Despite Good Intentions, Most People Wind Up Blowing Their Inheritance Anyway
October 4, 2013
Business Insider- As Michael Finke, a personal finance professor at Texas Tech University in Lubbock, told Interest.com, people who receive a small inheritance tend to spend the money rather quickly: 'When you receive an inheritance that's under $10,000, you tend to frame that as spending money.'
Great news! According to a recent survey from Bankrate.com (RATE) subsidiary Interest.com, there's a good chance that you will soon inherit a share of a vast sum of money.
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As Michael Finke, a personal finance professor at Texas Tech University in Lubbock, told Interest.com, people who receive a small inheritance tend to spend the money rather quickly: "When you receive an inheritance that's under $10,000, you tend to frame that as spending money."
Fellow Texas Tech professor Russell James notes that even when larger amounts are inherited, "at least half the people are just going to blow it. And by blow it, I mean 12 months later it's gone."