If you received a hefty inheritance, what would you do with the money or assets? Would you opt for a new home? Would you buy a fancy car? Or, would you save your gift? According to a new study, the saving option is not practiced by many Texas residents and other individuals in our nation. Given the current economic state of America, sources say that this news is surprising.
Researchers from Ohio State University have found that adults who receive an inheritance save approximately half of what they obtain. The study suggests that individuals spend, donate or lose the remainder of the bequest.
The study examined 7,500 people who participated in the National Longitudinal Survey of Youth. The research began in 1979. It shows that Americans are expected to transfer nearly $4 trillion to their heirs over the next decade. Those concerned about the country’s low savings rate hope that this expected inheritance is used logically and efficiently by those who receive it.
Hopefully, informing the public about this issue will motivate people to restrain their spending and use inheritance money for their children’s college payments or future retirement.
Ultimately, what you do with your bequests is your own choice. You can invest it, donate it or spend it. Nevertheless, with an economy that has been struggling for quite some time, maybe it is time to consider saving your inheritance. Regardless of what you choose to do, there is one thing that you should absolutely not do–lose it all.
Source: EmpowHer, “Americans only save half of their inheritances,” Bailey Mosier, March 20, 2012