May
23
2025
couple at home

Do You Qualify as a First-Time Homebuyer?

By | Family Finances, Home Ownership, mortgage | No Comments

A first-time homebuyer isn’t only someone purchasing a first home. It can be anyone who has not owned a principal residence in the past three years, some single parents, a spouse who has not owned a home, and more.

If the thought of a down payment and closing costs semds a chill down your spine, realize that first-time homebuyers often have access to special grants, loans, and programs.

Key Points

•   If you haven’t owned a home in the last three years, you may still be considered a first-time homebuyer.

•   Many first-time homebuyer mortgages let buyers put down less than 20%.

•   Veterans, service members, and certain civil servants may have access to special first-time homebuyer programs.

•   You may be able to get an FHA mortgage with a credit score of 500, though you will have to make a down payment of at least 10%.

•   First-time homebuyer programs may provide advantageous terms, but there can also be insurance and fee requirements.

“First-Time Homebuyer” Under the Microscope

To get a sense of who qualifies for a mortgage as a first-time homebuyer, let’s take a look at the government’s definition.

The U.S. Department of Housing and Urban Development (HUD) says first-time buyers meet any of these criteria:

•   An individual who has not held ownership in a principal residence during the three-year period ending on the date of the purchase.

•   A single parent who has only owned a home with a former spouse.

•   An individual who is a displaced homemaker (has worked only in the home for a substantial number of years providing unpaid household services for family members) and has only owned a home with a spouse.

•   Both spouses if one spouse is or was a homeowner but the other has not owned a home.

•   A person who has only owned a principal residence that was not permanently attached to a foundation (such as a mobile home when the wheels are in place).

•   An individual who has owned a property that is not in compliance with state, local, or model building codes and that cannot be brought into compliance for less than the cost of constructing a permanent structure.

For conventional (nongovernment) financing through private lenders, Fannie Mae’s criteria are similar.

Recommended: The Complete First-Time Homebuyer Guide

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

Questions? Call (888)-541-0398.

Options for First-Time Homebuyers

First-time homebuyers may not realize that they, like other buyers, may qualify to buy a home with much less than 20% down.

They also have access to first-time homebuyer programs that may ease the credit requirements of homeownership.

Federal Government-Backed Mortgages

When the federal government insures mortgages, the loans pose less of a risk to lenders. This means lenders may offer you a lower interest rate.

There are three government-backed home loan options: FHA loans, USDA loans, and VA loans. In exchange for a low down payment, you’ll pay an upfront and annual mortgage insurance premium for FHA loans, an upfront guarantee fee and annual fee for USDA loans, or a one-time funding fee for VA loans.

Note: SoFi does not offer USDA loans at this time. However, SoFi does offer FHA, VA, and conventional loan options.

FHA Loans

The Federal Housing Administration, part of HUD, insures fixed-rate mortgages issued by approved lenders. On average, more than 80% of FHA-insured mortgages are for first-time homebuyers each year.

If you have a FICO® credit score of 580 or higher, you could get an FHA loan with just 3.5% down. If you have a score between 500 and 579, you may still qualify for a loan with 10% down.

USDA Loans

The U.S. Department of Agriculture offers assistance to buy (or, in some cases, even build) a home in certain rural areas. Your income has to be within a certain percentage of the average median income for the area.

If you qualify, the loan requires no down payment and offers a fixed interest rate.

VA Loans

A mortgage guaranteed in part by the Department of Veterans Affairs requires no down payment and is available for military members, veterans, and certain surviving military spouses.

Although a VA loan does not state a minimum credit score, lenders who make the loan will set their minimum score for the product based on their risk tolerance.

💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.

Government-Backed Conventional Mortgages

Fannie Mae and Freddie Mac, government-backed mortgage companies, do not originate home loans. Instead, they buy and guarantee mortgages issued through lenders in the secondary mortgage market.

They make mortgages available that are geared toward lower-income, lower-credit score borrowers.

Freddie Mac’s Home Possible program offers down payment options as low as 3%. There are also sweat equity down payment options and flexible terms.

Fannie Mae’s 97% LTV (loan-to-value) program also offers 3% down payment loans.

A Mortgage for Certain Civil Servants

If you’re a law enforcement officer, firefighter, or EMT working for a federal, state, local, or Indian tribal government agency, or a teacher at a public or private school, the HUD-backed Good Neighbor Next Door Program could be a good fit. It provides 50% off the listing price of a foreclosed home in specific revitalization areas. In turn, you have to commit to living there for 36 months.

Homes are listed on the HUD website each week, and you have to put an offer in within seven days. Only a registered HUD broker can submit a bid for you on a property.

If you’re using an FHA loan to buy a home in the Good Neighbor Next Door Program, the down payment will be $100. If using a VA loan to purchase a house through the program, buyers will receive 100% financing. If using a conventional home loan, the usual down payment requirements stay the same.

State, County, and City Assistance

It isn’t just the federal government that helps to get first-time buyers into homes. State, county, and city governments and nonprofit organizations run many down payment assistance programs.

HUD is the gatekeeper, steering buyers to state and local programs and offering advice from HUD home assistance counselors.

The National Council of State Housing Agencies has a state-by-state list of housing finance agencies, which cater to low- and middle-income households. Contact the agency to learn about the programs it offers and to get answers to housing finance questions.


💡 Quick Tip: Jumbo mortgage loans are the answer for borrowers who need to borrow more than the conforming loan limit values set by the Federal Housing Finance Agency ($806,500 in most places, or $1,209,750 in many high-cost areas). If you have your eye on a pricier property, a jumbo loan could be a good solution.

Using Gift Money

First-time homebuyers might also want to think about seeking down payment and closing cost help from family members.

If you’re using a cash gift, your lender will want a formal gift letter, and the gift cannot be a loan. Home loans backed by Fannie Mae and Freddie Mac only allow down payment gifts from someone related to the borrower. Government-backed loans have looser requirements.

Want to use your 401(k) to make a down payment? You could, but financial advisors frown on the idea. Borrowing from your 401(k) can do damage to your retirement savings.

The Takeaway

First-time homebuyers may still be in good shape even if they don’t have much of a down payment or their credit isn’t stellar. Lots of programs, from local to federal, give first-time homeowners a break.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.


SoFi Mortgages: simple, smart, and so affordable.

FAQ

Can you be considered a first-time homebuyer twice?

Yes, there are multiple scenarios in which you can be considered a first-time homebuyer. When you’re buying your first home is one, of course, but others include if you or your partner has not owned a home for three years prior to your closing, if you are a displaced homemaker who previously owned a home with your spouse, or if you are a single parent who previously owned owned a home with your ex.

What credit score is needed for a first-time homebuyer?

For a conventional loan, a first-time homebuyer will typically need a credit score of 620 or more. However, many homebuyers may be eligible for government-backed loans potentially available to people with lower scores, like FHA loans, VA loans, and USDA loans.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.


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



*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOHL-Q225-045

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May
22
2025
woman in home office

Should You or Your Child Take Out a Loan for College?

By | Family Finances, Student Loans, student_loan | No Comments

The desire to help your child pay for college so they can focus on their studies is a strong one, but it’s important to consider your options when it comes to borrowing money.

Parents have a couple of options for borrowing to help pay for their child’s college education. They can borrow a Parent PLUS Loan — a type of federal loan — or a private student loan to help their child pay for college. Though, it may not always make sense for parents to take on debt on behalf of their child’s education.

Read on for a high-level overview of which types of student loans parents can apply for, as well as some advantages and disadvantages of taking out those loans in your name.

Key Points

•   Parents can consider two primary options for financing their child’s college education: Parent PLUS Loans, which are federal loans, and private student loans from individual lenders.

•   Parent PLUS Loans offer fixed interest rates and flexible repayment options, but they require the child to complete the FAFSA® before applying.

•   Private student loans may provide lower interest rates for parents with strong credit histories and allow for fixed or variable rates with customizable repayment terms.

•   Taking out loans in a parent’s name can reduce financial burden on the child, but repayment responsibility and the potential negative impact on credit scores must be considered.

•   Before resorting to loans, maximizing federal aid, scholarships, and grants is usually recommended to minimize future financial obligations.

What Are Parent Student Loan Options?

As mentioned, parents interested in borrowing a loan to help their students pay for college have two main options. The first is a Parent PLUS Loan, a federal loan available through the Direct Loan Program. The other is borrowing a parent loan from a private lender.

Parent PLUS Federal Student Loans

Parent PLUS Loans are a type of federal student loan that can be borrowed by the parent of an undergraduate student to help their child pay for college education costs. The benefits of a Parent PLUS Loan can include:

•   A fixed interest rate

•   Deferment under certain conditions

•   Flexible repayment options

•   Possible eligibility for Public Service Loan Forgiveness

To apply for a Parent PLUS Loan, your child must first file the Free Application for Federal Student Aid, also known as FAFSA®. Then, eligible parents of undergraduate students can fill out the Direct PLUS Loan application online.

It’s not possible to transfer a Parent PLUS Loan to your child. However, Parent PLUS refinancing with a private lender may allow your child to refinance a Parent PLUS Loan in their name.

Keep in mind that your child may be eligible for federal student aid including federal loans, scholarships, and grants too. If your child is taking out federal student loans, they may be eligible for:

•   Direct Subsidized Loans. Direct Subsidized Loans are subsidized by the federal government and students are not responsible for paying accrued interest while they are enrolled, during the loan’s grace period, or during qualifying terms of deferment.

•   Direct Unsubsidized Loans. Direct Unsubsidized Loans are not subsidized by the federal government and student borrowers are responsible for accrued interest costs on the loan while they are enrolled in school.

•   Direct PLUS Loans (for graduate school). Direct PLUS Loans are available for graduate students. These loans are unsubsidized, meaning they begin accruing interest immediately upon disbursement.

Depending on demonstrated financial need, your child may qualify for a combination of these loan types in addition to scholarships, grants, or work-study. However, if all other federal aid is exhausted, the Parent PLUS Loan might be an option to supplement your child’s tuition payments after federal aid, scholarships, or grants.

Private Student Loans for Parents

When federal student loan options are exhausted, some students and parents may turn to private student loans to help fund their education. Parents can take out a private loan in their own name to pay for college for their student. If you have a strong credit history, you might consider a private loan over the PLUS Loan — there’s a chance you could potentially qualify for a lower interest rate.

With a private student loan, you may have the option of a fixed- or variable-rate loan, potentially giving you more flexibility on repayment. You can also choose the term length of a loan, as well.

Your child can also apply for private loans, but in many cases, they’ll require a cosigner.

Private Student Loans for Parents vs Parent PLUS Loans

This table provides a high-level overview of the differences between private student loans for parents and Parent PLUS loans.

Private Student Loans for Parents

 Parent PLUS Loans
To apply, interested parents will need to fill out an application with an individual private lender. To apply, students first need to fill out the FAFSA, then parents can fill out the Direct PLUS Loan application on the Student Aid website.
The application process will usually involve a credit check. This will be used to help determine the loan terms an applicant qualifies for, in addition to other factors. There is a credit check, however, it will not be used to determine terms like the interest rate. Interest rates on Direct PLUS Loans are set annually by congress.
Interest rates may be fixed or variable. Interest rates are fixed.
Repayment plans will be determined by the individual lender. PLUS Loans qualify for some federal repayment plans.

Pros and Cons of Taking the Loan Out in Your Name

Taking out a student loan for your child in your name — federal or private — could mean less of a financial burden on your child as they enter college. Since the loans are in your name, it’s not up to your child to pay them, even after a degree is earned.

Pros of Taking Out a Loan for Your Child

Borrowing can be a tool to help you pay for your child’s education. If you can afford to make the loan payments without sacrificing your own financial security, this could be a helpful move for your child.

Another pro is that the loan payments will be made in your name — that means they’ll count toward your credit history. If you’re able to make all of the loan payments on time, it could prove to have a beneficial impact on your credit score.

If you have a strong credit history, you could potentially qualify for a more competitive interest rate than your child could.

Cons of Taking Out a Loan for Your Child

The most obvious con is that while you’ll be able to help your child pay for college, you’ll need to repay the money with interest. Other types of aid like scholarships, grants, and Direct Subsidized or Unsubsidized Loans borrowed by your child are generally prioritized over a parent loan.

Again, because the loan is in your name, any late payments or issues will be attributed to your personal credit history. Things like late payments have the potential to impact your credit score.

There’s nothing wrong with wanting to borrow for your child’s future, just consider all your options and think about what you, or they, can afford to pay back. It’s almost always a good idea to maximize federal aid and scholarships before resorting to loans of any kind.

The following table provides an overview of some of the pros and cons for borrowing as a parent to help your student pay for college.

Pros

 Cons
Parent student loans can allow parents to help pay for their child’s college education. Loans will need to be repaid with interest. Students and their families generally will prioritize other types of aid that don’t require repayment or that have a lower interest rate.
Parent student loans are in the name of the parent borrower. Therefore, the parent may benefit from any boost in credit score from making on time payments. A parent’s credit score could be negatively impacted if they are unable to make their monthly payments.

The Takeaway

Parent PLUS Loans are federal loans that allow parents of undergraduate students to help pay for their child’s education. These loans have a fixed interest rate and are eligible for most federal repayment plans.

Another option parents can consider is a private loan. Parents with a strong credit history may be able to qualify for more competitive interest rates through a private student loan.

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


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

FAQ

Which type of student loans can parents take out on behalf of the student?

Parents with undergraduate students have two options for borrowing to help their child pay for college. They can borrow a Direct PLUS Loan through the federal government or a private loan from a private lender.

Who is responsible for paying back Parent PLUS Loans?

Parent PLUS Loans are in the parent’s name. The parent is solely responsible for repaying the loan.

What can you do if you aren’t able to take out a Parent PLUS Loan?

If you aren’t able to borrow a Parent PLUS Loan, you can consider adding a cosigner to your PLUS Loan application. This may help your chances of getting approved. Additionally, if you are applying for a private loan, you may have the option of adding a cosigner which could potentially improve your chances of gaining approval or securing a more competitive interest rate.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FOREFEIT YOUR EILIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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


Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


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

SOISL-Q225-053

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May
21
2025
dollar bill broken heart

What Is the Average Cost of Divorce?

By | Family Finances, Life & Career, personal_loan | No Comments

An uncontested DIY divorce could cost $1,500 to $5,000, but the price can be much higher. In 2025, the mean cost of divorce is $7,000, but the average cost of a divorce can be $11,300. However, all kinds of factors, from attorney fees to assets, influence the bottom line. For example, a contested divorce, with issues around alimony, child support, and child custody, can run much higher.

Here are details about types of divorce and what to expect cost-wise with each.

Key Points

•   Divorce costs vary widely, with the average cost of a divorce ranging from $7,000 to $11,300 and significantly higher, depending on factors like legal representation and complexity.

•   DIY divorces can cost significantly less than those involving an attorney, with prices starting at $99 and running to about $4,000.

•   Mediation and collaborative divorce may offer lower-cost alternatives, typically ranging from $2,000 to $8,000 per couple.

•   Custody battles, property division, and alimony disputes can significantly increase total expenses.

•   Personal loans may offer a more affordable way to cover divorce costs compared to high-interest credit cards.

How Much Does It Cost to Get a Divorce?

The cost of a divorce can depend on which state you live in, how amicable the parting is, and whether you work with a divorce attorney, own property together, and have children, among others.

Most cases settle before going to trial. Here are common costs if you need to prepare for a divorce.

Recommended: How to Prepare Financially for a Divorce

Without an Attorney

A DIY uncontested divorce is the cheapest option. You and your spouse submit paperwork to your local family court, then fill out and file required documents.

There are different packages typically available, starting at as little as $99 and going up into a few thousand dollars if you’d like support with filing and/or need some mediation.

With an Attorney

A lawyer can only work with one client at a time, so two attorneys are required if both spouses want their own representation.

A divorce attorney will usually ask for a retainer, or down payment, toward average costs of $8,000 as of 2025. If the retainer runs out, the lawyer may bill by the hour. Hourly fees average $270 but charges of $500 or more per hour are possible, depending on where you live and other variables.

Of course, the longer it takes to reach a final judgment, the higher your attorney fees will be.

Recommended: Understanding Divorce and Retirement Accounts

Mediation

If you’re dealing with a more complex situation and don’t feel comfortable filing yourself, but don’t want to shell out money for a divorce lawyer, you could consider working with a mediator.

In this form of divorce, both spouses work with a neutral third party who has a handle on the financial and legal aspects of divorce and oversees the process.

A non-attorney mediator may charge $1,000 to $4,000 per person, according to Lawful.

Free or low-cost mediation services are often provided by courts, nonprofit organizations, and bar associations.

Collaborative Divorce

In this hybrid of mediation and a traditional divorce using lawyers, each spouse is represented by a collaborative divorce attorney. The goal is to help both parties work toward a mutually satisfactory outcome and, if children are involved, one that keeps their best interests in mind.

Both parties commit, in writing, to using cooperative dispute resolution techniques.

If the process fails, both attorneys must withdraw from the case, and the couple will need to hire new lawyers and continue through family law court proceedings.

Consulting Attorney

If you can’t afford to hire a full-scope divorce attorney, you might be able to hire a consulting attorney for specific tasks. The average total fees for consulting attorneys were $4,600, and the median was $3,000, a Nolo survey found.

Recommended: Understanding Divorce and Retirement Accounts

Who Pays for the Divorce?

Most of the time, each spouse pays their own attorney fees and costs.

In select cases involving income disparities or one party unnecessarily complicating the proceedings, a judge may order a spouse to pay his or her partner’s divorce costs.

The following are some of the factors that affect the costs of a divorce.

How Child Custody Impacts Divorce Costs

In a contested divorce, the issue of child custody will likely come up. If the couple is able to agree on a child custody schedule that works for both parents, that is usually the easiest path forward.

For divorces involving children that require an attorney to iron out custody details, costs tend to increase significantly thanks to the additional time spent working with parents to reach an agreement.

A contested divorce involving custody could also include working with a court-assigned professional, who may interview the parents and children, observe each parent at home with the kids, and make an evaluation based on their findings.

A county custody evaluation could cost between $1,000 and $2,500. A private review could run $15,000 or more.

Property Division

Couples who share a property may require the help of real estate attorneys or agents who focus on helping couples ascertain the disposition of their homes.

A home appraisal is an unbiased, third-party estimate of a property’s value. As of 2025, it typically costs between $300 and $450.

Sometimes couples opt to refinance the mortgage on the marital home into one name, releasing the other spouse from obligation. The cost of refinancing can be in the thousands of dollars.

Alimony

Another potential consideration in a divorce may be alimony, or spousal support.

If both individuals can’t agree on the amount of payment and the time payments are to be made, the court may have to step in.

That can involve litigation and a review of debts and finances. Since the process requires legal counsel, alimony decisions can quickly drive up divorce expenses.

Paying for Divorce: Are Payment Plans Available?

Some family lawyers do offer payment plans. The time to ask about that is during an initial consultation so you can be aware of and prepared for the expenses ahead.

In most situations, paying for a divorce can be a major stressor.

If you and your spouse are on amicable terms and have savings, you could consider pooling together as much as you can to put toward divorce costs. You could also ask to borrow money from relatives or friends. In some cases, couples may know that divorce is looming and start saving for it ahead of time, as unpleasant as that may be.

Some people may opt to put their divorce costs on a credit card and pay the debt over time, with interest. An option that may be more cost-effective is a personal loan.

A personal loan has several potential advantages. The interest rate for a personal loan could be lower than a credit card, depending on your credit score. Most personal loans come with a fixed interest rate, which makes budgeting easier.

You might use a personal loan calculator to make crunching numbers a snap.

Typically, you have between two and seven years to repay the principal plus interest. This can allow you to borrow a significant amount of money and have several years to pay it off.

Recommended: How to Apply for a Personal Loan

The Takeaway

Divorce costs typically run well into the thousands, with a median currently being $7,000 and the average being $11,300. There are potentially less expensive options for those who have a simple, uncontested divorce and are willing to bypass lawyers and DIY the process. But if there are issues such as alimony, child support, child custody, and division of property to wrangle, you are likely going to need a considerable sum of money for the costs. Divorce financing options can include credit cards, funding from savings or family members, and personal loans.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.


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

FAQ

How much does a divorce cost on average?

On average, as of 2025, a divorce costs $11,300, and the mean is $7,000.

What is the cheapest way to get a divorce?

If you have a simple, uncontested divorce, you may be able to DIY it for as little as $99 up to around $3,800 for situations that require help with mediation and filing.

What factors influence the cost of divorce?

A simple divorce with minimal shared property and children and a couple that is in sync about their needs can be relatively fast and inexpensive. However, in a contested divorce, with issues like child custody, division of property, and alimony, cases can drag on, increase legal fees, and become quite complicated and expensive.

Can I get a divorce without a lawyer?

In some situations, it is possible to DIY a divorce. This usually happens when the couple is in agreement, there are no areas being contested, and there are child custody or division of property issues.

Is mediation cheaper than hiring a divorce attorney?

Yes, mediation is typically cheaper than hiring a divorce attorney, with mediation costing $2,000 to $8,000 per couple, while working with a divorce lawyer often costs in the five figures.

Who typically pays for the divorce?

In many cases, each individual pays their own costs (such as lawyer’s fees) in a divorce. In rare instances, there might be a judgment for one party to pay the other’s divorce costs.

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


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

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

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


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

This article is not intended to be legal advice. Please consult an attorney for advice.

SOPL-Q225-043

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May
21
2025
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Budget-Friendly & Cheap Wedding Venue Ideas for Every Couple

By | Budgeting & Goals, Family Finances, Life & Career, personal_loan | No Comments

Typically, couples spend 37% of their wedding budget on the venue, which is a big chunk of one’s funds. Given that the median price of a wedding is $10,000 according to SoFi’s most recent survey, and the average is $33,000, according to the wedding site The Knot, that can mean thousands of dollars invested in the location where you say your vows.

Fortunately, there are ways to reduce the price of your wedding venue. There are free and affordable options, from a backyard to city hall to a beach. Read on to explore your options, plus learn tips to finance your wedding.

Key Points

•   Wedding venues typically account for 37% of a wedding budget, so finding an affordable venue can have a big impact on keeping costs down.

•   Hosting a wedding at home can be cost-effective and customizable, but may require planning for upgrades, parking, and local ordinances.

•   City hall weddings offer an affordable and chic option, with fees typically under $100 depending on location.

•   Park and beach weddings provide scenic backdrops but require permits and considerations for accessibility, shelter, and restrooms.

•   Budget-friendly venues still require financial planning; personal loans or family contributions may help cover remaining costs.

Host a Wedding at Home or in a Backyard

This could be at your own home, or that of a parent, friend, or other loved one, which will likely be one of the most affordable wedding venues around. Benefits of this choice (besides the lack of rental fees) include the flexibility to have your ceremony on just about any day of the year, plus you have a ready-made shelter if the weather isn’t ideal. By avoiding a wedding venue rental, you can stretch your savings or your wedding loan further on other expenses, such as flowers and entertainment.

Just decide how much of the event will be held outdoors, what rooms of the house should be made available to wedding guests, and how to ensure enough seating.

A couple of other perks to an at-home wedding:

•   Want a pet-friendly ceremony? It doesn’t get any better than a home wedding for having your beloved dog be your ring bearer.

•   Any home upgrades made for the ceremony can be enjoyed for a long time afterward. If your powder room could use a glow-up, you might want to concentrate your efforts there for a beautiful bathroom refresh.

Or this could be a perfect time to do some outdoor landscaping that will beautify your special day and your home for years to come. As a bonus, a project like this could add value to your home.

Check to be sure your officiant of choice is able to perform the ceremony, plan the parking logistics, find out how to comply with any noise ordinances, and so forth.

Say “I Do” at City Hall: A Cheap and Chic Wedding Venue

A city hall wedding can be a very chic choice. You aren’t restricted to the city hall or courthouse by where you currently live. You could choose one that has special significance to your relationship, perhaps the city where you first fell in love.

Or, you can get married in the city hall where you’ll enjoy your honeymoon or your family vacation. As another strategy, you can choose the city hall based on its beauty or retro architectural details. For instance, the city hall in San Francisco has a stunning white column and gold-capped roof.

The fee for a city hall wedding varies by state and municipality. Generally, it ranges from $20 to $50 or somewhat more, not including your marriage license. Call the location to learn the exact cost.

There are usually designated days and times for city hall weddings, so find out what they are in the location of your choice and how that would work in conjunction with your post-wedding celebration. Also, ask if there’s a limit to the number of wedding guests you can have, and whether you’ll be able to have bridesmaids and groomsmen, given the logistics.

Many couples like to have a special meal after, either solo or with a few friends and family members; it’s your call how to mark the big day.

Recommended: Wedding Cost Calculator With Examples

Get Married at a Park: Affordable and Scenic Wedding Venue Idea

Perhaps there are beautiful parks in your town or city full of unique flowers, landscaping, and vistas — or maybe there is one with special meaning to you, say, where the two of you went biking on a first date.

If that’s the case, you could contact the relevant parks department and find out any details about fees and permits (for instance, if you want to marry at Yosemite National Park, you’ll need a special use permit, which currently costs $150).

Some considerations:

•   How accessible is the location for guests? If it’s a small park in the center of town, it’s likely to be fairly accessible. If it’s deep in the heart of a national park system, you may need to decide how to make it practical for guests to find and attend.

•   Other concerns for a park wedding include shelter in case of rain, having enough public restrooms (are they readily available or do you need to rent portable options?), and how comfortable you are getting married in an open space.

•   You might also need to find out what the park’s policy is on receptions. Can you set up tables and have food brought in? Or serve cake and bubbly? Dream it up, brainstorm details, and get confirmation from park officials.

Recommended: Personal Loan Calculator

Plan a Budget-Friendly Beach Wedding

You might consider a beach wedding, with its possibilities for one-of-a-kind sunsets, soft breezes, and tropical drinks. As practical considerations, do you plan to have a ceremony along the ocean on a public beach or will you locate a private beach? The permits you’ll need will likely be quite different if you plan to have just your ceremony there versus if you also plan to have a beachside reception complete with food, drink, and music.

You’ll also need to create a Plan B or otherwise have shelter available if the weather doesn’t cooperate. And, where you plan to have the ceremony, geographically speaking, may help to dictate what time of year your wedding should be scheduled. For instance, for a July wedding at your favorite beach, think about how far in advance to plan summer travel.

Then figure out the final details. Do you plan to have alcohol at your reception? That often isn’t permitted on beaches, but there are some that do allow guests to imbibe. Do you want to rope off a section of the beach? Build a bonfire? Again, you might want to ask what the rules and regulations are for the beach you have in mind and be flexible about modifying plans to help make it all come together.

More Cheap Wedding Venue Ideas to Consider

The ideas above aren’t the only affordable locations to consider for your big day. Also keep the following in mind.

Local Community Centers

Depending on where you live, you may find community centers that cost just a few hundred dollars at most to use and provide the right setting for your wedding. You can also consider whether such organizations as the Lions Club, Kiwanis, or Junior League have spaces to rent. Some offer tables and chairs; others may have fully equipped kitchens.

Couples have found that with vases from a local discount store and flowers arranged by friends and family, this option can help them pull off a wedding on a budget.

College Campus Gardens

Many colleges have pretty areas where they can host weddings, whether or not you are a graduate. Research your area and see what’s available. There might also be some indoor spots with historic architectural details where you could say your vows.

Be sure you understand the guidelines, though. Some universities work with specific vendors (such as catering companies), which can wind up blowing your budget.

Airbnb or Vacation Rentals

A vacation rental can offer a spectacular wedding setting on a shoestring. You might find a charming farmhouse with a storybook garden and loads of bedrooms to house the wedding party. Or perhaps you want to rent a loft in a nearby city.

Whatever type of accommodation you are seeking, be clear up front with the owner about the purpose of your rental to make sure there are no restrictions. Some property owners don’t want gatherings in their spaces, while others are very much in the business of helping people find a place to celebrate.

Breweries or Small-Town Halls

Local businesses can often work with tight budgets to create a wonderful and memorable wedding. For example, a craft brewery may have a private area where you can say your vows and then celebrate with friends and family over an array of their beers and snacks. Some have outdoor spaces where a food truck can pull up to feed your friends and family. Don’t forget to search for nearby distilleries, too.

Many couples like the industrial vibe these spaces can have, or you might find a local lodge or other gathering space that has a quirky, cool ambience for your wedding day.

Local Family Farm

A local farm can be a fun, rustic setting for a wedding without breaking the bank. They offer beautiful countryside and often a barn where you can say your vows and dance the night away. Plenty of farmers are supplementing their business this way these days, so see what’s available. Some partner with caterers and cooks to create a farm-to-table meal as well, which could be within your budget.

Budgeting Tips for a Cheap Yet Memorable Wedding

Even when you choose a free or inexpensive wedding venue, you’ll still likely want to come up with some creative ways to save money for the food, music, drinks, flowers, photography, video, and so on. Some ideas:

•   Tap your circle of loved ones. Do you have a friend who could handle the photography or videography? That can help you save a bundle. Or could family members fill vases with flowers from a farmers market to use as centerpieces vs. hiring a florist? Could a pal’s band play, or perhaps everyone could bring a dish for a pot luck feast?

•   You can also explore different ways to help cover some of the wedding costs. For instance, a wedding loan might be an option to explore to help pay for your big day. Or perhaps your families might be able to help out financially with some of the venue-related expenses, such as catering.

•   Prioritize your spending. During a discussion with your partner, you could both try to determine who will pay for what, and how much you’re willing to spend. It could help to discuss priorities so you’re in agreement about where to splurge and where you’re willing to compromise.

If, for example, you know that having beautiful flowers is important to both of you, that could rise to the must-have category. And maybe you want to spend more on photography and less on videography — or vice versa. What’s important is that you mutually create and agree upon a plan that’s unique to you and your special day.

Financing Your Wedding

When it comes to financing your wedding, a wedding loan could be a good option for your needs. These loans are unsecured personal loans used to cover wedding costs. Rates on personal loans tend to be lower than credit card rates, and they can offer more flexibility on the term of your loan and the amount you can borrow. Plus, you’ll get a fixed rate.

Recommended: How to Apply for a Personal Loan

The Takeaway

With research and budgeting, you can find an affordable wedding venue that makes your big day wonderful and memorable. Options can include an at-home wedding or renting an Airbnb space that you love. Or you could opt for a city hall wedding, or find a park, garden, farm, or beach to provide a beautiful natural setting for your ceremony and celebration.

Even when you find an affordable venue, however, you may need help financing your wedding. That’s where a wedding loan, which is a kind of personal loan, can come into play.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.


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

FAQ

What are some cheap wedding venue ideas?

Cheap wedding venue ideas can include getting married at home, a friend’s house, a vacation rental, or city hall. Those who like to be outdoors or amid nature can consider a local farm, garden, park, or beach. Local craft breweries and community centers can be good candidates, too.

How can I find affordable wedding venues near me?

Searching online and inquiring about spaces you have seen can yield great, budget-friendly wedding venues. Asking friends and family about wedding they have attended can be worthwhile, too.

Is it cheaper to get married at city hall or a park?

Whether it’s cheaper to get married at city hall or a park will depend on the specific locations and fees you are considering. There are usually small fees involved at both kinds of locations, but consider the big picture, too. Will you want to go out to dinner with a number of friends and relatives after a city hall wedding? Would you rent chairs and hire a guitarist for a park ceremony?

Can I use a personal loan to pay for a wedding venue?

Yes, a personal loan can be used for almost any legal purpose, from paying off medical debt to financing a wedding. Some lenders offer wedding loans specially tailored to meet a couple’s needs for their big day.

What’s the average cost of a budget-friendly wedding?

A budget-friendly wedding can be defined as one that costs no more than $10,000. However, it is possible to pull off a big day for considerably less; say, for half that amount.

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

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


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2025

14 Reasons Why It’s So Hard to Save Money Today

By | Budgeting & Goals, Family Finances, money | Comments Off on 14 Reasons Why It’s So Hard to Save Money Today

There are many factors that make it hard to save money today, from the high price of groceries to the high interest rates on credit cards. Inflation. If you’re feeling a pinch, you’re not alone. It’s difficult to afford daily expenses and to save for financial goals, like having an emergency fund.

When it comes to covering a $400 unexpected expense, 37% of adults said they would have to borrow, sell something or not be able to cover the expense, according to a 2023 survey from the Federal Reserve. And emergencies can be more expensive than that $400 figure.

Beyond emergency funds, saving for other goals, like the down payment on a house or one’s retirement, are also feeling as if they are hard to achieve. These are worthwhile goals that build wealth. But how do you begin saving when everything is so expensive?

Read on to learn 14 reasons why you’re likely having trouble saving money, plus tips for how to start stashing away more cash.

Key Points

•   High inflation and rising costs for essentials groceries make saving more challenging.

•   Many adults struggle to cover unexpected expenses without resorting to credit.

•   Debt, especially from high-interest credit cards, significantly hinders the ability to save.

•   Lack of budgeting contributes to poor financial management and savings shortfalls.

•   Social pressures and lifestyle inflation can lead to increased spending, further impeding savings efforts.

Challenges of Saving Money in Today’s Economy

Here are some of the most common reasons why you may find it hard to save money.

1. Not Focusing on Paying Down Debt

Having debt is one of the reasons many people have difficulty saving money. The urge to pay it off vs. save is strong. That’s especially true if you’re carrying revolving debt, like debt from credit cards. Interest rates on these types of accounts can change, which may mean that you’re owing even more money in interest than you may have thought. Right now, the range of interest rates on credit cards is around 13% to 27%.

American household debt hit a record high of $17.69 trillion in early 2024, according to the Federal Reserve. This debt includes student loan debt, credit card debt, mortgage debt, and personal loan debt. Some of this debt can be low-interest, like many mortgages, which also help a person build equity.

The kind of debt that typically prevents a person from saving is high-interest credit card debt. Paying that down by consolidating debt with a low- or no-interest card or by taking out a lower-interest personal loan can be good solutions.

2. Budgeting is a Non-Factor

Budgeting can sound intimidating, but assigning a dollar to all aspects of your cash flow can ensure that you don’t lose track of money. Recently, the average household earned $74,580 before taxes, according to U.S. Census data. Of that money, necessary expenditures — housing, food, health insurance — ate up the majority of the money, leaving little in free cash flow.

This “free cash flow” isn’t free, of course. It’s money to be put toward paying down debt, building an emergency fund, as well as paying for extras, like vacations and nights out. Knowing exactly how much you have and tracking your spending can help you put some money into savings. Try one of the popular budgets, like the envelope system or the 50/30/20 rule (which has you put 50% of after-tax money toward needs, 30% toward wants, and 20% toward saving), to take control of your cash.

3. Trying to Impress Friends With Money

Maybe friends invite you to a pricier-than-expected restaurant and you go along, only to split the painfully expensive check. That’s an example of FOMO (Fear of Missing Out) spending, which is an update on “Keeping up with the Joneses). Or perhaps you get a bonus and blow it on a status wristwatch to feel as if you fit in with your big-spender pals.

If you feel like you’re always spending money with friends, consider ways to potentially minimize that outflow of cash. Hikes, potlucks, and checking out local events can all be ways to cut down on these costs. They are relatively easy ways to save money. Or you might go back to that budget you created (see #1) and make sure you stick to it when it comes to splurge-y spending.

4. Not Earning Enough Money

It’s important that the money you earn be able to cover all your expenses. And sometimes, when your expenses increase unexpectedly, your paycheck doesn’t stretch as far as you need. Making and sticking to a budget can help you understand how much you’re spending each month, and can clue you into increases.

For example, say your rent renews 10% above what you were paying last year or your auto insurance increases. That money needs to come from somewhere. You might consider the benefits of a side hustle. Maybe you can sell the jewelry you make on Etsy, get a weekend job at a nearby cafe, or drive a ride-share from time to time.

5. Not Having an Emergency Fund

Saving for emergencies is important for many reasons, one of which is to have an emergency fund. An emergency fund is what it sounds like: Cash that can cover an emergency, which can be anything from a blown tire to a trip to the vet to covering expenses if you were unexpectedly let go from your job. Having an emergency fund relatively liquid and easy to access in a high-yield savings account (rather than in investments) means you can tap into it relatively quickly if you were to need it.

Most financial experts advise having three to six months’ worth of basic living expenses in an emergency fund. Set up regular transfers from your checking account to fund that; even $25 a week or a month is a start. Consider putting a windfall, like a tax refund, there as well.

Earn up to 3.80% APY with a high-yield savings account from SoFi.

No account or monthly fees. No minimum balance.

9x the national average savings account rate.

Up to $3M of additional FDIC insurance.

Sort savings into Vaults, auto save with Roundups.


6. Shopping Too Much

Shopping too much doesn’t mean always filling your online cart or always having packages at the doorstep. It could just mean that you’re not being strategic about how much you’re paying. For example, buying groceries every day at a nearby gourmet grocery could be much more expensive over time than doing a weekly or bi-weekly shopping trip to a warehouse club.

Making lists, tracking items over time, and making sure you get the best price by using coupons and cash back offers are all ways that can help you save money and even have fun while doing so.

7. Inflation in Housing, Education and More

Sky-high housing prices. Rising tuition costs. And interest rates that are increasing. Inflation can make everything more expensive. This can make it challenging to figure out how much to save, especially if you’re saving for a house or putting aside money for tuition. Inflation can also make smaller things, like grocery runs, more expensive too. Overall, rising prices can make it feel difficult to save money, let alone keep your checking account where you want it to be.

Take a deep breath and remind yourself of the cyclical nature of the economy. America has had recessions, a Great Depression, and plenty of inflation before. Persevere and be money motivated: Do your best to control spending and save, if possible, 10% of your take-home earnings towards your future goals.

8. Paying for Items We Don’t Use

How much stuff do you own? Probably way more than you regularly use. And it’s not only physical stuff. Unused digital subscriptions and wasted food…all of it adds up to spending money on things we don’t need.

One quick way to get that money back: Go through your last month of bank account payments and note any money you spent on subscriptions. Chances are, there are at least one or two you either don’t use or use so rarely you can let them go without missing them. For instance, check out how many streaming channels you are paying for. It could save you hundreds of dollars a year if you lose one or two.

9. Saving Money is Not Our Priority

If you wait until the end of the month to put aside whatever you have left, chances are there’s no money left. That’s why prioritizing saving is so important. Learning to save can be a skill, and employing smart strategies can help you make sure that you keep that skill strong.

For example, you can automatically transfer money from your paycheck into savings, so you don’t see it sitting there and aren’t tempted to spend it. Budgeting apps can also be helpful to curb spending so you have more money to save.

10. Cost of Living is Rising

We’ve touched on inflation hitting the large things we’re saving for, and the small things we buy every day. Inflation is notable across so many spending categories: The World Economic Forum found that food prices increased worldwide by nearly 10% from January to April 2022 — the largest 12-month rise since 1982. This past year, they rose just 1%, but rising less swiftly of course is very different from seeing costs move lower.

There are various ways to manage this. One way to get a quick cash infusion is to sell things you have but no longer need or use. This might be gently used clothing, a laptop that’s sitting unused, or that mountain bike that is gathering dust. You can try a garage sale, Nextdoor, Craigslist, or local Facebook groups, or (if it’s something small) eBay or Etsy.

11. Spending Too Money On Social Activities

All too often, hanging out comes with a price tag. After dinner, or a show, or drinks you’ve depleted your bank account. Setting up a budget for socializing can help you spend money wisely. You might check out the restaurant in your neighborhood you’ve been dying to try when they have a reasonably priced prix fixe menu; that way, you’d still have space to save. Thinking of cheap activities and researching free things going on in your community (music, fairs, and more) can help you go out without the steep price tag.

12. Lifestyle Creep

If you’re not familiar with the expression, lifestyle creep is when increased income leads to increased spending. As your pay goes up, you may feel justified in moving up to a rental home with more amenities. You may be more likely to go to more expensive hotels when traveling and join pricey gyms. Lifestyle creep can make it tough to pay down debt, boost savings, and build wealth.

Upgrading your leisure habits when you make more money isn’t a bad thing — but it can be something to be conscious of, especially if you feel like you aren’t saving enough. This may be a good moment to pick and choose your perks. If you are moving to a more expensive apartment, say, maybe you skip that quick vacation you were thinking of taking. Or you could come up with fun ways to save money, like monthly challenges. For instance, don’t buy any fancy lattes for a month and put the money in savings. You may be surprised by how much you save.

13. Not Thinking Ahead

One big reason it’s so hard to save money is that we are so rooted in the present. It’s a real challenge to imagine our toddler needing college tuition money or ourselves being old enough to retire. It can be easier just to put those thoughts to one side for a while.

But when that happens, the opportunity for compound interest is lost. For instance, if Person A were to save $1,000 a month from age 25 to 65, accruing 6% interest, they would have more than $2+ million in the bank at age 65. If Person B saved the same $1,000 a month from age 35 onward until they turned 65, they would have about $1,000,000, or half as much!

By budgeting, planning ahead, and saving, you can have financial discipline and enjoy these kinds of results. It’s important to remind yourself to take care of tomorrow as well as today.

14. Spending Money is Easy

Whether you’re out and about or scrolling through your phone, opportunities to spend money are everywhere. You see a delicious poke bowl while running errands, or you’re looking at your friend’s baby on Instagram, and there are those vitamins everyone is talking about. Ka-ching.

It’s definitely a challenge to grow your money mindset and be able to ignore all of these temptations and focus on longer-term financial goals. Namely, saving for “out of sight, out of mind” future needs. Here’s where your budget can once again be helpful. By having a small stash of cash for fun, on-the-fly expenditures, you can treat yourself (something we all need now and then) without blowing your budget. You will likely be a more mindful and careful consumer if you know, say, that you have $25 this week for a reward.

The Takeaway

Yes, it can be hard to save money due to rising costs, high interest rates, FOMO, lifestyle creep, and other forces. But if you focus on saving money, you’ll find more and more ways to maximize the money you do have. One of the ways to do so is to look for a banking partner with low (or no) fees and high interest rates.

Take a look at what SoFi offers.

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


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

FAQ

What are the challenges of saving money?

An increased cost of living, lack of a budget, and other factors can make it hard to save. Add in temptations to spend, social pressure, and the fact that a purchase can momentarily lift your spirits, and you have plenty of reasons why saving can be challenging. The good news: A few behavioral tweaks (such as finding a budget you can really follow) can help you save money and make the most of every dollar.

Do millionaires struggle to save money?

Yes. Studies and surveys have found that even high earners live paycheck to paycheck. Fortunately, there are always ways to save, regardless of the size of your bank account. The same rules of budgeting, setting up automatic transfers into savings, and being a smart consumer can help anyone.

How do you stay motivated when it’s so hard to save money?

Motivation varies. Some people find it motivating to see their credit card balance go down, other people like to see their retirement account balance grow, and still others like to mix it up and give themselves a different saving challenge each month. The trick is finding a strategy that works for you.

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As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Eligible Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

Members without either Eligible Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, or who do not enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days, will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


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

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Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status, be residing in the U.S., and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates at the time of application and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, income, and other factors. If SoFi is unable to offer you a loan but matches you for a loan with a participating bank, then your rate may be outside the range of rates listed above. Rates and Terms are subject to change at any time without notice. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. The average of SoFi Personal Loans funded in 2023 was around $33K. Information current as of 2/26/24. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details. See SoFi.com/eligibility for details and state restrictions.

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

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