What would you do with this money?

[Studentnurse92]

So today my dad presented me with a cash gift of 10 thousand pounds. I’ve never had this much money in my life and I’m overwhelmed. What would you do with it? My current thinking is to put it in to my savings account and transfer 200 a month into my help to buy ISA. Anything else I should consider? I don’t have a mortgage and rent but also no debt. 2 children under 6.
Merry Christmas everyone.

Could you not use it as a deposit straight off? I dont really understand help to buy ISAs though so maybe your idea is better

Yep help to buy isa then keep it for buying a house!!!

How long until you max out the ISA?

I’m a student and my Oh earns minimum wage so the most the bank will lend us is 30 grand currently which is obviously no good. In a few years we should be in a much better position. Sorry didn’t mention this in Op.

ISA currently has 200 in which I deposited 2 years ago. We have been struggling! Which is why I am so overwhelmed!

Invest it in an ISA and let it grow for a house deposit. Either that or the holiday of a lifetime depending if you want to be sensible or not.

Stash it away gradually putting it into a HTB ISA. Maybe have a big of fun with £1000, you'll get it back in your bonus 🤫

What a lovely dad. Yes, put it into a help to buy ISA and save for your future.

I’d do drip it into a LISA. Look on the money saving expert website.

I think, as lovely as £10,000 is, it isn’t much in the grant scheme of things, therefore, I’d probably just use it to make my day-day life easier, so dip in when I need a new top, want to go out for a meal, when I need to have car repairs done etc.

I'd either put it in for the house deposit ensuring I had a deed of trust to protect it, put it in trust for the children or use it to pay a big part of the student loan off.

Unless of course, your ohs income doesn't cover everything whilst you aren't working and I'd use it for my share of the bills.

I would invest £7500 and use the remainder to treat yourselves to things that you need for the home and to make life more comfortable. It may not be a life changing amount but it’s a decent sum to have in the bank.

Which area do you live? In some parts of country you can buy a 3 bed house for £60

I'd get it put away for a house deposit

Definitely invest the maximum amount you can in a help to buy ISA as this is so worthwhile if you are intending to purchase a property in the future. If there's any left over maybe get yourself some premium bonds

I'd convert the help to buy into a LISA if you arent planning to buy in under 12months. Then drop the £10k in at £4k per year and you can have the extra from your help to buy too.

Help to buy ISA and if you don't get a holiday, then a kids club Haven, type holiday. We are going to have another hot summer.

Since you want to buy a house, only once answer. Put it in a help to buy ISA or LISA over two financial years so you get 2x the Govt bonuses.

Don’t get premium bonds. The implied interest rate is shit.

Shocked at the suggestion you fritter it away on new tops!

It’s an enormous step towards a deposit- as others have said, feeding it into a LISA seems your best bet to maximise your return and up your deposit

or use it to pay a big part of the student loan off.

That's the last thing I'd do because most people don't repay the full loan unless they are really high earners. I could have paid the tuition fees for the first year but instead paid the rent for the year up front.

Hermione Agreed - I could have bought my house with a £12k deposit and I didn't buy long ago: the LISA bonus over 2 years would have done it! I can't imagine thinking it wasn't a life changing sum, while not owning a house!

My mum did exactly the same three years ago and I did what you’re planning with the help to buy ISA. Currently sat in our new, owned, home.

What an absolutely super gift! Well done you. Your dad is a gem.

I’d use about £2k to have a holiday and some nice days out next year and save the rest towards a deposit.