what kind of advise would you give to your kids if...

[Yimmers]

Uh. Neither. After the great housing crash, I would hope people are not going into purchasing a house with only 30k in their bank account! Even the entire 30k as a down payment is not enough, so definitely not in this situation when you need to keep some aside for emergencies.

I also would not suggest investing. You invest if you can spare enough to lose. Unless it's savings bonds with a fixed return. But even that locks away your money which you might for emergencies.

If my kid came to me with this question I would ask them to put it away in a high interest savings account and stay put until they are in a better financial situation.

savings account??? are they still paying interest??

I was about to say, I don't think those exist...unless you consider 1.25% to be "high."

 

[Dancing Fire]

Down payment on a house, absolutely.

5 or 6 yrs ago i would of disagree but now that home prices had adjusted down to a more reasonable level then i'd agree it would be a wise decision for young couples.

 

[kama_s]

Uh. Neither. After the great housing crash, I would hope people are not going into purchasing a house with only 30k in their bank account! Even the entire 30k as a down payment is not enough, so definitely not in this situation when you need to keep some aside for emergencies.

I also would not suggest investing. You invest if you can spare enough to lose. Unless it's savings bonds with a fixed return. But even that locks away your money which you might for emergencies.

If my kid came to me with this question I would ask them to put it away in a high interest savings account and stay put until they are in a better financial situation.

savings account??? are they still paying interest??

I was about to say, I don't think those exist...unless you consider 1.25% to be "high."

I'm not sure about the US, but Ally in Canada gives 2% base regardless of deposit amount. ING used to give 3.25% but has since reduced. If you can't find a high interest, then just find any half decent savings account. The key point being "savings"!

 

[tyty333]

Uh. Neither. After the great housing crash, I would hope people are not going into purchasing a house with only 30k in their bank account! Even the entire 30k as a down payment is not enough, so definitely not in this situation when you need to keep some aside for emergencies.

I also would not suggest investing. You invest if you can spare enough to lose. Unless it's savings bonds with a fixed return. But even that locks away your money which you might for emergencies.

If my kid came to me with this question I would ask them to put it away in a high interest savings account and stay put until they are in a better financial situation.

savings account??? are they still paying interest??

No, I think you have to pay them to hold your money .

 

[jewelerman]

house or bank.a wedding should never cost more then a few thousand dollars! invest in your furure together not for just one big party and thats what an expensive wedding reception is.

 

[Echidna]

I do not think my son will ever ask me this question because he is somewhat frugal, but theoretically, I'd say it would be his choice. Just because by giving an advice I'd assume responsibility for all the consequences.

I like the way you think, crasru. I think I'd lean the same way... Was my opinion requested?

 

[steph72276]

Well, I for one don't think my big wedding was a waste of money. Besides the birth of my children, it was the the best day of my life. 8 years later, people still talk about our wedding and say it was the best wedding they've ever been to. It's one of those moments in life that I will always remember and wouldn't have changed anything about it. If I were them, I would probably spend half on the wedding, and bank the other half to start an emergency fund. Then after the wedding, start a down payment fund. I wouldn't put all my money toward a down payment, they need some left for emergencies.

 

[tigian]

Save it! $30,000 isn't enough for a house downpayment in CA. Use it as emergency fund, then start saving for a house and wedding.