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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Premium bonds

18 replies

MrsChuckBass · 13/02/2024 22:18

Happy to be told IABU!
I'm early 30s, 3 kids, married. Managing finances okay (thankfully!)
I have a colleague (retired early and full generous pension, came back part time) who constantly talks about premium bonds.
She is mortgage free and very financially comfortable (she tells everyone this) has sons in early/mid 20s who have all come into a good inheritance. They've put the entire amount into premium bonds!
I know this is none of my business but what happened to young people travelling/buying first cars/moving out with friends!
AIBU to want more for my kids than living with me well into their 20s and squirrelling into premium bonds?!

OP posts:
Cotswoldbee · 13/02/2024 22:21

How do you know they haven't already got cars, go on holidays, have a good time but have PB's AS WELL?

Original poster
MrsChuckBass · 13/02/2024 22:23

I know as she tells me, I actually know this is none of my business Blush it's just so different to what I grew up with in my 20s but ofcourse very family is different

OP posts:
owlsinthedaylight · 13/02/2024 22:24

Your complaint is that the mid-twenty-year-olds are investing their money rather than buying cars and travelling?

Or that your colleague is talking about it?

Nowvoyager99 · 13/02/2024 22:25

How much did she tell you this good inheritance was? Max PB holding is £50k.

Maybe they like living at home and are happy keeping the money somewhere safe until they want to spend it?

You sound like you really don’t like her.

BreakfastAtMimis · 13/02/2024 22:26

They sound very sensible. I wish I'd saved money in Premium bonds in my 20s rather than blowing it all on clothes and holidays!

lieselotte · 13/02/2024 22:27

Well maybe they don't need the cars, don't have friends to travel with (who can afford it) and so put the money away until they can afford to move out.

RaininSummer · 13/02/2024 22:27

But they can also cash those bonds any time they want the money for travel, deposit etc .

Mumoftwo1312 · 13/02/2024 22:27

It's definitely none of your business but you know that.

Mainly though, I'm surprised by your view that they'd be moving out once they have the money. In my experience/observations of young people, they move out of home when they're ready, not correlated to how much money they have.

They're ready when (eg) they have jobs too far to commute to, or a girlfriend or friends they want to move in with, or they want more privacy/independence. Money is not always or even usually the limiting factor to moving out, IME.

Saladpops · 13/02/2024 22:28

A lot of people are financially comfortable because they made decisions like this in their 20s.

Original poster
MrsChuckBass · 13/02/2024 22:31

Aww no I do like her, I just can't imagine my own DC living at home with me when they have the means not to at that age Blush but yes I see the point of having the money to move out doesn't mean they are ready, that's a great point.

OP posts:
NewName24 · 13/02/2024 22:51

YABU.
Sounds like they are saving, so will be in a good position when they do move out.
No need to rush to do that in "early / mid 20s".
It's not like they could buy a property with their share of inheritance that is small enough to fit in Premium Bonds - they still need a secure and decent enough salary that a multiple of it will then get them a mortgage, even if they are fortunate enough to have a deposit.
But maybe they are learning to drive / saving for lessons / saving for car / saving for insurance / waiting until they are old enough to get a more reasonable insurance quote and want to do that off their own bat rather than touch the inherited money they have wisely put away until they need ?

Hipnotised · 13/02/2024 23:22

...and in addition to all the points above, they could win a million pounds...

Odingodof · 13/02/2024 23:25

Premium bonds are called poor man's investing. Or something like that. I have premium bonds and I thoroughly enjoy the monthly draw| however I'm under no illusion that they give a poor return.
Your colleague should look into investing and encourage her gc to travel, yes.

OnceinaMinion · 13/02/2024 23:27

I wish I’d brought even a few premium bonds in my youth. I could have won a million by now.

WiIIoww · 13/02/2024 23:35

Quite normal still living at home at that age

Crumpleton · 14/02/2024 00:08

I sometimes use forethought instead of hindsight, maybe they're doing the same

TheSnowyOwl · 14/02/2024 00:21

You can’t buy that many premium bonds though. The max is £50k so realistically it’s not enough to buy a house but is for a chunk of the deposit.

Years ago I had some bonds and I won six times in a year. I loved them and ended up more than doubling the money I started with. Obviously it’s complete luck but I look on them quite fondly.

By my early to mid twenties, I’d already been backpacking round the world, finished uni and was probably on my fourth car. It feels like a good age to be putting the money towards a house (I first bought at 26) rather than moving out with friends.

Wojciech · 17/10/2024 06:56

It sounds like your colleague's approach with premium bonds might not be for everyone, but there can definitely be some benefits, especially from a financial safety standpoint. For some young people, putting money into premium bonds can be a sensible way to keep their savings secure, with the added bonus of having a chance to win cash prizes. Plus, premium bonds are completely tax-free, which makes them an appealing choice for growing wealth without added complications.

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