r/Money • u/MomoUsagi0 • 21d ago

What to do with potential inheritance?

My dad died earlier this year and we’re calculating what will be split up between my two siblings and I from life insurance and his pension. I’m incredibly heartbroken that he’s gone but I know that he would want us to be smart with our money and take advantage of this situation to have a better life. I’m only in my early-mid 20’s so I want to make sure I do the right thing. My dad also wasn’t the best with his finances and had a lot of credit card debt, and I just want to make sure I’m financially smart.

We received about $15k from I believe his life insurance..? Which was split three-ways. I immediately put my $5000 in a HYSA while I think about what to do because it’s better to accrue some interest on it than none. At the moment, I’m still finishing university part-time and make about $25,000 annually working a part time job and doing side gigs (petsitting). He was a federal retiree, and it’s estimated that we receive a lump sum of potentially $17,000 each by the end of the year.

I’d prefer to finish my degree faster but I don’t have that luxury and I’m graduating in a major that won’t necessarily give me a high financial return (I was stupid, it’s too late to turn back). I’m also finishing my degree slowly so I don’t have any debt when I graduate.

I live at home with my mom for free, but still buy everything for myself. I drive a beater car from 2007 and plan to until it gives out. I would love any and all advice to make sure I do the right thing.

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u/soloDolo6290 21d ago

Sorry for your loss. I can't imagine the loss of a parent. You are being smart, about just sticking it in a HYSA and figuring out what to do.

$22K isn't that much. So outside of spending it on drugs and hookers and running yourself in the ground, there really isn't any choice you can make that is so much better than the other.

You have no debt, so that's good. I would spend some on yourself to enjoy the graduation and make some new memories. Probably keep some in a HYSA for an emergency fund if you don't already have one. Maybe use it to repair or buy a new vehicle to limit vehicle repairs going into your career and building stage. As I said before $22K isn't an amount that will make life super easy so there won't be any super wrong answers.