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A bank guarantee is a promise by a financial institution that it will assume liability for a business contract if one party fails to uphold its obligation to another. In this way, the bank acts like a cosigner for a buyer or borrower on a business agreement, reducing the risk for the seller or lender.

This can be a valuable assurance for organizations that are conducting financial transactions. For a small fee, bank guarantees often enable small businesses to enter into contracts with larger companies with which they otherwise wouldn’t be able to do business. Read on to learn more about how bank guarantees work and their pros and cons.

What Is a Bank Guarantee?

A bank guarantee promises that, if one party in a business agreement fails to meet its obligations, the bank will cover its debts. Backing up a transaction adds confidence to riskier deals.

Bank guarantees involve a thorough review of the business applicant’s finances and credentials. If, after this due diligence, a commercial bank feels confident that an applicant (the debtor) will be able to uphold their contractual obligations, the bank may offer the guarantee to the other party (the beneficiary). This can lead to greater assurance that the transaction will go smoothly.

Bank guarantees are usually a part of more complex financial transactions between businesses. While they’re not limited to business customers, bank guarantees are not generally used for auto loans, mortgages, or personal loans.

Here are some more details about bank guarantees for the business clients of a financial institution:

•   Companies often use bank guarantees for complicated contracts involving goods and services. If a vendor fails to provide goods or services that have already been paid for, a bank guarantee ensures reimbursement for the business using that vendor.

•   If, on the other hand, a buyer fails to pay for goods or services that have already been delivered or rendered, the bank guarantee covers the unpaid balance for the seller.

•   Since a bank guarantee can protect either a buyer or a seller, it’s helpful to think of them in terms of the beneficiary (the company that requires a bank guarantee to feel protected and move forward with a contract) and the applicant (the company that applies for the bank guarantee to close the deal).

How Do Bank Guarantees Work?

If a contract includes a bank guarantee, that guarantee will specify an amount to be repaid (or the goods or services to be delivered) and a set timeframe for the transaction. The contract will also spell out the bank’s responsibility should the applicant fail to meet their contractual obligations.

To assume this risk, banks charge applicants a fee for the guarantee, expressed as a percentage of the cost or value of the transaction, typically around 0.5% to 1.5%.

If the bank deems a contract particularly risky, it might require the applicant to offer collateral. Unlike with secured personal loans, where a house or car might serve as collateral, bank guarantee collateral is typically liquid assets, such as stocks or bonds.

Recommended: Business vs Personal Checking Accounts: What’s the Difference?

Types of Bank Guarantees

There are two main types of bank guarantees: financial bank guarantees and performance guarantees.

Financial Bank Guarantee

With a financial bank guarantee, a bank promises to repay a debt if the borrower (or buyer) defaults on the agreement. For example, an applicant may purchase goods and services from a large company, receive those goods and services, and never pay the bill. In this instance, the bank would settle the debt with the large company since the funds can’t come out of the borrower’s bank account.

What Is a Performance Guarantee?

In this situation, if an applicant fails to perform the obligations laid out in the contract (e.g., supplying parts to a company), the beneficiary can make a claim with the bank for the losses incurred from the non-performance of contractual obligations.

Performance failure might also mean that although the goods or services were delivered, they didn’t meet the quality standards specified in the contract. In these situations, the bank would step in to offset those losses.

Examples of Bank Guarantees

Bank guarantees can serve many purposes, usually between two businesses. Here are a few of the guarantees that banks often issue:

Rental Guarantee

A rental guarantee protects a landlord when entering into a contract with a company (such as a restaurant or retailer) that wants to lease a space. This guarantee serves as collateral for a rental lease.

Advanced Payment Guarantee

An advanced guarantee protects a company that has paid in advance for goods or services that weren’t delivered. You may also hear this referred to as a cash guarantee. If the deal isn’t satisfied, the company that has paid out in advance will be refunded.

Performance Bond Guarantee

A performance bond is a kind of financial guarantee for a business deal to protect against one party failing to meet its obligations. You may also hear this called a contract bond. If, say, a contractor doesn’t complete the work they agreed to do, a performance bond guarantee can protect the party paying for the project. That entity would be compensated for its loss.

Warranty Bond Guarantee

When a bank provides a warranty bond guarantee, it protects the buyer in a transaction during a specified warranty period, ensuring that goods are delivered as specified. This could refer to the quality and condition of the items, as well as the timing of their arrival.

You may also hear this term used in another situation. Sometimes referred to as a maintenance bond, a warranty bond guarantee can be a financial guarantee in which a builder promises to protect the owner of a construction project from problems with workmanship or faults with materials that could occur after the project’s completion. A financial institution or insurer will back up this promise.

Payment Guarantee

A payment guarantee is quite simply what it sounds like: It guarantees that if, say, a buyer fails to send adequate funds for a purchase, the bank will step in and cover the shortfall. It allows a seller to feel confident that they’ll be paid in full on a predetermined date.

Recommended: Bank Guarantees vs Letters of Credit: What’s the Difference?

Pros and Cons of Bank Guarantees

Here’s what you need to know about the upsides and downsides of bank guarantees.

Pros

Among the most important advantages of a bank guarantee are the following:

•   Reduced costs: While not free, a bank guarantee can be a cost-effective way to encourage confidence and help a deal go through. It may be less expensive to obtain than taking out a small business loan to cover a potential debt, for example.

•   Reduced risk: A bank guarantee reduces risk since the bank promises to pay if one party doesn’t hold up their end of the deal. In this way, a bank guarantee can open up new opportunities for businesses, especially those without a long or solid credit history.

•   Quick activation: It typically takes only a few days to obtain a bank guarantee.

•   Enhanced credibility: Before offering a guarantee, a bank does a comprehensive assessment of an applicant’s financial standing. Earning a bank’s backing through a guarantee demonstrates that the bank finds the applicant company to be credible.

Cons

The potential drawbacks of bank guarantees to be aware of are:

•   Stringent approval guidelines: Bank guarantees aren’t given to just any entity. A business must show that it merits this backing. Not every applicant will qualify.

•   Strict collateral requirements: If a venture seems particularly risky, banks may require collateral from applicants. This can be risky for startups with limited funding.

•   Complex regulations: There have been scams involving bank guarantees in some international transactions. Using a bank guarantee for an international deal may therefore require many complex steps and assurances before it moves forward.

The Takeaway

In business transactions, a bank guarantee promises that the financial institution will cover any debts to one party if the other party doesn’t meet its obligations. Larger companies often require small businesses and startups to obtain a bank guarantee before doing business with them. These guarantees can help a small or new business secure large deals since the bank has shown confidence in them.

That said, if you’re focused on your personal finances and are considering your options, see what SoFi offers.

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

FAQ

What is the difference between bank guarantees and letters of credit?

Both bank guarantees and letters of credit add confidence to business deals, with slight differences. With a bank guarantee, the financial institution promises to step in and pay debts, if needed, for the party it guaranteed. A letter of credit, which is useful in international trade, substitutes the bank’s credit for a business’, which means the bank will guarantee payment if the business defaults on its obligation, but only once certain criteria are met.

What is the purpose of a bank guarantee?

The purpose of a bank guarantee is to add confidence to a contract between two parties. If one party fails to uphold its contractual obligations or defaults on a loan, the bank promises to step in and uphold the contract and pay the debt that may result.

How can I get a bank guarantee?

If a business requires a bank guarantee to enter into a contract, contact your bank (or your business’ bank) and request an application. The bank will then review the completed application to determine your creditworthiness, typically within a few business days.

Photo credit: iStock/eclipse_images

SOBNK-Q126-088

The average annual pay for a sonographer is $97,240 for the most recent year studied, according to the Bureau of Labor Statistics. Working as a sonographer is a great way to enter the medical field without having to pursue an expensive advanced degree. Typically, only an associate degree is needed to work as a sonographer, which can be obtained quickly and affordably.

Read on to learn more about how much a sonographer can earn and what it’s like to work as this kind of professional.

What Are Sonographers?

A sonographer — also known as a diagnostic medical sonographer — uses sonography technology and tools to create images typically known as ultrasounds or sonograms. These images can give us a detailed look at organs and tissues within the body or at embryos and fetuses. There are many different types of sonographers who specialize in distinct areas of medicine, such as:

•   Abdominal sonographers

•   Breast sonographers

•   Cardiac sonographers (echocardiographers)

•   Musculoskeletal sonographers

•   Pediatric sonographers

•   Obstetric and gynecologic sonographers

•   Vascular technologists (vascular sonographers)

As briefly mentioned above, training for this career usually doesn’t involve medical school and its cost. Instead, diagnostic medical sonographers may obtain a bachelor’s degree, an associate degree, or perhaps a vocational school degree or hospital training program certificate. Some may be trained in the Armed Forces.

It’s also worth noting that working as a sonographer will likely involve a high degree of patient interaction. For this reason, it may not be a good job for introverts.💡 Quick Tip: Online tools make tracking your spending a breeze: You can easily set up budgets, then get instant updates on your progress, spot upcoming bills, analyze your spending habits, and more.

How Much Do Starting Sonographers Make a Year?

Entry-level sonographers should expect their salary to be on the lower side until they gain more experience. The lowest 10% of earners make less than $67,820 per year.

However, the top 10% of earners working as sonographers make more than $129,370, meaning this is a career path that can lead to a job that pays $100,000 a year.

In addition to experience level, other aspects that can lead to competitive pay are your geographical location (big city vs. rural community) and whether the employer is a major hospital network, say, or a small, independent medical office.

Recommended: What Trade Earns the Most Money?

What Is the Average Salary for a Sonographer?

Those who work full-time as a sonographer can expect to earn an average annual salary of $97,240. However, some sonographers choose to work part-time and are paid by the hour. In terms of how much a sonographer makes an hour, the average hourly pay for sonography work is $46.75.

Many factors can influence how much a sonographer earns, and the state they work in is a major one. The following table illustrates how average sonographer salaries can vary significantly by state, with earnings shown from highest to lowest.

What is the Average Sonographer Salary by State for 2026?

Source: ZipRecruiter

Sonographer Job Considerations for Pay and Benefits

If a sonographer chooses to work part-time, they may not gain access to the same suite of valuable employee benefits that full-time sonographers typically earn. While employee benefits can vary by employer, full-time sonographers can generally expect to receive health care coverage, paid time off, and retirement plans as a part of their overall compensation package.💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

Pros and Cons of Sonographer Salary

One of the biggest pros associated with a sonographer’s salary is that they don’t have to take on expensive medical school debt — which can really eat into a worker’s monthly budget. An associate degree or a postsecondary certificate may be required, but it will cost less than pursuing other degree requirements commonly found in the medical field.

Regarding cons, some may find that the salary doesn’t outweigh the hardships of the job. Many sonographers work nights and weekends and are on their feet for long periods of time.

Recommended: Pros and Cons of Minimum Wage

The Takeaway

Sonographers currently earn an average of $97,240 per year. They have a very valuable medical-service skill set, and demand for that skill set is growing. It’s anticipated that job openings for this role will grow by 13% from 2024 to 2034, which is above the national average rate. As they navigate their careers, sonographers will likely want to make progress in their financial lives with smart budgeting and saving.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

SoFi helps you stay on top of your finances.

FAQ

Can you make 100k a year as a sonographer?

It is possible to earn $100,000 or more each year as a sonographer. On average, sonographers in the state of Washington earn $124,668 per year. Where someone lives, how many years of experience they have, and their specialty can all impact how much they earn.

Do people like being a sonographer?

Working as a sonographer is a great fit for anyone who finds the work interesting and who enjoys patient interaction. Because this role requires so much patient care throughout the day, it’s not the best fit for those who are antisocial.

Is it hard to get hired as a sonographer?

Around 5,800 openings for diagnostic medical sonographers are anticipated to be available each year. Because of this high demand, if someone has the right education and qualifications, they should be able to find work as a sonographer.

How many years will it take to become a sonographer?

You can typically train to become a sonographer via a two-year associate degree. After graduation, you will likely obtain certification, which is required by most employers and many states, and your state might also require you to be licensed. Obtaining certification or licensure can add time to your training.

Do radiology tech or sonographer jobs pay more?

Typically, diagnostic medical sonographers earn a bit more than radiology technologists. While the average annual pay for radiology techs is $83,840, sonographers earn around $97,240.

About the author

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.

Photo credit: iStock/dusanpetkovic

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

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.

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

SORL-Q226-029

The median annual pay for travel agents is $48,450, according to the most recent data from the Bureau of Labor Statistics. Travel is a passion many people share, but not many people are fortunate enough to make their love of travel their full-time job. If someone is skilled at finding the best travel deals and building the perfect vacation itinerary, they may find that working as a travel agent is a rewarding way to earn a living.

To better understand what it’s like to work as a travel agent and how much they earn, keep reading.

What Are Travel Agents?

Travel agents help their clients plan and book their trips. They may work for an individual client to plan their vacation or a corporate client to book their work travel. No two trips they manage are likely to be exactly the same, but they can help arrange everything from flights to hotels to excursions to dining reservations. Many travel agents can also give their clients access to deals through partner hotels and other travel vendors.

A travel agent can work independently, in-house at a large corporation, or for a major travel company. They may pursue this work full-time or as a side hustle. Given that a significant part of this career involves working with individuals to understand their travel aspirations and needs, it’s likely not a good job for antisocial people.

Travel agents can train in different ways: Some have a bachelor’s degree in an allied field or an associate’s degree in travel and tourism. There are many professional training programs and certifications available, such as ASTA, IATA, TIDS, and CLIA programs, for different dimensions of travel planning.

As part of their work, travel agents may have the opportunity to visit various properties and destinations to make sure they would be a good fit for clients and learn about their selling points. This is often available at a reduced rate or for free and can be a major perk of working as a travel agent.

However, it’s worth noting that travel agents likely have to be available 24/7 and can deal with considerable stress, if, say, a client misses their flight or extreme weather ruins a vacation.

💡 Quick Tip: We love a good spreadsheet, but not everyone feels the same. An online budget planner can give you the same insight into your budgeting and spending at a glance, without the extra effort.

How Much Do Starting Travel Agents Make a Year?

If you’re wondering how much money a travel agent makes, the answer will depend a lot on how experienced the travel agent is. For example, entry-level travel agents can earn a lot less than more experienced agents. The lowest 10% of earners in this role make less than $33,280.

The highest 10% make more competitive pay north of $74,160. And there are also travel agents who work in the luxury sector who make considerably more.

Indeed, some could make an annual salary of $100,000 or more.

What Is the Average Salary for a Travel Agent?

The Bureau of Labor Statistics reports that the latest median pay per year for travel agents is $48,450, and the median hourly pay is $23.29.

Alongside experience, location can majorly impact a travel agent’s earning potential. The following table illustrates how much a travel agent’s average salary can vary by state, arranged from highest to lowest. For example, in Washington, travel agents make an average annual salary of $48,629, but in Florida, they earn over $15,000 less at an average of $32,085.

What Is the Average Travel Agent Salary by State for 2026?

Source: ZipRecruiter

Recommended: Average US Salary by State

Travel Agent Job Considerations for Pay and Benefits

Working as a travel agent can be very flexible. While full-time positions are available in this role, some travel agents choose to work part-time or for themselves as entrepreneurs.

When working full-time for a travel advisory firm, travel agents can expect to gain access to benefits such as health insurance and retirement contribution matching. If they work part-time or are self-employed, they’ll need to provide themselves with those benefits, which can eat into their take-home pay.

💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

Pros and Cons of Travel Agent Salary

The main disadvantage of a travel agent’s salary is that the median annual salary is on the lower side at just $48,450. That being said, one of the main advantages of this salary is that it can come with hefty bonuses based on travel bookings with partners that offer commissions to travel agents. Also, travel agents often get discounts and freebies as they themselves travel to check out new resorts and attractions.

Travel agents who work for themselves can also choose to set their own rates and can potentially earn more. Those who cater to high-net-worth individuals may be able to raise their income.

Recommended: Work-from-Home Jobs for Retirees

The Takeaway

A travel agent who is super organized and passionate about travel can help make their client’s lives easier and their trips more enjoyable. In exchange for their savviness, some travel agents earn good salaries doing work that they truly enjoy and have perks that involve more travel at lower or no cost for their own purposes.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

SoFi helps you stay on top of your finances.

FAQ

Can you make 100k a year as a travel agent?

While most travel agents don’t earn $100,000 per year, those who choose to work for themselves and set their own rates or cater to an elite clientele can possibly make six figures. Many travel agents work on commission, so they can also stand to earn more if their clients book a lot of expensive trips.

Do people like being a travel agent?

Many people like working as a travel agent because it’s a fun way to put their love of travel to use. It tends to be a good job for those who consider themselves to be a “people person” since there’s a lot of interaction with clients. Also, it’s good for people who can “roll with the punches” since travel plans often change for various reasons.

Is it hard to get hired as a travel agent?

The demand for travel agents is on par with the average of other professions. So, while it’s not seeing a surge in need, there should be availability of jobs as a travel agent.

Do I need a degree to become a travel agent?

While some travel agents have degrees in a related field, such as travel and tourism, it’s not strictly necessary. There are various professional training programs and certifications available to get you started in this career, such as ASTA, IATA, TIDS, and CLIA.

Do travel agents earn commission?

Yes, many travel agents earn commission on their travel bookings. This can increase their overall income beyond their base salary.

About the author

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.

Photo credit: iStock/Dimensions

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

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.

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

SORL-Q226-031

The most recent mean annual salary for teachers nationwide is $67,540, according to the Bureau of Labor Statistics. However, there can be considerable variation depending on where they live, what level they teach, how much experience they have, and other factors.

Working as a teacher comes with its fair share of challenges and rewards, but being able to help shape young minds can be very fulfilling.

Want to learn more about how much teachers make and what the role entails? Read on for more insight.

What Are Teachers?

Working as a teacher can look a bit different depending on whether you work in an elementary, middle, or high school setting. That being said, all teachers create lesson plans and deliver those lessons to their students. They often work individually with students who need a bit of extra support and can help foster social and emotional development. Alongside instructing pupils, teachers grade assignments, write report cards, and meet with parents to help them understand their child’s education progress.

With that in mind, teaching may not be the right career for introverts. It typically involves interacting with students, their parents, and other faculty members for much of the workday.

Worth noting: Qualifications for teaching can vary. Teachers may be required to have certificates in order to teach, which can mean time, energy, and expense to attain those credentials.

💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

How Much Do Starting Teachers Make a Year?

Like many chosen career paths, working as an entry-level teacher often comes with a lower salary. How much money might a teacher make a year when they’re first starting out? The mean salary for the lowest 10% of earners in this role nationwide is $32,990.

Incidentally, some teachers do earn six figures. As teachers gain years of experience, they can increase their salary (the top 10% of earners make $105,240 per year).

What Is the Average Salary for a Teacher?

Regarding how much a teacher can expect to earn on average, as briefly noted earlier, the national mean is $67,540. That being said, the state you work in can greatly impact how much you earn. The cost of living and other factors are responsible for the variation in salaries, which can be significant. For example:

•   The average annual salary in Florida is $34,816.

•   In Washington, the average is $52,767.

Prospective teachers can review the following chart to learn more about what their salary and hourly wage expectations should be in their state.

What Is the Average Teacher Salary by State for 2026?

Source: ZipRecruiter

Recommended: What Trade Makes the Most Money?

Teacher Job Considerations for Pay & Benefits

How much a teacher earns and what type of benefits they qualify for can depend on whether they choose to work as a full-time teacher or as a substitute teacher. If someone works as a substitute, they’re generally paid a day rate only for the days they work and don’t qualify for benefits, such as health care or retirement plans.

However, working as a substitute teacher can be a great job for retirees looking to earn a bit of extra cash without committing to a consistent part-time work schedule. It might be good for someone who has a side hustle going or can fill in free days with work as, say, a rideshare driver or babysitter.

Full-time teachers generally qualify for those benefits and other traditional employee benefits, such as paid time off for sick and personal days. Some may even still qualify for pensions, which can be a real plus when it comes to retirement planning.

There’s also the fact that school is out in the summer. Some teachers may love this time off and want that family time. Others may choose to teach summer school or at a camp or otherwise bring in extra income. Still, others may use that time for creative or entrepreneurial projects, but it’s important to note whether or not you’ll receive a paycheck during those months.

💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

Pros and Cons of Teacher Salary

Still on the fence about becoming a teacher? These are some of the common pros and cons associated with the salary.

Recommended: How to Negotiate for Competitive Pay

The Takeaway

The average teacher salary in the U.S. tops $67,000 per year. If you have a passion for teaching and like working with young people, you’ll likely love your job. There are also valuable benefits that may be available, such as paid vacations and summers off.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

SoFi helps you stay on top of your finances.

FAQ

Can you make 100k a year as a teacher?

It’s possible to make $100,000 a year as a teacher, which is a good salary. The 90th percentile of earners in this role nationwide brings home $105,240 annually. Teachers tend to see higher salaries as they gain years of work experience.

Do people like being a teacher?

Working as a teacher can be hard work, but it’s often rewarding. Those who enjoy working with children and helping them learn will find they get a lot out of being a teacher. However, if they consider themselves to be introverted, they may find this role draining.

Is it hard to get hired as a teacher?

How challenging it is to get hired as a teacher can vary by location and year. It simply depends on what the current demand for teachers is. It’s generally harder to find a role as a public school teacher, as those jobs require specific advanced degrees.

What is the difference in pay and benefits between a full-time teacher and a substitute teacher?

Full-time teachers generally qualify for traditional employee benefits, such as health care, retirement plans, and paid time off for sick and personal days. Substitute teachers, however, are typically paid a day rate only for the days they work and don’t qualify for benefits such as health care or retirement plans.

What are the general responsibilities of a teacher?

All teachers are responsible for creating lesson plans and delivering them to their students. They also grade assignments, write report cards, and meet with parents to communicate their child’s progress. Whether they work in an elementary, middle, or high school, the job may look a little different, but they all help foster students’ social and emotional development.

About the author

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.

Photo credit: iStock/baona

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

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.

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

SORL-Q226-030

Currently, the median annual salary for a welder is $51,000, according to the latest statistics from the Bureau of Labor Statistics. If someone is on the hunt for a truly hands-on career and gets satisfaction from building or repairing things, they may find they enjoy working as a welder. However, this can be a physically demanding and potentially dangerous career choice. To better understand what this role entails and what welders earn, read on.

What Are Welders?

A welder is a highly skilled professional who uses specialized equipment to cut or join metal parts, as well as make other changes to metal products by filling holes, for example. Many welders specialize in certain techniques and processes, but the core of what they do involves applying heat to metal pieces so they can then melt and fuse them together permanently. Typical job responsibilities of welders include:

•   Scrutinizing structures or materials slated for welding.

•   Understanding and analyzing blueprints, sketches, and specifications.

•   Supervising the welding process, making heat adjustments as required.

•   Determining and measuring the dimensions of components for welding.

•   Executing welding tasks in accordance with blueprint specifications.

•   Managing and maintaining equipment and machinery.

Training to be a welder typically involves training at a vocational school, which can take between seven months and a year, depending on your desired specialization. Usually, a welder doesn’t need a college degree.

Additionally, it’s worth noting that welding can be a good career for introverts. While there is some teamwork and/or client contact involved, much of the job involves working solo with your tools.

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How Much Do Starting Welders Make a Year?

If someone is new to the field of welding, they can expect to earn less as an entry-level welder compared to their more experienced counterparts. In terms of how much a welder makes a year, the lowest 10% of earners in this role make less than $38,130.

That being said, there’s a lot of room for salary growth in this role, as the highest 10% earn more than $75,850. While not common, it’s possible that a welder with experience and specialization could earn $100,000 per year in a job market where there’s a high cost of living and consequently higher-than-average pay.

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What Is the Average Salary for a Welder?

What the average salary looks like for a welder can depend a lot on where they live. For example, while Washington welders earn the most on average ($52,441), Florida welders earn almost $20,000 less per year ($34,601). The following table compares how much welders earn on average on an annual, monthly, weekly, and hourly basis in each state, arranged from highest to lowest.

What Is the Average Welder Salary by State for 2026?

Source: ZipRecruiter

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Welder Job Considerations for Pay and Benefits

What someone’s pay and benefits look like as a welder depends a lot on whether they choose to work full-time or part-time. Full-time welders who are employed by businesses can expect to gain access to traditional employer-sponsored benefits such as retirement accounts, paid time off, and health care.

However, if someone only works part-time as a welder or is self-employed, they likely won’t receive any benefits and will have to pursue things such as opening retirement accounts and sourcing health care coverage on their own.

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Pros and Cons of Welder Salary

Because welders don’t need a college degree — only technical and on-the-job training — they can save a lot of money on education expenses. Not having to worry about student loan payments each month can help their salaries stretch a lot further, which can be a major advantage of this career path.

On the other hand, this salary can come at a steep cost. Welding can be a very physical and therefore exhausting career. Welders expose themselves to many on-the-job hazards that can lead to injury, such as breathing in fumes and handling extremely hot materials. There are safety procedures in place to offset these risks, but there’s still a certain level of risk they can’t avoid.

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The Takeaway

Working as a welder can lead to a median annual salary of $51,000, and an expensive degree isn’t required to work in this role. There’s also the potential for welders to earn a higher salary as they gain experience, as the top 10% earn more than $75,850. However, it can be tiring and potentially hazardous work.

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FAQ

Can you make 100k a year as a welder?

While it’s not impossible to make $100,000 or more a year as a welder, the top 10% of earners in this field make more than $75,850. However, it may take many years of experience to earn top pay. Welders who are self-employed may find it easier to charge higher rates for their work.

Do people like being a welder?

Many people enjoy working as a welder, especially people who consider themselves introverts. Working as a welder requires a lot of independent work, which can be a great fit for those who get overwhelmed by too much social interaction during the workday.

Is it hard to get hired as a welder?

If someone wants to get hired as a welder or in a similar role, they should be able to find employment if they have the right skills and education. The Bureau of Labor Statistics anticipates there to be an average of 42,600 job openings for welders, cutters, solderers, and brazers every year up to 2032.

How long does it take to become a welder?

Many welders attend vocational schools to gain hands-on experience and training. This typically takes anywhere from six months to a year, depending on the program and specialization.

Do you need a degree to become a welder?

No, you typically don’t require a college degree to become a welder. Most welders enter the field through vocational training programs.

About the author

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.

Photo credit: iStock/simonkr

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