Should I Be Saving for a House in High School?

See what the experts say.

Remember when Gen Z and Millennials were told we would be able to get into the housing market if we stopped buying smashed avo on toast? Pepperidge Farms remembers.

Well, no amount of smashed avo will change the fact that 65 per cent of Aussies believe owning a home isn’t an option for young Australians according to a recent Australia Talks survey.

As property prices continue to rise while young people’s wages don’t, it begs the question: should I be saving for a house in high school?

To help answer this, we caught up with the founder of Money School and Student Edge Plus learning partner Lacey Filipich to answer these burning questions.

Should I save for a house in high school?

With the way the Aussie housing market is, some students believe they need to start saving now, but should they?

“It comes down to personal preference, and most people in high school won’t have made up their mind yet,” Lacey tells us over the phone.

“There’s nothing wrong with saving; it’s a great thing to be doing as early as possible. If you do manage to save a bit and decide later you do want to own a property, then having savings will make it easier.”

Should I worry about not being able to afford a house?

The important thing about this question is understanding the background to it.

“Australia is weirdly pathological about homeownership. It’s nowhere near as important in Europe for example, where people often rent for life,” she reassures.

“In the long run, it’s generally more expensive to own a property than rent one. Buying includes major upfront costs like stamp duty, ongoing costs like insurance, maintenance, rates and mortgage, so a life spent renting may actually work out cheaper.

“In short, I wouldn’t worry about it unless it’s important to you, and not just because someone told you, ‘rent money is dead money.'”

When should I start saving?

If you find yourself in high school with a part-time job, you’re probably thinking about saving some money. So, when should you start saving those dollars?

“The sooner the better,” Lacey says.

“It’s because it’s a habit. The sooner you start a habit like that, the sooner it becomes ingrained.”

For Lacey, she started saving half of every dollar since she was 10-years-old and has carried on saving to this day, with automatic transfers now handling her savings for her.

“Because it’s a habit, the sooner you start, the more likely you are to find it’s easy to continue and it’s pretty much compulsory to becoming financially independent.”

Don’t feel like you should be putting away half of your payslip like Lacey, because it’s not about the amount.

“As long as the habit is there, the amount is less important. It’s all about the habit.”

What should I save for while in high school?

So, if you don’t have to save for a house, what can you save for?

“It depends on your living circumstances,” Lacey points out.

“Some people in high school pay for their living costs like board or contribute to food. Some students have no costs thanks to Mum and Dad.

“It really depends on where you are, but the act of saving gives you a choice. The more you save, the more choices you have and the more things you can put your money towards like a first car, holiday, concert tickets or shares.”

Basically, find something that works for you.

What if I just want to enjoy my money?

Honestly, we don’t blame you for wanting that. Thinking about buying a house is a problem for future you, and Lacey agrees—kinda.

“Definitely. You can do both: save and enjoy life. The point of saving isn’t deprivation so that you feel like you’re missing out, but putting some money aside for future you, for what you want to happen in your future,” affirms Lacey.

“When you’re young, you don’t have bills and commitments. Spend it on things you enjoy! Just don’t throw it away on things that don’t make you happy or aren’t essential. “

You basically just got permission to have some fun with your money. It was made round to go around after all.

If you love what Lacey Filipich had to say about saving for a house in high school, be sure to check out her budgeting course with Student Edge Plus.

Header Image: @maxconacher via Unsplash