Active discussions

Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Original poster

What should teen spend windfall on

51 replies

Jaws2025 · 26/07/2025 15:47

My ds will be 18 in a couple of months. At this point he will receive money from gps, of around £15k - lovely! Clearly I want this to be of use to him in the future, and although it's nice to spend some on something fun I really want most of it to help with future expenses such as getting somewhere to live. I know he would probably spend most of it on a car, which he doesn't "need" due to where we live and hasn't yet got his test.
GPs have said it's up to me how the money is presented to him. Does anyone have any ideas? Should I say he has a few thousand to use for a car later on and the rest should go into savings/ISA for his future?
Should say, he lives at home and has no expenses, and has money from his part time job for whatever he wants.

OP posts:
CoastalCalm · 26/07/2025 15:50

A big chunk into a LISA

TeenToTwenties · 26/07/2025 15:53

Tell him it is not to be frittered and is meant for things like driving lessons, cheap car, first month rent when moving out. He is meant to put it away until needed.

GOODCAT · 26/07/2025 15:53

Encourage him to keep it back towards a house deposit, so save it. That is an incredibly helpful amount of money to get set up with, don't encourage it to be spent on stuff they don't need. Put it across as a starting point and with hard work they can double it (or whatever they realistically will need to do) and get housed sooner.

verycloakanddaggers · 26/07/2025 15:55

Tell him to put it all away until he has a plan - and suggest he saves it long term for something like a house deposit. Grt him to read stuff online about the impact this money could have on his future.

This is why GPs should not do this, it isn't helpful to give big amounts to 18yos.

Original poster
Jaws2025 · 26/07/2025 15:55

I have a low-risk approach to money and savings accounts are about as exciting as I go. I totally agree with the posts. It would be easy spent and it won't come back again.
I will look up the lifetime ISA I don't know anything about it.
Any other ideas for saving it?

OP posts:
JulesJules · 26/07/2025 16:00

Lisa, ('Lifetime ISA') you can put £4k pa in and government will put in £1k, plus interest. I think for a maximum 5years. You can only withdraw it to buy a house. Put the rest in an ISA, use some for driving lessons, try and keep some back for eg rent deposits, emergencies etc.

taylorsfritz · 26/07/2025 16:17

JulesJules · 26/07/2025 16:00

Lisa, ('Lifetime ISA') you can put £4k pa in and government will put in £1k, plus interest. I think for a maximum 5years. You can only withdraw it to buy a house. Put the rest in an ISA, use some for driving lessons, try and keep some back for eg rent deposits, emergencies etc.

I didn’t know there was a maximum of five years.

When my children were in a similar position they put £4k in their LISA at the beginning of the tax year, the rest in a bond for a year so it matured at the time for another £4k to go into the LISA the next April.

redskydelight · 26/07/2025 16:34

taylorsfritz · 26/07/2025 16:17

I didn’t know there was a maximum of five years.

When my children were in a similar position they put £4k in their LISA at the beginning of the tax year, the rest in a bond for a year so it matured at the time for another £4k to go into the LISA the next April.

Show quote history

There isn't a maximum of 5 years. You can pay into them every year until you are 50.

PeonyPanda · 26/07/2025 16:36

Read Martin Lewis re LISA’s as impacted by value of first house you buy - you can end up losing out.

Original poster
Jaws2025 · 26/07/2025 16:37

taylorsfritz · 26/07/2025 16:17

I didn’t know there was a maximum of five years.

When my children were in a similar position they put £4k in their LISA at the beginning of the tax year, the rest in a bond for a year so it matured at the time for another £4k to go into the LISA the next April.

Show quote history

Can I ask, how did ur dc feel about doing this, where they keen to save in the LISA themselves?

OP posts:
Original poster
Jaws2025 · 26/07/2025 16:41

I see the cap is 450,000 - we could only dream of that!
In fact, I do need to think about the potential of his not wanting to buy a home at all and maybe wanting to start a business or something (which may be a bad idea - currently trying to get on a trade apprenticeship.)
Thanks to everyone who has posted by the way, much appreciated

OP posts:
taylorsfritz · 26/07/2025 16:44

Jaws2025 · 26/07/2025 16:37

Can I ask, how did ur dc feel about doing this, where they keen to save in the LISA themselves?

Show quote history

They were keen, my son’s now used his as a house deposit.

MounjaroMounjaro · 26/07/2025 16:45

Does he have to know how much he's getting? I think he'd waste it, frankly.

DiscoBeat · 26/07/2025 16:46

Our teens each have around £80k savings invested from when their GP died. They have always known that it is for putting toward a house deposit so having had it ingrained all this time I hope they won't use it for anything else! They're both pretty careful with money. DS17 only just spent his GCSE reward money (he has been saving for a couple of years for a car, which he just got).

Larooba · 26/07/2025 16:55

Mine had more than tha £4k so put £4k in the LISA gained the £1k from the gov. Then the next year added in another £4k. I mean you get £1k for free for each £4k you put in. It can be used for either house buying or a pension. A lot of people also downsize their house to release equity to invest into their pension or use it to fund the gap between their retirement and when a private pension can be accessed, which will be 57 from next year.

He needs to think long term. As an example my friend's DD just keeps frittering money and has now had to move twice to areas she doesn't want to live in because they can no longer afford the rent of the areas she wants to live in. She doesn't get to choose when the landlord wants their property back and so forces them to move, again.

You asked how DC feel about putting their money in a LISA. Mortgage companies will only lend you so much money based on your salary and outgoings. This is a limited amount. What can boost you is your deposit. The bigger it is the more money you get to spend on the initial house buying and your LTV might drop you into a better mortgage rate category. Mine have been looking at Rightmove since they were 14.

cyvguhb · 26/07/2025 17:06

Why does it have to be spent? At age 18:the last thing I'd want my children to do is spend a large sum of money for the sake of it.

That's crazy surely, if you have to ask the internet for ideas is clearly doesnt need to be spent, saving is the obvious answer

How much do he have in the child trust fund?

Rafting2022 · 26/07/2025 17:12

I never understand giving people large amounts of money just for turning 18, it seems a terrible idea.

The time to give it would be eg when they are ready to be a house, car etc or actually need it.

Can the GPs not invest it on his behalf until needed?

ShanghaiDiva · 26/07/2025 17:14

Involve your ds in the decision making process. What does he want to do? What are his financial priorities? So many posters feel 18 year olds will waste money, but don’t seem to help them to become educated about money (general comment, not this thread specifically).
dd sat down with us prior to university to agree a budget, set up her own spreadsheet etc.

CandyCane457 · 26/07/2025 17:15

I’d say allow him £1k to treat himself- it is his 18th after all, some new clothes, a holiday with friends, is he into gaming or anything? It would be nice for him to turn 18, turn an adult and have an amount of money like that to treat himself with and have fun.

And then the rest- LISA!

Original poster
Jaws2025 · 26/07/2025 17:17

Probably shouldn't have put "spend" in the Op - I don't want him to spend it now, I'm including "spend on a house in the future"!
I would need to tell him as he needs to be able to say thanks for the money. They wouldn't insist on that but I think it's the right thing to do.
I think if I could come to a balance between a bit set aside to help buy a car at some point, but the bulk in savings or investments. He can only put some in the LISA anyway, what would be good for the rest - a cash isa?
His CTF only has the original investment in it, its hundreds not thousands.

OP posts:
Nannyfannybanny · 26/07/2025 17:19

Are the grandparents still alive? I would suggest holding off gifting the money until 25. If the money is in your son's name,you can't MAKE him do anything.

Snorlaxo · 26/07/2025 17:21

If he wants to be a tradesperson then investing in getting his driving license should be a high priority imo. Insurance once he’s passed is very expensive so this money could really help.

KnickerlessParsons · 26/07/2025 17:26

I would suggest premium bonds for a large chunk of the money.

NewbieYou · 26/07/2025 17:32

Stocks and shares ISA until he’s ready to buy a house.

GeorgeTheFirst · 26/07/2025 17:39

Mine had this much at 18, then a bigger chunk at 21. They never spent any of it. The younger one is just using his as deposit on a flat. He drives a 12 year old car (that I bought him)