDonald’s because it was too unpaid IMO. I got about $6 or $7 more per hour at Woolies.

 

[breona]

@keziahnz i’ve never worked food, always retail, but yeah, they’d definitely have to either have left school and are working full time or something else, cause no way you are earning that much with full time school

 

[keziahnz]

@breona Yeah I worked casually after school and on weekends because I wanted to go to uni. And I did. But people who could work full time would have been ahead money wise, pending they didn’t blow it.

 

[racholo]

@keziahnz Not needing to pay rent would be a bigger contributor ie. having rich parents

 

[snorks4lyfe]

@racholo Not many 18 yo's are paying rent etc (most kids these days turn 18 while still at school). This person is paying for more of his/ her own stuff than the average 18yo. They are doing great and no need to belittle their achievement. Were you living at home at 18?

 

[racholo]

@snorks4lyfe Living at home is not the same as not paying rent, I lived at home until 19 /2012. I paid rent well before I left home as did most people I know. Single parent households are like that and the amount of them is higher than ever.

 

[josh66]

@snorks4lyfe What? I was out of home and paying my own school costs and rent etc by the time I was 16. This was the case for over half my friends. Has it really changed that much?

 

[samanthaadams]

@josh66 It has. My (28F) fiancé (26M) is yet to live out of home. We both currently live with his parents while we build our own home and he previously stayed with me a lot in my last rental. I moved into my first rental at 17 when moving from a rural town to a city for work/study purposes.

 

[racholo]

@samanthaadams My point is if your parents are wealthy enough to allow you to live at home for free it's a massive financial advantage over the average person.

 

[samanthaadams]

@racholo My fiancé’s parents are “fortunate” enough to, in the last few years, be involved in a serious motor vehicle accident interstate and be made redundant from a long term government position which allowed them to pay down their mortgage. Prior to that they were far from wealthy.

 

[racholo]

@samanthaadams "Far from wealthy" people don't get mortgages. I don't understand why people want to deny the privilege they do have. I'm a HS teacher I see teenagers that never get the chance to live in the same house for more than a year, I see so many teens that need to actively help support their parents financially from 15, so many really smart kids that are left without a way to live anywhere without paying, and because of that will never go to university and put their talents to use.
You're telling me that a safe place to live without paying rent isn't a privilege, and it rings so hollow.