What should I do with my $5k graduation gift?


My parents gave me a late graduation present of $5k. I’m not sure how to best use this money, so I was looking for some opinions.
My salary is 105k/yr, and of that I bring home about 5k/mo. My basic monthly expenses run around 1700, so I’ve got about 3300/mo to do whatever with.

After putting the 5k into my checking account, I’ve got about 11.5k in cash.

My debts are:

  • Student loan: ~6.9k @ 4.89%
  • Car loan: ~16k @ 4.54%

Some options I’ve been considering are to:

  • Pay off my student loan in full so that I only have one loan to pay.
  • Open and put 5.5k in a 2016 Roth IRA (I haven’t done much towards retirement other than my company 401k).

Any thoughts?


I like the IRA option for you. You have the income to completely get rid of your loans by 2018, so I think investing now would be a great option.

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