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Loud budgeting is a money-saving trend that is encouraging people to be honest with others about their finances and feel okay about saying “No” to expensive invitations.

The concept was first introduced by TikTok content creator and comedian Lukas Battle in late 2023 as an alternative to “quiet luxury” and involves talking openly — or loudly — about your financial goals and spending limits to those around you. Since Battle first coined the term, TikTok has been deluged with videos extolling the benefits of loud budgeting and how to do it.

Is it time to get on the loud budgeting bandwagon? Maybe. While you can’t trust all the financial advice you get on social media, many finance experts say that loud budgeting is rooted in a time-honored financial principle — that people should make spending decisions based on their budgets and savings goals, rather than peer pressure or FOMO.

Here’s a closer look at what loud budgeting is and how to incorporate this approach into your own life.

The Psychology of Loud Budgeting

When it comes to maintaining close ties to friends and family, it can be hard to decline an invitation to a catch-up dinner, reunion weekend, or destination wedding — even if you’re not comfortable with the cost. So, you might grudgingly say “Yes,” and figure you’ll deal with the financial fallout later. Or, you might say “No,” but make up a fake reason why you can’t be there. Neither option is ideal.

Loud budgeting offers an alternative solution — bowing out while being honest about your money concerns. It’s based on the premise that staying close and connected with people you care about doesn’t have to cost a lot. Often, it just takes one member of the group to say “No,” and suggest a way to bring down the cost of a social outing or gathering.

Recommended: 7 Tips for Living on a Budget 

Benefits of Practicing Loud Budgeting

While loud budgeting isn’t for everyone, it has a number of benefits. Here are some to consider.

Reduced Financial Stress

Money worries can be a significant source of stress. Loud budgeting can immediately take some of the pressure off by making it acceptable to opt out of social plans that will cause you to spend more than you can afford. Over time, loud budgeting can help you grow the balance in your bank account, pay down debt, and achieve your goals — all of which can improve your financial well-being.

Improved Financial Transparency

While talking about money has long been considered taboo and can even trigger shame, loud budgeting aims to reduce the stigma around having financial limitations. Instead, it advocates being transparent about your budget and why you’re choosing not to spend your hard-earned cash on something. By starting the conversation, loud budgeters may also encourage others in their circle to be more authentic and honest about their finances.

Enhanced Support System

Not everyone will necessarily be receptive and understanding when you get loud with your budget. But there is also a good chance that you will get support from others who (unbeknownst to you) are in the same financial boat. This can help you build a community of people working towards similar financial goals. Your community can help hold you accountable to your plan. You can also share tips and experiences and cheer each other on when you achieve success, such as reaching a savings goal.

How To Implement Loud Budgeting in Your Life

If you’re interested in trying out this Gen Z budgeting trend, here are some tips for how to incorporate loud budgeting into your life.

Determine Your Priorities

Budgeting (loudly or quietly) is about making sure your spending aligns with your priorities. So a great first step is to sit down and lay out some specific and achievable financial goals, along with a timeframe for when you want to reach them. For example, maybe you want to pay off your credit cards in the next six months or put a down payment on a home in one year. Knowing what you want to accomplish gives you the “why” behind your loud budget and helps you stick to your plan.

Build a Basic Budget

Before you can get loud about your budget, you actually need to make a budget. To do so, you might start by looking at what’s coming in each month (on average) and what’s going out each month (on average). If your total monthly spending is higher than your total monthly income — or it’s about the same (meaning you’re not saving anything) — you’ll need to adjust accordingly. 

There are all kinds of budgets, but one simple framework to consider is the 50/30/20 rule. This entails allocating 50% of your monthly take-home income to needs, 30% to wants, and 20% to saving and paying more than the minimum on your debts. 

Once you come up with a basic budget, it’s a good idea to track your spending (there are budgeting apps that make this easy) to see how well you’re sticking with the plan and, if necessary, make some tweaks to your budget.

Be Honest With Others

Once you have a clear sense of your budget, priorities, and savings goals, don’t be afraid to share this information with friends and family. While you don’t have to delve into the intricate details of your finances every time you decline a social invitation, you can say that you’re trying to spend less and be better about managing your money. You might also talk about some specific goals you’re trying to achieve. Being honest in this way can help make it easier to decline costly invites and keep you accountable to your plans.

Suggest Alternatives

When someone in your circle suggests an outing that doesn’t work with your budget, consider suggesting alternative options. For example, if you can’t swing an expensive brunch, you might suggest a picnic in the park. Or if your friend group wants to spend the afternoon shopping, see if you can entice them to go hiking instead. The idea is to find some simple, wallet-friendly ways to have fun and stay connected without sacrificing your financial health.

Find Allies

Sticking to a budget can be a lot easier when you have a supportive community — or even just one or two allies — who are on the same financial page. If you can’t find any good budgeting buddies in your circle, you might search the #loudbudgeting hashtag on your social media channels to find others who are blazing the same path. This can help you build a community of people who can hold you accountable and cheer you on as you hit your goals. 

Recommended: 7 Different Types of Budgeting Methods 

The Takeaway

Loud budgeting promotes being more honest about your financial circumstances and goals, rather than accepting expensive invites out of fear of being a wet blanket and then dealing with the aftermath. While it can be challenging to speak your truth, being vocal about your budget can strengthen your connections and help you stay committed to your financial health — not just while it’s the latest trend on social media, but throughout your adult life.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How can I start loud budgeting without oversharing?

While loud budgeting involves being open about your financial situation, you don’t have to share sensitive details about your finances with everyone you know. Rather than lay out the specifics of your income and monthly bills, you can simply say that you are working toward a particular goal (like paying off your student loans or saving for a home) and trying to be more responsible about spending, saving, and managing your money. That can help explain why you are declining invitations to, say, pricey meals out or weekends away.

Does loud budgeting work for all income levels?

Yes, loud budgeting can be effective for all income levels, as it primarily involves being open about your financial goals and priorities with those close to you. While higher earners may be focused on wealth building and investment strategies, lower-income loud budgeters might share how they are working towards being free of credit card debt, building an emergency fund, or saving for a down payment on a home.

What apps or tools can help with loud budgeting?

Any budgeting app that helps you make better spending decisions can assist you with loud budgeting. Even better if the app allows you to track and share your progress with others. You might consider the tools your bank offers for budgeting. Other options include YNAB (You Need a Budget), which can help you create a plan for every dollar you earn; Goodbudget, which digitizes the “envelope system” of budgeting and allows you to share your budget categories with family or friends, or Honeydue,which helps couples sync bank accounts, credit cards, and more for easier viewing of your financial picture.

About the author

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOBNK-Q324-036

Building a budget isn’t hard, but it does require time and effort. And once it’s completed, it’s something you should be proud of. Yet, many people have trouble sticking to a budget. They wind up essentially throwing all their work out the window as a result of impulse buys, unrealistic expectations, or a lack of discipline.

Don’t let that happen to you: Here’s a look at some of the reasons budgets can fail and tips for making a budget you can stick to.

Understanding the Importance of Budgeting

A budget allows you to organize your money according to your priorities and plays a key role in achieving financial goals. Those goals can be anything from taking a vacation and buying a new car to funding future education and retirement. With a well-crafted budget, you can work on multiple goals at the same time.

A budget is also one of the top tools to help you stay out of debt or rein in any outstanding debt you may already have. In addition, having a budget can help simplify your spending decisions, making it easier to determine which purchases are worth making and which you don’t actually need.

The Role of Budgeting in Financial Planning

Budgeting can play a critical role in financial planning. It can allow you to balance your income into such buckets as paying for necessities, enjoying discretionary spending, and saving for your future as well as managing debt responsibly.

With a budget in place, you can earmark dollars toward short-term goals, such as redecorating your bedroom, and longer-term goals, such as having enough cash to retire early. You can divide your income and funnel it toward different financial goals.

Overcoming Common Budgeting Challenges

Budgeting usually begins with the best of intentions. However, it’s all too easy to get sidetracked. Temptations and unexpected expenses can cause a budget to go off the rails, leading to overspending, missed bill payments, and debt. Here’s a look at some of the most common reasons why budgets fail.

Lack of Discipline

Even if you’ve created a budget, it can be easy to slip into a free-spending lifestyle in the moment (say, when out with friends who have deeper pockets than you do). If you generally live within your means, that might be okay. But if you’re a habitual overspender, it’s important to recognize that those behaviors have to change to keep your budget on track. A budget can’t help your financial situation if you don’t follow it.

Unrealistic Expectations

Many people think budgeting requires drastic measures. For example, if you’ve been living beyond your means and want to rein in your spending, you may decide you must go from spending more than you make to living off half your income. But that stringent plan may not be a viable option. When you fail, you might give up on budgeting altogether. It’s important to set achievable expectations.

Discounting Irregular Expenses

While building your budget, you probably remember to factor in regular expenses like your monthly electricity bill and grocery shopping. But it can be easy to forget to include budgeting categories and expenses that occur on a more infrequent schedule, such as quarterly or annually.

Annual membership fees, homeowners’ association fees, insurance premiums, holiday spending, and kids’ camp tuition may come up only once a year, and that can make them easy to forget. Failing to account for these costs can throw your budget off once they come due and you may have to scramble to find the cash to pay them. You can try to account for these expenses by saving a little each month to help cover them.

Recommended: Money Management Guide

Getting Lost in the Weeds

While it’s important to take a thorough accounting of your expenses when making a budget, it is possible to go overboard with so many line items that can make your head spin. How do you stick to a budget when it’s several pages long? With difficulty, if at all.

A budget with too many line items can be tedious to update and track. It can be more productive to have broad line items that encompass a wider array of expenses, so if you spend a bit too much on one small item, it won’t make much difference.

Your Social Circle

The people you surround yourself with, including your friends, family, and partner, can have a huge impact on your spending. If these people tend to be big spenders, you might be tempted to spend when you’re around them. That’s sometimes known as FOMO spending or “fear of missing out” spending. It would be a shame if one big night on the town threw off a whole month’s worth of budgeting plans.

If you’re saving for a specific goal, like putting a down payment on a home, you might let your friends know that you’re trying to stick to a budget, so maybe they won’t tempt you with expensive sushi dinners or weekends in Vegas. In their excitement to help you achieve your goal, they may be willing to trade nights at the bar for cheaper activities like game nights in.

Steps to Creating a Realistic Budget

One of the most important tips for how to stick to a budget is to start with a realistic budget — or, in other words, a budget that is easy to stick with. These three steps are key to starting off on the right foot.

Assessing Income and Expenses

To create a realistic budget, you need to first assess where you currently stand. That means calculating how much, on average, is coming in each month and how much, on average, is going out each month.

You can do this by reviewing bank statements from the past several months, then adding up all of your (after-tax) monthly income. This is how much you have to spend each month. Next, add up what you are spending each month to come up with a monthly average. If your average monthly spending exceeds your average monthly income (meaning you’re going backwards) or is about the same (meaning you’re not saving), you’ll need to find places to cut back.

Setting SMART Financial Goals

Whether your goal is to build an emergency fund or go on a great vacation, setting clear, achievable financial goals will help you create — and stick to — your budget. Strong goals serve as reminders for why you’re choosing to spend less in some areas, which can make sticking to your budget feel more rewarding.

Consider using the SMART framework when setting goals. You’ll want your goals to be:

Specific: Rather than saying, “I’d like to save more,” try to be more specific, such as “I’d like to save enough for a down payment on a car in four months.”

Measurable: You want your goals to have a measurable outcome, such as a set amount of money you’d like to save by a certain date.

Attainable: If a goal is too hard to achieve, you might give up before you get very far. Strive to set goals that are attainable given your current income, expenses, and time frame.

Relevant: It’s key that your goals address your top needs and concerns. Consider what will give you the most security and value to your life right now.

Time-based: Having a set timeline can help you stay on track and reach your financial goals.

Recommended: Savings Calculator

Allocating Funds to Financial Goals

You may wonder how to best allocate money toward your financial goals. One method that can work well is to have separate savings accounts for each short-term goal, such as one for your emergency fund, one for your beachhouse rental next summer, and one for the down payment you are saving for a new car. It can be wise to keep these accounts at an online bank, where interest rates are typically higher and fees lower (or non-existent), helping your money to grow faster.

You may find that if your paycheck goes to your bank by direct deposit, you can determine how much goes into different accounts. In other words, you could direct most of it into your checking account and some into a savings account or two.

Prioritizing Essential and Non-Essential Expenses

A budget is an opportunity to align your spending with what’s most important to you. You’ll want to have three main categories for spending:

•   Essential expenses (“needs”) These are your necessities, such as groceries, housing, healthcare, and transportation. Minimum debt payments fall into this category as well.

•   Nonessentials (“wants”) These are the expenses that aren’t necessary for survival but enhance your quality of life. Examples include dining out, gym memberships, and travel expenses.

•   Savings This is the money you separate from spending each month that will allow you to reach the financial goals you established earlier.

A very basic approach to budgeting is the 50/30/20 budget rule, which divides your net income into the above categories, spending 50% on needs, 30% on wants, and 20% on savings. Those percentages may not be realistic for everyone, however, If you live in an area with a steep cost of living, for example, you may need to spend more than 50% on needs and take some away from the wants and/or savings categories.

Recommended: 50/30/20 Budget Calculator

Practical Tips to Stick to Your Budget

Once you have a basic budget in place, you’ll need to stick to it — or you won’t see any progress toward your goals. Here are six ways to keep spending and saving on track.

1. Sleep on Big Purchases

Impulse buys can quickly throw your budget off course. To avoid the problem, try the 30-day rule: If you see something nonessential you want to buy either online or in person, put the purchase on a one-month pause. Tell yourself that if, after 30 days, you still want the item and you can afford it, you’ll buy it. This gives you time to reflect. You may well decide that you don’t need or want the item that badly and forgo the purchase.

2. Aim to Never Spend More Than You Have

minimum on your credit card balance, for example, means you’re never getting ahead of your debt. Running a balance also means you’re going to end up paying far more for your purchases than the original price tag.

If you want something you can’t afford right now, plan for it, and start setting money aside for it each month. When you have enough, you can splurge without guilt — or throwing off your budget.

3. Set up Autopayments for Bills and Automatic Transfer for Savings

To make sure you never miss a payment (and avoid late fees), consider setting up autopay (aka automatic bill payments) for all of your regular bills. You can apply the same principle for paying yourself, which means saving.

Simply set up recurring money transfers from your checking account to your savings account for the same day each month (ideally, right after you get paid). Even small amounts will grow into something larger, which can ultimately buy that vacation plane ticket or cover an unexpected car repair.

4. Plan Your Meals to Curb Impulsive Spending

When you’re hungry and there’s no food in the house, it’s hard to resist the call of the drive-through or your fave local take-out spot. You can avoid this temptation by planning your meals (including breakfast, lunch, dinner, and snacks) each week, making a grocery list, and sticking to that list in the store.

Meal planning saves you from blowing your weekly food and restaurant budget. It can help you save on groceries if you use items up vs. letting them sit and go bad in the fridge. Bonus: You’ll probably eat healthier, too.

5. Utilize Technology for Tracking and Managing Your Budget

One of the best ways to stick to a budget is to harness technology. Putting a budgeting app on your phone, for example, can help you keep track of your spending and savings. These apps connect with your financial accounts (including bank accounts, credit cards, and investment accounts), so you don’t have to manually enter your purchases and transactions.

Leveraging Budgeting Apps for Financial Success

Apps can help you stay on a budget, too. They can monitor bank accounts, credit card spending, and even keep track of how much you spend in cash. Some apps allow you to split your spending into your own categories and can send you alerts when you start to max out your budget to help keep you from going over. Even better, many budgeting apps are provided by financial institutions, and third-party ones are also available and may be free (at least for the basic service).

With this kind of support, you may find it easier to stay on target with your budget and financial goals.

6. Revisit and Adjust Your Budget as Needed

A successful budget is rarely a one-and-done proposition. As your income, expenses, and/or financial goals change, it’s a good idea to revisit your budget and make adjustments.

You may want to check in on your budget every six to 12 months to reflect on your budgeting journey. How well is your budget working to advance your goals? Is it still relevant to your life? Maybe you’re spending more in certain categories and less in others. Perhaps you can siphon off a bit more in automatic savings each month and reach your goals faster. Picking up changes in your financial habits can help ensure that your budget reflects your current priorities.

Also, it can be wise to revisit your budget when you have a major life change: Did you get married, buy a house, or have a baby? Were you laid off and unemployed for a couple of months? Did you decide to go back to school? All of these events can trigger another look at your financial plans.

The Takeaway

Learning how to stay on a budget means starting with a realistic budgeting plan, setting SMART goals, picking the right tools, and keeping a watchful eye on your money as your income and expenses change. Remaining agile and staying disciplined with your budget will allow you to meet your expenses, enjoy extras like travel and entertainment, and achieve your future goals. There may be tech tools offered by your bank that can help as you manage your budget.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How often should I review and adjust my budget?

It can be wise to review and adjust your budget every six to 12 months, Some people may prefer a more frequent cadence. Also, if you have a major life experience or shift, from having a baby to deciding to go back to school, you will probably want to revisit your budget.

How do I adjust my budget when my income changes?

When your income changes, you could use a budgeting app to recalculate your spending and savings goals, or you could use a budget method such as the 50/30/20 rule. This says to dedicate 50% of your take-home income to needs, 30% to wants, and 20% to savings and additional debt payments.

How do I set financial goals while sticking to a budget?

You can incorporate financial goals into your budget. For instance, with a line item budget, you could have lines for saving for a new car and for retirement. Also, you can set up automatic transfers to help you effortlessly move money to accounts being held for those aspirations.

What should I do if I consistently overspend on my budget?

If you are consistently overspending, it can be wise to evaluate whether your budget is too stringent and unrealistic. In that case, you may need to re-allocate your funds and put more money toward where you are overspending and less elsewhere. Or you may need to exercise some self-discipline and look carefully at your budget, vow to change your behavior, and recognize that it’s important to work toward your long-term financial wellbeing.

How can I involve my family in sticking to a budget?

To involve your family in sticking to a budget, it can be wise to hold regular family meetings (but they should be fun and collaborative, not punitive) and talk about money goals and spending options together. Children can, once they reach a certain maturity level, be part of this process and contribute ideas and effort. Grocery lists and holiday gift lists can be created and discussed with an eye toward understanding how a budget works.

About the author

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOBNK-Q125-074

If you’re ready to take your relationship to the next level — whether through marriage or moving in together — you may also be thinking about how, once you’re sharing a household, you’re going to handle your finances. Should you split everything 50/50? Divide expenses based on income? Put all of your money in a joint account and pay bills from there?

There are numerous ways to split bills as a couple and no one “right” answer. The key to getting it right is to maintain honest, open communication about your expenses and income and to create a plan that works for both of you. Here’s a look at the variety of ways married (and unmarried) couples can share and pay expenses.

4 Different Ways to Split Bills

The best way to share expenses as a couple will depend on your financial circumstances and personal preferences. Here are four different options to consider.

Splitting Bills Evenly: The 50/50 Split

Many couples find it easiest to maintain separate financial accounts with their own funds and split shared bills — like rent, food, and subscriptions — down the middle. While this is easy in terms of math, it can be a little tricky when it comes to payments, since some service providers may not let you have two names on the account and accept two payments.

To make it work, you may want to have one partner cover the bills and save receipts, then have the other pay their half at the end of the month. Or, you could set up a joint bank account, each contribute the same amount of money each month, then pay shared bills from that account.

Splitting Bills Proportionally Based on Income

Splitting expenses down the middle might not seem fair if one person makes significantly more than the other. In that case, a more equitable solution might be to split expenses proportionally according to each partner’s income. For example, if you make $60,000 and your partner makes $40,000, you might split bills using a 60/40 split. If, for example, the utility bill is $100, you would pay $60 and your partner would pay $40.

To do this, you both can set up a direct deposit from your individual accounts to the shared joint account for your agreed share of the expenses.

Or, you might agree to each contribute 35% of your monthly income to shared living expenses to a joint account each month, and use that account to pay bills. While the percentage you’re depositing is the same, the higher earner will be contributing more actual dollars into the account than the lower earner each month.

Recommended: Making Important Money Decisions in Marriage

Assign Bills to Each Partner

Another way couples can split expenses is to simply divide up the bills into “yours” and “mine” piles. One partner might pay for the rent, while the other might cover utilities, insurance, and streaming services. If you’re looking for a 50/50 split, however, you’ll want the amounts to be somewhat equal.

This approach to splitting bills may require some occasional tweaking, since expenses may change over time. However, it allows each partner to maintain their own separate bank accounts and maximum financial independence.

Pooling All of Your Funds

With this approach, what’s yours and what’s theirs is all considered “ours.” You only have a joint account — both of your paychecks go into that combined account and all expenses come out of that account. This can be a good way for married couples to split expenses and can enhance trust in a relationship, since there won’t be any secrets about money.

If you want to maintain some independence and privacy with your money, you might each have your own separate credit cards.

Recommended: The Pros and Cons of Joint Bank Accounts

Should You Have a Joint Bank Account?

If both you and your partner earn money and are married or committed to a shared life, it can be helpful to set up a joint checking account. You can both direct your paychecks into this account and use it to pay for your shared expenses and transfer a set amount each month into savings to work toward shared goals.

This doesn’t mean you need to pool all of your money, however. You may still want to maintain personal checking accounts so you can continue to maintain some financial independence. Some couples opt to set up an automatic monthly transfer from the joint account into each partner’s personal account (say a few hundred dollars). This gives each person a “judgment-free” spending zone.

Tips When Deciding How to Split Bills

However you decide to divvy up expenses, here are some tips that can help simplify the process and keep money tensions from taking a toll on your relationship.

•   Determines who will pay the bills. To avoid confusion (along with missed payments and late fees), it’s a good idea to put one partner in charge of paying all the bills or, if you want to share the task, clearly determine who will pay what each month and stick to the plan.

•   Check in with each other regularly. Once you decide on a bill-sharing strategy and have been using it for a few months, it’s a good idea to regroup and discuss how the plan is working, and whether you need to make some adjustments. Continue to schedule regular financial check-ins, so you each have a chance to bring up any money concerns that are on your mind.

•   Agree to disagree about some things. You and your partner likely don’t see eye-to-eye on all things money. Indeed, you may have very different viewpoints about spending and saving. And that’s okay — you don’t have to agree on everything. Try to respect each other’s feelings about money and come up with compromises that make you both feel happy and secure.

•   Get help from a free app. Budgeting apps, like HoneyDue and Goodbudget, can be a big help as you learn how to manage your finances as a couple. They bring all of your financial information together in one shared digital place. No more wondering if your partner paid a bill or what the balance is on your debt.

The Takeaway

When it comes to splitting bills as a married or cohabiting couple, there is no “should.” The best approach is one that works for each of you and for your relationship. Some options you might consider include: splitting bills in half, using an income-based percentage, assigning specific bills to each person, and pooling all of your funds in a joint account.

Whichever way you go, keep in mind that it doesn’t have to be all or nothing — you can choose to merge some of your money to use for shared expenses and savings goals, while still keeping some funds separate.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How do most married couples split their finances?

Married couples approach their finances in all different ways. Some combine all of their funds in a joint account out of which all expenses get paid. Others opt to keep their finances separate and split the cost of shared expenses (either 50/50 or proportionately based on income). Still others take a hybrid approach, pooling some money in a joint account but still keeping some money separate.

Is it okay to keep finances separate when married?

Yes. Many couples choose to keep their money separate even after they get married. You can split expenses from separate accounts or you might choose to pool some money in a joint checking and/or savings account to use toward shared expenses and goals.

Who should pay the bills in a relationship?

These days, dual-income couples often choose to split the bills, either down the middle or proportionately based on their incomes.

Should couples pay 50/50?

Many couples split bills 50/50, especially if they are earning similar salaries. If your incomes are significantly different, however, a more equitable solution might be to split expenses proportionally according to each partner’s income. For example, If you make $60,000 and your partner makes $40,000, you might pay 60% of shared expenses, and your partner would be 40%. So, if your rent is $1,000, you would pay $600 and your partner would pay $400.

About the author

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

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College is expensive, with the yearly cost of attendance at private schools now topping $60,000 on average. Looking at these numbers, you may wonder how you will ever possibly afford to send your kids to college.

But before you get too disheartened, it’s important to understand that a college’s published “sticker price” is often very different from what you actually have to pay (known as the net price). What’s more, just putting a small amount of money aside each month in a college fund can add up to a significant sum over time, especially if you take advantage of a tax-advantaged college savings account.

Read on to learn key things about how to save for college — from estimating how much you need to set aside to picking the right college saving fund.

Determining the Cost of College for Your Children

Tuition costs vary widely, depending on the type of school your child wants to attend, the type of degree they’ll earn (bachelor’s or associate), and even geographic location.

According to the College Board, the average annual college tuition costs for the 2024-25 school year were:

•  $11,610: public four-year in-state (a 2.7% increase from 2023-24)

•  $30,780: public four-year out-of-state (a 3.2% increase from 2023-24)

•  $43,350: private nonprofit four-year (a 3.9% increase from 2023-24)

•  $4,050: public two-year in-district (a 2.5% increase from 2023-24)

The College Board also studied the annual, inflation-adjusted change in college tuition and fees over the last decade, which showed some declines:

•  -4%: four-year public schools for in-state students

•  -9%: two-year public schools for in-district students

•  +4%: four-year private (nonprofit) schools

If your kids are young, you may wonder how much college will cost when it’s time for them to head off. Fortunately, there are many online calculators that can help you figure this out, taking factors like your child’s age, the type of school you expect your child to attend, and the expected rise in the cost of college into account.

Net Price vs Sticker Price

Every college and university, private or public, lists a sticker price, which is also known as the cost of attendance (COA). This price includes tuition, fees, room and board, books, supplies, and miscellaneous expenses.

The net price, on the other hand, is what a student would actually pay, after factoring in any financial aid provided by the college and the federal government.

Financial aid is based on your family’s income, as well as the student’s academic achievement. Aid is offered in the form of grants, scholarships, work-study, and sometimes federal student loans. Schools offer aid based on financial need, a student’s “merit,” or a combination.

When you fill out the Free Application for Federal Student Aid (FAFSA), you will receive a Student Aid Index, or SAI. (Previously, this was called the Estimated Family Contribution, or EFC.) Colleges use this number to determine the amount of financial aid they award to accepted students. Typically, colleges come up with a financial aid package to help bridge the gap between the school’s sticker price and what your family can afford to pay.

Indeed, sometimes colleges with the highest sticker price end up costing less than a college with a much lower sticker price.

Recommended: How to Start Saving for Your Child’s College Tuition

Using a Net Price Calculator

Fortunately, you can get an idea of what the net price will be for a particular college before you apply by using the government’s net price calculator. This tool can help students and their families get a better idea of the cost of college, after subtracting scholarships, grants, and other financial aid.

Keep in mind, though, that the net price calculator is going to require specific details about your income and assets, so the more transparent you are regarding your personal finances, the more precise your calculation is likely to be.

When Is a Good Time to Start Saving for Your Child’s Education?

Generally, the sooner the better. In fact, it can be wise to set up and start making small monthly contributions to a college savings fund soon after your child is born.

For some familes, however, it may not be possible to start saving that early. It’s equally important to pay attention to your other expenses and family’s needs. For example, you may want to prioritize building an emergency and paying off expensive credit card debt over saving for college. It’s also a good idea to make sure you’re on track with retirement savings. At the end of the day, students are able to get loans for an education but it’s not possible to take out loans to fund retirement.

Some Options for Saving

When thinking about how to help finance your child’s college education, consider these alternatives.

529 Plan

A 529 education savings plan is an investment account that can be used to save for the beneficiary’s qualified education expenses. The funds can be used to pay for higher education or private elementary or high schools. A 529 plan allows your savings to grow tax-free, and some states even offer a tax deduction on your contributions.

All 529 plans are set up at the state level. However, you don’t have to be a resident of a particular state to enroll in its plan.

If your child decides not to go to school, it’s possible to roll the account over into the name of another family member. If the funds aren’t used for education-related expenses, there may be taxes and penalties.

Family members and friends can also contribute to a child’s college savings plan. They may choose to make deposits to an existing 529 account or set up one themselves, naming a beneficiary of their choice.

Some 529 savings plans offer an age-based investment option to automatically adjust the risk of the investment strategy as the beneficiary gets older. This type of investment approach might be similar to how a target date fund works in your retirement plan.

Regular Savings Accounts

You can also save for your child’s college tuition using a savings account at a traditional bank, credit union, or online bank. Just keep in mind that interest rates, even for high-yield savings accounts, tend to be relatively low. Plus, savings accounts don’t offer the tax advantages you can get with some other college savings vehicles.

It may be difficult to reach education financing goals through a traditional savings account alone since the interest rate might not keep pace with the inflation of college expenses.

Roth IRAs

Although generally used for retirement savings, a Roth IRA can be used to pay for the cost of college. Contributions to a Roth IRA are made with after-tax dollars but earnings grow tax-free.

Generally, to withdraw the earnings from an IRA without paying a penalty (or taxes), the account holder needs to be at least 59 ½ years old. However, if you made the first contribution to your Roth IRA at least five years before, you can also withdraw the growth penalty-free for qualified education expenses, including tuition, books, and supplies.

Keep in mind that, while there may not be an early withdrawal fee, the earnings withdrawn may still be subject to income tax.

Other Options to Pay for College

Sometimes saving alone isn’t enough to cover the cost of college. In that case, there are other funding options available that could help students and their families pay for college.

Private Scholarships

Scholarships are essential free money for college because you don’t have to pay them back. Scholarships are typically merit-based and are offered through a variety of organizations and institutions, including nonprofits, corporations, and even directly from universities and colleges. In some cases, scholarships are awarded on the basis of nationality, ethnicity, or economic need. There are a number of searchable scholarship databases that compile different scholarship opportunities.

Federal Financial Aid

When you complete the FAFSA each year, you will become eligible for federal financial aid. This can include scholarships, grants, work-study, and federal student loans (which may be subsidized or unsubsidized).

Private Student Loans

If savings and financial aid aren’t enough to cover the cost of college, you can fill in gaps using private student loans. These are available through private lenders, including banks, credit unions, and online lenders.

Loan limits vary from lender to lender, but you can often get up to the total cost of attendance, which gives you more borrowing power than with the federal government. Interest rates vary depending on the lender. Generally, borrowers (or cosigners) who have strong credit qualify for the lowest rates.

Keep in mind, though, that private student loans may not offer the borrower protections — like income-based repayment and deferment or forbearance — that automatically come with federal student loans.

The Takeaway

College tuition can be a daunting expense. Setting up a dedicated account to save for college tuition can help make the process much more manageable. There are accounts, like 529 plans, that are designed specifically to pay for educational expenses.

In addition to savings, students and their families may rely on scholarships, grants, federal student loans, or private student loans to pay for tuition and other educational expenses.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

What’s the biggest downside of a 529 plan?

One of the biggest downsides of a 529 plan is that if you use your savings for nonqualified expenses (that is, not for approved educational expenses), you will be charged an additional 10% tax on earnings.

How much to save for college?

There are many variables when it comes to saving for college, such as whether the student will go to an in-state university or a private college. It can be wise to estimate costs and then aim to save a third of that amount, using grants, scholarships, and federal and private student loans to finance the rest.

How much does college tuition cost?

For the 2024-25 school year, tuition costs averaged $11,610 for students at public four-year in-state schools; $30,780 for those who are out-of-state students at public four-year universities; and $43,350 for students at private four-year nonprofit colleges. These figures do not include room and board and other expenses.

About the author

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

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SOISL-Q325-146

You try to set goals and stay on top of your finances. But sometimes life gets in the way and throws you off your game. You forget to pay a bill or accidentally overdraw your checking account — then kick yourself for getting hit with hefty fees.

Without an organized system in place, it’s easy to lose track of what’s coming in and going out every month. People with cluttered finances are more likely to miss payments, continue poor spending habits, and save less. Disorderly bills and budgets are not only stressful but can actually help drive you deeper into debt.

Organizing your money takes a little up-front time and effort but comes with a big payoff: It can help you live within your means, pay bills on time, reach your financial goals, and build wealth over the long term. Keeping track and organizing your finances also gives you a better sense of control over your financial life.

And, it’s not that hard to do, especially if you break the process down into small, manageable steps. What follows are eight effective ways to keep your finances organized and in check.

How to Keep Your Finances Organized

Whether you’re aiming to save for a big purchase, build an emergency fund, or invest for the future, a structured approach to managing your finances can make a significant difference. The following steps can help you stay on top of your financial life and save you money in the long run.

1. Set Some Financial Goals

Having a few clear, realistic financial goals is essential for staying organized. Knowing what you want to accomplish in the next months and years can guide your financial decisions. You can break down goals — like paying down debt, going on vacation, or putting a downpayment on a home — into smaller tasks and set deadlines to track your progress. This strategy can help motivate you to stay focused and disciplined with your finances. For example, brown bagging lunch might not feel like a pain if you have your sights set on a winter getaway to Mexico.

2. Create a Budget and Stick to It

One of the fundamental pillars of financial organization is creating a budget. Having a basic plan for spending and saving can lead to more financial freedom and a life with a lot less stress. Start by assessing how much, on average, is coming in and going out of your checking account each month. If you find that your monthly outflows tend to equal — or exceed — your monthly inflows, you’ll need to rejigger your spending.

There are all different ways to budget — the best approach is simply the one you’ll stick to. One simple framework is the 50/30/20 budget, in which you divide your monthly take-home income into three categories, spending 50% on needs, 30% on wants, and 20% on savings and extra debt payments. Once you have a budget in place, it’s a good idea to periodically check in and make sure you’re sticking to the plan.

3. Get Help From an App

There are a number of personal finance apps that are free to use on your phone and make it easy to organize your money. Basic budgeting apps, like Goodbudget, EveryDollar, and PocketGuard, allow you to connect with your financial accounts (including bank accounts, credit cards, and investment accounts), track spending, and categorize expenses so you can see where your money is going. Regularly reviewing your expenses will help you determine if you’re sticking to your budget plan, as well as identify any unnecessary costs and areas where you can cut back.

Automate Bill Payments

One way to make sure you always pay your bills on time is to automate the process. You can do this by setting up automatic payments for recurring bills, such as rent or mortgage, utilities, insurance premiums, and loan repayments. Simply log into each account and authorize the provider to debit your checking account or charge your credit card each month. Alternatively, you can use your bank’s online bill pay service. Just be sure to keep track of the payments you have automated, so you know when to stop them or update credit cards.

5. Put Saving on Autopilot

If you wait until after you pay your bills and do all your spending to move money into savings, you may not have anything left to transfer. Why not pay yourself first? Also known as automating your savings, this organizational step ensures you are always working towards your goals.

Simply set up an automatic transfer for a set amount of money from checking into a savings account each time you get paid. It’s fine to start small — since the transfer happens every month, even small deposits can grow to a significant sum over time. If you want to earn a competitive rate and pay the lowest fees on your savings, consider storing this money in an online savings account. Thanks to reduced overhead, online banks are typically able to offer more favorable returns than national brick-and-mortar banks.

6. Manage Mail as Soon as It Arrives

Despite living in a digital world, many important bills and documents likely still arrive in your regular mail. This might include stock statements, property tax bills, homeowners’ insurance bills, and medical bills. As a result, you’ll need a system for managing paper bills and statements. Generally, the most efficient way to deal with mail is to organize it as it comes in. You might create three “in” boxes or files labeled: “to pay,” “to file,” and “requires action.” Set a day and time each month to go through these boxes to make sure nothing gets ignored.

7. Organize Your Online Accounts

You likely have a number of online accounts — including bank and brokerage accounts, service provider accounts, and shopping accounts — each with a unique (a.k.a, hard-to-remember) password. It’s a good idea to make a list of all of your online accounts, including usernames and passwords, and keep it in a notebook stored in a safe place. Even better: Consider using a password manager tool, such as Dashlane, 1Password, or Apple’s built-in Keychain. These tools will start saving the passwords you use to log into your accounts and will automatically insert them into log-in forms. Typically, they will also generate hard-to-guess options when you sign up for new sites (no more “123456”).

Recommended: 11 Tips for Cleaning Up Your Finances

8. Make a Plan to Manage Debt

If you typically pay just the minimum on your high-interest debt, like credit cards, you are likely spending a lot on interest, while never getting ahead on your debt. Coming up with a system to knock down — and eventually eliminate — high-interest consumer debt can help you save money and make it easier to reach your financial goals.

To get a better handle on your debt, you may want to make a list of all your high-interest debts, including amounts owed and interest rate. Then focus your efforts on erasing one debt at a time while still making the minimum payment on all other debts. Where to start? You can use the debt snowball method and start with the smallest balance first, or use the debt avalanche method and pay down the highest interest debt first.

The Takeaway

If it feels like your money is all over the place and you’re living paycheck to paycheck without a plan, don’t get discouraged. You can get your financial act together one step at time.

By implementing some basic systems — like setting goals, creating a budget, automating payments and saving, and using an app that tracks your spending —- you can gain control over your finances and pave the way for a more secure financial future. Remember, financial organization is an ongoing process that requires consistent effort, but the rewards of financial stability and peace of mind are well worth it.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How do I organize my personal household finances?

You can organize your personal finances by setting up a budget and putting some simple systems in place. You might, for example, put all of your regular bills on autopay so you don’t accidentally miss a payment and get hit with late fees. It’s also a good idea to automate savings by setting up a recurring monthly transfer from your checking account into your savings account right after you get paid.

For statements and bills that still come by regular mail, consider setting up an organization station with three in-boxes: “to pay,”“to file,” and “requires action.” Set a day and time each month to go through these boxes to make sure nothing gets ignored.

How do I organize my monthly bills?

Start by making a master list of all of your regular bills, including the provider, billing amount, and due date. To simplify payment (and avoid late payments and fees), consider setting up autopay for each bill. If you prefer to handle payments yourself, set aside a day and time each month that’s dedicated to bill paying. A structured schedule will help you meet all of your deadlines. An alternate approach is to pay each bill as soon as it comes in, then file it away.

About the author

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.