Is $35,000 to $40,000 in the bank account a lot for a 21 year old college student?

Question

I am a 21 year old State college student who has been working in retail for a few years. I have $35-$40 thousand in my bank account combined (checking and savings)...I was wondering was that a lot, average, or way below a 21 year old should have...please let me know thanks!

Answer 1

I would say that you are definitely above average

Answer 2

That's plenty! That's at least a year's salary for the average adult. Good for you!

You need to start investing this money a little more wisely, though.
-First, have 15% of your paycheck automatically deducted into a 401k or IRA retirement fund. The more you invest now, the less you'll have to invest overall, and for less time. It may sound like a hefty percentage now, bu trust me, the miracle of compound interest will make you a millionaire when you retire.
-Next, put 3-6 months of living expenses (what you would pay if you weren't living at home and no one else was contributing to any of your expenses) into a money market account (not a money markey deposit account at a bank, this is different). This is your emergency stash.

Also, get down to your local library tonight and start checking out personal finance books - they can be wonderfully empowering and inspiring, and most are written in simple, easy-to-understand terms.
Some good, easy reads:
-The Complete Idiot's Guide to Personal Finance in your 20s and 30s
-The Complete Idiot's Guide to Managing Your Money
-“Smart Women Finish Rich” or “The Automatic Millionaire”, by David Bach
-any Suze Orman books

Answer 3

I assume your tuition is taken care of? There is no amount anyone _should_ have. Although i question what the interest rate you're earning on these bank accounts is. You should be earning around 5% on cash you don't immediately need. If not, I suggest some money market investing. It is safe and your savings will not be eroded due to inflation.

Have you been investing in your Roth IRA? Since you can afford to and you have taxable income, you should be investing the max every year.

Edit: Most college students are heavily saddled with student loans, as much as 100k in debt.

Answer 4

I think you are doing awesome for a 21 years old. But in the case that you do NOT owe ANY debts at all. I mean no student loan, no auto loan, no credit card debts, and any other personal loans. If you do, you need to pay those off first. How do you pay for your tuitions? Your parents? If you can save up so much money and NO debts at all, I would suggest you to start retirement account. It not too early...Need to look at bigger financial picture than just savings in the bank.

Answer 5

Some one is tooting their own horn, which is OK, but I am pretty sure that you had a little help putting that much money away. Again that is OK. If you have that much money, you should be smart enough to know that it is not average for a 21 year old to have that much money. Most kids are busy trying to buy a car, pay rent, and just live.

I think that you should be counting your blessing, and remember not to rub your good fortune in someone else's face.

Answer 6

Um that is amazing. I'm a college student and I have about 200 dollars in my account and over 100k in loans for my education so far.

So yes that is pretty good, although if you weren't a college student that might be around average for someone your age. Congrats.

Answer 7

Its good for your age. You must either live with parents that didnt charge you rent or something to save that much working in retail. And college must be paid for by someone else too. Goodjob now go out and make their money spent mean something.

Answer 8

That is probably a lot more than 99% of college students have. Heck, that is more than probably 50% of people in the US.

Take care of that money. Don't do anything stupid with it (I am betting you won't if you were able to accumulate that much). Carefully invest it and keep it growing.

Answer 9

I think thats a lot for a 21 yr old. good job

Answer 10

I'm not sure if it's common to go to that specific area but I think it's common to go on a trip. Cancun sounds nice.

Answer 11

Woah that's brutal. I had over 1 million when I was only 19 and in college. Maybe you should work a little harder and switch fields to something that earns a higher dollar.