<prompt> Human: Hi all,I just received a 3,000 scholarship award for academic performance. It will be credited to my student account next semester to help with tuition. I have a parent who works at my school, so I very fortunately do not have a tuition obligation. I already receive a smaller scholarship each semester that covers booksfees, and the surplus is refunded to me, so I plan to receive the full 3k as a personal refund check next semester. The first scholarship foundation is aware of all school expenses, so there is no ethical dilemma in that situation. This 3k scholarship, however, was awarded to me, so I dont think they are aware of my low financial need. Am I obligated to make them aware of this? If not, what are the tax implications of me cashing out this scholarship?Thanks!  <response>: No need to make them aware unless the scholarship is based on financial need.I had this happen to me, it is just going to get taxed as income so dont spend all of it. Honestly, I used those funds to open up my first brokerage account and begin investing. I would keep 1000 in cash for taxes and place the other 2000 into some index funds given that you dont have any debt to pay off or a major expenses in the near future. 