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College is more expensive than ever, making it more important for college students to determine ahead of time whether their degree is worth the cost. Math degrees are often worth the cost as they allow alumni to pursue many lucrative careers.

Math majors can be mathematicians, but they can also pursue analytical professions. Many of those career paths lead to high-paying jobs, but some pay more than others. Salaries depend in large part on the type of math degree you have and the career path you choose.

What Is a Degree in Math?

A degree in math is one that students earn by studying various mathematical disciplines, such as algebra, calculus, statistics, set theory, and stochastics. Math majors might also study applied mathematics, which is more theoretical in nature.

Those who earn math degrees develop the analytical skills necessary to solve real-world problems. The problem-solving skills that math students learn is one of the reasons they do well in fields beyond mathematics itself.

There are many types of math degrees that can lead to an even greater number of career paths. This has led to a slate of fast-growing fields for math program graduates, some of which make a math degree well worth it.

What Kinds of Math Degrees Are There?

Students who want to pursue a math degree have options throughout the post-secondary education system, ranging from associate’s degrees to doctoral degrees.

Associate Degree in Math

An associate degree in math is one that students can often complete in two years or less. These degrees are often earned at community colleges and usually require about 60 credit hours.

Associate degrees in mathematics are a great way for math majors to start their academic journey. Those who earn associate degrees in math often enroll in four-year colleges; credit hours from associate degree programs can be transferable to four-year math degree programs.

Bachelor’s Degree in Math

A bachelor’s degree in math is an undergraduate degree that provides training in both applied and core mathematics. These are generally four-year degrees requiring 120 credit hours.

Students will be expected to analyze and solve problems, construct mathematical solutions, and apply mathematical solutions to real-world problems. Students can pay for these degrees with undergraduate loans.

Master’s Degree in Math

A master’s degree in math is a graduate-level degree that may offer more specialized training in mathematics. These degrees usually take about two years to complete and prepare you for a career in either a teaching position or an industry job.

It may involve basic courses in real analysis and linear algebra. Later, you may complete fundamental courses such as probability, scientific computing, and differential equations. Students can pay for these degrees with graduate loans.

Doctoral Degree in Math

A doctoral degree in mathematics is typically a Ph.D. program that takes five to six years to complete. There might also be graduate school requirements that students must complete, plus a residency.

The curriculum for a doctoral degree might involve courses in the areas of algebra, analysis, and topology. There are also exams, a dissertation, and a thesis to complete.

Are Finance and Math Degrees the Same?

Math and finance degrees are both analytical in nature, and both math and finance majors are likely to engage in quantitative analysis as a part of their professions. Despite the overlap in skills, though, the two degrees are not the same.

Both math and finance majors might enroll in introductory mathematics courses, such as calculus I. But beyond the basic courses, the two majors usually diverge. Math majors will learn more complex mathematical theory, while finance majors’ curricula will be more focused on business.

What Jobs Can You Get With a Mathematics Degree?

One of the best things about mathematics degrees is the number of career paths that may follow. Mathematics majors can be math teachers or mathematicians, but they can also have several other types of roles.

Computer and Information Research Scientists

Computer and information research scientists find ways to use new and existing technology. They study and solve complex problems in business, science, medicine, and other fields.

Physicists

Physicists study the interactions of matter and energy. They might design and perform experiments with sophisticated equipment such as particle accelerators, lasers, or electron microscopes.

Actuaries

Actuaries analyze the financial costs of risk and uncertainty. This makes them essential to the insurance industry. They use mathematics, financial theory, and statistics to assess the risk of potential events.

Mathematicians and Statisticians

Mathematicians and statisticians analyze data, applying computational methods to solve practical problems in the areas of business, engineering, science, and other fields. They develop mathematical or statistical models to analyze data.

Mathematics College Professors

Mathematics college professors teach courses around mathematical concepts, statistics, and actuarial science. They also teach courses on the application of mathematical techniques in solving specific problems.

Mathematics High School Teachers

Mathematics high school teachers plan and teach math lessons to students in secondary education. Their primary responsibilities include grading assignments and quizzes and tracking students’ progress.

What Is the Average Salary if You Have a Math Degree?

Math occupations had a median annual wage of $98,680 in May 2021, according to the Bureau of Labor Statistics. However, some math majors earn more than others.

For example, actuaries have a median pay of $105,900, while mathematicians and statisticians have a median of $96,280. Not only that, but actuaries also need just a bachelor’s degree for entry-level positions, while mathematicians and statisticians need at least a master’s degree.

Ways to Pay for a Math Degree

Much like other types of degrees, there are multiple ways to pay for a math degree. That includes financial aid, merit-based scholarships, 529 plans, and more.

Financial Aid

Financial aid is one of the most common ways to pay for college. Grants vs. scholarships vs. loans are three large umbrellas of federal financial aid. Grants and scholarships are both considered gift aid which students are typically not required to repay. Federal student loans do require repayment.

Federal student loans have many benefits for borrowers, such as income-based repayment (IBR) plans and public student loan forgiveness (PSLF). To apply for financial aid, students will need to fill out the Free Application for Federal Student Aid (FAFSA®) yearly.

Merit-Based Scholarships and Grants

There are thousands of scholarships and grants that may be available to students pursuing a math degree. These scholarships range from amounts of just a few dollars up to covering the entire cost of college.

One of the biggest benefits of scholarships and grants is that unlike student loans, they usually don’t have to be repaid. While “merit-based” often refers to academic merit, it can be based on other criteria, such as athletics or leadership.

With so many scholarships available, you may want to leverage a combination of resources to find relevant opportunities. For example, you contact your school’s financial aid office and check with federal and state agencies. The U.S. Department of Labor also has a scholarship search tool available.

529 Plans

529 plans are college savings plans sponsored by a state or state agency. These plans are investment accounts that offer tax benefits and can cover qualifying education expenses such as tuition and textbooks.

529 plans are often opened by parents to save for their children’s future college education, but anyone 18 and over can open an account. You can even open an account for yourself and still take advantage of the tax benefits they offer.

Personal Savings

Personal savings is always an option when paying for your math degree. While it isn’t “free money” like a scholarship or grant, personal savings can help in some situations.

For example, certain expenses don’t qualify for the tax benefits of a 529 plan, such as entrance exams and test prep. You might decide to use your personal savings for non-qualified expenses and reserve your 529 for qualified expenses.

Private Student Loan

Private student loans are available from private financial institutions. You can qualify as long as you meet certain requirements, such as being enrolled in an eligible school and meeting credit and income criteria. Private student loans may offer lower interest rates for qualifying borrowers than federal student loans but may also lack some of the protections that federal student loans offer.

The Takeaway

Math degrees remain an excellent choice for anyone starting college as they are highly valued in sectors such as finance and tech, in addition to mathematics. Those pursuing a math degree can earn degrees ranging from associate degrees up to doctoral degrees.

However, college is expensive and most of us need help covering the costs. SoFi private student loans are one option. There are rate discounts, a six-month grace period, and absolutely no fees. You can even repay your student loans using rewards points.

Find out if you qualify for a no fee student loan from SoFi in just a few minutes.

FAQ

What can you do with a mathematics degree?

Math degrees allow people to pursue careers not only as mathematicians and teachers but also as actuaries, physicists, and computer scientists.

What are degrees in math?

Math degrees allow students to study and apply concepts learned in mathematical disciplines such as algebra, calculus, and statistics. In doing so, students learn analytical skills they can apply in solving real-world problems.

How can I pay for a math degree?

There are many ways to pay for a math degree, including scholarships and grants, federal and private student loans, and 529 plans.

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Photo credit: iStock/bob_bosewell
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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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There is no one right path to take in life and that includes how someone decides to pursue an education after high school. Attending a four year university isn’t necessarily the best option for some and they may want to consider other options that can help them prepare for a fruitful career.

Let’s examine how trade school vs community college works for prospective students considering those options.

What Is Community College?

Community colleges serve their local community by offering affordable higher education options that can either lead to transferring to a four year university, obtaining an Associate of Arts (AA) or Associate of Science (AS) degree, learning a trade, or finding personal fulfillment by taking a class or two for fun.

Students may also choose to attend community college before transferring to a university to pursue a Bachelor of Science (BS) or Bachelor of Arts (BA) degree because doing so can save them a lot of money on tuition by transferring course credits from their community college to a university.

How It Works

Students who attend community college can choose from a wide variety of classes to take. Some may focus on academic courses so they can earn lower division credits that can transfer to a four year university. Others may decide to pursue technical certificates that prepare them for specific career paths. Or a student can take a mix of both styles of classes. One major benefit of community college is that the classes are affordable, so students can test out different areas of interest.

What You Learn and How You Learn It

What a student learns and how they learn it at a community college depends on the types of classes they choose to take. For example, a student pursuing lower division credits that transfer to a university may take a math or English class in a traditional classroom setting that involves lectures, homework, and exams. A student pursuing a career as an auto mechanic would instead take classes that combine lectures and homework with hands-on learning opportunities in an auto mechanic workshop setting.

What Is Trade School?

Trade schools are a type of school that students can attend if they are interested in focused training programs that can prepare them for a specific skilled trade or industry. Students work towards developing technical abilities such as operating, building, fixing, and maintaining mechanical systems.

Some examples of careers that can follow trade school include:

•   Welder

•   Construction worker

•   Auto mechanic

•   HVAC technician

•   Blacksmith

•   Electrician

It’s worth noting that some community colleges offer training in similar subjects to trade schools.

How It Works

Some trade schools focus on a specific training program, such as plumbing, whereas other trade schools may offer multiple training programs like HVAC and welding training. Even if a trade school offers multiple areas of study, they generally don’t overlap and each program has its own curriculum and teachers.

What You Learn and How You Learn It

At trade schools, students learn specialized trade skills that prepare them for mechanical careers, such as working as a construction worker or blacksmith. This type of education requires attending lectures and studying course materials, but also more hands-on demonstrations and training.

Trade School vs Community College

To better understand how a trade school vs. community college works, it helps to understand the similarities and differences of these two options.

Similarities

When it comes to trade schools vs. community colleges, these are some of the similarities these two types of schools can have.

•   Learning environment. Because community colleges offer similar courses to trade schools, both take a hybrid approach when it comes to trade subjects like HVAC repair. Students tend to learn these skills in both a classroom and workshop setting.

•   Timeframe. While some community college degrees can take as long as two years to earn (such as with an AA), the technical training programs at a community college are still more in line with how long it takes to graduate from a trade or technical school (usually a year) whereas a university takes four years to complete.

Differences

Of course, there are also some community college vs. trade school differences worth being aware of.

•   Course options. Even though community colleges do offer trade courses, they also offer academic courses — with instruction taking place entirely in a classroom — with the aim of helping students transfer to a four year university.

•   Cost. Usually, trade schools cost more to attend than a community college. Though, this may vary based on factors like the type and length of the program.

Pros and Cons of Trade School

Now let’s examine the pros and cons of attending trade school.

Pros of Trade School	Cons of Trade School
Specific career training	Training is usually limited to one career path
Many programs only take a year	May be more expensive than community college
Less expensive than a four year degree	Students don’t earn academic credits that can transfer to a university
Flexible schedules that accommodate students with families and who work

Pros and Cons of Community College

Before attending community college, some students may want to consider the benefits and disadvantages of doing so.

Pros of Community College	Cons of Community College
More affordable than attending a four-year college	Credits don’t always transfer
Students can live at home	Lack of socializing opportunities
Easier acceptance than at four-year schools

Choosing for Yourself

After comparing the trade school vs community college pros and cons, prospective students can make a decision about which path forward seems like the best fit for them based on their personal and professional goals, financial situation, and lifestyle. Thinking about what career they want to pursue and which education option can prepare them for that career is a great place to start.

The Takeaway

Again — there is no one right education path to pursue. While some may be set on earning a Bachelor’s degree and may find that community college is a great stepping stone for them, others may feel that a trade school can adequately prepare them for the career of their choice. In some cases, community college can prepare a student to further their academic career or to work in a trade, but trade schools also offer specialized training programs that some prospective students may find appealing.

Community college students may be able to qualify for federal student aid to help them pay for their education. Students who face funding gaps, might consider private student loans. Though, keep in mind these loans don’t offer the same protections as federal student loans.

If private student loans seem like a fit for your financial situation, consider SoFi. While SoFi’s private student loans aren’t available to community college students, they could be an option for those transferring to a four year program.

3 Student Loan Tips

1.    Can’t cover your school bills? If you’ve exhausted all federal aid options, private student loans can fill gaps in need, up to the school’s cost of attendance, which includes tuition, books, housing, meals, transportation, and personal expenses.

2.    Even if you don’t think you qualify for financial aid, you should fill out the FAFSA® form. Many schools require it for merit-based scholarships, too. You can submit it as early as Oct. 1.

3.    Would-be borrowers will want to understand the different types of student loans peppering the landscape: private student loans, federal Direct subsidized and unsubsidized loans, Direct PLUS loans, and more.

Private student loans from SoFi loans have zero-fees and qualifying borrowers can secure competitive interest rates.

FAQ

Do community college or trade school graduates make more?

Because community college and trade schools both offer degrees and certificates that lead to mechanical jobs, graduates of both types of schools stand to earn the same income. Some students who pursue a higher education after community college, such as a bachelor’s, master’s, or doctorate degree can have increased earning potential.

Which trades that you learn at trade school pay the best?

There are many trades that pay well, but a few of the best paying trade jobs include working as a transportation, storage and distribution manager (median annual salary of $98,230), an elevator/escalator installer and repairer (median annual salary of $97,860), and a nuclear power reactor operator (median annual salary of $94,970).

Is trade school or community college cheaper?

When it comes to the cost of community college vs trade school, generally community college costs less to attend on an annual basis ($3,800 per year for tuition and fees) than trade school ($5,000 to $15,000 for three to 18 months), but students may need to attend community college longer than trade school, which can make the costs rise.

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

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

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

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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How America shops is shifting in a fundamental way.

Shoppers are turning to discount stores such as Dollar Tree, ALDI, and Big Lots more often, driven largely by spiking inflation, which peaked at 9.1% in June 2022. These days, shoppers are increasingly asking themselves, Why pay more? as they place a higher premium on value.

According to SoFi’s Discount Shopping Survey of 1,500 consumers fielded in August 2023, 81% of respondents are currently shopping at discount stores at least monthly, regardless of their income level.

Surely, the impetus may vary:

•   For many, discount stores are a vital tool when sticking to a tight budget.

•   For others, it might be a way to find splurges, both large and small, at the right price.

Still, though circumstances may vary, a whopping 78% of respondents are laser-focused on snagging the lowest possible prices for items on their list.

While shoppers may have been swayed by ambience and amenities at stores in the past, now it’s all about getting top value for every hard-earned dollar. Sticking to — and stretching — one’s budget is the new black. Also worth noting: Among the ranks of discount shoppers are high-earners pulling in six figures.

SoFi’s proprietary research found intriguing and unexpected facts about just who’s hitting the discount stores, what they are hunting for at these retailers, and why the face of shopping may never be the same again.

Where the Buyers Are: 74% of Respondents Dropped Into Dollar Tree

Curious about which discount retailers are topping shoppers’ lists? According to SoFi’s Discount Shopping Survey, almost three-quarters (74%) of discount shoppers have dropped into a Dollar Tree, where the motto is “Extreme Value Every Day,” over the past year.

It isn’t just those living paycheck to paycheck who are shopping at Dollar Tree:

•   64% of the survey’s highest earners (households bringing in $150,000+) say they’ve bought items at Dollar Tree in the last 12 months.

Discount shoppers are also looking elsewhere to find where the best buys are. Over the past year:

•   65% have shopped at Dollar General

•   42% at Five Below

•   41% at ALDI

•   38% at Big Lots

•   37% at T.J. Maxx

•   35% at Ross Dress for Less

•   35% at Marshalls

Where else are moneywise shoppers queuing up? It turns out that 22% have shopped at HomeGoods, while one in five (20%) has rung up items at brand-name outlets (Nordstrom Rack, for instance).

Discount Stores: The New Social Media Darlings

Reflecting their new status as many shoppers’ go-to destination, discount stores are accumulating hefty followings. As of September 2023, the stats are:

•   ALDI USA has 955K Instagram followers; 184K on TikTok

•   Dollar Tree has 675K Instagram followers; 76.6K on TikTok

•   Five Below has 706K Instagram followers; 214.3K on TikTok

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81% Discount-Shop at Least Once a Month

People aren’t just hitting the discount shops for an occasional find. Rather, SoFi’s discount shopping research uncovered that these retailers are quickly gaining traction as routine destinations for shoppers.

•   81% of respondents shop at discount stores at least once a month.

•   38% — practically four out of ten people — shop at discount stores weekly.

•   14% of respondents say you’ll find them shopping at discount stores several times a week. (These may be people who are saving money daily with their shopping habits.)

Compelling find: Close to half of high-income earners (those making $100,000+ a year) say they shop at discount stores at least weekly.

Inflation Surge Drives Shoppers to Discount Stores

If you’re wondering why discount shopping is surging, consider the economic state of our union. After inflation rates fell month after month for a solid year, July 2023 saw an uptick in prices that surely set some people on edge. (Inflation in July 2023 increased 3.2% from July 2022.)

What’s more, the cost of living is soaring. Social Security recipients enjoyed a cost of living adjustment (COLA) to the tune of 8.7% in 2023, one indicator of how steeply the price of, well, everything has been rising.

Indeed, consider this:

•   Nearly two-thirds of discount shoppers (63%) say inflation and rising costs have prompted them to shop at discount stores over the last 12 months.

•   In addition, nearly half of discount shoppers have ramped things up, with 49% saying they are hitting discount stores more frequently than they did before the inflation surge.

When it comes to defending one’s paycheck against price hikes, bargain-hunting is a smart maneuver. ”Inflation is real for just about all of us,” says David Bakke, a consumer finance expert and writer at personal finance blog Dollar Sanity. “My discount shopping has definitely increased. I find myself spending a lot more time at ALDI, Dollar General, and the like.”

Indeed, inflation is making over the way Americans shop. SoFi’s discount shopping data shows this significant stat:

•   40% of respondents say they “always” search for ways to save on their purchases when shopping.

•   Only 2% said they never search for ways to save.

Here are some of the leading tactics discount shoppers have used to cut costs:

•   41% have used couponing websites.

•   40% have subscribed to company emails.

•   31% have followed a company or brand on social media.

•   21% have joined a Facebook group or other online community.

•   18% have followed an influencer on social media who talks about discount shopping.

More Than Half Discount-Shop to Benefit Their Budget

In these challenging economic times, many consumers are embracing budgeting as a way to manage their finances. Almost six out of 10 discount shoppers (58%) say one of the biggest benefits of shopping at discount stores is the ability to stick to a budget.

This holds true for 62% of those with household incomes under $75K, as well as 46% of those pulling in $100K or more.

Other reasons to love these retailers? SoFi’s discount shopper respondents said:

•   Regular availability of discounted products (47%)

•   The convenience and accessibility of discount stores (46%)

•   The ability to find trendy or seasonal items at lower prices (45%)

Another shopping pattern that SoFi’s discount shopping survey uncovered: A significant number of discount shoppers are making most of their purchases from these lower-priced retailers:

•   36% make more than 50% of their purchases at discount stores.

•   Almost one in 10 (9%) of those with household incomes of $150,000 or more do more than 75% of their shopping at discount stores.

First on the Discount Shopping List: Groceries

It’s no secret that food prices can trigger sticker-shock, and that’s not just for luxuries like a pumpkin spice latte. Overall, food prices are ratcheting up 5.9% this year, per the USDA’s numbers, which may explain why consumers are hitting the low-cost stores for items they might otherwise buy at a standard supermarket.

According to the SoFi discount shopping research, groceries are the most common purchase made by discount shoppers: 78% buy groceries at discount stores.

And no wonder: These stores often have an array of staples and snacks, from coffee to cookies, and some are putting a health spin on things, as with Dollar General’s “Better for You” selections. Shopping at discount stores can be a solid way to save money on food.

“I shop at discount grocer ALDI,” says Melissa Cid, consumer savings expert with MySavings.com. “Chips, peanuts, cookies, yogurt, and ice cream are 25% to 50% cheaper than at traditional grocery stores.”

After food, the next most popular items:

•   Fashion and apparel: 58%

•   Beauty and skin care: 49%

•   Home decor: 40%

11% Splash Out When Discount Shopping

Think shoppers are only grabbing cereal, socks, and a bottle of shampoo? Not necessarily.

Yes, many people are hunting for lower-priced essentials at the discount stores, but super-low prices are also leading to big-ticket purchases, for some. According to SoFi’s survey:

•   11% of discount shoppers say the most expensive item they’ve purchased at a discount store in the past 12 months cost $250 or more.

Here is what shoppers say are some of the priciest items they purchased at a discount store:

•   18% say it was a fashion/apparel item.

•   16% say it was an electronic item.

•   13% say it was a home decor item.

“Tech gadgets and home essentials top the list of items that I purchase from discount stores,” explains Thomas Paddock, an Amazon FBA Six-Figure Seller and the founder of Learn Retail Arbitrage, an online selling resource. “These categories often carry substantial markups in conventional retail outlets. Discount stores can offer high-quality items at a more
reasonable cost.”

There is, however, a bit of a gender gap when it comes to shopping for certain items at discount stores:

•   36% of men have purchased electronics vs. 27% of women.

•   67% percent of women have made clothing purchases vs. 44% of men.

•   Nearly 3x as many men (22%) have made sports/outdoor purchases vs. women (8%).

Finding Fashion at Discount Shops? Yes, Says Gen Z

The SoFi discount shopping stats reveal that 67% of young people (aged 16-24) have purchased fashion and apparel items at a discount store within the last year.

Given that Gen Z is broadly recognized as the first digitally native generation, it’s probably no surprise that social media may have led many of them to these style purchases:

•   30% of respondents aged 16-24 have followed an influencer on social media who talks about discount shopping, vs. 18% of total respondents.

And the presence these retailers have on social media channels is significant. On Instagram, as of September 2023, T.J. Maxx has 2+ million followers, Nordstrom Rack has 1+ million followers, and Ross Dress for Less has 537K followers. All three have tens of thousands of followers on TikTok.

Almost 50% of Shoppers Seek Seasonal Wares

Seasonal and holiday shopping is (very) big business in the U.S., with Halloween spending, for instance, totalling $10.6 billion in 2022.

“Here today, gone tomorrow” items are part of the allure of discount stores, where goods can be found at a rock-bottom price. Consider these numbers from the SoFi survey:

•   45% of discount shoppers say one of the biggest benefits of discount stores is the availability of lower-priced trendy or seasonal items.

•   65% of discount shoppers are hunting for clearance or end-of-season items.

•   70% of women look for clearance and end-of-season deals at discount stores vs. 56% of men.

More Than Half of Discount Shoppers Spend Serious Time Bargain-Hunting

The new wave of smart shoppers are dedicated bargain-hunters. They will invest hours to get a great deal. In fact, more than half (51%) will spend between one and three hours extra to find savings or specific items at discount stores. A dedicated 4% are willing to spend five hours or more. (Of these, 63% have a household income of less than $50,000.)

Discount Shoppers Also Prioritize Availability

Low prices are the leading reason for the popularity of discount shopping, but availability of desired products is another big incentive:

•   52% head to these retailers for the specific items they know they can find there.

Whether it’s a favorite energy bar or shower gel, items that are part of a person’s usual shopping list are a big draw for discount shoppers.

This is especially true of the deep-pocketed respondents to the SoFi survey. Why spend top-dollar on your favorite matcha beverages or other small luxuries when you can buy them for much less?

•   60% of the highest earners (household income of $150,000 or more) say one of the reasons they shop at discount stores is for specific items they know they can find there.

There are a good number of impulse buyers among the aisles though:

•   Almost one in five (19%) discount shoppers say they don’t go to the stores looking for any particular item. Rather, they “go in without a plan and buy things that speak to them.”

As for the rest of the respondents to SoFi’s survey:

•   More than half of discount shoppers (51%) say they know what they need when they go to a discount store, but are open to buying items not on their list.

•   More than a quarter (26%) say they buy what they need and exit ASAP.

•   Only 3% say they just browse and rarely actually purchase anything.

And the Biggest Frustration With Discount Shopping Is…

Obviously, there is much to love about discount shopping, as detailed above. But, yes, there are a couple of pain points. Here, the two biggest downsides:

•   38% of discount shoppers say the items they want aren’t always available. That suggests that consumers would buy even more at these retailers if they could find everything they are hunting for.

•   22% say that the biggest downside is that the items are of a lower quality.

It seems that getting what you want, when you want it, may matter even more than an item’s quality.

That said, Thomas Paddock of Learn Retail Arbitrage contends that you can find good quality if you shop smart. “Contrary to general assumptions, not every item in a discount store is of inferior quality. Many times, these are overstock products or emerging brands,” he says. “Discount stores can be an avenue to discover value.”

The Takeaway

As inflation increases, shoppers of all income levels are finding that discount stores can serve their needs. Of the 1,500 consumers surveyed for SoFi’s Discount Shopping Survey in August 2023, 81% say they are visiting discount stores (think Dollar Tree, ALDI, and Five Below) at least once a month. Popular purchases are food, fashion, personal care, and home decor items.

What frustrates discount shoppers when seeking their budget buys? Lack of availability first and foremost, followed by lower quality of some goods.

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

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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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These days, you can insure almost anything. Did you know, for example, that Julia Roberts has insurance for her teeth, and before Daniel Craig filmed a James Bond movie, he insured his entire body? While you probably don’t need to insure any of your body parts for millions of dollars, you might find yourself wondering when you should buy life insurance, or whether renter’s insurance is really necessary.

To help you decide on the right type and amount of coverage, we’ve broken down which kinds of insurance you will most likely need (other than health insurance, of course).

1. Life insurance

Life insurance is about more than just financing your funeral. It also allows your family to keep paying the bills if something happens to you.

People often think they don’t need life insurance if they don’t have dependents. But if you have debt such as student loans that someone has co-signed, your life insurance can be used to pay off your loans.

It’s common for employers to offer life insurance as part of their benefits package, but it’s worth noting that the life insurance your employer offers may not be enough, especially if you have dependents. Ideally, your life insurance payout should be enough to invest and yield returns that could replace your income annually. For example, if you assume that you’ll get a 5% return on the money you invest, you would need $1 million in coverage to replace a $50,000 income.

Here’s an overview of some of the most common life insurance options you might consider.

Term Life Insurance

Term life insurance is the simplest and most common form of life insurance. It covers your life for a specific period of time, and pays only if your death occurs during the term. This timeframe is typically anywhere from one to thirty years, the longer the term the higher the premium. Term life insurance can be more affordable than other types of life insurance.

💡 Quick Tip: Term life insurance coverage can range from $100K to $8 million. As your life changes, you can increase or decrease your coverage.

Whole Life Insurance

Whole life insurance covers you for your entire life. If you make consistent payments toward your policy, you’ll build a cash reserve for your family upon your death.

Universal Life Insurance

In exchange for premiums, universal life insurance can provide coverage for as long as the policyholder is alive, and some policies also accrue cash value. When the policyholder dies, their beneficiaries typically receive a tax-free death benefit in the amount specified by the policy.

Indexed Universal Life Insurance

Indexed universal life insurance (IUL) gives policyholders the option to put money towards either a fixed account or an equity index account. Index accounts with universal life policies often include well-known indexes and can be a good option if you’d like to accumulate tax-deferred cash as well as maintain a set amount of money in a fixed account.

2. Disability Income Insurance

Disability income insurance, also referred to as disability insurance, replaces a portion of your salary if you become disabled. Some employers don’t offer disability insurance, but even if yours does, you may want to consider a supplementary policy to top up the amount that you receive.

Depending on the policy, disability insurance kicks in when you become partially, completely, temporarily, or permanently disabled. Keep in mind that there is often a waiting period before benefits start, which could range from one month to a year, depending on your policy and whether you have short-term or long-term disability insurance. The longer the waiting period on your policy, the cheaper your premiums often are.

If you have to take a job that pays less because of a disability, some policies may pay you part of the difference.

Note that disability insurance is expensive, often between 1% and 3% of your salary, and many organizations offer it as a benefit. If you’re evaluating offers between two employers, it’s worth factoring in how valuable this type of insurance is to you.

3. Long-Term Care Insurance

If you’re considering a nursing home, day care, home health aide, or other type of long-term care, be prepared to pay. A Genworth survey found that the average price of a private room in a nursing home is $9,034 a month. A typical assisted living facility charges around $4,500 a month, while a home health aide runs $5,148 a month.

To ensure you can foot the bill, the American Association for Long-Term Care Insurance recommends buying a policy in your mid-50s to qualify for the best premiums. Benefits kick in when someone isn’t able to take care of everyday activities or suffers from severe cognitive impairments. Policies vary by the specific level of impairment, the type of services provided, and the length of time the covered person lives after becoming impaired.

Depending on your policy, your benefits may not start until up to 90 days after impairment, and some may require that you receive paid care in the meantime.

Recommended: 8 Popular Types of Life Insurance for Any Age

4. Car Insurance

If you own or lease a car, car insurance is a must. But there are different kinds to consider.

Collision and comprehensive insurance will cover damage to your car and can help replace it if it’s been stolen.

Liability insurance covers you if you get sued after causing an accident. There are three maximum liability limits you can get in a car insurance policy: bodily injury per person in a given accident, bodily injury for all injuries in a given accident, and personal property damage in a given accident. Each state requires different insurance minimums by law.

However, you may want higher limits than the minimum. You may be able to save money on collision and comprehensive coverage by getting a higher deductible of $500 or $1,000. If you drive a car that’s worth less than $1,000, you may want to consider dropping collision and comprehensive, though you’ll still need liability.

💡 Quick Tip: Saving money on your fixed costs isn’t always easy. One exception is auto insurance. Shopping around for a better deal really can pay off.

5. Homeowners or Renter’s Insurance

Homeowners insurance covers damages to your home or theft of personal possessions. It also includes liability insurance to cover accidents that happen on your property. However, it excludes things like floods, earthquakes, and the (hopefully unlikely) event of war.

You should have at least enough insurance to cover the replacement value of your home and possessions. This usually means getting guaranteed (or extended) replacement cost coverage. That’s different from actual cash value coverage, which covers you for the current value of your possessions.

If you’re renting instead of buying, renter’s insurance is similar, but only covers your possessions and personal liability for damages. It’s worth having in case you leave the water on and accidentally flood your kitchen. The minimum deductible for tenant or homeowner’s insurance is usually $500, but according to the Insurance Information Institute, raising the deductible could save you money.

One important element for both of these is liability insurance. This helps protect you against lawsuits, and covers things like people slipping and falling on your property. One hundred thousand dollars of liability coverage is a fairly standard amount.

Recommended: How Much Homeowners Insurance Do You Need?

6. Umbrella Liability Coverage

Umbrella coverage is essentially extra liability insurance, and most importantly, it protects you and your assets in the event of a lawsuit. It covers you beyond the limits of your car or home liability coverage. For example, umbrella coverage will protect you from libel, slander and false imprisonment.

Often it is more economical to get an umbrella policy rather than getting excess home or car liability coverage. It’s a good idea to coordinate car, home, and liability coverages. After all, you wouldn’t typically have a $100,000 deductible on your umbrella policy if your car and homeowner’s insurance have $100,000 of coverage.

The first $1 million in umbrella coverage typically costs about $150 to $300 a year, which is often less than what most people would pay for additional coverage in that amount. As your income grows and you accumulate assets, you may want to consider raising the limit.

The Takeaway

Insurance can offer peace of mind and a degree of financial security. But the type and amount of coverage you need will depend on a number of factors, including your lifestyle, health, budget, and financial goals.

When the unexpected happens, it’s good to know you have a plan to protect your loved ones and your finances. SoFi has teamed up with some of the best insurance companies in the industry to provide members with fast, easy, and reliable insurance.

Find affordable auto, life, homeowners, and renters insurance with SoFi Protect.

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Photo credit: iStock/urbazon

Insurance not available in all states.
Experian is a registered service mark of Experian Personal Insurance Agency, Inc.
Social Finance, Inc. ("SoFi") is compensated by Experian for each customer who purchases a policy through Experian from the site.

Coverage and pricing is subject to eligibility and underwriting criteria.
Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers- for further details see ladderlife.com. All insurance products are governed by the terms set forth in the applicable insurance policy. Each insurer has financial responsibility for its own products.
Ladder, SoFi and SoFi Agency are separate, independent entities and are not responsible for the financial condition, business, or legal obligations of the other, Social Finance. Inc. (SoFi) and Social Finance Life Insurance Agency, LLC (SoFi Agency) do not issue, underwrite insurance or pay claims under Ladder Life™ policies. SoFi is compensated by Ladder for each issued term life policy.
SoFi Agency and its affiliates do not guarantee the services of any insurance company.
All services from Ladder Insurance Services, LLC are their own. Once you reach Ladder, SoFi is not involved and has no control over the products or services involved. The Ladder service is limited to documents and does not provide legal advice. Individual circumstances are unique and using documents provided is not a substitute for obtaining legal advice.

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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Knowing what your discretionary income is (and how to calculate it) can help you make decisions about how to best repay your federal student loans. The U.S. Department of Education calculates discretionary income as your adjusted gross income in excess of a protected amount.

The “protected amount” is typically a percentage of the federal poverty guideline appropriate to your family size. The Saving on a Valuable Education (SAVE) Plan, for example, defines discretionary income as any adjusted gross income you have above 225% of the federal poverty guideline appropriate to your family size.

When it comes to individuals who are considering repaying federal student loans with the SAVE Plan or any other income-driven repayment (IDR) plan, discretionary income can be a major factor in how much they’ll owe each month. That’s because the federal government typically uses a borrower’s discretionary income to determine their monthly payments.

Below we’ll discuss different IDR plans and the ins and outs of discretionary income, so you can figure out a repayment strategy that works for you and your budget.

What Is Discretionary Income?

As mentioned above, the Department of Education calculates discretionary income as your adjusted gross income in excess of a protected amount defined by a federal IDR plan.

Discretionary income under the SAVE Plan, for example, is any adjusted gross income you have above 225% of the federal poverty guideline appropriate to your family size. You’ll have a $0 monthly payment under the SAVE Plan if your annual income doesn’t exceed the protected amount of $32,805 for a single borrower and $67,500 for a family of four in 2023.

If you don’t qualify for a $0 monthly payment on the SAVE Plan, your monthly payment beginning in July 2024 will be set at 5% of discretionary income for undergraduate loans, 10% for graduate loans, and a weighted average if you have both.

Discretionary income as defined by the Education Department is different from disposable income, which is the amount of money you have available to spend or save after your income taxes have been deducted.

How Is Discretionary Income Calculated?

Here’s how federal student loan servicers may calculate your discretionary income:

•   Discretionary income under the SAVE Plan is generally calculated by subtracting 225% of the federal poverty guideline from your adjusted gross income (AGI).

•   Discretionary income under the Income-Contingent Repayment (ICR) plan is generally calculated by subtracting 100% of the federal poverty guideline from your AGI.

•   Discretionary income under the Income-Based Repayment (IBR) and Pay As You Earn (PAYE) federal IDR plans is generally calculated by subtracting 150% of the federal poverty guideline from your AGI.

If you’re filing jointly or you have dependents, that will impact your discretionary income calculations. For married couples filing together, your combined AGI is used when calculating discretionary income. Under an income-driven plan, filing with a spouse can drive up your income-driven monthly payments because of your combined AGI.

So, let’s say you’re in a one-person household and have a 2023 AGI of $40,000. If you are considering the SAVE Plan, you would subtract 225% of the 2023 poverty guideline ($32,805), to get an official discretionary income of $7,195. Monthly, that is a discretionary income of about $600, and your monthly payment beginning in July 2024 will be set at 5% of discretionary income for undergraduate loans, 10% for graduate loans, and a weighted average if you have both.

Borrowers are generally expected to make required loan payments when due. The 2023 debt ceiling bill officially ended the three-year Covid-19 forbearance, requiring federal student loan interest accrual to resume on Sept. 1, 2023, and payments to resume in October 2023.

💡 Quick Tip: Ready to refinance your student loan? You could save thousands.

What Income-Driven Repayment Plan are You Eligible For?

There are four federal IDR plans that have different eligibility criteria and terms. These income-driven repayment plans can reduce monthly payments for people with incomes below a certain threshold.

It should be noted that federal IDR plans don’t apply to private student loans. They’re only an option for federal student loans.

Income-Driven Repayment Plans for Federal Student Loans

The federal Department of Education offers the following four IDR options for eligible federal student loan borrowers:

•   Saving on a Valuable Education (SAVE) Plan

•   Pay As You Earn (PAYE) Plan

•   Income-Based Repayment (IBR) Plan

•   Income-Contingent Repayment (ICR) Plan

All IDR plans generally use discretionary income to determine monthly payments. So, if there is a change in a borrower’s income or family size, their monthly payment could increase or decrease, depending on the change. Borrowers enrolled in an income-driven repayment plan are typically required to recertify their income and family size each year.

The SAVE and ICR plans are open to anyone with eligible federal loans. Under these two repayment plans, the amount owed each month is always tied to a borrower’s discretionary income. This could mean that if an individual’s income increases over time, they may end up paying more each month than they would under the 10-year Standard Repayment Plan.

For the PAYE and IBR plans, eligibility is determined based on income and family size. As a general rule, to qualify, borrowers must not pay more under PAYE or IBR than they would under the 10-year Standard Repayment Plan. Under these plans, the amount owed each month will never exceed what a borrower would owe under the Standard Repayment Plan.

Pros and Cons of Income-Driven Repayment Plans

IDR plans come with trade-offs. While they can lower your monthly payment and help free up your cash flow now, they may extend the life of your loan. The standard student loan payoff plan is based on a 10-year repayment timeline. An income-driven repayment plan can extend your payment timeline to up to 25 years.

This means you’ll be paying off the loan longer and possibly paying more in interest over time. If you stay on an income-driven repayment plan, the government might forgive any remaining balance after 20 or 25 years of payments — or as little as 10 years for SAVE Plan enrollees with original principal balances of less than $12,000. But the amount that is forgiven may be taxed as income.

How Does Discretionary Income Affect Student Loan Payments?

Income-driven repayment plans generally use your discretionary income to dictate the amount you’re required to repay each month. In the case of borrowers enrolled in the SAVE Plan, any required payments beginning in July 2024 will be set at 5% of discretionary income for undergraduate loans, 10% for graduate loans, and a weighted average if you have both.

Recommended: How Is Income Based Repayment Calculated?

How Else Can Borrowers Lower Their Student Loan Payment?

Another potential way for borrowers to reduce their student loan payment is by refinancing student loans. When you refinance your student loans, you take out a new loan with new terms from a private lender. The new loan is used to pay off your existing student loans.

Depending on your financial profile, refinancing could result in a lower interest rate or a lower monthly payment depending on which terms you choose. You may pay more interest over the life of the loan if you refinance with an extended term.

Refinancing federal student loans with a private lender also forfeits your access to federal IDR plans, Public Service Loan Forgiveness, and Teacher Loan Forgiveness.

💡 Quick Tip: When rates are low, refinancing student loans could make a lot of sense. How much could you save? Find out using our student loan refi calculator.

The Takeaway

The government uses discretionary income to calculate your federal student loan monthly payments under a qualifying IDR plan. The SAVE Plan may not provide the lowest monthly payment for eligible borrowers with high salaries.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

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SoFi Student Loan Refinance
If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans.

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

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.

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

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

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