Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTJonathan LindsSat, June 20, 2026 at 3:05 PM GMT+2 7 min readMoneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.When 23-year-old Jackson from New York called into The Ramsey Show, he wasn’t asking how to spend his inheritance — he was asking what not to do with it.A few months earlier, he and his brothers had sold their parents’ home, leaving him with about $450,000. He had no debt, had just graduated from college, earned about $75,000 a year and was renting with his brother while planning a future move from Long Island to New York City.Top PicksDave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s how to fix it ASAPJP Morgan sees gold hitting $6,000/oz before 2027 — and a Gold IRA lets you hold the physical metal while deferring the tax bill. Get your free guide from Priority GoldThe ultra-rich use these 5 real estate strategies to build wealth while they sleep — you can start with just $100Yet instead of feeling empowered, he felt stuck.“I’m just wondering what to do with it,” Jackson told host Dave Ramsey and cohost Ken Coleman (1). “I have all of that money … just sitting in a CD right now.”It’s an understandable reaction. Sudden wealth — especially at a young age — can create decision paralysis.Large inheritances at a young age are both rare and risky. Without experience managing six-figure sums, many people either spend recklessly or worry about making the “wrong” move, resulting in no move at all.How freezing can quietly cost youParking the money in a certificate of deposit allowed Jackson to avoid impulsive purchases, and was something Ramsey praised as preventing him from doing “something stupid with it.”He even said Jackson was “wise beyond his years” for not tapping that $450,000.But Ramsey also warned that letting the money sit too long comes with its own price. Freezing can be just as damaging as rushing, especially when inflation and missed investment years are at play.Inflation erodes purchasing power, and time — especially starting in your early 20s — is one of the most powerful drivers of long-term wealth.Ramsey pointed out that if the inheritance were invested at long-term market rates, “it would double in about seven years.” He contrasted that with the low yield of a CD, saying the money “should have made five times as much” if invested instead.This matters because young adults don’t just have money working for them; they have time working for them. According to the latest Federal Reserve data, the median net worth of Americans under 35 is just $39,000, compared with more than $364,000 for those aged 55 to 64 (2).Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info