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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.

Recommended: Traveling with a Pet

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.

SoFi Travel can take you farther.

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Photo credit: iStock/VioletaStoimenova

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

SoFi cardholders earn 2% unlimited cash back rewards when redeemed to save, invest, a statement credit, or pay down eligible SoFi debt.

**Terms, and conditions apply: 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.
Eligibility: You must be a SoFi registered user.
You must agree to SoFi’s privacy consent agreement.
You must book the travel on SoFi’s Travel Portal reached directly through a link on the SoFi website or mobile application. Travel booked directly on Expedia's website or app, or any other site operated or powered by Expedia is not eligible.
You must pay using your SoFi Credit Card.
SoFi Member Rewards: All terms applicable to the use of SoFi Member Rewards apply. To learn more please see: https://www.sofi.com/rewards/ and Terms applicable to Member Rewards.
Additional Terms: Changes to your bookings will affect the Rewards balance for the purchase. Any canceled bookings or fraud will cause Rewards to be rescinded. Rewards can be delayed by up to 7 business days after a transaction posts on Members’ SoFi Credit Card ledger. SoFi reserves the right to withhold Rewards points for suspected fraud, misuse, or suspicious activities.
©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender. NMLS #696891 (Member FDIC), (www.nmlsconsumeraccess.org).

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.

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

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

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Travel is an amazing way to see the world, make new discoveries, and immerse yourself in the local culture. And planning your trip can be a thrill too, as you suss out a boutique hotel with a rooftop bar, the best sunset sail experience, plus must-see restaurants and stores.

As you plan, you are likely sticking to a budget, but don’t overlook one area: tipping. When you travel, especially abroad, it’s helpful to know the local customs. In some countries, tipping is a must. In others, it’s optional, and in a few, it’s considered downright rude.

Are you ready to learn the ropes? Here’s your cheat sheet on:

•   Who should you tip when traveling?

•   How much should you tip when you travel?

•   In which countries don’t you tip?

Recommended: Apply for an Unlimited Cash Back Credit Card

Who Should You Tip While on Vacation?

As you travel, there are many people you could tip: the ones who help you into the airport, out of the airport, into your hotel, out again, into a taxi…the list goes on and on. Most people want to be polite and tip appropriately but don’t want to burn through more money than they have to.

To help you manage this aspect of travel, here are some of the people you probably do want to tip, plus some insight into how much to tip.

Luggage attendants can help get your luggage from the curb at the airport to the check-in counter. You can definitely manage the process on your own, but if you’re wrangling young kids, traveling with pets, or simply packed extra-jumbo bags so you’d have loads of outfits to choose among, it’s nice to get help.

Traditionally, it’s polite to tip $2 for your first bag and $1 for any additional luggage. If your bags are legitimately humongous, consider tipping the full $2 for each one. This expense can’t go on your airline credit card or any other kind of plastic, so be sure to keep cash on you.

Note: Airline employees stationed outside the airport may not be able to accept tips, so be prepared for your bills to be rebuffed if one of these workers assists you.

Car valets park and return your car directly from the curb of hotels and restaurants. It’s a major convenience and generally deserves a monetary thank-you. How much to tip? In the $1 to $5 range when your car is returned to you. Tipping when your wheels are first whisked away is generous, though not necessary.

Housekeepers should be tipped each day during your stay, whether you splurged on luxe accommodations or figured out how to save on hotels and booked a rock-bottom rate. Housekeepers freshen your room, replace those damp towels, and otherwise make it a pleasure to return after a long day of visiting museums, lolling on the beach, or whatever else you’ve been up to.

The best method is to leave the cash in a marked envelope (some hotels provide them for just this purpose) or folded in some hotel stationery that is clearly marked “For Housekeeping.” Best practice suggests $3 to $5 each day of your stay.

Room service is a luxurious treat during vacation. Some hotels automatically include a gratuity on your bill. If you don’t see it on your receipt, however, the answer to the “to tip or not to tip” quandary is that it’s likely a good idea to add 15% to 20%, just as you would in a restaurant.

Drivers help in a few different travel scenarios. If you’re taking a taxi or rideshare, consider tipping either $4 to $5 for short rides and 10% to 20% for long rides. Add an extra tip if the driver helps with your luggage. It’s also customary to tip shuttle drivers, typically from $1 to $5 depending on the size of your party.

Tour guides share their expertise and passion with you, as they lead you around the best snorkeling spots in Tulum or show you the hidden treasures of Paris. Their services can be a memorable highlight of your summer travel plans, so it’s nice to tip them, especially when you have a great experience. An easy rule of thumb is to tip 10% to 20% of the tour’s cost for your group.

Why Tipping Is Important

Tipping is by no means a requirement, but in many economies throughout the world (including the U.S.), it’s a way to help workers make ends meet. Many service industry employees are not guaranteed minimum wage.

In fact, in most states in America, there is a much lower minimum wage for tipped employees; hourly rates can dip below $3. While economic policies are a larger discussion, the fact of low wages can help put things in perspective and show the very real value of rewarding workers for a job done well.

For this reason, when budgeting for an upcoming trip, it’s wise to think about your plans, estimate a tip budget, and include that as part of where you keep your travel fund. It’s one of those incidentals that can add up and throw your financial planning out of whack if not accounted for.

Also, since tips are often given in cash rather than plastic (sorry, you can’t reap those credit card rewards this way), you may want to plan ahead to get some foreign currency for this purpose.

Recommended: How Families Can Afford to Travel

Tipping Guidelines by Destination

You likely do a good amount of research before traveling, scoping out cool hotels, amazing restaurants, and an affordable car rental. So why not, before your next trip, familiarize yourself with tipping customs in different parts of the world? It’ll help you prepare for the costs coming your way and make you feel more comfortable and in control while traveling. Here’s some useful intel:

US

Across the U.S., it’s customary to tip up to 20% for restaurant servers, bartenders, and drivers. In some cities, like New York, the answer to “How much to tip?” is nudging up to 22% or even 25%.

Europe

If you’re planning an epic trip to France, Spain, Italy, or other European countries, service tips may already be included in your restaurant bill in Europe. Look on the menu; it will probably say so. If it’s not, a maximum 10% tip is recommended. When it comes to your hotel stay, you might tip one euro per bag if a staffer helps you, and leave one euro per day for housekeeping.

Mexico and the Caribbean

Whether you’re heading to Cancun, Mexico City, or the Bahamas, be prepared to tip. Restaurant gratuities usually average between 10% and 20% in Mexico and the Caribbean.

If you’re staying at a resort, remember to keep cash on hand for bellhops, housekeeping, and other employees. Typically, a dollar or two per day/interaction is appropriate.

Central and South America

Heading to Argentina, Bolivia, Colombia, or beyond? Here’s the scoop: The standard tip rate for Latin America is 10% in restaurants. Some countries (like Brazil) may include the gratuity in your bill, so look carefully at the check before paying for your feijoada. Not sure? There’s no harm asking your server; you’re likely not the first person to do so.

When it comes to hotel staff and drivers, you’ll need a dollar or two (or the equivalent), so it’s wise to have some cash stashed in advance.

Recommended: Where to Find Book Now, Pay Later Travel

Places You Probably Don’t Have to Tip

Here’s a travel budget bonus: There are a number of countries you might visit that do not have a tipping custom. In fact, it may even be considered rude or insulting to leave a tip. So before you add a tip when paying with your travel credit card or plunking down cash, double-check local etiquette. Here, some pointers:

Australia

Tipping is not vital when Down Under. Compared to the U.S. and many other countries, Australia has a high minimum wage. That’s one of the reasons why tipping in the service industry is seen as optional.

China

If you are going to be exploring China, know that tipping is actually taboo there. And in some places like airports, it’s illegal because it can be seen as a bribe. Stay polite and safe by skipping the tip.

Japan

Heading to Tokyo, Kyoto, or other locations in Japan? Heads up: Tipping is not customary in Japan and is actually considered rude. Although it may feel odd, when wondering whether to tip or not to tip, just don’t do it. Save your money for more shopping or sushi.

Scandinavia

Iceland and Scandinavia typically don’t expect you to tip. You might round up a restaurant tab if there isn’t already a service charge added, but these aren’t countries where a 20% gratuity is routine. Taxi drivers don’t expect tips either.

The Takeaway

Preparing for a trip often involves budgeting, and a key way to wind up on or under your budget is to anticipate what costs are coming your way. Tips are one of those incidentals it’s easy to forget about and can throw your financial planning for a loop. By understanding local tipping customs, you can have a smooth, on-budget trip wherever you may go. What’s more, you’ll know exactly what to expect so you can travel with confidence.

SoFi Travel is a new service exclusively for SoFi members. Through a partnership with Expedia, we make it easy to find the lowest rates and book your reservations — for flights, hotel rooms, car rentals, and more — all in one place. Earn 2x rewards when booking with your SoFi Mastercard or debit card. And when you redeem your SoFi rewards for travel, you get a 25% bonus: $100 of reward points are worth $125.

Wherever you’re going, get there with SoFi Travel.

FAQ

Are tourists always expected to leave a tip?

It depends on where you’re staying. Countries in North and South America, Europe, and Africa typically have tipping customs, particularly at restaurants and resorts. But Asian and Pacific countries like Australia, Japan, and China often do not incorporate tipping into their cultures — and it can even seem impolite.

Who are you supposed to tip at the airport?

In many countries (with China being an exception), it’s polite to tip a baggage handler who carries your luggage to the check-in counter.

How much do you tip internationally?

Research each country individually to understand tipping customs. While it’s traditional in many foreign countries, it’s also rude (and sometimes illegal) to tip in others.

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Photo credit: iStock/DragonImages

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

**Terms, and conditions apply: 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.
Eligibility: You must be a SoFi registered user.
You must agree to SoFi’s privacy consent agreement.
You must book the travel on SoFi’s Travel Portal reached directly through a link on the SoFi website or mobile application. Travel booked directly on Expedia's website or app, or any other site operated or powered by Expedia is not eligible.
You must pay using your SoFi Credit Card.
SoFi Member Rewards: All terms applicable to the use of SoFi Member Rewards apply. To learn more please see: https://www.sofi.com/rewards/ and Terms applicable to Member Rewards.
Additional Terms: Changes to your bookings will affect the Rewards balance for the purchase. Any canceled bookings or fraud will cause Rewards to be rescinded. Rewards can be delayed by up to 7 business days after a transaction posts on Members’ SoFi Credit Card ledger. SoFi reserves the right to withhold Rewards points for suspected fraud, misuse, or suspicious activities.
©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender. NMLS #696891 (Member FDIC), (www.nmlsconsumeraccess.org).

SoFi cardholders earn 2% unlimited cash back rewards when redeemed to save, invest, a statement credit, or pay down eligible SoFi debt.

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.

The SoFi Credit Card 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.

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Investors need a brokerage account to buy and sell securities, but they can also take advantage of a cash management account (CMA), which is offered by a brokerage firm. It can be easy to confuse the two types of accounts, even though they are quite different.

To provide some clarity about the difference between a brokerage account vs. cash management, this article will examine some of the pros and cons of each. Let’s start with some definitions.

What Is a Cash Management Account?

Cash management accounts can offer similar features as the traditional checking or savings accounts that banks offer. CMAs allow you to deposit money and earn a set interest rate. Most provide access to your money via debit cards, in addition to checks.

What Is a Brokerage Account?

Brokerage accounts allow customers to deposit money which can then be used to buy and sell investments such as stocks, bonds, mutual funds, exchange-traded funds (ETFs), and other securities.

There are three main types of brokerage accounts.

•   A full-service brokerage firm usually provides a range of financial services including financial advice and automated investing.

•   A discount brokerage offers lower fees in exchange for fewer financial planning services.

•   Online brokerages allow you to trade via the internet and often charge the lowest fees.

Recommended: How Does a Brokerage Account Work?

Similarities Between a Cash Management Account and Brokerage Account

Although brokerage and CMA accounts work in different ways, there are some similarities.

Both Offered by Brokerages

Both types of accounts are offered by brokerage firms. When you open a brokerage account and link it to a CMA at the same firm, it can provide a convenient way for customers to transfer assets from one account to another when they buy and sell securities.

The Potential to Earn Returns

When considering a brokerage account vs a cash management, remember that they both offer customers the potential to earn money on deposits or investments.

In a self-directed brokerage account you have the potential to earn returns from your investments, although you also face the risk of loss that likewise comes with investing in stocks, bonds, and other securities.

A cash management account is generally a safer place to keep your money. The risk of losing money is lower than putting your money into securities, and you’ll earn interest on your deposits. But those rates are generally lower than the gains you might see from other investments.

The Brokerage Account vs Cash Management: What Are the Differences?

Cash management accounts and brokerage accounts work in different ways. CMAs mirror traditional savings and checking accounts and brokerage accounts are strictly for investments. Here are the details:

Earnings Come From Different Places

In a brokerage account, potential earnings come from the gains you might see when investing in stocks, bonds, and other investments. Investing in securities also comes with the risk of losses.

Earnings in cash management accounts come from the interest rate paid on your balance. Usually, these rates are similar to the rates paid in traditional savings accounts.

CMAs also act like traditional checking accounts because you can use checks or a debit card for purchases. But traditional checking accounts don’t usually pay interest, or if they do the rate is often lower than a CMA.

Earnings on Brokerage Accounts Are Potentially Higher Over Time

Over time, the average return of the stock market has substantially outperformed what you can earn from interest in a savings account. With those potential earnings comes market risk, meaning you may experience losses too, especially in the short-term.

To manage a brokerage account or work with a broker, you need to take into account your tolerance for market risk and what combination of stocks and bonds is right for your financial goals.

Insurance Is Provided by Different Sources

When you open a new bank account, up to $250,000 of your cash deposits are covered by the Federal Deposit Insurance Corporation (FDIC). Some banks, however, participate in programs that extend the FDIC insurance¹ to cover millions.

Most brokerage accounts, however, are insured by the Securities Investor Protection Corporation (SIPC) in the event of theft, fraud, or if the broker fails. The SIPC offers up to $500,000 of coverage total, per person, if such a loss were to occur. The SIPC does not cover investment losses.

Cash management accounts have so-called sweep accounts, which are insured by the FDIC. Here’s how it works: CMAs sweep funds into a variety of FDIC-insured banks. If you make a $200,000 deposit, for example, your money may be split into four $50,000 deposits in four different bank accounts. (The CMA provider manages this process — you only see your total CMA balance.)

Before your money is moved into the different accounts, your deposit is protected by SIPC insurance if the brokerage is an SIPC member.

What Money in These Accounts Can Be Used for

Because CMA accounts have checking and/or debit cards, you can use that money for purchases or bill paying or ATM withdrawals.

Money kept in a brokerage account is strictly used for trading securities. But by linking a CMA to your brokerage account, you can easily transfer cash from one to the other, for investing purposes.

The Takeaway

When considering a brokerage account vs. cash management, it helps to know what makes these accounts different, and how they can work together. While a brokerage account is for trading securities, and comes with the risks associated with investing in securities, a cash management account (CMA) is similar to a traditional checking or savings account. There’s almost no risk of losing money, and your deposits can earn interest. Because both are offered at brokerage firms, you can have both, and use your cash management account as a place to keep funds you don’t wish to invest.

To determine which account is right for you or if you should have both, it’s best to look closely at your financial goals and determine what type of returns and account features suit your aims.

SoFi Checking and Savings is an all-in-one account that blends the features of checking and savings accounts. With the special “vaults” feature, you can separate your savings from your spending, earn competitive interest on your total balance, and pay no account fees or monthly fees.

Create a SoFi Banking account today and bank better.

FAQ

Are brokerage accounts and cash management accounts the same?

No. Brokerage accounts are used to buy and sell securities. Cash management accounts act more like traditional bank savings and checking accounts, but are provided by brokerage and other non-bank financial institutions. Sometimes the accounts may be linked. But the accounts earn money from different sources.

Can you keep cash in a brokerage account?

No. You can use cash deposits in your brokerage account only to purchase securities. A cash management account, on the other hand, is similar to a traditional savings or checking account, so cash balances are welcome (and earn interest).

Do cash management accounts and brokerage accounts work together?

In most cases, yes. If you have a CMA and a brokerage account at the same brokerage firm and the accounts are linked, you can use your CMA to move cash into your brokerage account in order to execute trades. You can also transfer the money from sales of securities into your CMA for safekeeping. The combination gives you the ability to purchase stocks, bonds, mutual funds and other securities, but also offers the flexibility, liquidity and interest earnings of traditional bank accounts.

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Photo credit: iStock/Aja Koska

¹SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by banks in the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at SoFi.com/banking/fdic/terms. See list of participating banks at SoFi.com/banking/fdic/receivingbanks.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit 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.

Exchange Traded Funds (ETFs): Investors should carefully consider the information contained in the prospectus, which contains the Fund’s investment objectives, risks, charges, expenses, and other relevant information. You may obtain a prospectus from the Fund company’s website or by email customer service at [email protected]. Please read the prospectus carefully prior to investing.
Shares of ETFs must be bought and sold at market price, which can vary significantly from the Fund’s net asset value (NAV). Investment returns are subject to market volatility and shares may be worth more or less their original value when redeemed. The diversification of an ETF will not protect against loss. An ETF may not achieve its stated investment objective. Rebalancing and other activities within the fund may be subject to tax consequences.

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Whether you want to retire a few years early or feel more financially secure, building your wealth can help you meet your financial goals. But what if you want to build generational wealth, or the type of lasting wealth that can be passed down to your children and grandchildren? While there is no one-size-fits-all path, there are some steps you may consider taking to start accumulating generational wealth.

What Is Generational Wealth?

Generational wealth refers to anything with monetary value that’s passed from one generation to the next. This might include cash, property, investments, jewelry, family businesses, or other financial assets. Typically, this type of wealth sets up future generations to financially benefit from what previous generations built.

Over the past 30 years, the generational wealth gap in the United States has been widening. What is a generational wealth gap? This simply refers to the difference between the wealth one generation accumulates relative to the wealth another generation accumulates. Factors such as income, education, race and ethnicity, age, and generation could all impact how much wealth someone builds and how much they’re able to pass down to the next generation.

Why Is Generational Wealth Important?

Whether you have new money or old money, building lasting wealth can help your family remain financially stable in the long term. This in turn could help give future generations a leg up in life. After all, when you don’t have to live paycheck to paycheck or stay in an unsatisfactory job, you tend to have more options in life. If you’re the one passing on the wealth, you can have the satisfaction of knowing you’ve helped give your children and grandchildren that level of freedom.

Pros and Cons of Generational Wealth

Generational wealth comes with clear advantages along with some potential drawbacks.

Pros

•   Future generations can enjoy some degree of financial security.

•   Generational wealth can provide support and resources for family members who are just starting out.

•   The extra financial assistance can help create room for innovation and free up family members to pursue their dreams.

•   It’s an opportunity to solidify your legacy.

Cons

•   Those who inherit wealth often have a responsibility to manage the money so there’s enough for the next generation.

•   Anticipating an inheritance could cause some people to lose the motivation to work hard and build their own wealth.

•   Some families lack a clear plan for transferring wealth from one generation to the next.

Whether you’re building wealth or managing it,

How to Start Building Generational Wealth

When it comes to building lasting wealth, there’s no strategy or template that will work for everyone. A spending app can give insights into your financial picture, which can help you keep your finances on track. Here are other steps you can take to better position yourself and your family.

Focus on Education

Generally speaking, education increases your earnings and reduces unemployment. But having a financial education is important, too, especially if you want to create and grow generational wealth. Discuss financial topics with your children and younger family members and pass on what you know. That way, they can be better prepared to manage the wealth they inherit.

It’s Never Too Early to Start Saving

Accumulating financial assets takes time and planning, so consider starting early. Building wealth in your 30s, for example, is possible and something you can continue to build upon as you get older. It’s also a smart idea to save consistently. By setting aside a certain amount on a regular basis, you can make the most of compound interest, which is interest that’s earned on the initial principal and the interest that accrues on it.

In addition to your paycheck, you may be able to passively earn money. This is money you make without active involvement. If that’s an option you want to explore, it can be quite useful to know how to manage passive income streams.

Make a Plan With Family Members

Considering working with other family members to build and preserve generational wealth? It’s a good move to discuss short- and long-term goals and strategies with them so you’re all on the same page. As part of those discussions, you may also want to decide how the money will be allocated.

Consider Home Ownership

Home ownership for generational wealth is another strategy to explore. When you buy a home and its value rises, you can sell it for a higher price and possibly use that money to move into a larger home or invest in other assets. Not planning to sell any time soon? You could still benefit from price appreciation, as it adds to your home equity and overall financial assets.

Explore Investment Opportunities

Investing could help your money grow over time, even if you start out small. Your investment strategy will depend on a number of factors, including your goals, how much you have to invest, your tolerance for risk, and your age.

Although no two situations are ever alike, there are nevertheless best investment strategies for each generation. People who dream of an early retirement, for instance, may subscribe to the “financial independence, retire early” (F.I.R.E.) movement. Achieving this goal may call for a more concentrated investment strategy.

Recommended: Pros & Cons of the F.I.R.E Movement

Protect Your Wealth

Having a team of trusted financial, tax, and legal experts on your side can help you protect your growing wealth and maximize the amount you’re able to pass along. You may decide to create a trust or estate plan, for example, which details how you want your financial assets to be distributed and invested and designates a trustee.

What Are Some Challenges to Building Generational Wealth?

Not surprisingly, building and maintaining generational wealth doesn’t typically happen overnight. It’s often the rest of years of hard work and planning, and it helps to understand how to strategically save, invest, and spend. Depending on how much you already know, achieving this level of financial literacy can take time.

Another potential challenge is creating a clear plan for how the wealth will be transferred from one generation to the next. Some families avoid having conversations about money, and there’s a chance not everyone shares the same vision for how the wealth should be distributed.

In addition, disparities in pay among different racial and ethnic groups and genders could impact each generation’s ability to grow and maintain generational wealth. According to the Department of Labor, White and Asian-Pacific Islander workers earn more on average than Black, Hispanic/Latino, Native American/American Indian, and multiracial workers.

How to Pass Down Generational Wealth

There are steps you can take to ensure your financial assets are handed down the way you want. Creating an estate plan, for example, can help ensure the assets are distributed according to your wishes. Establishing a trust lets you set the terms over how assets are managed and can help your heirs bypass the probate process and potentially lower their tax burden. When you’re creating an estate plan or a trust, you will likely want to enlist the help of a professional, such as a trust attorney. These professionals can help ensure the right legal documents have been created and signed and will be easily accessible to your heirs when the time comes.

Recommended: The Difference Between Will and Estate Planning

The Takeaway

What is considered generational wealth? As the name implies, it’s financial assets, such as cash, jewelry, real estate, investments, and more that are passed down from one generation to the next. Generational wealth can give heirs a sense of financial security and more freedom to pursue their dreams, though it often comes with a responsibility to manage the money so there’s enough for the next generation. There are potential ways to start building your wealth, such as focusing on education and financial literacy, saving consistently, exploring investment opportunities, considering home ownership, and taking steps to protect what you’ve earned.

As you’re creating your savings plan, you may find it helpful to use a money tracker app. The SoFi app lets you connect all of your accounts in one convenient dashboard. From there, you can see all of your balances, spending breakdowns, and credit score monitoring, and get other financial insights to help you build your wealth.

Stay up to date on your finances by seeing exactly how your money comes and goes.

FAQ

How do you build generational wealth?

Although no two paths to generational wealth are exactly the same, strategies often include a focus on education to prepare for a higher-paying job and to gain financial literacy, saving early and consistently, investing in a home or other real estate, and making sound investments. It’s also a good idea to work with a professional to create an estate plan or trust so your financial assets are more efficiently passed along to the next generation.

What are examples of generational wealth?

Generational wealth can include cash, investments, jewelry, and other financial assets. This can but doesn’t have to include a family business.

How does a family start building generational wealth?

As a family, it can make sense to discuss goals for generational wealth and brainstorm strategies to achieve them. You may also want to talk about how the wealth will be distributed and make sure everyone is on the same page. It’s also important for you and the next generation of your family to understand how to strategically save, invest, and spend, so whatever wealth that’s passed down can continue to grow.

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Photo credit: iStock/kate_sept2004

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.

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.

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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When summer rolls around, many college students decide to take a break from their academic courses and take on a summer job. Working isn’t just a way to earn some extra money. In some cases, it could also be a chance to gain valuable professional experience.

Of course, not all jobs are created equal. Let’s take a look at what to consider when seeking a summer gig and three job ideas that may be well suited for college students.

Summer Job Considerations

Ideally, a college student’s summer job will mesh with their skills, passions, and career goals. So when brainstorming jobs you might want to go after, think about the unique talents, goals, and experiences you bring to the table. For example, a student athlete can make money by offering personal training sessions, mentoring younger athletes, or working as a camp counselor.

Another strategy is to zero in on gigs that are available for professionals in your field of study. For example, if you’re in the education tract, you may want to look into common side jobs for teachers. Which ones could you qualify for now? Possibilities may include being an online tutor or test scorer or doing freelance writing, editing, or proofreading.

You could also focus on side hustles with low startup costs, like building websites for people, making and selling handmade items, creating a fee-based online course, or delivering food and groceries.

Recommended: Free Credit Score Monitoring

When to Start Applying for Summer Jobs in College

In general, the sooner you apply for summer work, the better. This is especially true if you’re planning to live and work in fields or areas where the job market is more competitive. Some employers start posting summer job openings in the winter to give them time to find the best candidates. Even if an employer doesn’t start the process that early, they’ll still need time to collect and review applications, conduct interviews, hire employees, and get their staff ready to begin work by summer.

Pros and Cons of a Summer Job

While the idea of relaxing all summer may be appealing, having a job comes with its share of benefits. Working is an excellent opportunity to build a strong resume, because you can pick up hands-on, relevant experience and sharpen essential soft skills like communication and problem-solving. It’s also a chance to discover more about your working style, preferences, and strengths and find out if you like working in a particular industry or field before commiting more fully to it.

A summer job is a good way to expand your professional network, which can come in handy when you graduate and start looking for full-time employment. Managers and co-workers from your seasonal gig can provide references or even keep you in mind if a permanent position opens up at their company.

Plus, the money you earn from a summer gig can help be put in savings or used to pay for school and living expenses. A spending app can help you to more effectively manage your finances.

Depending on your situation, there are some potential drawbacks to working in between school years. You’ll likely have less time for other activities, such as hanging out with your friends or relaxing. You may not also be able to take summer classes, which could help you graduate more quickly.

​​Recommended: Jobs That Pay for Your College Degree

Tips to Finding a Summer Job

If you want to work in the summer, there are plenty of jobs available — especially if you know where to look. Colleges often post listings of available jobs on or near campus, so be sure to check in with your school’s career services center.

It’s also a smart idea to tap into your network, including professors, parents, mentors, and former employers. They may know of an open role or suggest people you can contact.

Online job sites are another good source of job leads. Many allow you to search for openings by industry, location, employment type, and experience level.

Top 3 Summer Jobs Ideas for College Students

Some summer jobs are especially well suited for college students. They can be done in the short term, provide an opportunity for students to apply what they’ve learned in school, or offer some control over schedule and pay rate. Three jobs to consider: online tutoring, freelance web designer, and retail sales associate. Here’s what to know about each.

Online Tutoring

An online tutor typically helps individual students understand their lessons, assists them with homework assignments, and provides extra work as needed. Some tutors prefer to rely on word of mouth for clients, while others offer their services through an online tutoring website.

In general, online tutors set their own hours and rate. The average starting rate is around $18-$21 per hour, according to Care.com, but that amount can increase significantly based on experience, grade level, subject matter, and other factors.

If you apply with an online tutoring site, you will likely need to provide information about your educational and work history. Educational requirements can vary widely by platform, so be sure to research what’s needed. Background checks are typically part of the process, and the company may also want to know the type of computer you plan on using and whether you have high-speed internet access.

Pros

•   Flexibility — you will likely be able to control when and where you work.

•   The money can be good for a side gig.

•   You can make a real difference in students’ lives.

Cons

•   Internet issues and technical glitches can disrupt your tutoring.

•   Working with students in different time zones may be challenging.

•   Many online platforms have strict policies against canceling tutoring times.

Freelance Web Designer

Developing and managing websites for clients can be a good fit for college students, especially those who prefer to work independently or are looking for jobs for introverts. You can find customers by listing your profile on websites for freelance designers or through recommendations from family, friends, and colleagues.

On average, a web designer can charge anywhere from $30 to $80 per hour, depending on the complexity of the project. Some technical skills are typically required — HTML, JavaScript, and CSS, for example — and it’s a good idea to stay up to date on the latest tools and technologies.

Pros

•   You’re your own boss, which means you can determine when and where you work.

•   The hourly rate is higher than other summer jobs.

•   You can work on a variety of interesting projects.

Cons

•   The work typically requires you to sit for long periods of time.

•   You’ll need to keep up on new developments, which may be easier if you’re already studying web design in school.

•   You may need to juggle multiple projects at once.

Retail Sales Associate

In many ways, a retail sales job can be an excellent summer gig. Often, the work is fairly straightforward, work hours are scheduled, on-the-job training is usually provided, and you usually don’t need a college degree. Students with a friendly, upbeat attitude and strong customer service skills may find a sales job particularly rewarding.

The average hourly rate of a salesperson is around $14, but this can vary based on your company, the store’s location, and how much experience you have. Some companies also offer extra perks, such as employee discounts.

Pros

•   Work is often indoors and may not be as physically demanding as other jobs.

•   Having a work schedule means you know when you’ll have free time.

•   You have opportunities to develop your people skills.

Cons

•   Your take-home pay can fluctuate if you earn a commission.

•   Dealing with difficult customers can be stressful.

•   Depending on where you work, you may need to be on your feet for several hours.

Recommended: 10 Money Management Tips for College Students

The Takeaway

Though there are ways to make money during winter break, the summer is commonly when many students get a short-term job. A summer gig allows you to earn extra cash and potentially gain valuable professional experience, especially if you’ll be working in the field you’re studying. Your college career services center, professors, family, friends, and former employers may be able to provide you with potential leads. Three types of jobs you may want to explore are online tutoring, web design, and retail sales. Online tutoring and retail sales typically allows you more chances to interact more with people, but web design tends to command a higher hourly rate.

No matter what summer job you choose, a money tracker app like SoFi can help you monitor and manage the money you earn. The app makes it easy to see where you are financially at any given time. Plus, you can keep tabs on your credit score, see what you’re spending, and view the progress you’re making toward your goals at no cost — just for being a SoFi member.

Stay on top of your finances by seeing exactly how your money comes and goes.

FAQ

What should college students do with their summer?

As a college student, you can get a job or internship, go on a vacation with friends or family, volunteer at a non-profit agency of your choice, or go to summer school to potentially graduate more quickly. Starting to think about life post-graduation? Here are some intriguing things to do after college.

Where do most college students work in the summer?

Whether you’re planning to work outdoors, in a store or restaurant, or for a company, there is no shortage of summer job opportunities for college students. To help you narrow down your options, look for roles that match your interests and skills.

How can college students make money over the summer?

Many summer jobs pay by the hour, and that rate might depend on factors such as location, the type of work being required, and your experience and skills. Looking ahead? Here are the most rewarding jobs in 2023.

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Photo credit: iStock/AndreyPopov

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

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

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

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