Paulo and Natalia are in their 20s and just welcomed their first baby. Between student loans, modest paychecks, and the added costs of childcare, food, and healthcare, money is tight — and over the past few months, they’ve had to lean on debt a bit more than they’d like.
Natalia’s aunt recently surprised the couple with a $55,000 investment portfolio — with one catch: no one else in the family can know about it. Keeping such a generous gift quiet might feel a little uncomfortable, but her aunt probably has her reasons. And for a young couple just starting out with a new baby, $55,000 can make a huge difference.
Even though Natalia feels conflicted about the secrecy, she and Paulo are excited to put the money to work. Now they just have to figure out the smartest way to use it for their family’s future — knowing that every option comes with its own trade-offs.
Here’s what they need to know to make the right decision for them.
The Education Data Initiative puts the average federal student loan balance at $39,075 in 2025. (1) However, in combination with private loans, the actual balance may be as high as $42,673.
If you’re buried under student loans, a windfall can be a great way to make a serious dent in your balance. But if what you owe is relatively small and your interest rate is low, it might make more sense to stick with your monthly payments and use that extra cash to work toward other financial goals.
For example, Experian puts the average auto loan balance at $24,297 as of late 2024. (2) If the couple has expensive car payments, they may want to use the windfall to pay off their car. But if car payments are low and affordable, they can keep making them and use the $55,000 for something else.
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The sooner you buy a home, the sooner you can begin building equity. As of June 2025, the median existing U.S. home sale price rose to $435,300, according to the National Association of Realtors. (3) With a $55,000 windfall, you may be in a position to make a down payment on a home and enjoy the benefits that come with it.
The Federal Reserve is expected to lower interest rates this September. Once that happens, mortgage rates could fall, making homeownership more affordable. If you’re buying a house for around $435,300, a $55,000 windfall gives you the option to make a 10% down payment and still have money left over for moving costs and an emergency fund.
Cashing out the $55,000 portfolio could help wipe out debt and even fund a home purchase. But another smart move might be to let the money keep growing. Paulo and Natalia could split it into three buckets: a college fund for their baby, a long-term retirement account and an emergency fund with three to six months’ worth of essentials.
Let’s say they can live frugally on $3,000 a month. They could put $18,000 of the $55,000, or roughly one-third, into cash and a certificate of deposit ladder for a six-month emergency fund. Another third could go into a 529 plan for their child, where that money can enjoy tax-free growth. The remaining third can be the start of their retirement fund.
It’s important to remember that there is a gift tax exclusion of $19,000 per person this year. If Natalia’s aunt spreads that out over a few years with the $55,000 portfolio, she won’t incur extra taxes.
Because Natalia and Paulo are still young, $55,000 feels like a huge sum — and it is. Since they’ve never handled that much money before, talking to a financial advisor could help them figure out whether the investments they have actually match their future goals.
A financial advisor can help them sort through their options and make choices that line up with both their short- and long-term goals. Maybe they want more kids down the road, or plan to go back to school to continue their education.
Those are exactly the kinds of things worth talking through with an advisor to get the most out of a windfall. An advisor can also suggest investments that fit their risk comfort level and the timeline for when they’ll actually need the money.
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Education Data Initiative (1); Experian (2); National Association of Realtors (3)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
