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Travel isn’t the only way to strengthen your relationship with your dad. You can spend quality time together more easily and cheaply on the couch or in the backyard. But those routine interactions probably won’t become lifelong memories.

Exploring places together, from the Grand Canyon to a cool urban landscape, can take you out of your comfort zone and pull you closer. Discovering new sights, sounds, and tastes as a unit can be a wonderful way to reconnect.

Whether you’re the parent or an adult child, here are some inspiring ideas for creating an unforgettable trip:

•   How to plan a father-son trip

•   Ways to afford a father-son trip

•   Great destinations for father-son travel

Recommended: Apply for an Unlimited Cash Back Credit Card

Tips for Planning Your Trip

A little planning can help create a meaningful father-son trip that avoids the usual travel hiccups.

•   Set up a travel fund: The first step in planning any father and son trip is establishing a budget. Add up all the projected expenses, such as flights, hotel, attractions, food, entertainment, and incidentals. Once you have that figure, divide it by the number of months until your trip.

Then start contributing that amount each month. But don’t keep the money under your mattress: Set up a travel fund. The fund can be saved in a separate savings account or a short-term CD. Setting up automatic transfers or adding “found money” (say, a tax refund or a bonus at work) can speed up your savings’ growth. Look for a competitive annual percentage yield (APY) as well to help your money grow more rapidly. Online banks tend to offer the best rates.

•   Book now and pay later: Another easy way to manage your father-son trip costs is to book now and pay later. Many travel companies, airlines, and hotels offer payment plans, so you can book your trip and spread the costs over time. This can be helpful if you want to take advantage of early booking discounts or offers. And you may be able to avoid the steep interest fees that can accrue when you put everything on your credit card.

•   Consider travel insurance: Part of smart planning can be recognizing that sometimes things don’t go your way. Events may happen before or during your father-son trip (someone gets sick, your car decides to conk out) that may cost you additional money. Did you know that your favorite rewards credit card may already include travel insurance?

Your credit card travel insurance can cover things like lost luggage, new hotels, family emergencies, and other-last minute changes. You’ll want to learn what your specific card provides. If the coverage doesn’t meet your needs, you can look into additional travel insurance if you’re worried about things going awry.

•   Reward yourself. Reward points are available from all sorts of sources, such as credit cards, airlines, car rental agencies, hotel chains, bus and train lines, and more. Do your research to see what’s available, and you may be able to whittle your costs down or even score some freebies, such as a no-pay night at a hotel. Or you might score a free flight or an upgrade. Sometimes, when it comes to credit card miles vs. cash back, you may find that the travel bonus is better than the dollar bills.

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Popular Destinations for Fathers & Sons

Beaches, baseball games, breweries, and big cities: Those are just a few of the places that can make for a terrific father and son trip. The best destination for you will depend on your shared interests and budget. And also your timing: If it’s summer travel you’re planning, heading to Orlando may be too hot for some folks.

If your family tree goes back to Ireland, a long weekend in Dublin might make an incredible experience for you two to explore your roots. Closer to home, you might rather visit sites from the Revolutionary War if you’re history buffs.

Some fathers and sons might love to go camping; others prefer to stay at a swanky hotel in a big city and eat their way through some of the town’s best restaurants. It’s really all about what makes the two of you and your relationship tick while getting you out of your usual element.

3 Sample Getaway Itineraries

Need some help figuring out where to go? Here are a few itineraries for a father-son trip that may spark some ideas or even help you get booking.

1. Natural Wonders: National Parks

National parks are an excellent, affordable choice for a father-son trip, especially if you love the outdoors. With 63 national parks in 30 states, there’s no shortage of options to choose from. Purchasing a national park pass in advance will grant you access to all parks for one year. Expect to pay between $20 (seniors) and $80 for an annual pass. One idea:

•   Utah is a popular destination for those looking to explore the jaw-dropping natural wonders of the United States. The state is home to Arches, Bryce Canyon, Canyonlands, Capitol Reef and Zion National Parks, which all have awesome, unusual vistas.

•   Whether you are renting a car or using your own wheels to take a road trip through Utah, Zion National Park is a great option for a multi-day father and son trip. You can reserve a campsite at Watchman Campground; a free shuttle bus can take you to one of the many trails, where you can spend quality time birdwatching one of the 200 species at the park. Father and son evenings can be spent stargazing, as Zion is certified as an International Dark Sky Park.

•   Other activities include hiking the Emerald Pools Trail and driving 90 minutes to visit Bryce Canyon National Park, which is known for its unique, otherworldly rock formations called hoodoos. You can explore the park by foot or even by horseback.

2. Hit a Grand Slam: Stadium Trip

For fathers and sons who share a love of sports, a baseball trip can be an excellent choice. With over 2,400 MLB games per season played at 30 ballparks, there are plenty of opportunities to catch a couple of games and try some tasty stadium foods.

If you want to catch a couple of games at different stadiums, look no further than a father and son trip to Kansas City and St. Louis. (Bonus: With St. Louis being a travel hub, you’ll have many opportunities to use your favorite airline credit card and earn points.)

•   Start in St. Louis. After getting settled at your hotel, go visit the renowned Gateway Arch, where you can ascend inside and catch views of St. Louis.

•   Head down to Ballpark Village for a little pregame snack (maybe a Bratzel, a bratwurst wrapped in pretzel dough) and watch highlights on their many outdoor screens. Then enjoy the game at the adjacent Busch Stadium as well as the amazing cityscape views inside the stadium.

•   Another highlight of a father-son trip could be the Negro Leagues Baseball Museum which celebrates the rich history of African-American baseball while touching on the league’s social impact.

•   Hop behind the wheel and drive 250 miles to catch another game at Kansas City’s Kauffman Stadium. With its unique Crown scoreboard and 1970s architecture, it is recognized as one of the game’s best experiences.

•   You can hit up fan favorite Joe’s Kansas City Bar-B-Que for their famous, finger-lickin’-good food.

3. Make Family History: A Historical Father-Son Trip

For the history buffs, consider a historical father and son trip to Washington, D.C. With its abundance of museums, monuments, and government buildings, this city has something for everyone.

•   After you’ve checked into your lodging, you might take an evening monument tour that showcases the city’s stunning landmarks under glamorous lighting. There are both guided and self-guided tours, which are a great, affordable way to visit the sites without a lot of driving.

•   The next day, start with one or more of the city’s world renowned museums, such as the Smithsonian National Air and Space Museum, the Holocaust Museum, the National Portrait Gallery, or the National Museum of Asian Art.

•   You might spend an afternoon at Mount Vernon, the home of George Washington. Both self-guided and guided tours are available where you can learn about the life of our first President.

•   Another great stop on a father-son trip would be driving a little more than two hours to Gettysburg, PA, for their annual Civil War Reenactment. Walk through the different camp sites, explore the battlefield, and take in the sights and sounds of this historically accurate event.

Recommended: How to Save Money on Hotels

Accessible Ideas for Less Mobile Dads

For fathers and sons who may be less mobile, there are still plenty of trip options.

•   There are cruises and riverboat vacations that let you relax on board your ship and take in the sights.

•   Train travel can be another option, especially historic scenic railroads along the West Coast or through the Carolinas and Great Smoky Mountains.

•   Tours in your area can make for a fun father-son trip, too. The Oregon Fruit Loop, near the Hood River, brings visitors to 30 farms with fruit stands and wineries. This unique experience allows you to choose the time and pace you spend at each stop while spending quality time in the car together.

What About Father-Daughter Getaways?

Family bonding doesn’t have to be just for the guys in the family. For those looking for fun father-daughter getaways, as with father-son trips, it’s all about your shared interests. Beach lovers can spend a couple of days by the shore. Or if snowboarding is more your speed, head to the mountains. Can’t resist a musical or some other live theater? Try a visit to NYC and some Broadway shows.

For dads of younger daughters, Disney vacations can be a treat, or a weekend that revolves around a visit to one of the nine American Girl stores can be a great bonding experience.

The Takeaway

A father-son trip can be a fantastic way to have some quality time and make amazing memories. What’s more, by planning ahead, budgeting wisely, and knowing how to find good deals, you can have an experience that’s as affordable as it is unforgettable.

Whether you want to travel more or get a better ROI for your travel dollar, SoFi can help. SoFi Travel is a new service exclusively for SoFi members that lets you budget, plan, and book your next trip in a convenient one-stop shop. SoFi takes the guessing game out of how much you can afford for that honeymoon, family vacation, or quick getaway — and we help you save too.

Photo credit: iStock/VioletaStoimenova

¹See Rewards Details at SoFi.com/card/rewards.


**Terms, and conditions apply: This SoFi member benefit is provided by Expedia, not by SoFi or its affiliates. SoFi may be compensated by the benefit provider. Offers are subject to change and may have restrictions, please review the benefit provider's terms: Travel Services Terms & Conditions.
The SoFi Travel Portal is operated by Expedia. To learn more about Expedia, click https://www.expediagroup.com/home/default.aspx.

When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of SoFi Member Rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.

While credit scores and credit histories don’t merge when you get married, there are some scenarios when your spouse’s credit can impact yours, and vice versa. That said, you may wonder if your union spells good or bad news for your credit. Your three-digit credit score can be an important factor in borrowing money at the best possible rate, among other aspects of your financial life.

So, in a world where many people are trying to establish their credit scores, how might adding a spouse to a credit card build credit? Could it wind up bringing both of you down? Adding your spouse as a co-borrower can indeed have an impact depending on how responsibly you use a particular financial product. And beyond being added to a credit card, there are ways that you and your beloved might team up to build credit.

Read on to take a closer look at this situation, including:

•   If I add my spouse to my credit card, will it help their credit?

•   Does adding your spouse as a co-borrower affect my credit?

•   What are some ways to help my spouse build credit?

Can Adding Your Spouse as a Co-Borrower Affect Your Credit Score?

Co-borrowing for a mortgage, car loan, personal loan, or credit card with your significant other may impact your credit score. These are major financial moves, and here are the ripple effects they may trigger:

•   If you’re applying jointly from the get-go, and your spouse has the lower of the two credit scores, it could hinder the approval of your application or lead to lower loan amounts and less favorable rates and terms.

•   If, however, you have the lower credit score between the two of you, adding your spouse as a co-borrower can boost your odds of getting approved. Plus, it might enhance the amount, rates, and terms for that line of credit or loan for which you are applying.

•   Keep in mind that when you apply as co-borrowers or add your spouse as a co-borrower on a credit card or line of financing, you are legally bound to manage the account, and you’re both financially responsible. That means you’re both on the hook for making payments on the credit or loan, no matter who did the spending.

•   Payment history on the account will be reported to the credit bureaus on both your respective credit profiles. If payments are missed or late, it will negatively impact both your credit scores. And if you stay on top of payments, it can help you both build credit from scratch. This holds true whether you are both initially applying as co-borrowers or whether one spouse adds the other as a co-borrower.

Recommended: What Happens to Credit Card Debt When You Die?

How Can Cosigning Affect Your Credit Score?

So does adding a spouse to a credit card affect your credit score? As you’ll see, just as there are pros and cons of joint bank accounts and other shared financial arrangements, so too can cosigning have upsides and downsides.

•   If you’re adding your spouse as an authorized user on your card, it won’t immediately impact your credit. Nor will the credit card issuer be required to run a credit check on your spouse.

•   However, when you cosign on a credit card or loan (that is, become a co-borrower), both parties are responsible for making payments. If one struggles financially, falls behind on payments, or the account goes into collection, both individuals are legally on the hook to make those payments.

•   If the above situation occurs, it will most likely hurt the credit of both parties. Conversely, if the account holders stay on top of their payments, it can help build credit.

10 Ways in Which You Can Help Your Spouse Build Credit

Adding your significant other as an authorized user to your credit card or signing up to be a loan or credit card cosigner aren’t the only ways your spouse can build credit. Here, 10 other tactics to consider.

1. Authorized User

As mentioned, adding an authorized user to your credit card account doesn’t impact your credit in the slightest. And if you practice responsible credit card use and habits, your spouse, as an authorized user on your card, could benefit.

Worth noting: It’s not just your spouse who can be added to your account. You could add a friend, family member, or employee as an authorized user to your account. Depending on the credit card issuer, you may be able to add multiple people.

For instance, the SoFi credit card allows you to add up to five authorized users. Plus, having others make purchases on your credit card can help you earn rewards.

2. Secured Credit Card

Your spouse might build credit via a secured credit card. These cards may look like a conventional card but they work differently and give the lender an additional layer of security. You put down a refundable deposit, which is usually the same amount as your credit limit. For instance, if you put down $250, that is your credit limit is $250. If you’re new to credit and building credit from scratch, these cards can be helpful if used responsibly because activity is reported to the credit bureaus.

3. Joint Credit Account

Joint credit cards are held in two people’s names, with two people being able to make charges and liable for the debts. If you sign up for a joint credit card, you can build both of your credit scores, provided you stay on top of your payments. (Of course, if you fall behind, both of your credit scores would likely dip.) However, these accounts can be a challenge to find; most lenders prefer extending credit to a single individual.

Recommended: Is a Joint Bank Account Right for You?

4. Applying for a Small Loan

If you’re looking for a financing option to help build credit, consider a loan with a small amount. That way, you gain the benefit of establishing credit, plus the debt repayment will be manageable and you can pay it off quicker. You might look at credit unions and online lenders, where personal loans are available for $250 and up.

5. Applying for a Credit Builder Loan

A credit builder loan is a short-term personal loan created with the primary intention of helping someone establish credit. Typically, you borrow a low sum generally up to $1,000, with repayment terms from six to 24 months. In this kind of loan, the funds aren’t disbursed to you when you are approved. Rather, they are typically placed in an interest-earning savings account or CD for you while you make payments. You might think of it as a structured savings plan. At the end of the term, the money plus any interest is yours, and your payment history is reported to the credit bureaus, hopefully building your score.

6. Applying for a Secured Personal Loan

A secured personal loan works in a similar fashion to an unsecured loan. You receive a single lump sum upfront and are responsible for monthly payments. But you’ll need to back up it with a valuable asset, such as a home or car. Should you struggle with keeping up with payments, the lender will be able to collect on your collateral to pay back the loan. Again, this is a way to build a credit score if you handle the repayment responsibly.

Secured personal loans usually have less stringent credit requirements, so are easier to get approved for when you’re new to credit.

7. Reviewing Credit Reports Together

It may not be as fun as heading out to try the new ramen place, but making a date to review one another’s credit reports together can be a valuable use of a couple of hours. It can help you spot errors to be corrected by contacting the credit bureau. It can also allow you to brainstorm together about ways to optimize your respective credit scores. You can order free reports from each of the three credit bureaus at AnnualCreditReport.com .

For instance, maybe your partner has a history of late or missed payments. In that case, they can build their score by staying on-time with their payments. And perhaps you realize your credit card balance is growing rapidly and you need to investigate debt consolidation to remedy the situation.

8. Engaging in Money Management Discussions

Just as you might discuss your dreams for exotic travel and starting a family, you and your mate should hash out financial goals and how money management plays into helping you achieve your aspirations. You can tackle such issues as whether to have joint bank accounts vs separate bank accounts in marriage, prioritizing your financial plans, and more.

You might also both read financial blogs or listen to podcasts to boost your financial literacy.

9. Get Educated About Credit

About that reading and education: It can also be wise to drill down on the basic rules of credit and how to use credit responsibly. In turn, this learning might be able to help you establish credit with greater ease and more quickly.

10. Establishing and Sticking to Budgets

Your credit score can reflect how well you are handling your inflow and outflow of funds. As you contemplate your credit, take a look at how you can better allocate funds to pay down debt and pay bills on time.

If you’re not sure where to start, consider popular budgeting methods such as the 50-30-20 rule, the zero-sum budget, and the envelope system.

The Takeaway

Credit files are built individually, and getting married won’t combine your credit scores and profiles. However, if you want to help your spouse build credit or establish your own, there are smart moves you can make. Options can include credit builder loans, secured credit cards, and secured personal loans.

As you build good credit and move ahead with your financial life, picking the right credit card is an important decision. The SoFi Credit Card can be a terrific option, with 2% cash back rewards on every eligible purchase. Plus, you’ll enjoy free credit monitoring and our app that makes it easy to check your balance and pay bills.

FAQ

Will adding my spouse to my credit card build our credit?

Adding your significant other as an authorized user can help build their credit if you both use the account responsibly.

Does my spouse affect my credit score?

Your credit score is tracked and reported individually. So your spouse’s financial behaviors and credit history won’t impact yours. But if you apply for a line of credit or loan jointly, then your respective credit scores can impact getting approved for loan and what terms and rates you’ll get.

What happens if I have a good credit score, but my spouse doesn’t?

If you have a solid credit score and your spouse doesn’t, when you apply as co-borrowers on a line of credit or loan (such as a personal loan, car loan, or mortgage), the spouse with the lower credit score could gain access to more favorable perks.

On the flip side, if your spouse has a poor credit score, it could hurt the odds of you getting approved for financing or credit with the best terms and rates — or you might get denied outright.

Photo credit: iStock/PeopleImages

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

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

SoFi Credit Cards are issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.


¹See Rewards Details at SoFi.com/card/rewards.

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.

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Have you ever wondered how much it costs to raise a child from birth to 18?

Are you sitting down?

Based on consumer surveys and other data, most estimates these days put the price of parenting just one child at $300,000 or more.

Your costs may vary significantly, of course, depending on where you live, your income, your marital status, and other factors. But it’s probably safe to say that raising a child to college age — and beyond — can deal a real wallop to the budget.

Read on for a breakdown of some of the costs prospective parents can expect.

How Much is the Cost of Raising a Child?

It’s hard to find an “official” calculation for the cost of raising a child.

For many years, parents and prospective parents could get an idea of the costs they faced from the Expenditures on Children by Families report published annually by the U.S. Department of Agriculture. But the USDA stopped updating the report in 2017, so the most recent information is for a child born in 2015.

Back then, the USDA estimated the cost of raising the younger of two children in a middle-income home with married parents would be approximately $233,610 in 2015 dollars.

Today, that number is a bit higher. A 2022 analysis conducted by the Brookings Institution found that parents can expect to spend at least $310,000 raising a child who was born in 2015. That’s for food, shelter, and other necessities, but not college, which for most students starts at age 18 or older.

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What Are Some Average Costs for Raising a Child to 18?

In 2015, the USDA divided the major infant-through-high-school expenses into the following categories:

•   Housing 29% of income

•   Food 18% of income

•   Child care and education 16% of income

•   Transportation 15% of income

•   Health care 9% of income

•   Miscellaneous 7% of income

•   Clothing 6% of income

But remember, those are the USDA’s numbers for one child in an average household with two kids, and those percentages have likely shifted in the past few years. You might end up with a similar allocation, or, based on your own circumstances and priorities, one that’s far different.

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Factors That Can Influence the Cost of Raising a Child in 2023

How much you pay to raise your family may be largely influenced by where you decide to live. In 2022, a mortgage payment was 31% of the typical American household’s income, based on data gathered by Black Knight. But that percentage may look different if you reside in a city or town where housing costs are much cheaper or far more expensive than average.

Child-care costs may vary widely as well, depending on the age of your child and the type of care you choose. Unless you can get Nana and Grandpa involved, be prepared for a hefty bill: 51% of parents who responded to Care.com’s 2022 Cost of Care Survey said they spent more than 20% of their household income on child care every year.

And those costs may not go down when a child reaches school age if he or she attends private school. According to the Education Data Initiative, the average annual tuition among the nation’s 22,440 private K-12 schools was $12,350 in 2021.

Your miscellaneous costs may also be different if your child is involved in sports or other activities that require expensive equipment, camps, or lessons.

Add to that potential healthcare costs, which could depend on the type of insurance you have and your child’s individual needs.

How to Budget for Baby

Considering all the costs involved, it may make sense to start transitioning your budget long before a baby actually arrives. Here are some things to consider if you decide to adjust your household budget categories to fit your growing family:

Stick to Your Savings Goals

You’ve probably heard it a thousand times: A baby will change your life — and your priorities. Still, your own financial security can help determine your child’s future, so it can help to stick with your savings goals, like building an emergency fund (you may need that money more than ever once you have a child), putting money away for a mortgage down payment, and investing for retirement. Then, if you still have room in your budget, you might consider including a 529 education savings account or some other type of investment plan for your child.

Pay Down Debt

The last thing you’ll want to worry about when you have a new baby is old debt. Paying interest on credit cards and other debt can eat away at any extra money you’re hoping to save for or spend on your child. A debt reduction plan like the popular snowball and avalanche strategies can help you focus on methodically dumping your debt and getting it done ASAP.

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Be Ready for First-Born Expenses

Just having a baby can be expensive. In 2022, the Peterson-KFF Health System Tracker estimated that the health costs associated with pregnancy, childbirth, and postpartum care for women enrolled in large group insurance plans came to almost $19,000 on average, and average out-of-pocket payments were almost $3,000. Then there’s the crib, car seat, clothes, formula, diapers, and other things you’ll need when you bring your baby home.

If you can adjust your budget to get ready for those upfront and monthly costs, you may have a better shot at keeping up with expected and unexpected bills later on.

Preparing for Changing Costs

Your budget is bound to evolve as your child gets older. The money you spend on diapers and formula in the first years will go toward buying new shoes, clothes, toys, team uniforms, and other expenses later on. (Maybe buying a car? Putting multiple kids through college? Paying for a wedding? Who knows?)

The good news is, these days, you can use a spending app to track exactly where your money is going and decide where you want it to go. So if your kiddo comes home from school one day and wants to switch from playing soccer to playing the piano, you can quickly rework your budget categories and see where you stand.

Can You Afford to Be a Parent?

Of course your beautiful baby will be worth every penny of the $300,000 (give or take) you’ll be spending over the next 18 years. Still, you may want to keep your financial readiness in mind as you think about when to have a baby.

Besides the basic costs, raising a child also can affect your finances if you decide to do in vitro fertilization (IVF), take an unpaid maternity leave, buy a more “reliable” car or a bigger home, or go part-time at work so you can be home after school.

Any planning you can do in advance and as you go to minimize the financial blow can benefit you and your child. (Not to mention the example it will set down the road, when you’re teaching your child about money management.)

Potential Opportunities to Save

Figuring out how to save money while raising kids isn’t easy. But there are some spending categories over which you can have some control, including:

Purchase Goods Secondhand

Kids grow out of everything so quickly. Borrowing some items from friends and family, or buying things secondhand, could be a big money-saver. If your sister wants to lend you her perfectly good (and safe) crib or car seat, let her! And don’t underestimate the quality and cuteness of the clothes you can find for little ones at yard sales, consignment shops, or online. There also may be bargains to be had when shopping for secondhand sports equipment and musical instruments.

Get Help with Child Care

There may be several ways you can save on child-care costs, including forming a co-op with other parents and taking turns watching each other’s children, or asking nearby family members to help out on a full- or part-time basis.

Embrace Meal Planning

When your kids get older, it may be tempting to stop for fast food on busy nights, especially if you don’t have any idea what you’re going to serve for dinner. By planning ahead, you may be able to reduce your grocery costs, the number of trips to the grocery store, and unplanned visits to the closest hamburger joint.

Cut Household Expenses

While you’re adjusting your budget for baby, think about little things you can do to cut down on spending and expenses. Could you adjust your thermostat to save a few bucks every winter and summer? Will you have time to watch all those cable channels and streaming services with a child in the house? Or can you clean the pool yourself, cut the grass, or wash your own car?

Find Free and Cheap Family Activities

Every activity you plan for your child doesn’t have to come with a big price tag. Going around the block with your kid in a stroller, wagon, or on the back of a bike can be the best kind of free fun. Want to see a movie? Check out the price of a matinee or other discounted screenings. Or buy a bottle of bubbles or a small swimming pool for a good time in the backyard.

The Takeaway

At $310,000, the estimated cost of raising a child from birth to 18 may be daunting. But if you plan in advance for those first major costs — and adjust your budget for changing priorities as your child grows — it may be easier to manage your finances during this exciting, expensive time in your life.

Using a money tracker app can be a good place to start. SoFi lets you know right where you stand, including what you spend and how to reach your financial goals.

FAQ

How much does it cost to raise a child in 2023?

Parents could expect to spend around $310,000 or more raising a child who was born in 2015, according to a 2022 analysis conducted by the Brookings Institution. Note that the cost of raising a child can vary significantly depending on where you live, your household income, your child’s health, and other factors — including if you’ll be paying for college, a wedding, or other big-ticket items.

How much do you spend on a child before they turn 18?

The cost of raising a child can vary from one household to the next, based on many factors. But it’s been estimated that the bill for an average U.S. family raising a child to 18 (without college) could be $310,000 or more.

How much money should you save for a baby?

The more you can put away before you have a baby, the better prepared you can be. Some things to focus on might include setting up or adding to your emergency fund, continuing to make contributions to your retirement plan, and, if you hope to move to a bigger home, coming up with the necessary down payment.

Photo credit: iStock/JohnnyGreig

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.

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

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

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

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Car insurance underwriters look at many factors — such as age, gender, and location — when determining the risk a driver poses. To help you understand what you can expect to pay, we break down the average cost of car insurance by age and state, and other factors that may push your premiums higher or lower.

What Is the Average Cost of Car Insurance?

According to the National Association of Insurance Commissioners, the average car insurance premium per vehicle is $1,204, or $100.33 per month. The rate you’ll end up paying will depend on various factors such as your driving history, age, gender, and the age and make of your vehicle. If you’re currently paying much more than average, don’t switch car insurance without first talking to your carrier.

If you need to brush up on the difference between premiums and deductibles, check out our roundup of common car insurance terms.

Recommended: Does Auto Insurance Roadside Assistance Cover Keys Locked in a Car?

Average Car Insurance Rates by Age and State

One thing is consistent: The older you are, the less you’ll pay for car insurance, all else being equal. As you’ll see in the table, location also plays a large role in setting premiums, though the pattern isn’t as clear. One variable that should not affect your premium: whether you get your insurance through a brick-and-mortar office or online insurance company.

Below is the annual average cost of car insurance by age in every state. For monthly cost, divide the annual amount by 12.

Recommended: How to Get Car Insurance

Factors That Affect Car Insurance Rates

There are a few factors that are within your control when it comes to insurance rates, and many that aren’t. The major factors include:

•   Your driving history

•   Age

•   Location

•   Age and model or your vehicle

•   Number of drivers on your insurance policy

•   Discounts you can take advantage of with your insurer

•   Your deductible

•   Type of coverage

For a deep dive into the process of selecting a carrier, see our story on how to get car insurance.

Recommended: How to Lower Car Insurance

How Age Affects Your Car Insurance Rates

Car insurance companies use your age to estimate driving risk. Statistically, younger and new drivers tend to get into accidents more frequently than older and experienced drivers. Once you hit 65, however, you’re again considered a risky driver because you become more likely to get into a car accident and be injured.

That said, age isn’t the only factor that affects your car insurance rates.

Age vs Location

Your location typically has as much of an effect as your age on car insurance premiums.

Age vs Vehicle Type

In most cases, vehicle type will affect younger drivers more than older or more experienced drivers. If your car is of higher value or has a higher likelihood of being stolen, your premiums may be higher.

Age vs Gender

While gender does have an effect on rates, not all states allow insurance companies to use this as a determining factor. For states that do, men generally pay more compared to women, with greater disparities among younger drivers.

Age vs Driving Record

Your driving record will affect your premium more than your age. If you have negative marks on your driving record, you’ll see your rates go up, especially for serious violations like a DUI.

Age vs Credit Score

In many states, companies aren’t allowed to use your credit score when determining your premiums. If you live in a state that factors in credit score, that usually won’t have as much of an effect as your age.

In states where credit score is used, some insurance companies will rerun your credit check and discount your rate if your score has improved. However, they won’t normally increase your premium if your score has gone down.

Recommended: How Much Does Insurance Go Up After an Accident?

How Gender Affects Your Car Insurance Rates

Many insurance companies consider your gender when setting your premium. According to data analysis from the U.S. Department of Transportation, men are found more likely to be involved in fatal car crashes, especially younger men. Because of this risk, premiums are usually higher for men than women.

Recommended: How To Save on Car Maintenance Costs

List of No-fault States

No-fault insurance laws mandate that every driver involved in an accident must file a claim with their insurance company, no matter who was at fault. Plus, all drivers need to purchase personal injury protection (PIP) as part of their minimum insurance coverage. PIP typically covers medical bills and lost wages due to an accident.

The 13 states and territories that have no-fault laws are:

•   Puerto Rico

•   Florida

•   Michigan

•   New Jersey

•   New York

•   Pennsylvania

•   Hawaii

•   Kansas

•   Kentucky

•   Massachusetts

•   Minnesota

•   North Dakota

•   Utah

Minimum Coverage Requirement Laws

Each state has its own minimum car insurance requirements. When purchasing a policy, you’ll need to meet those requirements. Most insurance carriers know what these are and will help you choose coverage that meets them.

While you’ll most likely need bodily injury liability and property damage as part of your insurance requirements, the coverage amount may differ. Some states also require PIP coverage and uninsured/underinsured motorist coverage.

For more on different coverage requirements, see our guide to how much car insurance you really need.

Ways to Save with Auto Insurance Discounts

Many insurance companies, in an effort to attract customers, offer discounts to qualifying drivers. A common discount is the “multiline,” where you are able to lower your car insurance premiums by bundling multiple policies. Other discounts include paying for your premium in full upfront, signing up for electronic delivery, and safe driver discounts. Contact your insurance company to see what they offer.

Bundling discounts are a good reason to schedule regular personal insurance planning sessions to review all of your coverage and find the best deals.

The Takeaway

Understanding the factors that affect insurance premiums can help drivers anticipate costs and budget for this necessary expense. The biggest factors affecting car insurance premiums are age and location. Some factors, like vehicle make and gender, are more of an issue for younger drivers. Knowing which factors are within your control may help you lower your premiums. Maintaining a clean driving record and asking about discounts are two ways to keep premiums down.

A great way to find the going rates for car insurance in your area is to shop around online. SoFi auto insurance helps you compare companies within minutes, saving you time and hassle.

FAQ

How much does the average American pay for car insurance per month?

The average American pays $100.33 per month for a car insurance premium.

At what age is car insurance most expensive?

Around age 16. Typically, car insurance for first-time drivers is the most expensive.

Is insurance cheaper once you are 25?

The older you are, the more your insurance premiums tend to drop because you’re perceived as a more experienced driver. Of course, premiums also depend on other factors such as your driving history and vehicle type.

Photo credit: iStock/Tatyana Kochkina

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

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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Homeownership is expensive, no matter what type of property someone owns. And the cost of homeowners insurance can vary greatly depending on where someone lives, the size of the home, and the type of insurance.

If you’re debating whether you can afford to buy a single family home or a condo, make sure to factor in condo insurance vs. homeowners insurance costs. Keep reading for the full lowdown.

What Is the Difference Between Homeowners Insurance and Condo Insurance?

The difference between homeowners insurance vs. condo insurance is fairly straightforward. Both protect homeowners financially, but the policies differ in the scope of their coverage. (Neither policy should be confused with mortgage insurance, which is totally different)

Homeowners insurance protects most of the property someone owns (inside the home, outside the home, and the surrounding area). Condo insurance protects only the interior of the home. Because multiple condos share one building, the exterior and area around the condo are the responsibility of the homeowners association (HOA) master insurance policy.

You can learn more about both types of coverage by shopping around with online insurance brokers.

How Does Dwelling Coverage Differ for Home Insurance vs Condo Insurance?

When it comes to homeowners vs. condo insurance, how dwelling coverage works varies:

•   Homeowners insurance: Dwelling coverage is based on how much it might cost to completely rebuild the home.

•   Condo insurance: How much dwelling coverage is needed is based on what the HOA master policy covers. For example, some master policies may cover select interior structures (like drywall or ceilings) or the entire interior.

Recommended: First-Time Home Buyer’s Guide

How Does Liability Coverage Differ?

For liability insurance, coverage needs can also be different for condos and homes.

•   Homeowners insurance: Liability coverage extends to the entire property (inside and outside the home).

•   Condo insurance: Covers accidents that happen inside the condo.

How Does Personal Property Protection Differ?

Personal property protection works similarly whether someone has a homeowners policy or a condo policy. This type of coverage is designed to protect the policyholder’s belongings from damage and theft. HOA master policies don’t include this coverage, so condo owners need to make sure they purchase it. Both homeowners and condo owners can benefit from personal property protection.

Cost of Homeowners and Condo Insurance by State

To get a better idea of what each type of insurance costs, let’s look at the average condo insurance vs. homeowners insurance costs by state.

As with most insurance, you can lower your premiums by choosing a higher homeowners insurance deductible.

Condo Insurance vs Homeowners Insurance Cost

Once someone is ready to buy homeowners insurance or condo insurance, price is likely top of mind. When it comes to the average condo vs. homeowners insurance cost, homeowners is $1,680 per year and condo is $429 per year.

Types of Condo Insurance

There are a few types of condo insurance to be aware of:

•   Personal property. When someone has personal property protection, they can be reimbursed for the cost of repairing or replacing their belongings, such as clothing and electronics, up to a certain amount.

•   Loss of use. If the owner needs to leave their condo to stay in a hotel during repairs after a covered incident occurs, loss of use coverage can help pay for things like hotel stays and dining out.

•   Liability. Liability coverage can help out if the condo owner is legally responsible for damage or injuries caused to someone else due to an accident that occurs in their condo.

•   Dwelling. This type of coverage steps in to pay for replacing or repairing everything in the condo unit (starting from the drywall in) after a covered loss.

•   Loss assessment. If an accident occurs in a shared area of a condo’s property (like the pool, stairs, or clubhouse), then the HOA master policy is the first line of defense. However, if damages exceed the amount that this policy will cover, then the residents may end up responsible for covering the remaining costs, which is where loss assessment coverage can come to the rescue.

Recommended: The Difference Between Homeowners Insurance and Title Insurance

Condo Insurance Benefits

While the HOA does have some insurance coverage that protects parts of condo units, residents really need to have their own condo policies to make sure they’re fully protected. The benefits of condo insurance are many, from covering repairs to replacing belongings after a break-in to paying medical bills after a guest slips and falls.

Condo owners who are still unsure what sort of policy to choose may benefit from reading How Much Home Insurance Do I Need?

Types of Homeowners Insurance

These are the main homeowners policy options:

•   HO-1: Only dwelling protection. Also known as hazard insurance.

•   HO-2: Includes personal belongings and extra perils on top of basic coverage.

•   HO-3: Includes dwelling, belongings, and liability coverage. This is the most popular type of coverage.

•   HO-4: Applies to policyholders who rent out their home and want liability and personal property coverage.

•   HO-5: This is a comprehensive policy that usually applies to brand-new homes and comes with extra coverage.

•   HO-6: The term HO-6 is another way of saying condo insurance.

•   HO-7: This type of coverage is for mobile homes.

•   HO-8: Robust coverage for older and historical homes.

It’s always possible to change homeowners insurance policies if someone decides they want more coverage.

Homeowners Insurance Benefits

The type of homeowners policy someone has influences the benefits of their policy. Generally speaking, the point of this insurance is to financially protect homeowners from disastrous events that can destroy a home, but it can also protect against theft and liability.

If you have a mortgage, homeowners insurance may be required by your lender.

The Takeaway

If someone owns a home or a condo, they need some type of insurance coverage to protect themselves from financial hardship. Homeowners policies typically include dwelling coverage for the building itself, while condo policies do not. Both cover the contents of the home, and may include liability coverage too. The average annual cost of a homeowners policy is $1,680, while the average annual condo policy is $429.

If you need a new homeowners policy, you can turn to SoFi. We teamed up with Experian to deliver homeowners insurance built for the 21st century — without brokers. Policies are customizable, and getting a quote online takes just minutes.

FAQ

What is the key difference between a homeowners and a condo policy?

The main difference between condo and homeowners insurance coverage is what each type of insurance protects. Condo insurance only protects the interior of the condo whereas homeowners insurance protects the entire property including the outside of the home and the land around it.

Which type of property insurance coverage is more expensive?

Generally homeowners insurance is more expensive (average cost of $2,777 per year) than condo insurance (average cost of $759 per year). That being said, the location, size, and repair cost of the property can lead to a condo being more expensive to insure than a single family home.

What’s the difference between HO3 and HO6?

An HO3 policy protects a single family home with dwelling, belonging, and liability coverage. An H06 policy on the other hand is designed for condo owners to protect the inside of the condo, as well as providing belonging and liability coverage.

Photo credit: iStock/miniseries

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

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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