I recently received a $30,000 check from my grandparents as an early inheritance. Don’t worry: They’re both still alive. They gave it to me for tax planning reasons. Ever since the check arrived, I’ve been just staring at it. I have no idea what to do with it.
I’ve never encountered this much money before. You always imagine, “If only I had a few thousand dollars to spend, clear debt, etc.” And now I’m here, hesitant to even deposit it — unsure where to put it. Here’s the thing: I’m committed to working hard and living within my means. It feels strange to have something handed to me so easily. I almost feel undeserving.
I’d love to use it on something meaningful, something that would make them proud — maybe a house. But I’m not prepared for that leap yet. I don’t carry any debt, and I don’t need the cash right now. It feels like a trivial question, but what should I do? Am I unreasonable for feeling this way?
Sincerely,
Gifted and Unsure
Dear Gifted and Unsure,
I’ll confess — I’m a bit envious. I’ve also daydreamed about what I’d do with an unexpectedly large sum. And now you’re facing a check, worried you’ll pick the wrong route.
First things first: deposit the check sooner rather than later. Otherwise you’ll forfeit valuable compound interest. Suppose you plan to take some time to determine the best use for your windfall. If you put $30,000 into a high-yield savings account earning 1.9% APY (they do exist), you’d earn roughly $570 extra in just one year.
Once the money is secured, start weighing your options methodically. Consider booking a consultation with a fee-only financial planner who can help clarify your long-term choices. Seek an adviser who provides a la carte services or charges by the hour, so you can address this specific situation without a long-term commitment.
A financial planner won’t dictate how to spend the gift, but they’ll help you steward it wisely while you decide. If you opt to allocate the funds to retirement (a very strong option), their guidance will differ from advice for funding a round-the-world trip or saving toward a down payment.
Have you asked your grandparents if they have any wishes about how you use the money?
Years after my grandfather passed, I discovered he had set aside money for each granddaughter’s wedding. My dad handed me a neatly written check, and I began using it for wedding deposits. When the engagement dissolved, I recovered most of those deposits.
After that, I kept seeing that balance in my savings and felt guilty. I wasn’t getting married. I felt I didn’t merit the funds. When I discussed it with my father, we agreed I should apply the sum to my student loans. It wasn’t glamorous to make that payment, but it eased a burden and felt like a sincere family gift.
You don’t have to carry guilt for accepting a thoughtful present. Even if your finances are stable and you don’t currently need the money, this gift gives you room to get ahead in ways that align with your priorities and principles. This is an opportunity to choose intentionally and act with assurance. And you don’t have to decide everything immediately.
Have a knotty money question? Write toDear Pennyand you might see your query addressed in a future column.
Maria Ellis is a personal finance writer and senior contributor at Savinly, and the voice behind Dear Penny.
