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Saving money: It’s a very good thing, but — like eating fewer French fries and getting enough sleep — can be hard advice to put into practice. That’s why learning how to automate savings can be so helpful. It takes the ongoing need for focus and financial discipline off your plate and offers a convenient way to put your money to work for you.

It seems obvious that putting money away to spend later is a wise tactic. Whether it’s pulling together an emergency fund to cover an unexpected financial need, stowing away cash for a splurge like a vacation, or working toward long-term financial goals (like the down payment for a house), saving is a sound endeavor.

And yet many Americans put very little money away. Though the personal saving rate was up dramatically during the pandemic, to 10%, as of June 2022, it plummeted to about 5%. This means that, on average, Americans have been putting away roughly 5 cents of every dollar of income earned. While any saving is better than no saving at all, that is still a low figure that can put financial goals out of reach.

Automating your savings can help change that. It’s a process that can help you save regularly, so your cash grows. Read on to learn:

•   Why automating savings is a good idea

•   How to automate savings in a variety of ways.

Why Automating Savings Makes Sense

When people say one thing and then do another, it’s called the value-action gap or intentional-behavior gap. Psychologists have lots of theories about why this disconnect exists.

When it comes to saving money, lots of things can get in the way: routine bills, an unexpected big night out with friends, a shopping splurge, or simply forgetting to move money into savings.

But by taking some of the human element out of saving money and using an automatic savings technique, it may be possible to overcome some of the obstacles that make it hard for people to save.

Setting up automated savings takes the thought out of saving money, so that instead of having to overcome temptation and make the responsible choice again and again, some of the decision-making around doing so is reduced or eliminated.

Automating savings also reduces the amount of time you have to spend each month on tasks like paying bills and other aspects of routine cash management. Furthermore, it eliminates barriers to saving and reduces the pain of putting away money routinely, which may even help you hit your financial goals faster than doing everything manually each month. After all, procrastination and instant gratification can be powerful forces to overcome — and they can often stand in the way of growing savings.

9 Ways to Automate Savings

How to automate savings? Simply decide which actions to automate and set them up with a lender (if they offer automated services).

Here are some good ways to get started.

1. Setting Up Direct Deposit

A good first step to automating savings is setting up direct deposit for paychecks. This means that on payday, your paycheck goes directly into the bank account. People often plunk their full paycheck into their checking account, but a smart move can be to send some of those funds into a savings vehicle.

Whether you fund a dedicated savings account or investment fund, this process will ensure a regular, ongoing flow of money to help you build a nest egg. If your employer doesn’t have a way for you to divide your automatic deposit, there’s a simple workaround: Have your paycheck go into your checking account and then have a sum automatically transferred to savings on the next day.

2. Earmarking Money for Each Goal

There are a lot of things people can choose to do with their money — and accordingly, most people have more than one savings goal, from accumulating cash for a vacation, a new car, or the down payment on a home.

If all of your money goes into a single savings account, it can be difficult to determine how effectively they are tracking for each individual goal. What’s more, keeping just one account for all savings can introduce needless bookkeeping complexities and even fees, if monthly transactions exceed the number the bank allows for free.

Whether it’s funding an emergency money reserve, saving for a honeymoon, or growing a down payment for a house, you’ll gain financial clarity by setting up separate savings accounts for each goal and then making regular automated deposits into each.

How much should go into each savings account? That depends on your goals and the immediacy of each. If you’re saving for a vacation a year from now, figure out the price tag for your trip, divide by 12, and that’s how much to stash away each month.

Recommended: 25 Items That Are Worth Saving For

3. Choosing a High-Interest Account

Saving can be hard work. But without the right savings account, those hard-earned dollars may not go as far as they potentially could. Instead of putting money in just any account, look for a high-interest savings account to increase the returns of your automated savings.

There are different ways to earn more interest on your money. Some lenders may reward automatic savers, helping them to reach their goals faster. For example, a recurring automated deposit of $100 may earn interest at a lower starting rate, but increasing that deposit to $500 each month may trigger a higher rate. Or look for an online bank which, since they don’t have to pay for brick-and-mortar locations and in-person staff, typically pay higher rates than traditional banks.

4. Taking Advantage of Employer Programs

For those who have savings for retirement among their financial goals, employers can be a great savings partner. Those with a 401(k) may want to arrange automatic paycheck deductions, so the contribution comes out of your pay before it even lands in their bank account.

Some companies will also match 401(k) contributions up to a certain level each year. Aim to earmark at least enough to get that match; otherwise, it’s akin to leaving money on the table. It’s an easy way to increase retirement savings.

Recommended: 15 Creative Ways to Save Money

5. Paying Bills Automatically

The late fees associated with missing a bill payment needlessly take a bite out of savings. So if you’re trying to save money, ensuring that all payments go out on time is an easy way to reduce losses that can derail a savings plan.

Being organized with your bills is important, but you don’t need a great memory to stay on top of rent, car, and utility payments — these can usually be done automatically. Simply identify which bills can be automated (it makes sense to automate predictable billings that don’t fluctuate each month), set them up in the payment system, and rest assured they’ll be paid by the due date as long as adequate funds are available.

For credit card bills, it’s good to ensure that spending habits don’t exceed the amount flowing into the account from paychecks and other sources. Even if everything is automated, if you make a big purchase one month, it’s wise to check in advance of the payment date that there are sufficient funds to cover the automatic payment.
Setting up a calendar alert each month several days before the credit card payment date is a good reminder to make sure there’s enough money to cover the amount owed, particularly if your credit card spending habits are irregular.

6. Monitoring Financial Insights

Setting — and sticking to — a budget is an important part of successful financial management. But it can be a lot of work to monitor spending in each category and to stay on the right side of all targets.

Here’s where technology can definitely give you a boost. Instead of crunching the numbers week after week and month after month, apps and other digital tools can improve the ease of fulfilling this important, but arguably boring, mathematical task.

Your bank may well offer an automated tool or dashboard that shows in real-time your spending and saving. This means you can pay attention to account balances and itemized spending category breakdowns. That super clear picture of where money is actually going may also reveal potential opportunities to cut back.

Some banks also allow account holders to set up personal financial goals — such as monthly savings targets — and then automatically track their transactions against these objectives. These can be helpful when you are trying to maximize your savings and achieve a sense of financial security.

7. Increasing Deposits Over Time

While learning how to automate savings can take the headache out of managing finances, it’s wise to revisit the amounts periodically. Cash flows change from time to time, and there may be new opportunities to save.

For example, you may get a raise or pay off a car loan, or your lifestyle habits may change — and this could free up more money for savings.

Even if nothing of note has changed, some individuals may find that they have more room to contribute to savings than they estimated at the outset. Even increasing automated savings by 1% per paycheck can help savings grow faster.

Setting a periodic automatic calendar reminder to closely review finances may help to identify opportunities to increase savings. When it’s time to do so, delete old recurring transfers and set up new ongoing automated deposits at the new desired amount.

8. Use a Cash-Back Card

If you have a cash-back credit card, you may typically use that 1% to 5% back on purchases to…purchase more. Instead, direct your cash-back rewards into a savings account. Whether you get $10, $100, or more in cash back per month, it will help your savings account grow.

9. Funnel Your Windfalls Wisely

If you typically get a tax refund or a bonus at work, send that money into savings (or at least some of it) versus checking. Sure, it’s fun to get an infusion of cash and go shopping or dining out, but you can hit those financial goals more quickly if you send the money straight to savings, where it can earn compound interest and grow.

The Takeaway

Automating your savings can help ease your path to reaching your financial goals, from saving for a wedding to nurturing a retirement nest egg. This process is quick and convenient, and doesn’t require you to remember regular money transfers nor break out the calculator to see where you stand financially.

Automating your finances can be extra simple when you open an online bank account like SoFi Checking and Savings. You can spend and save in one place, and, if you sign up with direct deposit, you’ll earn a terrific 4.00% APY and pay no fees, which can help your money grow even faster.

Bank smarter with SoFi.

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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.
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 can earn up to 4.00% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 3/17/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
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Student athletes typically have extra busy schedules along with the usual college expenses. Between classes, course work, practices, and games or competitions, finding the time for a job to make some money can be tough.

Fortunately, there are many ways for college athletes to make money — through coaching, training gigs, remote work options, and more. With a little creativity, it’s possible to earn some cash doing what an athlete does best: playing to your strengths.

Here, you’ll learn more about how college athletes can make money while working on their degree.

Rising Cost of College

There’s no doubt that college is a big-ticket item: In the 2021-2022 school year, the average cost of tuition and fees at a public college was around $10,740 for in-state residents, and $27,560 for out-of-state residents. For private college, the average cost was $38,070.

Between 1980 and 2020, the average cost of an undergraduate degree went up by 169%.

Even if you’ve been awarded a scholarship, student athletes still need money for everyday expenses and all those protein bars. If you’re wondering how to make ends meet, read on for answers to the question, “How can you make money as a college athlete?”

12 Smart Ways to Make Money as a Student Athlete

If you need to balance athletics and academics, there are an array of part-time job opportunities well-suited for the student athlete.

Here are 12 ways you can bank on your abilities, while adding to your college bank account.

1. Working for the Athletics Department

Landing a job in your school’s athletics department can be a convenient way to earn money while figuring out how to get involved at college and meet other students. Many college athletic departments can provide part-time gigs — in the office or the locker room.

Try asking your coach or athletic director about money-making opportunities. Athletic departments often need the support and, since they’ll be helping out a student athlete, the arrangement can be a real win-win.

2. Training Younger Athletes

Your athletic talents can help nurture the next generation. You could earn an hourly wage working in an after-school sports program for kids — either directly at a school, with a private league/program, or with an organization such as the YMCA.

Parents are often looking for role models to coach and train their children. Some college athletes offer their expertise in a private one-on-one or small group setting for an hourly rate — between $20 to $25 per kid.

Your coach or athletic director may have insight on opportunities for working with children. Bonus: Running around with those energetic kids can help keep you in shape.

Recommended: 15 Low-Cost Side Hustles

3. Personal Training

Still curious about how a college athlete can earn money? Think about all those hours spent training, whether your sport is baseball or gymnastics. You can parlay your workout know-how into income. As a personal trainer, you could make around $20 bucks an hour working with a client, and schedule sessions around your availability.

However, some clients (definitely gyms) may require you to have a personal trainer certificate from an accredited program, which could take time and money.

4. Managing Social Media

In addition to hours in the weight room, college athletes, like most young people, have spent a lot of time on social media. Why not turn those hours of screen time into cash?

Some small businesses don’t have a social media presence. You could check with your campus pizza joint, a local fitness center, or your team’s favorite coffee bar and see if they might hire you to set up or maintain their social media accounts. You could arrange for an hourly rate or flat monthly fee.

Recommended: Finding Jobs That Pay Off Student Loans

5. Vlogging

Some student athletes start their own YouTube vlog relating their experiences or testing sports equipment. As it grows, you can eventually monetize it by using income-producing programs such as Google Adsense.

The flexibility of vlogging is great for a busy college athlete’s schedule, but it might take awhile for you to learn how to get paid for social media and start bringing in income.

Quick Money Tip:When you overdraft your checking account, you’ll likely pay a non-sufficient fund fee of, say, $35. Look into linking a savings account to your checking account as a backup to avoid that, or shop around for a zero fee bank account that doesn’t charge you for overdrafting.

6. Writing Sports Articles

You can make some extra dough by writing about your experiences as a college athlete — personal stories or articles about your triumphs and challenges or an insider’s scoop on the big match.

Check with local newspapers or online sports publications for submission requirements and pay scale.

7. Working Seasonal Jobs

Many college athletes may have more hours for a job during the off-season. If the bulk of your athletic commitments are in the spring, you might consider an easy way to make money in the winter, whether shoveling driveways or ski detailing in a sporting goods store.

A primarily winter season could free up time for an athletic summer job, such as being a lifeguard or a counselor at a sports camp.

8. Selling Old Sports Gear

Student athletes can clean out their closets and earn extra money by selling their gently used sports equipment, apparel, and footwear. Online marketplaces such as SidelineSwap and Geartrade deal specifically in used sports products. Or you can always list your items on Ebay, Facebook Marketplace, and/or Craigslist.

9. Selling Sports Cards

Like many college athletes, you may have spent your childhood collecting trading cards of your sports heroes. Now your hobby could really pay off. There are many websites and antique stores waiting to buy individual cards or your whole collection.

Only one problem: Some of your sports cards may have high sentimental value. You may not be able to part with them!

Recommended: 39 Passive Income Ideas to Build Wealth in 2022

10. Starting an Online Business

Being your own boss is a great way to ensure a flexible schedule for a college athlete. Tap your entrepreneurial streak. The possibilities are endless — editing services, translation services, online T-shirt sales with a unique logo for your team — and you can hire your teammates to help out.

Recommended: 11 Benefits of Having a Side Hustle

11. Modeling

Here’s how else student athletes can make money: Most are physically fit, making them good candidates for modeling work. You could submit photos to a local talent/modeling agency and mention your athletic skills as a plus. A photoshoot for a print ad or an on-camera commercial can yield good money for a few hours of work.

12. Cashing in on Endorsements

In 2021, college athletes earned the legal right to profit off of their names, images, and likeness (NIL). While some student athletes have raked in five- to six-figure endorsement deals, the majority of the 460,000 college athletes across the country earned smaller payouts or free products from local businesses.

While the ruling may be controversial, for some, it’s an easy way to benefit from your years of hard work and dedication to your sport.

The Takeaway

Student athletes can leverage their years of training and discipline into finding a part-time job. You can channel your sports knowledge and work ethic into coaching, personal training, vlogging, writing sports articles, or launching an online business.

With a little research and hard work, you can find an income source that is financially rewarding and won’t put your studies or athletic performance in the penalty box.

Better banking is here with up to 4.00% APY on SoFi Checking and Savings.

FAQ

Is it legal for student athletes to make money?

Student athletes are allowed to hold on-campus and off-campus jobs.

How many hours are student athletes able to work?

The NCAA dictates that student athletes are limited to participate in school athletic activities for a maximum of four hours a day, or 20 hours a week. Depending on a student’s course load, that leaves a few hours a day for a part-time job.

Do student athletes get paid?

Student athletes don’t receive salaries from colleges. However, they are allowed to benefit from monetizing their name, image, and likeness, and benefit from commercial endorsements.

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Photo credit: iStock/GCShutter

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 members with direct deposit can earn up to 4.00% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 3/17/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
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.
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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Financial literacy isn’t something that many of us are taught in school, but it’s essential when managing your money. It gives you the basic foundation of knowledge that can help you thrive.

If you feel you lack the knowledge you need, you might have to learn it on your own. Familiarizing yourself with some basic personal finance vocabulary can be a good place to start.

Finance terminology might seem confusing at first glance, but you don’t need to be a CPA or a financial advisor to make sense of it. Getting to know some of the most common personal finance words can help you build a stronger money foundation.

Read on to do just that, as you learn:

•   What is financial literacy

•   How a financial vocabulary can benefit you

•   Key terms that will improve your financial literacy

What Is Financial Literacy?

You might hear a lot about financial literacy but not know exactly what it means. In simple terms, being financially literate means that you have some money knowledge as well as the ability to put it to work.

Money skills can be learned in the classroom, at home, and in the real world as you navigate things like opening a bank account or taking out student loans. Becoming financially literate is important because it can help you to:

•   Have a positive money mindset

•   Act more responsibly with regard to saving and avoiding debt

•   Build wealth and plan for the future

If there are gaps in your financial education, it’s never too late to fill them. Learning some personal finance basics for beginners, including key financial literacy vocabulary, can help you get on track with your money goals.

What Is Financial Literacy Vocabulary?

Financial literacy words are simply the various terms you’ll see used again and again when discussing different money topics. For example, there are personal finance words related specifically to banking, others that are focused on insurance, and more that deal with investing.

Do you need to be a walking dictionary to understand finance and make the most of your money? Not at all. But you can benefit from knowing what certain finance terminology means and why it’s important when making money decisions.

Understanding financial literacy vocabulary can also help you avoid potentially costly money mistakes. If you’re taking out a mortgage, for example, it’s important to understand concepts like amortization and closing costs so you know exactly what you’re paying to buy a home.

Recommended: Guide to Practicing Financial Self-Care

Personal Finance Words to Know

Ready to improve your financial knowledge? Here’s an alphabetical list of some important terms to add to your personal finance vocabulary.

1. Budget

A budget is a plan for deciding how to spend your money each month. Making a budget means adding up your income, then subtracting all of your expenses.

The goal of a budget is to ensure that you’re not living beyond your means and that you have money left over to work toward your goals.

There are different budgeting techniques, like the 50/30/20 rule or the envelope system, and there are different categories people want to set guidelines and guardrails for. For example, you might want to start an emergency fund or pay down debt.

2. Cashier’s Check and Certified Check

Cashier’s checks and certified checks are two types of official checks banks can issue as a form of payment. So what’s the difference between a certified vs. cashier’s check?

Cashier’s checks are drawn on the bank’s account while a certified check is drawn on an individual’s account. Between the two, a cashier’s check is generally considered to be a safer way to pay since the bank guarantees the amount.

3. Certificate of Deposit

A certificate of deposit (CD) is a time deposit savings account. When you open a certificate of deposit, you add money to the account and agree to leave it there for a certain amount of time, known as the term. The bank pays interest while your money is in the CD and when it matures (or reaches the end of the term), you can withdraw the initial deposit and the interest earned.

A CD is not the same as a regular savings account or a high yield savings account. With savings accounts, you can generally withdraw money up to six times each month or possibly more without any penalty. You’re not locked in the way you are with a CD.

4. Compound Interest

Compound interest means the interest you earn on your interest. That’s different from simple interest, which is paid on your principal balance only. Compounding interest is central to investing, since it’s what allows you to build wealth and increase your net worth over time.

5. Credit

Credit means borrowing money with the promise to pay it back. When you open a credit card account, for example, the credit card company issues you a credit line that you can make purchases against. You use the card to buy groceries, get gas, or cover other expenses, then pay that amount back to the credit card company.

A credit card is revolving credit, since your balance can go up or down over time as you make purchases and pay them back. Loans are a form of installment debt, since the balance only goes down over time as you make your scheduled payments.

6. Credit Score

A credit score is a three-digit number that measures how responsible you are financially. Your credit scores are generated from information in your credit reports. A credit report collects details about your debts, including payment history, balances, and available credit.

FICO scores are the most commonly used credit scores. These scores range from 300 to 850, with 850 being considered a “perfect” credit score. The better your credit scores, the easier it usually is to qualify for loans and credit cards.

7. Debt

Debt is money owed to someone else. A debt may be secured, meaning that it’s attached to a specific piece of collateral. Collateral is something your creditor can take possession of if you fail to repay the debt. So if you own a home, for example, your mortgage is a debt, and your home is the collateral.

Unsecured debts don’t have any collateral, so if you fail to pay them, your creditor has to pursue other means to collect what’s owed. Credit cards, medical bills, and student loans are examples of unsecured debt.

8. Debt to Income Ratio

Debt to income (DTI) is one of several important personal finance ratios to know if you’re trying to improve your financial literacy. Your debt to income ratio means how much of your income goes to debt repayment each month.

So why is that important? The more money you put toward debt, the less cash you have to save and invest. And when your DTI is too high, that could make it harder to qualify for a mortgage or other types of loans.

9. Emergency Fund

An emergency fund is money that you set aside for unplanned or unexpected expenses. When you save for emergencies, you’re saving for the unknown, versus setting aside money for a specific goal like a vacation or new furniture.

But you may wonder, how much emergency savings should I have? Saving three to six months’ worth of expenses is a commonly used rule of thumb but ultimately, your emergency fund should reflect the amount that you need to feel comfortable.

10. FDIC

The Federal Deposit Insurance Corporation (FDIC) is an independent agency that’s responsible for maintaining stability in the banking industry. One of the ways the FDIC does that is by insuring banks in the rare event of a failure. If you have accounts at an FDIC-insured bank, they’re covered up to $250,000 per depositor, per account ownership type, per financial institution.

11. Financial Planning

Financial planning means creating a plan or strategy for reaching your financial goals. Creating a financial plan is something you can do on your own or with the help of a financial advisor. If you’re not sure how to go about finding a financial advisor, consider what type of planning services you might need first. That can help you decide if you should work with an online advisor or seek out an advisor in person.

12. Gross Income and Net Income

Understanding gross income and net income are central to making a budget. Your gross income is all the money you earn before any deductions or taxes are taken out. Your net income is the money that hits your bank account, once you take out things like taxes, health insurance, and retirement plan contributions.

If you’re not sure about the difference between your gross pay and net pay, reviewing your pay stubs can help. You should be able to see a breakdown of everything you earned and everything that was deducted for the pay period.

13. Health Savings Account (HSA)

A Health Savings Account (HSA) is a savings account that’s attached to a high deductible health plan. An HSA allows you to set aside money for health care expenses on a tax-advantaged basis.

It’s easy to confuse HSA with other health insurance terms, like HMO. But the difference between HMO vs. HSA is that HMO stands for Health Maintenance Organization and is a type of health care plan. An HSA is a special type of health care savings account.

14. Inflation

Inflation is a rise in prices for consumer goods and services over time. In the United States, inflation is generally measured by the Consumer Price Index (CPI). When inflation rises, the things you spend money on every day cost more. Understanding inflation is important for managing your budget but it can also affect how you invest your money.

15. Investing

Investing money means putting it into the market or other vehicles in the hopes that it will grow in value. Investing money is not the same thing as saving it. When you save money, you might park it in a savings account, CD account, or money market account. There’s virtually no risk of losing money, especially if your bank is FDIC insured.

When you invest money, however, you’re using it to buy stocks, mutual funds, real estate, cryptocurrency, and other investments. You can potentially get a much higher rate of return with investing vs. saving, but you’re usually taking more risk. And if an investment doesn’t pan out, you could lose money instead of growing it.

16. Life Insurance

Life insurance provides a death benefit to your beneficiaries when you pass away. Buying life insurance can offer peace of mind if you’re worried about how your loved ones might be able to pay the bills if something were to happen to you. There are different types of life insurance to choose from, depending on your needs and situation. Life insurance, along with a will, are often part of a comprehensive financial plan.

17. Money Market Account

What is a money market account? In simple terms, it’s a deposit account that blends features of a savings account and a checking account. You can deposit money and earn interest on the balance. If you need to withdraw money, you may be able to do so using a linked ATM card or by writing checks. But those withdrawals are not unlimited; banks can still cap you at six withdrawals per month. Also known as MMAs, these accounts are not to be confused with money market funds, a kind of mutual fund.

18. Net Worth

Net worth is the difference between what you owe and what you own. To calculate net worth, you’d add up all of your debts, then subtract that amount from the value of your assets. An asset is anything that has a positive value, such as a home, retirement account, or CDs. Net worth can be positive if you have more assets than debts, but it can be negative if your debt outweighs your assets.

19. Overdraft

Overdraft is a banking term that means you’ve spent more money than you had in your account. Banks can allow certain transactions to go through, even if you don’t have enough cash in your account to cover them (say, paying a $100 check you wrote when there’s only $85 in your account). The bank covers the excess amount for you and charges an overdraft fee for that convenience.

Your bank may give you the chance to opt into overdraft protection. When you opt in, the bank can transfer money automatically from a linked savings account to cover overdrafts. You’ll still likely pay a fee, though it might be less than the standard overdraft fee.

20. Time Value of Money

Time value of money means the relationship between time, money, and interest. The longer the time frame during which you save or invest, the more money you save, and the higher the rate, the more your money will grow.

The Takeaway

Expanding your personal finance vocabulary can give you a better understanding of how your money works and how to make it work for you. Knowing these terms can grow your financial literacy and help you achieve your goals.

One of the fundamentals of good money management is having a bank account that works for your needs and lifestyle. When you open a SoFi bank account, you can get checking and savings together in one place. SoFi makes it easy to keep track of spending and income online and through the SoFi mobile app. When you open an account with direct deposit, you can earn a great interest rate and pay no account fees, which can help your money grow faster.

Better banking is here with up to 4.00% APY on SoFi Checking and Savings.

FAQ

What are the four pillars of personal finance?

The four pillars of personal finance are income, expenses, assets, and debt. Income and expenses are important for creating a budget. Assets and debt reflect the difference between the things of value that you own and the money that you owe to other people.

What are financial skills?

Financial skills are the skills you use to manage money. For example, budgeting is a financial skill, since it requires you to understand the difference between income and expenses and prioritize spending in a prudent way. Financial skills can be learned at school, at home, or through daily experiences.

Why is financial literacy important?

Financial literacy is important for helping you to better understand your financial situation. When you know how to make a budget, create a plan for saving and investing, and use debt responsibly, it becomes easier to get ahead financially. On the other hand, lacking financial literacy skills could make you more susceptible to poor decision-making, like overspending or carrying high-interest debt.

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Photo credit: iStock/Geber86

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 can earn up to 4.00% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 3/17/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
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A movie theater can be the perfect place for a date, a family outing, or an escape from life’s worries. But for many, rising ticket costs and expensive concessions aren’t worth the price of admission.

Fortunately, you can save money at the movies with discount tickets, price clubs, loyalty programs, and other savvy cinephile tips that allow you to sit back and enjoy the show.

Going to the Movies in 2022

Going to the movies has been a beloved American pastime since the 1920s, when the average ticket cost around $0.25.

Flash forward to 2022: The average price of a movie ticket has reached around $9.17, running as high as $16 in places like NYC. Concession prices have also been on the rise, with a small popcorn costing more than $7 in some theaters.

These days, many people are trying to prioritize saving money. With the popularity of streaming services like Netflix, Hulu, and others, coupled with saving money on at-home snacks, it can be hard to justify the price of a night out at the movies.

Movie theaters may be expensive, but there’s nothing like the smell of buttery popcorn, the thrill of the lights dimming, and the communal experience of movie watching.

Recommended: How to Save Money on Food

15 Clever Ways to Save Money at the Movies

Many of us don’t want to give up on that big-screen experience of going out to the movies. If you’re the kind of person who’s focused on easy ways to save money, you’ll probably be interested in how to spend less at a movie theater.

Here are 15 cost-cutting tips to inspire you to get off the couch and into the cinema without bungling your budget.

1. Avoiding Premium Formats

While it’s understandable to want to see the latest superhero film in 3D or a summer blockbuster in an IMAX theater to feel more immersed in the experience, the additional price of a premium film format ticket can add up.

On average, a 3D film can cost $4 dollars more than a regular adult movie ticket, with an IMAX experience running an additional $6 dollars. You might want to save those extra bucks for a box of Milk Duds.

Be sure and check the movie listings. It’s easy to buy tickets to a 3D or IMAX showing without even realizing it, spending extra dollars unnecessarily.

2. Catching a Matinee

Many theaters offer discounts on matinee movies, to encourage attendance during off-peak hours. Matinee times can start anywhere from 9 am to 11 am and run from 3:30 pm to 6 pm.

Matinee ticket prices can be 30% less at some chain movie theaters and (bonus) you could have the theater all to yourself.

Recommended: How to Save Money on Streaming Services

3. Attending on Discount Days

In addition to cheaper seats at matinees, you can also save money at the movies by attending on certain days. Many movie theaters advertise price deals on certain weekdays. Some theaters have “Discount Tuesdays,” for instance, offering $5 dollar tickets all day, including for the evening showings.

Quick Money Tip:Typically, checking accounts don’t earn interest. However, some accounts will pay you a bit and help your money grow. Online banks are more likely than brick-and-mortar banks to offer you the best rates.

4. Eating Beforehand

Eating a meal or a snack before the movie may not sound like a radical way to save money, but since concessions can run more than the ticket prices, it’s a sure-fire way to cut costs. Remember, sneaking food into the theater is still against the rules.

5. Sharing the Snacks

Can’t stand the thought of a movie without popcorn? Consider sharing the concession spoils with a friend or family member. Say yes to spending the additional dollar on the extra-large popcorn, and consider bringing individual brown lunch bags to divvy up the kernels.

Recommended: 17 Ways to Save Money on Coffee Expenses

6. Buying at the Box Office

It might be convenient to buy a movie ticket in advance online, but many movie websites charge an additional fee (typically between $1 and $2) for the service. Avoid that: You can still buy your tickets early at the box office, then kill time by filling up on inexpensive candy from a drug store.

Recommended: Cash vs. Credit Card: Key Differences to Know

7. Using Price Clubs

Some wholesale price clubs sell discounted cinema tickets and gift cards for big-name movie chains. If you have a membership at Sam’s Club or Costco, you can pick up some movie savings along with your bulk toilet paper.

8. Finding Customer Loyalty Programs

Many megachain and independent movie theaters like to reward repeat customers with loyalty programs. They can offer membership cards where you can receive and use points on tickets and concessions. The more you go, the more you save.

9. Purchasing a Membership Pass

In addition to loyalty programs, some movie theaters, such the Alamo Drafthouse, offer seasonal membership deals. Depending on where you live, you could pay $16.99 to $29.99 a month for unlimited movies. (One showing per day.)

Other memberships offer discounted tickets for a year, and special deals on companion tickets and concessions.

10. Signing Up for Local Theater Newsletters

With a few clicks on the keyboard, you can sign up for online newsletters and email alerts from your favorite movie theaters. Doing so can ensure you won’t miss out on the latest ticket and concessions deals.

Recommended: Does Couponing Save You Money?

11. Finding Deals for Groups

Movie theaters want to fill their seats, so many will offer discounts on large purchases for groups of 25 or more. This could help you save up to $1 per ticket for a company outing or birthday party.

12. Finding Specialty Discounts

Almost all movie theaters offer discounts for different groups. In addition to a reduced-price child ticket, there are customarily lower prices for senior citizens, students, and military discounts for active and retired veterans.

13. Finding Summer Movie Programs

Kids need things to do in the summer, and their parents need them to do things! Some movie theaters, like Regal Cinemas, offer special $2 dollar tickets on certain summer weekdays for animated and family films. The offers can vary by region.

Recommended: Guide to Saving Money During the Summer: 10 Tips

14. Going to a Drive-In

Another summer pastime is a night at the drive-in. Since the pandemic, drive-in movie theaters have made a comeback, opening up in dense metro areas as well as in rural ones.

Drive-in tickets and concessions can be cheaper than at a traditional movie theater. And if the drive-in charges by the car, call your buddies! You can split the entry fee and save some dough.

15. Taking Advantage of Credit-Card Cashback Benefits

While you won’t see immediate savings when buying that large diet soda, using a credit card with cashback benefits at the movie theater can yield rewards down the line. Some credit cards can offer up to 5% cash-back rewards on entertainment purchases.

The Takeaway

The price of movie tickets and concessions can be a bit shocking. But if you’re willing to look for discounts, attend off-peak showings, save money by snacking at home, and try some of the other suggestions above for saving money at the movies, you can lower your costs. That way, the only shock you’ll get is from a really good plot twist.

Better banking is here with up to 4.00% APY on SoFi Checking and Savings.

FAQ

What day is cheapest to go to the movies?

Weekdays can be the cheapest days to go to the movies. Some movie theaters offer reduced prices Monday through Wednesday.

What’s the best time to go to the movies?

In terms of cost, a weekday matinee generally offers cheaper movie tickets — from opening time until 3:30 pm or 6 pm, depending on the venue. Theaters also tend to be less crowded during matinee showings.

Is it illegal to bring outside snacks to the movies?

Almost all movie theaters don’t allow outside food. While not illegal, the theater could deny you entry into the venue.

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Photo credit: iStock/bombermoon

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.
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 can earn up to 4.00% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 3/17/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
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With rising inflation and stagnant wages, being frugal with your spending is a good idea. But you can go a step further: By learning some valuable life skills and DIY-ing more activities, you can save money.

Mastering skills like cooking, cleaning, riding a bike, and doing your own taxes mean you don’t have to pay professionals for expensive services. While it can be time-consuming, harnessing new skills can make you more independent, help you keep more of your money, and maybe even inspire a few new hobbies.

In this article, we’ll take a look at 20 basic money-saving skills that almost everyone can learn. They can be fun to dig into, build confidence, and free up funds to put towards your financial goals.

How Life Skills Are Essential to Your Financial Freedom

Life is built on financial transactions. We pay for food at the restaurant, spend money on a haircut, reach deep into our wallets at the gas station, and shell out for repairs when something in our home breaks.

While we can’t possibly learn enough life skills to replace all these transactions, it is possible to take up a few new savings skills, like cooking, painting, and sewing, so that you can hoard a little more money each month.

That little bit of money adds up — honing several life skills can be an important step toward your financial freedom. The money you save can go towards your emergency fund, paying down student loan debt faster, or gathering the down payment on a house.

20 Life Skills That Can Help You Save Money

So which life skills are worth learning? We’ve rounded up 20 of the top money-saving skills that, when mastered, can help you avoid spending your cash on basic goods and services. They’ll help put you on the path to becoming financially disciplined.

1. Cooking

Eating out now and then is perfectly fine — a well-deserved reward after a long week at the office or a celebratory dinner for a major milestone. But eating out for lunch or dinner every day can be unhealthy (those portion sizes!) and can get quite expensive. Learning the basics of cooking can keep you out of the pricey restaurants and in your own kitchen instead.

Cooking can require an investment in the proper cookware and staple ingredients, but overall is bound to be cheaper than getting food to go or at an eatery. Just think about the price difference between avocado toast whipped up in your kitchen and what you’d pay at a cute cafe. Search for recipes online, and follow tips to save money on food before you head out to the grocery.

2. Painting

Ready to pick up a paintbrush and unlock another savings skill? According to HomeAdvisor, homeowners spend more than $3,000 on average to paint the exterior of their home, and renters and homeowners alike might pay painters even more to paint the interior. The current rate typically runs from $2 to $6 per square foot.

While painting the exterior of your home can be a little more challenging, painting the interior is not complicated at all. If you are willing to take the time to learn, you can save yourself thousands of dollars every time you want to change up the inside of your living space.

3. Gardening

Yes, professional landscapers can weave a certain kind of magic. But doing your own gardening can be a tremendously satisfying and creative pursuit, not to mention that it can save you a lot of moolah. Spending time learning the basics about what zone you live in and which plants will thrive, plus wandering around nurseries and garden centers, can provide plenty of inspiration.

You can grow fresh produce for the small price of starter seeds and the occasional watering, which means less money spent at the grocery store.

What’s more, when selling your house, landscaping is an important part of curb appeal. A well-cared-for garden might attract potential buyers and help your home sell more quickly.

Recommended: How Much Should I Spend on Groceries a Month?

4. Plumbing

Plumbing emergencies like a flooded basement or a broken water heater are probably still better left to a licensed contractor, but teaching yourself to be handy with a wrench and a screwdriver might save you on smaller problems, like a leaky faucet or a running toilet.

This money-saving skill can serve you well over the years. Calling a plumber for every small problem that your house encounters over the years can add up. In fact, most plumbers charge $45 to $200 an hour and may charge a flat rate of $350 just for a service call.

Beyond plumbing, you can teach yourself basic electrical and carpentry skills so that you can tackle some easy home improvement projects for beginners.

5. Budgeting

Knowing how to make a budget — and sticking to it — is a crucial life skill. When you are able to analyze your monthly expenses against your monthly income in an easy-to-read format, you can quickly discover which spending habits you need to scale back. Many people like the 50/30/20 rule, which spells out that you should spend 50% of your after-tax income on needs, 30% should be put towards wants, and 20% should go into savings.

And you don’t even need to pay for fancy budgeting software. Many online banking platforms make it easy to see all of your transactions in one place, and you can use a simple spreadsheet to design a budget that works for you.

6. Haggling

Not every price is negotiable, but when it is, it’s important to know how to haggle with confidence. While you might immediately think of haggling at a used car lot (and that’s a great place to do it), you can also haggle over things like your monthly cell phone bill, your rent, and even credit card interest rates. Politely asking, “Is there any flexibility on the price?” may yield a surprising positive response.

Even if you’re only successful in lowering one expense, that’s money in your wallet that you wouldn’t otherwise have had.

Recommended: How to Negotiate Medical Bills

7. Sewing

You might not ever create your own clothes from scratch (though you certainly can!), but knowing how to sew can come in handy when you get a rip in your favorite shirt or a parka’s zipper starts to detach. Instead of throwing out clothes with holes or lost buttons, sew them back together. Mending the torn back pocket on your favorite jeans, for instance, and you’ll save yourself from dropping $50 or much more on a new pair.

8. Cutting Your Family’s Hair

Haircuts at chain salons are certainly not cheap, often ranging from $30 to $70+, but boutique salons are even more expensive. Learning to cut your family’s hair (or your own, if you’re brave) can cut out one monthly expense. Check out the tutorials on YouTube and other video platforms and see if you can’t hone your skills.

9. Investing

While the stock market may not be performing wonderfully right at this moment, the average stock market return over the last 10 years has been nearly 15%. And though you can certainly pay a traditional broker to manage your portfolio, it’s totally possible to do it yourself.

In fact, there are many platforms for investing to choose among, some of which enable automated investing, and fractional shares. Plus, you can build your financial know-how by reading blogs and books on investing, as well as listening to podcasts or taking an online class to sharpen your skills.

10. Changing Your Car’s Oil

According to KBB, the average oil change costs from $65 to $125 (for synthetic oil), but the actual cost of the synthetic oil and filter replacement is just $45. Being able to change your car’s oil by yourself (typically twice a year, depending on how much you drive) can mean you pocket an extra $20 to $80 every time. It’s a great life skill to learn and then stash the cash you save, year after year.

11. Cutting Firewood

If you have ample trees in your yard — or a generous neighbor has just taken down a tree and doesn’t mind sharing the spoils — you can chop the wood yourself for an outdoor firepit or your fireplace. If your home has a fireplace, you can use that wood to heat a single room while leaving the heater setting lower in the rest of your home, cutting down on your utility bill.

12. Doing Your Own Taxes

If you have a complicated tax situation, an accountant might be a good investment, especially if they can help you maximize your credits and tax deductions even if you’re a student. However, if you have a straightforward income and financial situation, it might be beneficial to skip the accountant fees and file by yourself.

Check out the IRS Free File hub to find programs that will help you do it all by yourself.

13. Bartering

The time-honored tradition of bartering, or trading goods and services, can help you lower your expenses. Let’s say there’s a spinning class you love that’s beyond your budget. Could you offer to swap your digital savvy (say, filming videos and posting on social media for the studio) in exchange for no-cost sessions? Think creatively about the skills you have and how you might use them to get some freebies. It never hurts to ask about such arrangements, and it could help.

14. Roasting Your Own Coffee

Buying a latte at a coffee shop every morning may be convenient (and relaxing), but it also gets expensive. If you spend $5 every day on a cup of coffee, that’s more than $1,800 a year. Instead, learn how to save on coffee expenses. Brew coffee at home — and better yet, learn how to grind and roast your own coffee beans for maximum savings. You’ll find that whole beans are typically less pricey than pre-ground ones at the supermarket.

15. Baking

Going to the bakery when you said you’d bring a dessert to your family’s holiday get-together may be convenient, but buying fresh cakes and cookies can get expensive. Baking can be a little more challenging than cooking, but it’s certainly a great way to save money. And it can be a wonderful creative pursuit and a new pastime. Need inspiration? Just watch any of the addictive shows on TV, like The Great British Baking Show.

16. Upcycling

Upcycling is a buzzword for reusing an item instead of buying something totally new. For example, you might use reclaimed wood or an old door to make a desk or table, turn a sweater with torn elbows into a vest, or use old towels as cleaning rags for a while before tossing them. Upcycling can help you save on common expenses, and it’s great for the environment; less goes into the trash.

17. Cleaning

Most people probably don’t like to clean, but it’s a big part of being an adult. Whether it’s scrubbing the bathroom, vacuuming the rug, or wiping down kitchen counters, these are chores that just need to be done.

It might be tempting to pay for a cleaning service, but doing so is expensive. Cleaning professionals typically charge $30 to $50 per hour — or more than $600 for a large home over 3,000 square feet.

Don’t give into that temptation to farm it out. Grab a rag (or an upcycled towel), a bottle of cleaning solution, and a monthly house maintenance checklist. You’ve got this!

18. Riding a Bike

Gas is expensive (and you probably know its impact on the environment). While you probably can’t bike everywhere you need to go, each trip on a bike you make — to work, to school, or just to a friend’s house — means you won’t be spending money on gas or bus fare.

19. Hosting

Hanging out with friends at your favorite bar is nice, but a fun night out adds up quickly when you do it every weekend. Instead, host your next friend or family gathering at your own home. Stock some wine, cold beer, and snacks, and you’re good to go. (You can be next-level and make a pitcher of a signature cocktail; it’s a fun way to build your mixology skills.)

Or switch things over to a morning meet-up with a pot of coffee and some home-made muffins. You’re likely to save big.

20. Doing It Yourself

Our final life skill ties all the rest together: Do things yourself instead of paying someone else to do them. If you don’t know how to do something, research online or find someone who does and learn. Once you’ve mastered the skill, share your knowledge with others.

Whether mowing your lawn, washing windows, or doing yoga or Pilates at home, you can really open up room in your budget when you DIY.

Banking With SoFi

Honing these valuable money-saving skills is a great way to establish financial freedom, and having a quality bank account will elevate your efforts. A SoFi bank account can do just that: It allows you to spend and save in one convenient place. When you open one with direct deposit, you’ll earn a terrific APY and pay no fees, both of which can help your money grow faster.

See how SoFi can help you bank smarter with our combination of convenience, high interest rates, and no fees.

FAQ

Is saving money a life skill?

Saving money is an important life skill. By learning to do various tasks yourself around the house and in your daily life, you can avoid paying for a lot of expensive goods and services. Also, being a smart consumer and comparison-shopping will help you save money. This is especially important when making a big purchase; look around for the best price, coupons, and other discounts.

How do I find the time to develop these life skills?

Most of these life skills can fit into your regular day. If you normally spend a couple of hours going out to dinner, you can instead spend that time finding a recipe and trying to cook it at home. You may also find that some of these tasks (cooking, gardening) become hobbies in which you happily invest time.

What is the most valuable life skill?

Learning to do things yourself, from cooking to filing taxes to changing your car’s oil, can be the most valuable life skill. This can give you confidence, know-how, and self-reliance, plus it requires you to be curious and willing to educate yourself, all of which are important traits.

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Photo credit: iStock/blackCAT

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.
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 can earn up to 4.00% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 3/17/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
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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