Inherited Money? Here’s What to Pay Off First

<p>Take Farnoosh's <a href="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="upworthy.com/gen-x-is-redefining-what-retireme…; rel="noopener noreferrer" target="_blank">Upworthy: Gen X is redefining what retirement means</a></li><li><a href="financebuzz.com/average-retirement-savings-84-…; 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="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="reddit.com/r/personalfinance/comments/1x0eetk/…; rel="noopener noreferrer" target="_blank">Original Reddit discussion</a></li><li><a href="investor.gov/introduction-investing/investing-…; rel="noopener noreferrer" target="_blank">Investor.gov: Paying off high-interest debt</a></li><li><a href="investor.gov/additional-resources/general-reso…; rel="noopener noreferrer" target="_blank">Investor.gov: Making the most of a lump-sum payment</a></li></ul><p><strong>The college-gift question</strong></p><ul><li><a href="reddit.com/r/personalfinance/comments/1w7d1c4/…; rel="noopener noreferrer" target="_blank">Original Reddit discussion</a></li><li><a href="irs.gov/instructions/i709"; rel="noopener noreferrer" target="_blank">IRS: Gift-tax guidance, including the educational exclusion</a></li></ul><p><strong>The Zelle question</strong></p><ul><li><a href="reddit.com/r/personalfinance/comments/1wecuzg/…; rel="noopener noreferrer" target="_blank">Reddit: Why are some Zelle payments reversible?</a></li><li><a href="reddit.com/r/Scams/comments/1x3j9fu/us_banks_f…; rel="noopener noreferrer" target="_blank">Related Reddit discussion: An unexpected $500 payment</a></li><li><a href="dfr.oregon.gov/news/news2026/Pages/20260902-DF…; rel="noopener noreferrer" target="_blank">Oregon financial regulator: “Payment sent by mistake” scams</a></li><li><a href="zelle.com/support/report-scam"; rel="noopener noreferrer" target="_blank">Zelle: Reporting fraud or a scam</a></li></ul><p><br></p><p>Have a money question or a midlife decision you’re wrestling with? Visit <a href="somoneypodcast.com"; rel="noopener noreferrer" target="_blank">SoMoneyPodcast.com</a> and click <strong>Ask Farnoosh</strong>.</p><p><strong>How's midlife going? <a href="jotform.com/build/262556781257063"; rel="noopener noreferrer" target="_blank">Fill out Farnoosh's survey</a> and help shape the podcast in 2027.</strong></p>

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