Maybe they think how much fun it would be to have a Sea Doo or a motorcycle or a new car. It is amazing how many people would like to buy a home but either don't have the down payment, the income or the good credit to make it possible.
Instead of spending the money, consider investing the money for two years until the time is right to buy a home. Let's look at putting the money in a certificate of deposit that earns 2% or in the stock market that could average a 5% return.
Assume you were purchasing a $295,000 home on a FHA loan with 3.5% down payment. The $10,325 would grow to $10,742 in the CD which isn't a big increase but at least it is safe and secure, and it will be available when you're ready.
If the same amount were invested in a safe stock or mutual fund that earned 5%, it would grow to $11,383 in the same two-year period. It earns more but there is more risk involved.
Another factor is that there is principal reduction with each payment that is made.
Make your own projections with Your Best Investment.