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Many experts recommend having an emergency savings fund. The money is intended to cover bills or living expenses due to a job loss, medical issue, or unexpected repairs. But finding money to put aside on a regular basis can be challenging. The 52-week Savings Challenge will get you there in the simplest way possible.

Learn how this savings challenge works and who will benefit the most from it.

What Is the 52 Week Money Challenge?

The 52-week Savings Challenge is a straightforward way to set aside a little money every week. The plan can help you save more than you might expect over the course of a year. The goal is to have a healthy emergency fund that you can dip into to cover unexpected expenses — like car repairs or a trip to the ER — without blowing your monthly budget.

Although some people like to start these types of challenges on Jan. 1, you can start today, or the first week of next month, or anytime you like. The result will be the same.

Recommended: What Credit Score is Needed to Buy a Car

How Much You’ll Save After Completing the Challenge

Follow our basic guidelines, and you’ll save $1,378 in a year’s time. If you deposit the money in a high-interest savings account, interest will accumulate, increasing the amount you’ve saved.

Recommended: 15 Ways to Save Money on Food

How the 52-Week Money Challenge Works

The challenge’s structure is simple. In week one, put $1 in savings. Week two, $2. Week three, $3, and so forth for 52 weeks in a row. You can tuck the money into an envelope or put it in a piggy bank — but only if you won’t be tempted to withdraw cash before the challenge ends.

Temptation and interest are two good reasons to deposit the money into a bank account. Or you can set up automatic transfers so that your financial institution will move the money to the savings account that you designated for this challenge.

52 Week Savings Schedule

Week Number	Weekly Deposit	Total Saved
1	$1	$1
2	$2	$3
3	$3	$6
4	$4	$10
5	$5	$15
6	$6	$21
7	$7	$28
8	$8	$36
9	$9	$45
10	$10	$55
11	$11	$66
12	$12	$78
13	$13	$91
14	$14	$105
15	$15	$120
16	$16	$136
17	$17	$153
18	$18	$171
19	$19	$190
20	$20	$210
21	$21	$231
22	$22	$253
23	$23	$276
24	$24	$300
25	$25	$325
26	$26	$351
27	$27	$378
28	$28	$406
29	$29	$435
30	$30	$465
31	$31	$496
32	$32	$528
33	$33	$561
34	$34	$595
35	$35	$630
36	$36	$666
37	$37	$703
38	$38	$741
39	$39	$780
40	$40	$820
41	$41	$861
42	$42	$903
43	$43	$946
44	$44	$990
45	$45	$1,035
46	$46	$1,081
47	$47	$1,128
48	$48	$1,176
49	$49	$1,225
50	$50	$1,275
51	$51	$1,326
52	$52	$1,378

Enhancing the Challenge

Perhaps you’re looking ahead to Christmas or another time of year when you know that money will be especially tight. You can decide to pay ahead so that, if needed, you can skip saving during the weeks in December. That’s the beauty of this challenge: You can customize it to meet your needs.

When December rolls around, if you don’t have extra cash, no worries. You’ve already made those deposits (which are earning interest more quickly). If you can keep depositing money throughout December, do so, and you’ll reap even more benefits at the end of 52 weeks.

Here’s another possibility. As you start to save money in this way, you might find that you can save even more. If so, up the ante, perhaps by doubling the amount you’ll deposit each week, so that you can save money fast.

Pros and Cons of the 52-Week Money Challenge

First, the benefits:

•   You’ll be saving money. That, all by itself, is a good thing.

•   You can gain confidence in your ability to budget, and to “pay yourself first.” For extra help, here is a budget planner app that’s easy to use.

•   As the dollars add up, use the momentum to continue the challenge into 2023.

•   Let this challenge motivate you to focus more on your financial goals — and improve your financial situation in new ways.

•   You can participate in this challenge with friends and family members, which can motivate you to keep going.

•   As your savings muscles get stronger, you can create a plan to save for other goals: a new car, for example, or a trip with your family.

Next, the challenges:

•   If the money is too easy to access, it can be tempting to use the funds before the year is up. To prevent this from happening, it may help to put the money in a bank account where you don’t have a debit card.

•   Because the deposit amounts are relatively small, it can be easy to forget to make your deposit or lose track of which week you’re on. Try marking amounts on a calendar, or use a buddy system where you and a friend remind each other.

•   If you start this challenge at the beginning of the year, the biggest deposits will be scheduled for the holiday season when you may have more expenses. In that case, start with $52 on Jan. 1, when the challenge is fresh and new, and then deposit a dollar less each week. This has the added benefit of getting more money into the account more quickly, which gives you more motivation early on. Plus, you’ll benefit from more interest more quickly.

•   If you find that you can’t make the deposit during one week, don’t get too down about it. This is a marathon, not a sprint. You can catch up.

Who the 52 Week Money Challenge Is Best For

First, if you’re enthusiastic about the idea, then it’s definitely for you. This idea can be adjusted for all ages, too. If, for example, you have young children and want to teach them good saving habits, start them with cents instead of dollars.

If you’d like to turn the savings process into a game, then this challenge is tailor made. You can, for example, make a chart that contains all of the dollar amounts that will be saved ($1-$52) and then cut the page into 52 individual squares — one dollar amount per square.

Put the slips of paper in a hat or box, and select a square each week. That’s the amount you’ll save this week. If you need more advance notice of your savings target, pull the slips out of the container at the beginning of the challenge, one by one, and mark them on a calendar. The first slip drawn goes on week one, the second on week two and so forth.

Search for “52-week savings challenge printable,” and you’ll find plenty of other ways to keep track of and enjoy participating in the challenge.

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The Takeaway

The 52-week Savings Challenge is a straightforward way of saving a relatively small amount of money each week to build up an emergency savings fund. In Week One, you save $1. Week Two, save $2. The most you’ll have to save in a week is $52, at the end of the challenge. Simple as it is, it’s also quite flexible and easy to customize in whatever way will work best for you.

SoFi’s free money tracker app can help you manage your savings and spending all in one place. Plus you get credit score monitoring, financial insights, and more — at no cost.

Try SoFi to track your money like a champion.

FAQ

Is the 52 week savings challenge worth it?

If you stick with the plan for a year, you’ll save $1,378 — plus interest if you deposit the funds into an interest-bearing account. This challenge can help you strengthen your savings skills and serve as a springboard for accomplishing other financial goals.

What is the $10,000 challenge?

This challenge is structured in the same way as the 52-week one. In week one, though, you’ll start with $125. Each week, you’ll add another $25 to the amount you save. The result: $10,000 plus any interest earned.

What is the no-spend challenge?

In this challenge, you’ll commit to spend money only on essentials, such as housing, gas, groceries, and utilities. You can set a timeframe for this challenge to build up your savings account. And you can customize the rules however you like — perhaps limiting the challenge to no-spend weekends.

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Photo credit: iStock/Jose carlos Cerdeno

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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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There are seven federal tax brackets for the 2023 tax year, ranging from 10% to 37%. As a general rule, the more you earn, the higher your tax rate. And the higher your income and tax rate, the more money you will probably owe the IRS (Internal Revenue Service) in taxes.

How much you’ll pay in federal tax on your 2023 income (due in 2024) will depend on which bracket your income falls in, as well as your tax-filing status and other factors, such as deductions.

When people look at tax charts, however, they often assume that having an income in a particular tax bracket (such as 22%) means that all of your income is taxed at that rate. Actually, tax brackets are “marginal.” This term means that only the part of your income within each range is taxed at the corresponding tax rate.

Read on to learn more about this at times complicated topic, including answers to these questions:

•   Which tax bracket am I in?

•   How can I use the 2023 tax chart to figure out how much I will owe?

•   What are some tips to lower my tax bracket?

What Are Tax Brackets?

A tax bracket determines the range of incomes upon which a certain income tax rate is applied. America’s federal government uses a progressive tax system: Filers with lower incomes pay lower tax rates, and those with higher incomes pay higher tax rates.

There are currently seven tax brackets in the US which range from 10% to 37%, as briefly noted above. However, not all of your income will necessarily be taxed at a single rate. Even if you know the answer to “What is my federal tax bracket?” you are likely to pay multiple rates. Read on to learn more about how exactly this works.

Also note that the income levels have been adjusted in 2023 vs. 2022 to take into account the impact of inflation and other factors. So even if you made the same amount in 2023 as in 2022, you are not necessarily in the same bracket again. It’s important to note these changes.

How Do Tax Brackets Work?

Whether you’re filing taxes for the first time or have been doing so for decades, you may wonder how you know what tax bracket you’re in.

While there are seven basic tax brackets, your income doesn’t necessarily get grouped into one level in which you pay that rate on all of your income. This only happens if your total income is in the lowest possible tax bracket.

Otherwise, the tax system is also graduated in such a way so that taxpayers don’t pay the same rate on every dollar earned. Instead, you pay higher rates on each dollar that exceeds a certain threshold.

•   For example, if your taxable income is $50,000 for 2023, not all of it is taxed at the 22% rate that includes incomes from $44,726 to $95,375 for single filers. Some of your income will be taxed at the lower tax brackets, 10% and 12%. Below, you’ll find a specific example of how this works.

In addition to knowing which tax bracket you’re in, it’s important to be aware of standard deductions that are applied when calculating taxes. (This is separate from common payroll deductions, such as health insurance.) The standard deduction will lower your taxes owed.

For income earned in 2023, the standard deduction is $13,850 for unmarried people and for those who are married, filing separately; $27,700 for those married, filing jointly; $20,800 for heads of household. (There may be tax benefits to marriage beyond your bracket, by the way.)

There are additional deductions that may lower your taxable income, too, such as earmarking certain funds for retirement.

In addition to federal taxes, filers may also need to pay state income tax. The rate you will pay for state tax will depend on the state you live in. Some states also have brackets and a progressive rate. You may also need to pay local/city taxes.

Example of Tax Brackets

According to the 2023 tax brackets (the ones you’ll use when you file in 2024), an unmarried person earning $50,000 would pay:

10% on the first $11,000, or $1,100.00
12% on the next $33,725 ($44,725 – $11,000 = $33,725), or $4,047.00
22% on the next $5,275 ($50,000 – $44,775 = $5,275), or $1,160.50
Total federal tax due would be $1,100.00 + $4,047.00 + $1,160.50, or $6,307.50

This doesn’t take into account any deductions. Many Americans take the standard deduction (rather than itemize their deductions).

2023 Tax Brackets

Below are the tax rates for the 2024 filing season. Dollar amounts represent taxable income earned in 2023. Your taxable income is what you get when you take all of the money you’ve earned and subtract all of the tax deductions you’re eligible for.

Not sure of your filing status? This interactive IRS quiz can help you determine the correct status. If you qualify for more than one, it tells you which one will result in the lowest tax bill.

2023 Tax Brackets For Unmarried People

Tax rate of:

•   10% for people earning $0 to $11,000

•   12% for people earning $11,001 to $44,775

•   22% for people earning $44,726 to $95,375

•   24% for people earning $95,376 to $182,100

•   32% for people earning $182,101 to $231,250

•   35% for people earning $231,251 to $578,125

•   37% for people earning $578,126 or more

2023 Tax Brackets For Married People Who Are Filing Jointly

Tax rate of:

•   10% for people earning $0 to $22,000

•   12% for people earning $22,001 to $89,450

•   22% for people earning $89,451 to $190,750

•   24% for people earning $190,751 to $364,200

•   32% for people earning $364,201 to $462,500

•   35% for people earning $462,501 to $693,750

•   37% for people earning $693,751 or more

2023 Tax Brackets For Married People Who Are Filing Separately

Tax rate of:

•   10% for people earning $0 to $11,000

•   12% for people earning $11,001 to $44,725

•   22% for people earning $44,726 to $95,375

•   24% for people earning $95,376 to $182,100

•   32% for people earning $182,101 to $231,250

•   35% for people earning $231,251 to $346,875

•   37% for people earning $346,876 or more

2023 Tax Brackets For Heads of Household

Tax rate of:

•   10% for people earning $0 to $15,700

•   12% for people earning $15,701 to $59,850

•   22% for people earning $59,851 to $95,350

•   24% for people earning $95,351 to $182,100

•   32% for people earning $182,101 to $231,250

•   35% for people earning $231,251 to $578,100

•   37% for people earning $578,101 or more

Recommended: How Income Tax Withholding Works

Lowering Your 2023 Tax Bracket

You may be able to lower your income into another bracket (especially if your taxable income falls right on the cut-off points between two brackets) by taking tax deductions.

•   Tax deductions lower how much of your income is subject to taxes. Generally, deductions lower your taxable income by the percentage of your highest federal income tax bracket. So if you fall into the 22% tax bracket, a $1,000 deduction would save you $220.

•   Tax credits, such as the earned income tax credit, or child tax credit, can also reduce how you pay Uncle Sam but not by putting you in a lower tax bracket.

Tax credits reduce the amount of tax you owe, giving you a dollar-for-dollar reduction of your tax liability. A tax credit valued at $1,000, for instance, lowers your total tax bill by $1,000.

Many people choose to take the standard deduction, but a tax expert can help you figure out if you’d be better off itemizing deductions, such as your mortgage interest, medical expenses, and state and local taxes.

Whether you take the standard deduction or itemize, here are some additional ways you may be able to lower your tax bracket as you think ahead and prepare for tax season:

•   Delaying income. For example, if you freelance, you might consider waiting to bill for services performed near the end of the 2023 until early in 2024.

•   Making contributions to certain tax-advantaged accounts, such as health savings accounts and retirement funds, keeping in mind that there are annual contribution limits.

•   Deducting some of your student loan interest. Depending on your income, you may be able to deduct up to $2,500 in student loan interest paid in 2023.

It can be a good idea to work with a CPA (certified public accountant) or tax advisor to see if you qualify for these and other ways to lower your tax bracket.

Recommended: 10 Personal Finance Basics

The Takeaway

The government decides how much tax you owe by dividing your taxable income into seven chunks, also known as federal tax brackets, and each chunk gets taxed at the corresponding tax rate, from 10% to 37%.

The benefit of a progressive tax system is that no matter which bracket you’re in, you won’t pay that tax rate on your entire income. If you think you might get hit with a sizable tax bill, you may want to look into changing your paycheck withholdings or, if you’re a freelancer, making quarterly estimated tax payments.

You may also want to start putting some “tax money” aside each month, so you won’t have to scramble to pay any taxes owed when you file in April. An interest-bearing checking and savings account could be a good option for this purpose.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with 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.

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.

FAQ

Has anything changed from 2022 to 2023 tax brackets?

Yes, the IRS has adjusted tax brackets for tax year 2023 to reflect the impact of inflation and other factors.

What is a marginal tax rate?

The marginal tax rate refers to the highest tax bracket that you possibly fall into. However, your effective tax rate averages the taxes you owe on all of your income earned. For this reason, your effective tax rate will likely be lower than your marginal rate.

How do deductions affect your tax bracket?

Deductions lower your taxable income. The more deductions that are taken, the more of your earnings are taxed at reduced brackets.

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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.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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If you’re planning to shoulder all or some of the cost of your child’s college education, you’re giving your child a wonderful gift. And that’s just how the Internal Revenue Service (IRS) sees it — as a gift. Depending on the amount you offer, and whether you give it directly to your child or to the school, you could get hit with an additional expense, known as the gift tax.

Whenever you give someone money that is a gift, you automatically become subject to the gift tax. Whether you actually need to pay that tax, however, will depend on the size of the gift and what it was used for. Here are some things to keep in mind if you want to give your child money for college but avoid getting hit with any additional taxes.

What Is the Gift Tax?

According to the Internal Revenue Service (IRS) , the gift tax is “a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether the donor intends the transfer to be a gift or not.”

That’s a lot of words to essentially mean that if you give someone a gift of property, including money, without getting something of equal value in return, that may be considered a gift. And if you’re gifting, it might be subject to the gift tax. In general, the gifter is responsible for paying the gift tax costs .

Before you start worrying if you’ll have to pay a gift tax on the $100 bill you slipped into your niece’s graduation card, it is important to know that the gift tax generally only affects large gifts.

This is because there is an “annual exclusion” for the gift tax, which means that gifts up to a certain amount are not subject to the gift tax. For 2023, the annual exclusion is $17,000; for 2024, it’s $18,000. If you and your spouse both gift money to your child, the annual exclusion is $34,000 in 2023, and $36,000 in 2024.


💡 Quick Tip: You’ll make no payments on some private student loans for six months after graduation.

Gifting Your Money Directly to Your Children

Children are not treated differently when it comes to the gift tax, which means that whether you’re gifting your neighbor money for being really great all those years, or transferring $20K to your son’s bank account to help him pay for college, the gifts are treated in the same way by the tax code.

This means that a gift you make to your child for the purpose of paying tuition or covering educational expenses may be subject to the gift tax if the gift exceeds $18,000 in 2024 (if you’re single) or $36,000 (if you’re married and making a joint gift).

With the average cost of attendance at a private university now exceeding $55,000 per academic year, it’s conceivable that you would end up giving your child a cash gift that exceeds the annual gift tax exemption.

One way around this is to gradually put money aside every year in a 529 account. Gifters can contribute up to $18,000 in 2024 to a 529 account per person, per year with no risk of getting hit with a gift tax. That means a married couple could gift up to $36,000 per account, per year in 2024 without having to pay a gift tax.

Recommended: Paying for College: A Parent’s Guide

Paying College Expenses Directly

In addition to the annual exclusion limit, the IRS also waives the gift tax for gifts that are used to pay tuition expenses. There’s no limit on how much you can pay but the caveat is that you have to give the money directly to your student’s school. Otherwise, any amount over the annual exclusion limit will be subject to the gift tax.

This means that, in some cases, it may save you some cash to pay the school directly rather than first giving the money to your child and having them use it for tuition. It is important to consider all your options, however, as gift tuition payments may impact the student’s need-based aid.

Other Ways to Pay for College

If you don’t have enough savings, or would rather not deplete your savings to pay for your child’s tuition and expenses, here are some other ways to help your child cover the cost of college.

Help Your Student Complete the FAFSA

Submitting the Free Application for Federal Student Aid (FAFSA) is a critical step when it comes to getting federal student aid. While the FAFSA is the student’s responsibility, when a student is considered a dependent student for FAFSA purposes, parents have a large role in the application process. As a result, you as a parent can help make the process faster and easier.

The FAFSA is a gateway to several forms of financial aid, including grants, scholarships, work-study, and federal student loans, so it’s worth filling out even if you don’t think you will qualify for aid. Many colleges also use the FAFSA when awarding institutional (merit-based) aid and some states use the form for certain state-based aid.

Take Out a Parent Loan

If your student has a gap in funding after tapping financial aid, including federal student loans, you might next look into parent student loans. You have two options: Parent PLUS Loans and private student loans. The best one for your situation generally depends on your credit history.

Here’s what to consider when looking at Parent PLUS Loans vs. private student loans.

Parent PLUS Loans

With Parent PLUS Loans, you can borrow up to the cost of the child’s attendance each year, minus any financial assistance that has been awarded, with no limit on the amount borrowed. This is true regardless of the parent’s income.

For Parent PLUS Loans first disbursed on or after July 1, 2023, and before July 1, 2024, the interest rate is 8.05%, which is higher than most other federal student loans. There is also a loan fee of 4.228%. As federal loans, however, Parent PLUS loans have access to multiple government-sponsored repayment plans and forgiveness programs.

Parent PLUS loans are not subsidized, so interest begins to accrue on the outstanding loan balance as soon as funds are disbursed and continues to accrue even if you choose to defer making payments on the loan until after your child graduate’s college.

Recommended: What Percentage of Parents Pay for College?

Private Student Loan for Parents

If you have good or excellent credit, you may be able to qualify for a private student loan for parents that has a lower interest rate than a Parent Plus Loan. Depending on your credit, you could potentially see a difference of 2% or more. Over the course of a 10-year repayment period, that lower interest rate can add up to significant savings. Keep in mind, though, that private loans do not offer the same protections and benefits that automatically come federal education loans.

If you’re considering private student loans, be sure to check your rates with multiple lenders to find the right loan for you. You can typically browse rates without any impact to your credit score (prequalification generally involves a soft credit check).


💡 Quick Tip: Need a private student loan to cover your school bills? Because approval for a private student loan is based on creditworthiness, a cosigner may help a student get loan approval and a lower rate.

The Takeaway

Paying for your child’s college education is considered a gift in the eyes of the IRS. However, parents can give up to $18,000 in cash to a child individually and $36,000 jointly in 2024 without getting hit with a gift tax. Parents can also pay for tuition directly to the college to avoid getting hit with a gift tax, with no upper limits.

You can reduce how much you’ll need to chip in for your child’s college expenses by helping your student fill out the FAFSA. This will give them access to scholarships, grants, work study, and federal student loans.

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.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

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SoFi Loan Products
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.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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If you’re making a big purchase, it can pay (literally) to know when prices are lowest, such as Black Friday, Cyber Monday, and other sale dates.

After all, if you are plunking down hundreds or thousands on a purchase, you likely want to get the best bargain possible. Here, you’ll learn about the best times to buy some of the most common big investment items. Happy shopping!

Televisions

If you’re interested in upgrading your home viewing experience, waiting for a sale could mean you score serious savings on the model you’ve had your eye on. There are a few times of year that TVs commonly go on sale. One way to score a deal on a new TV is to follow the release cycle.

Most television manufacturers release new models sometime between February and April every year, and while you could pick up the latest model, you could also find dramatic price cuts on last year’s models since retailers are looking to make room for newer inventory.

You can also find discounts on televisions in advance of events like the big football game in February, during Black Friday, and Cyber Monday.


💡 Quick Tip: Before choosing a personal loan, ask about the lender’s fees: origination, prepayment, late fees, etc. One question can save you many dollars.

Laptops

Buying a laptop can be a very personal choice. The demands you place on your computer may require more processing power than others, so it’s important to determine what you need out of a laptop before you begin browsing different brands and models. Deals may vary depending on the model that you need.

Macbooks and other Apple products usually get an upgrade once a year, though they don’t always follow a consistent release schedule or release all new products at the same time. If you see ads announcing new models, it may well mean that last year’s models are seeing price cuts.

Major PC manufacturers generally release new laptops three times a year — back-to-school season from June to September, holiday season from September to December, and spring from February to April. However, the best deals on laptops tend to appear at the heart of the back-to-school shopping season from July to August and from November to December, the peak of the holiday shopping season.

Outdoor Furniture

A great time to shop for outdoor furniture is generally when you won’t actually be able to use it. Typically, patio furniture goes on sale from Fourth of July to Labor Day, as retailers are trying to clear their inventory to make room for fall inventory. Usually the further you are from summer, the bigger the savings.

Recommended: $5,000 Personal Loan: How to Get One

Mattresses

Finding the perfect mattress can mean comfort, relaxation, and most importantly a restful sleep. So finding a supremely comfortable mattress and at a low price would be a huge win.

When buying a mattress there are a few times of year you can target to find reliably low prices. May is one of the best months to buy a new mattress. That’s because most sellers launch new models in June, and are eager to make space for the newer inventory.

It’s also worth looking for deals over popular shopping holidays, including but not limited to Memorial Day, Labor Day, and President’s Day. And don’t overlook Black Friday and Cyber Monday, where you can often find reasonable prices and good deals on mattresses. Amazon Prime Day can be another good time to swoop in and get a good deal.

Furniture

If you’re ready to spruce up your interior design with some new furniture there are two times you can look to find some major sales. The best time to buy furniture is typically either in winter or summer (usually January or July, to be specific). Usually, new styles are released twice a year, in February and August.

In January and July, retailers are eager to clear space for those new arrivals, so prices will generally be discounted. Floor models may be included as well, so you could ask about discounts on sample pieces to help you afford your purchase, whether you are thinking of using your credit card or a personal loan to pay for your new furniture.

And for an even better deal? Don’t be afraid to haggle! Furniture stores may be willing to negotiate, so consider asking them to sweeten the deal with a discount or freebie.

You may also find furniture deals around shopping holidays like President’s Day and Memorial Day.

Recommended: Can I Increase My Personal Loan Amount?

Engagement Rings

The thrill of falling in love and finally finding your match is invigorating. The cost of an engagement ring to make it official? Not as exciting. In 2023, Americans spent an average of $6,000 to buy an engagement ring. If the thought of dropping a few thousand dollars on a ring is less than thrilling, it could be worth planning your purchase so you can wait for the optimal time to buy.

If you’re wondering how to finance an engagement ring, know that there are a couple of times when you may be able to find a discount. Jewelry sales can be slow in the summer, so there may be sales to entice customers. There may also be seasonal sales after Christmas or after Valentine’s Day. Some jewelers may even be willing to negotiate on price to make the sale.

Household Appliances

Major household appliances like dishwashers, washing machines, stoves, and refrigerators can be expensive, so it makes sense to look out for discounts before you commit to a new model. Some great discounts on appliances can be found from September to October when manufacturers are releasing their latest product. This can make financing an appliance purchase easier.

Retailers will be trying to make room for newer models so you can often find considerable discounts during these months on new, but last year’s models. When it comes to refrigerators, the best time to purchase is usually in that spring, as that is when manufacturers release new models.

Black Friday and the Fourth of July are other great times to look for sales on household appliances. And if you plan on buying a new appliance from a brick and mortar store, it could be worth going toward the end of the month when salesmen are trying to meet their monthly quotas.

Tip: When you’re looking to upgrade or replace an appliance, always check for floor models and returned (but still fully functional) models when bargain hunting.

Fitness Equipment

Have your eye on a new treadmill or elliptical? January could be the right time to buy new exercise equipment as stores are eager to take advantage of New Year’s resolutions to get fit or lose weight.

Also look for Black Friday, Cyber Monday, and Amazon Prime Day discounts.

Cars

Dealerships generally offer great deals during year-end sales events. Some dealers anticipate cars as gifts for the holidays. Car dealerships are also looking toward the new year, which means they’ll need to make space for newer models on the lot. For some dealers, December is one of their biggest sales months.

You may also secure a good deal on a new car during holiday weekends when dealerships run promotions. Dealerships are also more likely to offer a deal on older models, anticipating a new release. Typically, new models are released in September and October, so you might also look for deals in late August. This intel can help you get your financing for a car purchase ready in time to go shopping.

The Takeaway

The best time to make a large purchase will depend on the item. There are a few shopping holidays, like Memorial Day, Labor Day, and Black Friday, when retailers are known to offer deep discounts on some items. When shopping for a big-ticket item it can be helpful to do your research, shop around, and in some cases, negotiate to secure the best deal.

Even timing your purchase to secure a deal at peak savings can mean a hefty bill. Instead of charging the expense to your credit card, consider applying for an unsecured personal loan, which likely offers a lower interest rate.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

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SoFi Loan Products
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.

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 .

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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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