How to Split Bills With Roommates

Having a roommate can be great; you have companionship and someone to split the bills with. But that sharing of expenses can sometimes get challenging and tense even. Roomies can wind up arguing over who is using up all the toilet paper or sending the electricity bill through the roof.

To help keep the peace and control costs, there are smart tactics you can use. Try some or all of these tips to keep your household as fun and argument-free as ever.

Creating Clear Guidelines on Which Bills to Split

One of the easiest ways to ensure everyone feels satisfied with how the household bills are handled is to be direct and upfront with financial expectations. And this means being straightforward about what those expectations are before anyone moves in.

When negotiating moving into a new home, consider asking how bills are handled now and how it will change when you or someone else moves in. Additional questions to wrangle can include:

•   Whose name is currently on the utilities?

•   Will I be expected to put my name on any utilities?

•   When is money collected to split the bills?

•   Are the bills divided equally, or by room size?

These can be helpful, because everyone can understand what’s expected. It also sets ground rules moving forward.

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Deciding How Everyone Wants to Split Bills

As for the best way to split bills, that may depend on the household situation. For example, if the home has two evenly-sized rooms and a shared bathroom, kitchen, and living area, it may be easiest to simply split the bills down the middle as everyone has an equal space. But, if one room is exponentially larger than the other and has its own en suite bath, the bills could be split proportionally to reflect the extra space for one roommate versus the other.

It is a good idea to tackle the grocery issue head on. For instance, address such questions as:

•   Is the house going to split groceries?

•   Is everyone going to enjoy one shared meal together at night?

•   Are the roommates going to split common goods like cleaner and toilet paper?

•   Or is each person going to fend for themselves?

Any way you choose to go about it is fine, as long as it’s all out in the open — before someone accidentally finishes someone else’s ice cream without asking.

Picking Who Is Responsible for Which Bill

Once it’s decided how a bill will be divided, one other idea may be assigning each roommate ownership of bills for things like the electricity, heating, gas, water, trash, cable and internet, and more, depending on the rental agreement. Perhaps you’re able to get a better deal based on a roommate’s existing account with a certain biller. That may be one way to decide and to lower expenses.

Or, another common method is to have the roommates divide up the bills evenly in order to distribute the responsibility. Doing things this way may also ensure everyone pays bills on time. Being late with bills can lead to fellow roommates being surprised with a service being interrupted and their credit being dinged if they are listed on the account that’s unpaid.

You might also look into changing the due date on bills; this can sometimes be accomplished and can ease cash flow.

Creating a Roommate Bills Contract

Once the lease has been negotiated, the bills have all been cleared up, and everyone is in agreement, you may be considering some sort of “roommate contract” spelling out exactly what was decided upon, which everyone reads and signs.

That way, no one can ever claim they were confused about the household budget and how bills are split, when money is owed, and who is responsible for what. It is recommended to share the fully executed contract electronically and then a printed out copy for all to review and retain.

Recommended: How to Rent an Apartment With No Credit

Sharing a Spreadsheet of Expenses

Settling into a new home and arrangement might be a good time to finish up the admin work by creating and sharing a monthly spreadsheet of expenses.

This spreadsheet could be kept in a common gathering area for easy reference and shared online as well. In the spreadsheet, each roommate can keep track of the expenses they are responsible for, as well as who has paid and what is outstanding.

This spreadsheet may also come in handy for adding in shared groceries and necessities like milk, eggs, toilet paper, and paper towels. That way, everyone can keep track of who bought the last batch to avoid an argument later. You’ll also see how much your household is spending on groceries per month and other expenses.

Recommended: Different Types of Budgeting Techniques

Sitting Down Together at the End of Each Month

It is said that one of the quickest ways to ruin a roommate relationship is for one person to get passive-aggressive about the bills. That’s why it’s recommended to avoid leaving little notes around the house about who owes what (or who hasn’t done the dishes in far too long) and instead face those issues head on.

At a good time for everyone, perhaps toward the end of each month, schedule a 10-minute roommate check-in. In this meeting, everyone can share household happenings, announcements, and any updates on household bills.

By sitting down in person, no one can avoid possible uncomfortable questions about money. You all can figure out potential sticky situations together.

As a bonus, roommates can also use this time to go over any other to-dos around the house. You might also discuss ways to economize, such as saving money on water bills.

Keeping Some Personal Purchases Separate

Though some may be tempted to fully invest in a roommate relationship by sharing the financial burden on just about everything, there are some items that are better left in a budget’s personal spending category.

That includes the purchase of any big-ticket items you’d like to take with you if you ever move out. These might include such items as a TV, couch, tables, glasses, or an expensive Crockpot purchased on a whim.

It may also be helpful to distinguish an area in cabinets and the fridge for each individual roommate to place specialty or expensive food items they do not want to share.

If one roommate has a pet they adopted on their own, it is a good idea to keep those bills completely separate.

Recommended: How to Save Money on Pets

Another common recommendation is for everyone to invest in their own renters insurance. This will protect all their items in case of a fire, flood, burglary, or more. This type of insurance could save everyone a lot of money and heartache if disaster strikes.

Using Modern Technology to Split Bills with Roommates

Fortunately, splitting bills with roommates is easier than ever, thanks to the advent of P2P transfers. You might all pay bills via PayPal, Venmo, or Zelle, and then one person transfers the appropriate amount to the payee. Your bank may also have tools you can use to quickly send funds to others.

It can be fast and free to transfer money this way and can make the bill-paying routine quick and simple.

The Takeaway

If you need flexible banking (whether or not you have roommates), consider what SoFi offers. With an online checking and savings account, you can not only access your money at any time from anywhere but also transfer money to pay bills directly online. Plus, you can complete peer-to-peer transfers between SoFi Checking and Savings members and non-members.

More perks: No account fees and a competitive annual percentage yield (APY) to help your money grow faster.

SoFi Checking and Savings: The smart, simple way to manage your money.


SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
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.


SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found 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.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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.

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How Often Should You Review Your Personal Finances?

If the money in your bank account always seems to be low, you may need to review your personal finances on a more regular basis.

Keeping a close eye on your spending, saving, and investing can provide a more accurate picture of where your money is going. It could help you understand what you’re doing right and what you might want to change, and keep you on track with short- and long-term financial goals.

That doesn’t mean a full-on personal financial review every day. And some categories (spending vs. saving, for example) might require more attention than others. Here’s a breakdown of how often a review might make sense.

Ways to Review Your Personal Finances

1. Tracking Spending

When the money from your paycheck seems to slip away, it’s often because there’s no household budget in place. That means there’s no priorities set for where the money should go and no guidelines to follow.

Before putting together a budget, it can help to track what you spend money on. That includes everything from rent to groceries to prescriptions and subscriptions. To simplify the process you can use a budget and spending tracker.

Once you see how much you spend and on what, you can use that information to set up a budget. During this time you may want to keep checking your spending daily, or at least weekly, to see if your expectations were realistic and if you’re staying on target.

If you want quick feedback on your spending, you may choose to do frequent spot checks using a mobile app. If you make reconciling bank and credit card statements a monthly routine, you may have a better chance of catching any errors, possible fraud, or forgotten subscriptions.

You also may find that there are accounts you can consolidate — including credit cards and other debts — to manage your money better.

2. Reviewing the Budget

When you’re trying to get your finances under control, you might decide to check your budget every day to be sure you’re following through on the plan or if it needs adjusting. This can also help you avoid budgeting mistakes. But there may come a time when you feel as though you’ve got a solid, doable strategy, and you can cut back on how often you check your stats.

Some people do an annual budget review using information from the past year to adjust for the year ahead. They might also do a quarterly or annual review as part of a larger financial evaluation that includes checking their credit report.

Others are more comfortable with a monthly checkup so they can nimbly make changes as new expenses and life changes come up. Decide what time frame works best for you.

3. Monitoring Savings

It can be tough to stay motivated to reach a savings goal, whether it’s putting aside money for a vacation, building an emergency fund, investing for the future in an IRA, or all of the above.

Just as reviewing your spending regularly may help you stay on track, checking our savings monthly, or even weekly or daily, can reinforce the effort. It can be satisfying and rewarding to watch your bank balance increase. You might also want to look into opening a high-yield online bank account so that your savings can grow and earn even more for you.

Get up to $300 when you bank with SoFi.

Open a SoFi Checking and Savings Account with direct deposit and get up to a $300 cash bonus. Plus, get up to 4.60% APY on your cash!


4. Following Investments

How often you check your investments depends on your personal preferences and what you’re comfortable with.

If your money is in an IRA or 401(k), it’s meant for the long haul — a retirement that could be decades away. A monthly, quarterly or twice-a-year check-in could be enough to spot any disturbing trends.

That regular check-in could be a good time to do some rebalancing, either by selling investments or redirecting future investments if necessary to stay on target for your goals.

5. Attending to Taxes

It’s easy to put off thinking about income taxes until it’s time to file, but this is another slice of financial planning that can benefit from a little more evaluation. And if you wait until you’re filling out tax forms, you may miss out on some savings.

Taxpayers usually have until the April 15 filing deadline to make tax-deductible contributions to a traditional IRA or 401(k) for the prior tax year.

But many tax strategies must be implemented by the end of the calendar year to have an impact on federal taxes, so November can be a good time to take a look at charitable contributions, converting money from a traditional IRA to a Roth account, making health savings account contributions, and using the money left in health savings and flexible savings accounts.

6. Evaluating Goals

When it comes to goal setting, it may help to think in terms of big goals and little goals.

Big goals might be things like sending your kids to college, buying a home, or retiring to a beach house. Smaller goals might include paying down credit card debt or taking a special vacation.

Both types of goals may require regular evaluations and financial checkups — to see if you’re on track and determine if it’s still something you want. After all, circumstances and personal priorities can change.

But the check-in schedule might be different for big goals (once or twice a year could be enough) and small goals (monthly, combined with your budget once-over, may be more appropriate).

Life events — a new job or job loss, a baby, a move — also may trigger the need to reevaluate some goals, big and small. And you might want to do a review of all your goals whenever you achieve something on your list. Rejoice and then refocus!

Wrapping It All Up

If you’re doing lots of small check-ins throughout the year, it might not seem necessary to do one big annual personal finance review.

But a yearly evaluation offers the opportunity to pull everything together — all those separate slices — to see what’s working and what isn’t. It also may be a good time to make any necessary updates to insurance policies and other documents and to gather up the paperwork you’ll need to file your taxes.

And if you do your review in November or December, you can make some financial resolutions to keep you motivated through the new year.

You also can examine if the way you’re managing your money suits your needs, or if it’s time to make some changes and perhaps update, consolidate, and automate some facets of your finances, or open new investment or banking accounts.

If you’re considering a high-yield savings account, check out SoFi Checking and Savings. You’ll earn a competitive APY and pay no account fees.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.


SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
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.


SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found 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.

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How to Close a Savings Account: Complete Guide

If you have a savings account you’re no longer using, it’s important to close the account to avoid fees and other possible risks that could cost you money. Closing the account properly can prevent hassles and ensure that your finances continue to flow smoothly.

Here’s what you need to know about how to close a savings account.

How to Close a Savings Account in Six Steps

Closing a savings account is generally fairly simple, but the more organized you are, the easier it will be. Here’s what you need to do.

Step 1: Decide Where You Want to Keep Your Money

Before you end one banking relationship, it’s good to have another place lined up to stash your money. This may mean a new account with a new bank, or a different type of account at your existing financial institution.

Your monetary goals can help guide you in this decision. For example, different types of accounts earn different interest rates and charge different fees for various transactions. You may be able to increase your returns and reduce the cost of banking if you take time to evaluate the accounts and what they’re offering. For instance, a high-yield savings account with a higher annual percentage yield (APY) could pay considerably more than a standard savings account.

If you have multiple financial goals and needs, you may want multiple bank accounts for different purposes. For example, you might set up one account to save for your annual vacation or some other splurge, and dedicate another account to put away money for an emergency.

Step 2: Update Any Automated Transactions

Though automatic bill payments are more commonly made from checking accounts, you may have some automated savings transactions, such as payroll deposits, that flow through your savings account each month. Be sure to switch them over to your new account.

If you have any pre-authorized debits, you’ll want to update those as well. A failed automated payment or negative account balance could trigger penalties.

The best way to ensure you don’t forget to make any updates is to review several months’ worth of bank statements. (Because some deposits, such as income tax refunds, may occur on an annual basis, you may even want to review a full year of account records.)

Since it can take some time for automatic payment processing information to update, wait until the new deposits are successfully set up before you close your old account.

Step 3: Move Your Money

Once you have your new savings account set up, you’ll need to move your bank balance. The amount of money in your old account will play a role in determining the easiest and most secure way of doing so, as will the features of your old savings account.

If you set up a new online bank account, you may be able to do an online transfer from your old account to the new one, which is typically quick and easy.

Recommended: How Much Money Do You Need to Open a Bank Account?

Step 4: Monitor Your Old Account

After your funds clear into your new savings account, you can begin using it. However, you may want to keep your old savings account open for a couple of months as you transition to the new account, as long as it’s not costly to do so. This allows you to catch any automatic transactions you forgot to change over.

Step 5: Download Your Transaction Records

After you close your account, you’ll typically lose access to your transaction history. If you require any records of your banking activities under the old account, or interest earned, download your documentation before you officially deactivate your account.

Step 6: Close Your Old Account

Once you’re set up and using your new savings account, you can close the old one.

The exact process will depend on your bank — some may allow you to close savings accounts online or via a phone agent; others may not. If you still have money left in your account, you’ll receive that sum minus any outstanding bank fees owed.

Because closed bank accounts can sometimes be reactivated in error and incur fees, it’s smart to get written confirmation of the account closure for your records. You should also review your final bank account statement for any errors.

Recommended: How to Switch Banks in 3 Easy Steps

Get up to $300 when you bank with SoFi.

Open a SoFi Checking and Savings Account with direct deposit and get up to a $300 cash bonus. Plus, get up to 4.60% APY on your cash!


Common Reasons for Closing a Savings Account

Here are some common reasons for closing a savings account.

•   You’re moving, and your existing bank doesn’t have branches and ATMs near your new location.

•   Your bank’s hours don’t suit your lifestyle.

•   The bank has policies that don’t work for you, such as minimum balance and service fees.

•   You have multiple savings accounts and want to consolidate.

•   Another bank offers higher interest rates on savings accounts.

•   You want to change from a brick-and-mortar bank to an online bank.

•   You aren’t happy with your bank’s customer service or some other aspect of banking.

Why It’s Important to Close a Savings Account Properly

Once you’ve decided to switch financial services or open a new savings account, it’s a good idea to go through all of the steps involved in closing your old savings account properly.

While there are times when it may make sense to have multiple bank accounts, if you’re not using your old savings account, you should make sure to close it. This is important because then you’ll know exactly where your money is and which financial products you have open in your name.

Keeping only the savings accounts you’re actively using or plan to use can help you to simplify your finances, keep better track of your assets, and help you in your quest to achieve financial security.

Failing to close an old savings account could also potentially cost you money because of the following risks.

Dormancy fees and other penalties:

Some banks charge account holders a “dormancy fee” after a period of time without any deposits or withdrawals. These fees can accumulate month over month.

Some banks waive fees for account holders whose balance stays above a minimum threshold — but reinstate the fees if the funds in the account go below that amount. If you do have a balance in your unused savings account, these penalties can deplete it.

Fraud:

If you’re not closely monitoring your old bank account, it can be more difficult to spot suspicious activity. If an unauthorized user accesses the account, they could use it to acquire new banking products, such as a credit card, in your name.

Lost deposits:

If you’ve signed up for direct deposit you don’t receive regularly — your yearly tax refund, for instance — you may forget you’ve done so. And if they one day make a deposit to a savings account you’re no longer using, you may not notice you received that payment.

While there are drawbacks to keeping an unused account open, you may also be wondering: Is it bad to close a savings account? The good news is, closing your account usually comes at no cost. Not only do most banks not charge a fee to close a basic savings account, but doing so will not affect your credit score.

If, however, your account has a negative balance, you will need to repay that at the time of closing the account.

Recommended: What Happens to a Direct Deposit If It Goes to a Closed Account?

Finding an Account That Meets Your Needs

Even if you’ve been with the same bank forever, it’s worth taking a pulse check from time to time to ensure that your savings account meets your financial needs and is helping you get closer to achieving your goals.

Whether one financial goal or several are in play, SoFi Checking and Savings® lets you earn a competitive APY with no minimum balances or account fees. That means your money can go farther.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.


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.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
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.


SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.


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How Families Can Afford to Travel on Vacation: Budget Friendly Travel Tips

How Families Can Afford to Travel on Vacation: Budget Friendly Travel Tips

Family vacations are the stuff memories are made of. Maybe it’s a week spent at a beach an hour from your home, a long weekend at a theme park, or an amazing two-week jaunt around national parks or Europe: No matter what the details, the fact that you and your loved ones are together, amid new surroundings, and perhaps having an adventure can make it worth the time, energy, and money you spend ten times over.

That said, few people have unlimited funds for getaways. And no one wants to rack up a bunch of travel-triggered debt. So here’s a game plan to help you afford a family vacation, including:

•   How to calculate the cost of a family vacation

•   Ways to make a family vacation affordable

•   Tips for avoiding debt from a family vacation

Calculating the Cost of Family Vacations

In one recent survey by the Family Travel Association and NYU’s School of Professional Studies, 85% of American parents said they were planning to take a trip with their kids in the year ahead.

If you’re among their ranks, you know that cost is a big consideration when planning this kind of trip. When calculating the total cost of your next family vacation, make sure to consider the following expenses:

•   Airfare (roundtrip) plus transfers and any train or bus fare

•   Car rental (and/or gas plus taxes and related expenses)

•   Accommodations (including taxes and fees)

•   Food and drinks (whether dining out or meal prepping)

•   Activities, attractions, and entertainment

•   Souvenirs

•   Travel insurance

•   Miscellaneous costs (parking fees, passport fees, currency exchange, etc.)

Additionally, you’ll want to account for expenses incurred at home, such as pet-sitting costs, and lost wages if you don’t have paid time-off available for some or all of your vacation days.

By having the total cost of your family vacation in mind, you can better plan ahead and ensure you budget appropriately to cover all of your costs. Another smart move can be to review the different credit card rewards you’ve accrued and see how those can bring down the price of your vacation (more about this below).

How to Take a Family Vacation on a Budget

Being a frugal traveler with your family in tow is, of course, an added challenge. No one wants to deny the kids that ice cream or souvenir T-shirt, for instance. But there are many ways to make your next vacation more affordable.

1. Have a Strict Budget

After tallying up your essential monthly expenses, such as your rent or mortgage payment, bills, and other household expenses, see how much of your discretionary income is left.

Using that number, break down how much you’re able or willing to allot toward the travel categories listed earlier. Although your budget in each subcategory can be somewhat fluid, make sure your total family travel costs don’t exceed your maximum budget.

2. Keep a Dedicated Vacation Savings Account

An important part of creating a travel fund is ensuring that your vacation savings isn’t accidentally tapped into for anything other than your trip goal. One way to avoid this is by opening a high-yield savings account that holds savings exclusively for your next trip.

Not only will you be stashing money far from your checking account so it doesn’t get spent, you’ll also be earning some interest to pump up your fund. Online banks often offer the best annual percentage yields (APYs).

3. Use Credit Card Bonuses and Miles

If you already use a cash back rewards credit card for many of your day-to-day purchases, applying your earned cash-back rewards and miles toward your trip is a must. This can help shave down your costs, especially if you stash your rewards earnings for a while in preparation for your trip.

As another bonus, your card may offer credit card travel insurance, which can help protect you against any unexpected financial losses when you’re away.

Recommended: Does Applying for a Credit Card Hurt Your Credit Score?

4. Be Flexible With Travel Dates

The travel dates you choose for your trip can greatly affect the total price of your family vacation. If you’re willing to be flexible about when you travel, you might be able to save a chunk of change.

Compare flight costs on weekends versus weekdays to find travel deals. Also consider traveling during the shoulder season or off season, if possible. An example: Heading to London (and the world of Harry Potter) not in the summer, but the spring. This can be more affordable than traveling during peak season when other families are arriving in high volumes. Also, if your kids aren’t yet school age, you can avoid the usual school holiday dates and travel when you please, potentially saving money.

5. Explore All-Inclusive Cruises

Exploring cheap cruises is another way to afford a family vacation. All-inclusive cruises offer families a package deal that generally includes food and non-alcoholic drinks, as well as activities that adults and children can enjoy on board.

Some cruises even offer “kids sail free” promotions that offer a complimentary pass for children under a certain age on specific booking dates. (Taxes and fees will still apply though.)

6. Find Ways to Budget on the Trip

Once your family arrives at your destination, cut costs on variable expenses, like food and beverages, as well as activities. Instead of dining out for every meal, you might assemble sandwiches for lunch while on vacation, or focus on shareable meals, like pizza, that can be split with the family. Packing granola bars or fruit from the supermarket can help you avoid pricey snack stops, too.

Additionally, research free or low-fee activities to do ahead of time. For instance, you could take a free walking tour of the city, visit tourist attractions that offer free children’s or elderly admission, and more.

7. Travel in Groups With Other Families

Coordinating a vacation with other families (or relatives) can be an effective budget travel option. For example, as a group, you might rent a large Airbnb with a pool or one that’s near a theme park. You could then split the cost of food, gas, and accommodations for the trip. If your group is large enough, certain attractions might also offer group discounts for admission.

8. Be Flexible With Your Destination

Perhaps your dream is to spend a week in New York City or at a seaside Maldives resort, but the cost is a real budget-buster. Think about alternatives that give you some of the same vibe (a dynamic city or a chic place by the sea) for a lower price.

Family beach options in Mexico, for example, might be more affordable than a beach trip to the Maldives. And a trip to Philadelphia or Boston (both of which have plenty of history, museums, great food, and more) could help you shave down the price of a big-city getaway.

9. Work a Side Gig for Extra Income

Bringing in supplemental income is another way to afford a family vacation, if you plan ahead of time. Consider your own skills and expertise, such as tutoring, crafting, or freelancing. There are plenty of low-cost side hustles you might pursue.

Offer your services through platforms, like UpWork, or within your local community for a fee. Use the extra money you earn toward your family trip.

10. Leverage the Sharing Economy

Innovative sharing communities are another way that families afford to travel. For example, to save money on hotels, there are also domestic and international house-sitting opportunities that your family can participate in through sites like Nomador and Mind My House.

Are Timeshares Worth it in 2023?

One option that some families consider for future travel is a timeshare. A timeshare is a vacation property wherein you — and other people — purchase the right to use it at a specific time. Generally, when it comes to budget family travel, timeshares are not the best option.

Although a timeshare simplifies certain aspects of your travel planning, such as deciding on a destination or finding accommodations, it can be restrictive in other ways. For example, your timeshare dates might not align with your available days off or children’s school vacations (when many people want to travel). In addition, timeshares can be difficult to sell when the time comes.

Recommended: How to Avoid Interest On a Credit Card

Tips to Avoid Debt While Going on a Family Vacation

Although you can pay for your family vacation on a rewards credit card and earn credit card points in the process, proceed with caution. Like any large expense put on a credit card, your total debt can balloon if you don’t have the savings or income to pay it back quickly. In that case, you start to rack up interest charges.

As much as possible, avoid putting your next family vacation on your credit card. Instead, give yourself ample time to save up toward your trip. Also, don’t forget to apply any credit card miles or cash back that you’ve earned toward your travel bookings to immediately cut your out-of-pocket travel expenses toward flights, accommodations, or car rentals.

The Takeaway

Creating amazing memories with your family through travel doesn’t mean you have to spend a bundle. By crafting a solid budget and using smart, strategic tips to cut travel costs, like using credit card rewards to travel for less, you can plan a vacation that fits your needs and your financial situation.

SoFi Travel has teamed up with Expedia to bring even more to your one-stop finance app, helping you book reservations — for flights, hotels, car rentals, and more — all in one place. SoFi Members also have exclusive access to premium savings, with 10% or more off on select hotels. Plus, earn unlimited 3%** cash back rewards when you book with your SoFi Unlimited 2% Credit Card through SoFi Travel.

SoFi Travel can take you farther.

FAQ

How do people afford to travel every year?

You can dedicate a portion of your budget each year toward travel. Calculate how much discretionary income is left after you’ve allocated funds toward non-negotiable expenses, like monthly rent and bills. Once you have an approximate number, explore your options based on your budget.

How much does it cost to travel the world with a family?

The cost to travel the world with your loved ones varies greatly. Factors like the number of adults and children in your party, your destination, the duration of your trip, when you travel during the year, and your travel activities will all determine how much you’ll spend.

How much does the average family spend on travel per year?

The average one-week vacation for two people in the U.S.costs about $3,156. Bringing along more family members will of course add to that cost, but how much will depend on variables such as whether the kids stay in the same hotel room as the parents, if you upgrade to a suite, and if many activities and attractions are on your schedule.

How do I get enough money to travel?

Taking on extra shifts at work, selling things you no longer use, earning extra income through a side hustle, and cutting your existing non-essential expenses are all popular ways to save money for travel. However, you’ll need to find a tactic that works for your financial situation and lifestyle.


Photo credit: iStock/Nutthaseth Vanchaichana

**Terms, and conditions apply: The SoFi Travel Portal is operated by Expedia. To learn more about Expedia, click https://www.expediagroup.com/home/default.aspx.
When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of SoFi Member Rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.
Eligibility: You must be a SoFi registered user.
You must agree to SoFi’s privacy consent agreement.
You must book the travel on SoFi’s Travel Portal reached directly through a link on the SoFi website or mobile application. Travel booked directly on Expedia's website or app, or any other site operated or powered by Expedia is not eligible.
You must pay using your SoFi Credit Card.

SoFi Member Rewards: All terms applicable to the use of SoFi Member Rewards apply. To learn more please see: https://www.sofi.com/rewards/ and Terms applicable to Member Rewards.
Additional Terms: Changes to your bookings will affect the Rewards balance for the purchase. Any canceled bookings or fraud will cause Rewards to be rescinded. Rewards can be delayed by up to 7 business days after a transaction posts on Members’ SoFi Credit Card ledger. SoFi reserves the right to withhold Rewards points for suspected fraud, misuse, or suspicious activities.
©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender. NMLS #696891 (Member FDIC), (www.nmlsconsumeraccess.org).


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.

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What Kitchen Style Do You Prefer? — Take the Quiz

Do you have kitchen envy, daydreaming about Shaker cabinets, farmhouse sinks, or sleek marble countertops? Join the club: Kitchen remodeling is one of the most popular kinds of home renovation projects, with the typical “small” kitchen redo costing upwards of $28,000. These kinds of upgrades can be worthwhile, with more than 70% of the cost being recouped when the home is sold.

Perhaps you’re planning a kitchen refresh. If so, one of the first steps is likely to figure out what your dream kitchen will look like. Once you know that, you can begin to delve into what exactly you want to do and buy and then how to finance it.

So, first things first: To help you get in touch with your inner kitchen designer, consider the three broad categories of styles: traditional, contemporary, and transitional. Which one is for you?

Read on to:

•   Learn more about kitchen styles

•   Take a kitchen personality quiz to zero in on the best fit for your taste

•   Understand how to afford the kitchen you crave

Traditional Kitchen Style

Even when other styles rise in popularity, the traditional kitchen continues to hold its own, remaining among the most popular. At the core of traditional kitchens is a time-honored approach to design that refers to the styles of the past.

Among the signature touches:

•   Raised-panel or glass-front cabinets

•   Warm wood tones

•   An earthy, rustic color palette

•   Classic sinks, faucets, and knobs, such as a farmhouse style in porcelain or marble

•   Molding, whether at ceiling, along the top of cabinetry, or elsewhere

•   Country or European touches often find a place in traditional kitchens, whether that means floral backsplash tiles or lace curtains.

Contemporary Kitchen Style

At the other end of the design spectrum is contemporary kitchen style. Just as the name suggests, these spaces tend to be clean-lined and sleek. Among the typical features are:

•   Cabinets are often slab-style (meaning without knobs) or otherwise minimalist.

•   Typically, these kitchens use sleek materials, whether wood, steel, or lacquer.

•   Color schemes tend to be neutral, from all white and futuristic to grays and beiges to moody black. However, some people like to mix in pops of color.

•   Appliances are typically disguised as cabinetry (you may hear this called paneled appliances) to keep the clean-lined look going.

•   Decorative accessories are discouraged. If you like showing off your teapot collection, this look probably isn’t for you.

Recommended: Cost to Repair a Plumbing Leak

Transitional Kitchen Style

If you find that you appreciate some elements of traditional style and some of contemporary, then a transitional style kitchen may be just right for you. This style combines elements of both styles in a unique way.

For example:

•   Transitional kitchens might include classic, simple Shaker-style cabinets but in bold shade, like teal, which makes them look more modern.

•   Countertops are often quartz or quartzite, which can have the warmth of natural tones but sleek edges.

•   Appliances are often built-in or stainless steel.

•   Pendant lighting, with its clean lines, is a signature of the transitional style.

•   Wood plank flooring, with its traditional warmth, is often incorporated in these kitchens.

•   If you think you’ll be selling your home, then going transitional can be a safe bet to make your home appealing to a broad swath of potential buyers.

Kitchen Style Quiz

Now that you have a basic grounding in these three looks, take the kitchen style quiz.

Now that you have insight onto the kitchen look you gravitate towards, learn more about what remodeling involves.

Remodeling Your Kitchen

A kitchen remodel can be a good way to boost the value of your home, with possibilities ranging from fairly inexpensive — new paint, new faucets, and new cabinet pulls, for example — to a full-scale remodel that could cost you more than $100,000. A few smart strategies:

•   When remodeling, it makes sense to prioritize your spending in a way that creates a kitchen that works well for your lifestyle.

For example, if you and your partner love to cook gourmet meals and experiment with new recipes, it makes sense to allocate your budget to be a true chef’s kitchen, perhaps with a commercial-style range. If, on the other hand, you’re envisioning a kitchen where all the neighborhood kids will gather for pizza and homework, consider that in your design and perhaps budget for a cushy, built-in banquette.

•   It can also be wise to create a budget and keep an eye on which options can wind up being very pricey maneuvers. The cost of rewiring and moving plumbing lines, for instance, can be quite steep. Have a couple of well-recommended tradespeople pitch your job (don’t skimp on checking references) before picking one.

•   Build in contingencies for your project to go over budget and past the deadline. It happens, and being prepared for that kind of wiggle room can help you avoid a lot of stress. For instance, inflation’s impact on kitchen remodeling can be significant so it’s wise to plan ahead on that front.

•   Also stay aware of what changes require a permit (you may be surprised at how often one is needed) and prepare for how that will impact your timeline.

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Financing Your Remodel

Once you’ve decided how you want to update your kitchen and have considered the average cost of a kitchen remodel, then one of the next considerations is how to pay for it. If you need to finance the project, you may have such options as:

•   You could do a cash-out refinance if you have equity in your home. This involves refinancing your current mortgage for its remaining balance plus the amount needed to do your remodel.

•   A home equity line of credit might also make sense if you have equity. This involves using your home as collateral and opening a line of credit (like a credit card) to tap as work is done on your kitchen. You then repay the debt over time.

•   Another secured option is a home equity loan, which gives you a set amount of money to use towards your renovation.

•   It can make sense to consider an unsecured home improvement loan to help you get the remodel done, too.

Because this is a kind of personal loan, this means you don’t need to have home equity nor put your home on the line as collateral.

Like all loan products, there are pros and cons to personal loans. What matters most when financing your kitchen remodel is finding the option that suits your financial and personal needs best.

Recommended: Can I Pay Off a Personal Loan Early?

All Your Finances. All in One App.

At SoFi, applying for an online home improvement loan is quick and easy. Approved loans can be funded in as little as one day, which means you can get started on your remodel more quickly. Plus, SoFi Personal Loans offer fixed rate payments, which can help you budget and keep your project on schedule.

SoFi: We make home improvement loans simple and speedy.


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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


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.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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