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🎯 Big Life Money Moments · Lesson 10 of 10 · 6 min

Why a 25-Year-Old Needs a Will

⚰️ Nobody young wants to think about this one. But here's the uncomfortable truth: if you have a bank account, a phone full of photos, or anyone who depends on you, the state already has a plan for your stuff — and you won't like it.

💡 Key idea

No will means the state writes one for you. Naming beneficiaries and a guardian takes an afternoon and spares your family a nightmare.

🧠 Why it matters

If you die without a WILL, the government decides who gets what using a default formula that may ignore your wishes entirely. The basics most adults need: a WILL (who gets your things, plus a guardian for kids), BENEFICIARIES named on your bank/retirement/insurance accounts (these often override a will, so keep them current), and ideally a power of attorney (someone who can act if you're incapacitated). It's not about being rich — it's about not leaving a mess for people you love.

🌍 In the real world

📝 Quick wins you can do this week: (1) Add or update beneficiaries on your 401(k), IRA, and life insurance — these pass money directly and skip the slow court process. (2) Write a simple will (online tools are cheap; complex estates need a lawyer). (3) If you have kids, name a guardian. Done — you've spared your family the worst version of an already-hard day.

📌 Takeaways

  • No will = the state decides who gets your stuff
  • Account beneficiaries often override a will — keep them current
  • It protects the people you love, no wealth required

📖 Terms in this lesson

Will: A legal document saying who gets what you own and who cares for your kids.

✅ Test yourself

What happens if you die without a will?
  1. Everything goes to the government
  2. The state's default formula decides who gets what
  3. Nothing — it sorts itself out
  4. Your debts vanish

Answer: B · The state's default formula decides who gets what

Dying without a will ('intestate') means state law decides distribution — which may not match your wishes.

Why keep your account beneficiaries up to date?
  1. They earn extra interest
  2. They often override your will and pass money directly
  3. It's required monthly
  4. It raises your credit score

Answer: B · They often override your will and pass money directly

Named beneficiaries on retirement/insurance accounts usually supersede a will and skip probate — so a stale one can send money to the wrong person.

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