What experts say about saving and spending

How much should young people save a month?

- Sue-Ann Tan and Timothy Goh

Experts Lorna Tan from DBS Bank, Vasu Menon from OCBC Bank and Jacquelyn Tan from UOB weigh in:

Q How much should I save?

MR MENON How much savings a person should have depends on his or her financial goals, lifestyle and income.

On social media, you may come across numerous videos purporting it is possible to "save $100,000 by 30". This is one possible target for young people which has been popularly bandied about, along with the 50-30-20 rule. That means to spend 50 per cent of income on needs, 30 per cent on wants, and save 20 per cent.

Take, for instance, a 21-year-old earning $2,000 a month and hoping to save $100,000 by 30. Assuming none of the funds are invested, and assuming their salary does not increase at all over time, they would need to save about $926 per month for nine years to hit that target. If you take into consideration that their salary would likely increase over time, and if they can keep up an aggressive savings habit, this target of $100,000 by 30 is a possibility.

MS JACQUELYN TAN