Gifted a small amount of $ - what to do with it?

[Anonymous]

We were recently gifted ~$1500. We currently owe about that much on our car. We also have ~$5000-6000 in student loans. Which one should we out the cash towards? Or should we just keep it in savings? I assume that we have paid off most of th interest on the car already. We are not very financially savvy, so we'd appreciate any guidance. Thanks!

[Anonymous]

what do you have in savings already?

are you saving for retirement?

Do you have children?

Do you rent or own?

[Anonymous]

We rent. We have one child and minimal available savings ~$10,000. We do save for retirement.

[Anonymous]

Pay off the car.

[Anonymous]

Anonymous wrote:Pay off the car.

This.

[Anonymous]

My father in law would have you evaluate the interest level on each thing and determine which area gets you the most pennies.

Me? I'd pay off the car. One less thing to think about

[Anonymous]

Anonymous wrote:My father in law would have you evaluate the interest level on each thing and determine which area gets you the most pennies.

Me? I'd pay off the car. One less thing to think about

And put the car payment into savings every month.

[Anonymous]

Anonymous wrote:Pay off the car.

1. Pay off the car.

2. After that put 50% of the car payment into savings for an emergency fund.

3. Put the other 50% of the car payment into paying off the smallest student loan.

4. When that loan is paid off, repeat with the next smallest debt.

It's called a debt snowball. Google it for more info.

[Anonymous]

Pauoff the car - you will always rememeber that the gift helped payoff the car as opposed to paying general bills.

Agree with above recommendations.

I received a 10K gift earlier this year. My highest interest item was not the car - but we did it - and it feels great not to have that payment each month.