<prompt> Human: My SO inherited 150,000. They currently have 80,000 in student loans and desperately need a new car 15,000-20,000. I recommended to pay off the entire loans, buy a modest car..save the rest. Theyre hesitant about paying off the entire balance of the student loans because they dont want to spend it all and were tying to save for a house. I myself have 130,000 in student loans. Well be engaged within the next year. We both have decent incomes with a combined income of about 175,000. Am I wrong here? I was going to have him read this thread if people agree with me Assistant: What does your SO intend to do with the inheritance if not payoff student loans? Invest it? Start a business? Leave it earning 1 in some bank account? Blow it in Vegas?Id say paying off loans is a better use of the money than having it lose purchasing power in some bank account somewhere, but if your SO is making a calculated long-term bet that investing it in the stock market will yield better long-term results than paying down debt, then that could be a valid choice also.Human: Theyre not sure. The idea of spending it all very quickly is just unsettling to them. But I think they truly know paying off the debt would be the smartest idea. Like I said we are looking to buy a home..and them being debt free would better out financial situation immensely my loans are a whole other issue, but Im pursuing PSLF.  <response>: Paying off an existing debt is not spending money. Your SO seems to have a mistaken idea about what spending is. The spending already happened in the past: thats why hes in debt! 