Inherited Money? Here’s What to Pay Off First

<p>Take Farnoosh&#39;s <a href="https://www.jotform.com/build/262556781257063" rel="noopener noreferrer" target="_blank">midlife survey</a></p><br><p>What if the retirement you’re saving for isn’t the life you actually want?</p><br><p>This week on Ask Farnoosh, we unpack a story about Gen X’s willingness to “blow up” their lives—from downsizing to moving overseas—to make room for more freedom. Plus, a closer look at a headline about retirement savings at age 84, what those numbers really tell us, and this week’s mortgage-rate news.</p><br><p>Then, three questions adapted from public Reddit conversations:</p><p><br></p><ul><li><strong>I inherited $25,000. Should I pay off debt, invest—or enjoy some of it?</strong> How to prioritize competing goals, weigh a nine-percent car loan, and make a thoughtful decision without making a joyless one.</li><li><strong>We want to pay our nieces’ and nephews’ college tuition. What if one doesn’t go?</strong> Setting clear expectations, supporting different paths, and understanding a useful gift-tax distinction.</li><li><strong>Someone sent me money through Zelle by mistake. Why shouldn’t I just send it back?</strong> Sending a new payment doesn’t undo the original transaction—and that difference could leave you paying for someone else’s fraud.</li></ul><p><strong>Stories discussed</strong></p><ul><li><a href="https://www.upworthy.com/gen-x-is-redefining-what-retirement-means-were-not-afraid-to-blow-up-our-lives/" rel="noopener noreferrer" target="_blank">Upworthy: Gen X is redefining what retirement means</a></li><li><a href="https://financebuzz.com/average-retirement-savings-84-year-old" rel="noopener noreferrer" target="_blank">FinanceBuzz: Average retirement savings of 84-year-old Americans</a> — The cited figures cover households age 75 and older <strong>with retirement accounts</strong>, rather than specifically all 84-year-olds.</li><li><a href="https://www.freddiemac.com/pmms/archive" rel="noopener noreferrer" target="_blank">Freddie Mac: Weekly mortgage-rate survey archive</a></li></ul><p><br></p><p><strong>Mailbag sources and resources</strong></p><br><p><strong>The inheritance question</strong></p><ul><li><a href="https://www.reddit.com/r/personalfinance/comments/1x0eetk/just_got_25k_from_inheritance_what_to_do_with_it/" rel="noopener noreferrer" target="_blank">Original Reddit discussion</a></li><li><a href="https://www.investor.gov/introduction-investing/investing-basics/save-and-invest/pay-credit-cards-or-othe