The Ramsey Show

Podbit · The Ramsey Show

Stop Giving Away Your Control

Explore episode Aug 10, 2026
Business
College Student Inherits $25K: The Perfect Deployment Plan

Stop Giving Away Your Control · Aug 10, 2026 Business

A junior in college with no debt, parental support, and $25K inherited from her grandfather gets a crisp three-step plan: pay off the $6,700 car loan first, build a $10K emergency fund, then max the Roth IRA for the year. The leftover parks in a high-yield savings account as a future house seed fund.

Where this was said

Abby's $25K Inheritance: A Clean Financial Foundation

At 16:08 · chapter starts 16:05

Abby from Sacramento is a college junior whose parents cover tuition and rent, allowing her to call in with a genuinely good problem: $25,000 in inheritance from her grandfather's estate and no idea of the optimal use. George Kamel spots the co-signed car loan first ($6,700) and peels that off immediately, bringing the deployable amount to $18,300. Next comes a $10,000 emergency fund — modest now but essential when the transition to post-graduate life hits. With $8,300 remaining, Abby mentions she has already maxed her Roth IRA in prior years; this year she has contributed only $50, so $7,450 fills the annual limit and leaves $850 in residual cash for the high-yield account. Jade adds the possibility of earmarking remaining funds as a future house down-payment seed — especially if her parents plan to match whatever she saves — but both hosts agree the debt-free, emergency-fund-first sequence is non-negotiable regardless.

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