> "What percentage of income do you think young people should be saving?"
As much as they possibly can. 16% is thin considering the salaries software developers commonly get.
The awareness that you don't have to tolerate the bad parts of your job one second longer than you feel like is the most liberating feeling in the world. It allows you to do the right thing instead of the most career-expedient thing at the workplace and to try out jobs you wouldn't dared to take a risk on before.
Aside from that, right now the money is good for developers but there is no guarantee that situation will last or your skills will continue to be valuable. Remember when COBOL was a ticket to a stable career? Remember when Flash development jobs were everywhere? A lot has changed over the past fifty years and there's no sign of that slowing down. If you zig when the job market zags, you may find yourself relying on your own savings earlier that you expected.
I would add: "As much as they possibly can in tax-advantaged accounts, and then more!" And it turns out, you can save a shit ton in a tax advantaged way.
Let's look at 2020 limits, and assume a married couple, under 50, with one person earning as a software engineer:
$19,500 max contribution to a pre-tax 401(k). Many companies match. You should contribute all $19.5k, not just what you can to get the full match. If you're over 50, do the $6,500 catch-up.
But that's not all. The IRS limit on combined employer/employee contributions is $57,000. So if your employer allows it, contribute the remaining $37,500 post-tax and then convert it to a Roth IRA to at least get the earnings and withdrawal tax advantage (commonly known as the "mega-backdoor Roth").
$12,000 to an IRA (or Roth), $6,000 from both you and your spouse. If you like Roth but are beyond the income limits for the Roth, do the "regular backdoor Roth".
$7,100 to a family HSA. If your company offers it, do it. It's triple tax advantaged when used for health expenses.
Although they are old-school and don't yield much, US savings bonds can be a decent way to fill up an emergency fund. They are exempt from state taxes, and interest may be excluded from Federal income tax when used to finance education. There are a few to choose from, I particularly like the Series-I bonds. The government limits individuals to $10,000 per year for a total of $20,000 for a married couple.
So, if you are a very high earner, and are fortunate enough you can max all of these, you can save $96,100 per year, with some kind of tax advantage. There is probably more that I'm not thinking of. You should probably do all of these before you even think about looking at fully-taxed investments like your retail stock broker.
As much as they possibly can. 16% is thin considering the salaries software developers commonly get.
The awareness that you don't have to tolerate the bad parts of your job one second longer than you feel like is the most liberating feeling in the world. It allows you to do the right thing instead of the most career-expedient thing at the workplace and to try out jobs you wouldn't dared to take a risk on before.
Aside from that, right now the money is good for developers but there is no guarantee that situation will last or your skills will continue to be valuable. Remember when COBOL was a ticket to a stable career? Remember when Flash development jobs were everywhere? A lot has changed over the past fifty years and there's no sign of that slowing down. If you zig when the job market zags, you may find yourself relying on your own savings earlier that you expected.