Advice on 20k for 18 year old

shads1973

Happy new year. What better way to spend it then getting financial advise when you're working. So my son turns 18 in a few days and will inherit £20,000. Obviously rather then watch this being wasted looking for best advice to give to him. My limited knowledge (and wish for him) would be work towards getting onto the property ladder and perhaps look at slowly getting this money into a lifetime ISA? Appreciate its 4k per tax year so perhaps put the rest in a savings account?

masonic

If he is in a situation where he would be able to buy a home in the short term (but not within 1 year) then yes, a LISA would be a good option, and he could add £8k by mid-April. Do check that he can meet the terms of the scheme though, thinking in particular about the £400k£450k limit on property value. The remainder would likely be needed towards the deposit too, so either a cash ISA or other savings account. It doesn't look like this is a situation where investments should be considered.

shads1973

Think limit on property value on the brief research I did before posting is 450k? For our part of the world in Essex it would suffice to get him started which made the lifetime ISA appear the appropriate investment to keep investing in, as you say 8k can be achieved by April.  Thanks for sanity checking my research. Shall look at savings account for the remainder

masonic

Sorry yes, £450k limit

Robin9

Is he a good saver at the moment ?

If yes perhaps all he will need is a bit of gentle guidance.

If not he may well blow it - and  there's nothing you can do.

shads1973

Robin9 said:

Is he a good saver at the moment ?

If yes perhaps all he will need is a bit of gentle guidance.

If not he may well blow it - and  there's nothing you can do.

Is a 17 year old lad a good saver whose about to be handed 20k? He earns and spends, but this was from his nan who passed away so I believe he understands her wish was it was used towards him working towards getting on the property ladder so at present he's happy for us parents to find best way to do this. But of course as an adult there is nothing other then guidance we can give him

400ixl

Maybe suggest he has a small amount to do with as he wishes, then put the majority into high interest account and feed a LISA if he has the intention to get on the housing ladder at some point (and as discussed houses he would wish to purchase are under the limit).

Angelica123

Consider splitting between LISA, easy access saver/ISA and fixed term saving/ISA. That way he can't spend it all at once but has access to some EA to spend as he wishes.