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If your trip to the grocery store is more expensive these days, you’re not alone. Food prices have risen 2.2% to 3.2% in the past 12 months.

One way to deal with rising food prices is to have a plan for how to manage the amount of money you spend on groceries and budget accordingly.

Here, we’ll look at the average cost of groceries, provide a grocery budget calculator table to help you manage your food spending, and explore a few ways you can save.

What Is a Grocery Budget?

In order to manage what you spend on food, you have to know how much you can afford. That’s where having a grocery budget comes in handy.

A grocery budget is simply an allotted amount that you can use to buy food for your household. Ideally, you’d spend that amount or less, and anything left over can go toward other living expenses or savings.

The average American household spends $270 per week on groceries, or 12% of their income. You can play around with your income, household size, and dietary needs to see what works best for you.

💡 Quick Tip: Online tools make tracking your spending a breeze: You can easily set up budgets, then get instant updates on your progress, spot upcoming bills, analyze your spending habits, and more.

Pros and Cons of Grocery Budgets

Grocery shopping on a budget generally means being more mindful about your food purchases, which has a number of benefits.

One of the biggest perks of sticking to a grocery budget is that it helps you avoid overspending. It also ensures you still have money for other expenses.

Plus, having an idea of how much you should spend on food can help cut down on the amount of food that goes to waste.

On the other hand, creating a grocery budget means reigning in impulse buys and being stricter about what ends up in your cart. You may have to spend more time looking for the best prices on food items, and you might even need to visit multiple grocery stores to save money.

Average Cost of Groceries by State

Curious about how your grocery bills stack up against others in the U.S.? Here’s the average weekly cost of groceries per household, ranked from highest to lowest.

Average Cost of Groceries by Age

It’s not just geography that can impact how much you spend on groceries. Your age and budget can also play a role. Let’s look at how spending can differ by age and budget sizes. Note that these figures are suggestions and reflect a grocery bill for one for one week.

Average Cost of Groceries by Household Size

Not surprisingly, the size of your household can have a major impact on how much you spend at the grocery store. But it’s worth noting that the more family members you have, the less your budget increases. In other words, you don’t have to double a single person’s budget for two and triple it for three.

Instead, add about 20% to your budget for one extra person, 10% for two extra people, and 5% for three extra people. So if you allocate $400 a month for yourself, you’d increase that to:

•   $480 for two people

•   $576 for three people

•   $605 for four people

This will, of course, vary depending on who’s in your household. Teenagers, as we know, eat a lot!

How to Calculate for a Grocery Budget

Generally, people spend about 12% of their household income on groceries. To get an idea of what you’ve been spending, gather receipts from past grocery shopping trips.

Pay attention to what you’ve bought. How much of it was necessary and how much was an impulse buy? Keep in mind that when you make your new monthly or weekly budget, you’ll likely need to curb some unnecessary spending.


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

Grocery Budget Calculator Table

Let’s create a scenario to illustrate what a monthly grocery budget could look like. The example below is for a household of three.

This budget may be on the high end for a three-person household, depending on its monthly income. If $800 per month is too high for you, you might explore ways to cut down on spending in some of these categories.

Ways to Save Money on Groceries

One effective way to save money on groceries is to track your spending. Categorize your spending so you can track your budgets and make sure you’re within the margin. A money tracker app or grocery budget calculator app can make the job easier.

It also helps to familiarize yourself with the grocery stores in your area so you know who has the best deal on which items. Check the weekly store flyers, and stock up on good deals. Many things, including meat, can be frozen, so consider buying in bulk.

Having a membership to a store like Costco or Sam’s can also be a smart economical move, especially if you have a large family. Also consider cutting coupons the old-school way or downloading a coupon app.

Always make a game plan before you leave for the store. Look at your list and see which store is offering the best prices on the things you need. Check your coupons and plan to buy items that you can save on.

Finally, here’s a tried-and-true tip that’s very useful: Never go to the store hungry. If you’re shopping on an empty stomach, you’re more likely to buy what you want to eat, rather than what you need.

Recommended: 15 Easy Ways to Save Money

The Takeaway

If you’re looking to save money on food, consider making a grocery budget. The spending plan can ensure that you only buy what you can afford, and may leave you with extra money to put toward other expenses or financial goals.

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

FAQ

How do you calculate your grocery budget?

To calculate your grocery budget, track your current spending for a few months, categorize expenses, and identify essential items. Set a realistic monthly target based on this data, considering any dietary changes or financial goals. Adjust as needed to stay within your budget while meeting your nutritional needs.

What is a realistic budget for groceries?

Many American households spend about 12% of their monthly income on groceries. How much you spend will depend on the size of your household and how strict you want your budget to be.

How much should I budget for groceries for a week?

Once you work out a monthly budget for your groceries based on about 12% of your household income, you can break that amount down by the number of weeks in a month. The average American household spends about $270 per week on groceries, though, so you can use that as a base number and adjust as needed.

Photo credit: iStock/Candle Photo

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This content is provided for informational and educational purposes only and should not be construed as financial 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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SORL-Q425-001

You know that feeling when you are excited to buy something, be it a cross-continent vacation or pair of high-end sneakers, and very soon after are overwhelmed with regret? Welcome to the world of buyer’s remorse.

Maybe you are disappointed with your purchase, feel you have blown your budget, or both. Buyer’s remorse can rear its head for small and large purchases alike. You can feel it when you’ve swiped your card on a whim or even after researching your purchase for hours.

Fortunately, with a little bit of time, practice, and patience, you can learn to ditch the spending habits that most commonly lead to buyer’s remorse — so you can look forward to only those happy post-purchase feelings going forward. Keep reading to learn the full story.

What Is Buyer’s Remorse?

Buyer’s remorse is, quite simply, the feeling of regretting a purchase. It may be that you spent too much (i.e., the feeling you get in January when you review your holiday expenses) or because what you bought wasn’t quite as awesome as you thought (i.e., the feeling you get when your sneakers give you blisters).

Buyer’s remorse is usually the effect of a certain level of cognitive dissonance, which is what happens when you have two competing and incompatible thoughts at the same time. For example: You really want a new pair of headphones, and the ones you like are on sale, but you know you’ve already gone over budget for this month and simply can’t afford them, no matter how good the price is. That can be an example of cognitive dissonance. If you go ahead and purchase the item, there’s a good chance that you’ll experience buyer’s remorse.

💡 Quick Tip: Help your money earn more money! Opening a bank account online often gets you higher-than-average rates.

Examples of Buyer’s Remorse

Buyer’s remorse can show up in a variety of different ways, and the feelings themselves can be slightly different, too. Here are some examples of buyer’s remorse:

•   Booking a trip to Europe on your credit card and then realizing you’ll have to dip into your emergency savings to fund your vacation

•   Buying a cashmere V-neck sweater on sale — only to remember, when you get home, that you have one in excellent condition tucked in your drawer

•   Purchasing a new suitcase and realizing, when you first try to pack it up, that it’s too small to hold everything you need and wishing you’d bought a larger one.

Buyer’s remorse can occur for tiny purchases (a coffee you didn’t need, and now you’ve got the caffeine jitters) or huge ones (some homeowners, unfortunately, experience buyer’s remorse after they move in). The basic common denominator, though, is simple: You wish you hadn’t bought what you did.

Types of Buyer’s Remorse

While buyer’s remorse can happen for a wide range of purchases, it can generally be broken down into two different categories: outcome regret and process regret.

Outcome Regret

As its name suggests, outcome regret refers to the remorse you experience when the outcome of your purchase doesn’t meet your original expectations. This might happen because you realize something else would have been a better purchase to suit your needs or because the thing you bought doesn’t meet your expectations — or both (as in the suitcase example above).

Process Regret

Process regret, on the other hand, indicates that you regret the purchase process more than the outcome itself. For example, if you think you should have spent a longer time researching before making a purchase decision (or, in some cases, less time) you’re likely feeling process regret.

Perhaps you spent a whole weekend choosing a hotel for a trip and then weren’t satisfied with the place you stayed. Or maybe you made an impulse purchase while at a furniture store and later realize you should have spent more time and measured more carefully because your new coffee table is too big.

Signs of Buyer’s Remorse

Buyer’s regret shows up as an emotional reaction. You may feel anxious, angry, annoyed, scared, or sad about your purchase. You may notice that this feeling starts to show itself shortly after the purchase is made.

If you’ve ordered something online, for example, you may experience remorse before it even shows up at your doorstep. Or you may buy yourself a new watch and, the second you walk out of the store, start panicking about what the purchase will do to your credit card debt or checking account balance.

What to Do if You Have Buyer’s Remorse

If you have buyer’s remorse, take heart: there are usually steps you can take to rectify it.

•   Return the item. If you’re feeling buyer’s remorse over a purchase, like a new sweater, you may be able to simply return the item for a refund. (Similarly, if you’ve booked travel you’re now regretting, you might see what the cancellation policy states.)

•   Look for ways to increase your satisfaction with your purchase. If you’re experiencing buyer’s remorse over a larger purchase, like a home or car, it might not be as simple as a quick return. However, you may be able to find ways to feel better about the purchase. For example, you might decorate your home in a way that feels good to you, or outfit your car with a bike rack to increase its storage capacity.

•   Use the opportunity to change your spending. If you’re stuck with the purchase you made, now might be a good time to review your spending habits and come up with some new ones. While it won’t cure your current buyer’s remorse, it may keep you from feeling it again in the future. For instance, you might realize that you shop when bored and find other ways to spend your free time versus strolling through your favorite stores.

How Long Does Buyer’s Remorse Last?

Depending on the size of the purchase, buyer’s remorse might be brief or long-standing. For instance, it could linger for just a few moments — for example, if you order way more sushi than you can actually eat. Or it could go on for several months or longer — say, if you discover you really are unhappy with the neighborhood in which you purchased a home.

In any event, going through and combatting buyer’s remorse is an emotional experience, so it’s important to be gentle with yourself. Do what you can to minimize its impact, and learn from the experience.

Tips for Avoiding Buyer’s Remorse

The best way to deal with buyer’s remorse? To avoid feeling it in the first place. Here are some ideas to help dodge that post-purchase sinking in your stomach again.

Budget

A budget can give your spending some guardrails. Making a budget can help you work out how to cover all your necessary expenses and to prioritize which discretionary expenses are most important. Sticking to a budget can be a great way to avoid buyer’s remorse from the start because you know what you have to spend. Follow the guidelines, and you likely won’t regret blowing too much on a purchase.

“If it works with your income, the 50/30/20 budget is one simple method for people starting to organize their finances,” says Brian Walsh, CFP® and Head of Advice & Planning at SoFi. “This budget allocates 50% of your income for essentials, like rent and bills; 30% to personal day-to-day spending; and 20% for savings or financial goals.”

If you make a purchase and it fits the guidelines of your budget, you’re less likely to regret making it.

💡 Quick Tip: Want a simple way to save more everyday? When you turn on Roundups, all of your debit card purchases are automatically rounded up to the next dollar and deposited into your online savings account.

Practice Patience

Sometimes, the main culprit behind buyer’s remorse is impulse buying: If you’d just given yourself a week or two (or, ideally, a month) to really think through that purchase, you might have decided you didn’t need it in the first place. By practicing patience and forcing yourself to take time to think through your purchases, you may be less likely to experience buyer’s remorse.

Try the 30-Day No-Spend Challenge

After experiencing buyer’s remorse, you may decide you want to take a temporary break from nonessential spending, sometimes known as a no-spend challenge. You could start with as little as a week, but extending your no-spend challenge to 30 days can give you a chance to understand how often you make impulse purchases.

This exercise can give you a new perspective on spending and help you become more mindful with your money going forward.

Ask the Right Questions

Say there’s a jacket you like that is on sale, reduced from $300 to $189. You’re about to snap it up, but wait a moment. Ask yourself: How long did you have to work to earn enough (after taxes) to afford the price tag? How many jackets do you have at home, and are they in good condition? Do you really need another? How will you feel if you buy the new jacket and see it hanging unworn in your closet six months from now?

Hold yourself accountable for the impact a purchase will have on your financial situation and whether you really need it or it’s just another nice thing you might own.

Do Research Before You Buy

While it’s possible to feel buyer’s remorse after a well-researched purchase vs. an impulse buy, it’s generally less likely. Usually, the more information you have before you pull the trigger, the greater the chance you’ll be satisfied with your spending decision. So consider amping up the amount of time you spend researching your purchases before you make them.

Write a List of What You Need and Stick to It

If you tend to make impulse buys while you’re meandering the grocery store, for example, it might be time to employ a shopping list. That way, as tempted as you might be to grab that package of pistachios or fancy flavored seltzer, you’ll have that list to hopefully keep you in line and on track with your spending.

Making a list can be an effective strategy for reducing impulse shopping in any retail environment, not just at the grocery store. The psychological principles that make lists successful apply to department stores, malls, online marketplaces, and even home improvement stores.

Set Shopping Boundaries

Like any other part of life, establishing boundaries around shopping is critical to ensuring your well-being and success. Some examples of boundaries you might set: Deciding you won’t shop alone, online after 10 pm, or while you’re feeling sad or angry.

Use Cash Rather Than Credit to Avoid Overspending

Money is money, but tapping your card at the terminal can feel a lot easier than parting with cold, hard cash — too easy, in fact. Plus, credit makes it easy to spend more than you can actually afford to, and buyer’s remorse can just be compounded when it also leads to high-interest debt.

The Takeaway

Buyer’s remorse is a common emotional response to a purchase, often stemming from overspending or unmet expectations. Recognizing the signs and types of regret — outcome or process — can empower you to address it effectively, whether through returns or by adjusting your spending habits. By using strategies like budgeting, practicing patience, asking thoughtful questions, and conducting thorough research, you can proactively avoid buyer’s remorse and foster a healthier relationship with your finances.

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

FAQ

What are some questions to ask yourself before you make a purchase?

To avoid buyer’s remorse, consider asking yourself: Do I really need this item, or do I just want it? Will I still want it in two days? Two weeks? How much time and effort did it take me to earn the money I am about to spend? What else could I purchase with that money if I made a different decision?

What should I do if an item is limited in stock and won’t restock after?

Sometimes, buyers make impulsive purchase decisions because an item is in limited supply or on sale for a limited time. While these external factors can make a purchase seem more urgent, it’s still worth taking the time to decide whether or not you truly need the item — or if you’re likely to feel buyer’s remorse over it. A new pair of shoes you didn’t need can still feel like a waste of money, even if you snagged them during an end-of-season sale.

What are common items that people have buyer’s remorse about?

Buyer’s remorse is highly personal, but many people feel regret over large expenses, such as vacations, boats, or expensive cars. That said, it’s possible to feel buyer’s remorse over smaller purchases, like unnecessary clothing, restaurant meals, makeup/grooming products, or anything that you simply don’t need.

Photo credit: iStock/Anawat_s

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SOBNK-Q425-025

Shrinkflation is the practice of reducing the size or amount of a product in a given package while maintaining the same sticker price. It is a hidden form of inflation that allows companies to boost or protect their profit margins, particularly when facing rising production costs. For consumers, it means they are effectively paying more for less. According to a LendingTree analysis of nearly 100 household products from 2019 to 2024, a third have shrunk in size.

Shrinkflation relies on the fact that shoppers are more likely to pick up on a direct price increase than a subtle reduction in a product’s size. However, shrinkflation contributes to overall inflation. To keep your grocery bills from escalating, it’s important to understand how to spot and avoid being deceived by shrinkflation.

Why Does Shrinkflation Happen?

First, let’s take a step backwards. Why is it called “shrinkflation” anyway?

When companies shrink their products and thereby inflate the price, that’s shrinkflation. For instance, perhaps you notice that the 14-ounce bag of pretzels you used to buy is now 12 ounces…while the price has stayed the same.

Once you understand how it works, it’s pretty easy to understand why companies shrinkflate their products, as sneaky a tactic as it is. By offering less of their product at the same (or even a higher price), companies can protect their profit margins.

This, in turn, can help them battle rising production costs, competition from other companies, or simply drive more profits — which, in the end, is generally the main goal of every for-profit company.

💡 Quick Tip: Help your money earn more money! Opening a bank account online often gets you higher-than-average rates.

Examples of Shrinkflation

To avoid implicating any specific brand, let’s use an imaginary example to demonstrate how shrinkflation works and how you might notice it as a consumer.

•   Say you’re at the grocery store, and you’re about to buy your favorite bottle of pomegranate juice. It’s a little pricey, but you love the taste — and besides, it’s good for you.

•   You pick up the bottle, expecting to pay $8 for your typical 16 ounces. The bottle looks the same and costs the same, but it feels different in your hand. Still, you go ahead and purchase it.

•   When you get home, you notice that the almost-empty bottle in your fridge is just a little bit bigger than the new bottle. When you look closely, you notice the new bottle actually has 14.5 ounces, not 16.

You’ve just been shrinkflated.

Is Shrinkflation Temporary?

Shrinkflation isn’t new. According to research by the U.S. Government Accountability Office, product downsizing has been happening for over a decade. It spiked in 2015, was at its lowest during the pandemic years, and started trending up again in early 2022, amidst increasing inflation.

However, because shrinkflation usually occurs gradually, many consumers don’t even recognize it’s happening. Instead, they just slowly see their grocery bills and household expenses increase. If companies were transparent and sold the same amount of product at a higher price, you’d likely notice — and perhaps balk — while you were putting the item in your shopping cart.

With shrinkflation, companies can get a financial boost without (hopefully) triggering any consumer pushback. But careful, observant shoppers may still pick up on this sneaky business tactic.

💡 Quick Tip: Want a simple way to save more everyday? When you turn on Roundups, all of your debit card purchases are automatically rounded up to the next dollar and deposited into your online savings account.

Is Shrinkflation Illegal?

Shrinkflation is generally legal. However, more than a dozen U.S. states and territories have recently instituted laws requiring the unit price be disclosed on products. This is helpful to consumers because when a product’s size decreases but its price stays the same, the unit price increases. The unit price label makes this increase more visible, allowing consumers to identify hidden price hikes and make informed choices.

Even without widespread labelling, customers appear to be catching on. According to an April 2025 survey by CivicScience, 81% of grocery shoppers say they’ve noticed shrinkflation recently.

Recommended: 7 Tips to Managing Your Money Better

Tips for Noticing Shrinkflation

Here are some tips and tricks that can help you detect and stay ahead of shrinkflation.

1. Pay Attention to Your Receipts

Although plenty of us forego paper receipts entirely, keeping them can actually be very instructive, particularly when it comes to avoiding shrinkflation. Keeping and comparing receipts, especially for products you buy often, may help tip you off to shrinkflation more quickly than you’d otherwise notice on your own. (Plus, you may get a better picture of how much you actually spend on groceries, as opposed to how much you expect to.)

2. Make a Price-Inclusive Grocery List

If you’re really serious about beating the shrinkflation machine, grab that receipt you kept and make your next grocery list — with the approximate price you paid next to each item. That way, you’ll notice shrinkflation before it even happens as you’re about to put the item in your cart.

You can update this on a monthly basis or so to stay abreast of any shrinkflation moves, should companies roll out new, smaller-sized products for the same or a higher price.

3. Pay Attention to Price-Per-Unit When Shopping

One of the most effective ways to beat shrinkflation is to ignore the overall price of a product and focus on its unit price — the cost per ounce, pound, or item. While it may not be listed on the label, this information is typically printed on the shelf tag at the grocery store. Alternatively, you can quickly do the math yourself: Use your phone’s calculator to divide the product’s price by its quantity (for example, $3.60 /12 ounces = $0.30 per ounce). Choosing larger sizes, opting for store brands, or buying in bulk can result in a lower price per unit, which can help you spend less on food.

Should You Buy Shrinkflated Products?

Generally speaking, nobody likes to feel like they’re being deceived. But only you can decide whether or not the juice is worth the squeeze, so to speak, when it comes to buying from a company that employs this tactic.

•  If you really, really love that brand of pomegranate juice (or any other product), you may just put up with it… and adjust your budget accordingly.

•  If you strongly feel that this tactic is deceptive and it’s taking a substantial chunk out of your checking account, it may be time to find brands that don’t engage in this practice.

•  You might decide to buy generic brands, or to shop at a warehouse or wholesale club store. There, you may benefit from economies of scale — and stock up on your favorite items before their prices potentially go up.

Recommended: Passive Income Ideas to Help You Earn Money

The Takeaway

Shrinkflation is the practice of consumer goods being sold in smaller packages than in the past for the same or a higher price. In other words, your money doesn’t stretch as far. While frustrating, shrinkflation doesn’t have to significantly impact your finances. By being a vigilant shopper and adjusting your budget, you can continue to enjoy your favorite products. You can also make your money work harder by choosing a banking partner with favorable terms.

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

FAQ

Why is shrinkflation allowed?

Shrinkflation is allowed because it isn’t inherently illegal. There isn’t a law saying companies must disclose packaging changes, nor are manufacturers or marketers claiming they are selling the same size as before. Therefore, as long as a package of “14 oz” truly contains “14 oz,” the practice is legal, even if the consumer is getting less for their money.

What is a real life example of shrinkflation?

One real example of shrinkflation in recent years is paper towels. On average, this product went from offering 165 sheets per package to offering 147 sheets, while maintaining a price of $3.99. As a result, the cost of each sheet increased from 24 cents to 27 cents.

How do you beat shrinkflation?

You can fight shrinkflation by becoming a more vigilant shopper: focus on unit prices and net weights on labels, compare prices between different brands (especially store brands), and shop smart by buying in bulk or stocking up during sales. Other strategies include cooking from scratch and using online resources like coupon apps.

Photo credit: iStock/AlexSecret

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. 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.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

SOBNK-Q425-024

When you carry large amounts of debt across different credit cards and loans, it’s easy to feel snowed under. Making the minimum payment on each leaves you paying a lot in interest and doesn’t make it easy to eliminate all that debt.

One debt repayment strategy you might want to consider is the debt snowball method. The debt snowball method is a debt repayment strategy where you focus on paying off your smallest debts first while making minimum payments on the rest. Once a smaller debt is paid off, you apply that payment amount to the next smallest debt, creating momentum (“like a snowball”) until all debts are eliminated.

Let’s look at what a debt snowball strategy looks like, including how to use a debt snowball calculation table.

Debt Terms Defined

Before we go into creating a debt reduction plan, let’s make sure you’re up to speed on certain debt terms.

Interest Rate: The interest rate is the percent of the amount you borrow that you pay to the lender in addition to the principal.

Annual Percentage Rate: This is the total yearly cost of borrowing money, including interest and fees, expressed as a percentage of the loan amount.

Minimum Payment: Loans and credit cards have a minimum amount you must pay each month on the balance, though you certainly can pay more.

Bankruptcy: If you’re unable to pay off your debts, filing bankruptcy may be a last-ditch solution to consider. Essentially, it reduces or eliminates your debts. Know that it will negatively impact your credit for many years. That’s why it’s worth it to come up with a plan for the ultimate debt payoff strategy.


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

What Is the Debt Snowball?

Just like an actual snowball, the debt snowball method starts out small. You first tackle the smallest debt balances you have. Once those are paid off, you apply what you were paying on those to the next smallest debts. You continue to pay at least the minimum due on all your debts.

However, by focusing your attention on one debt at a time, you then free up more money to make larger payments on other debts until it’s all gone. Your snowball of debt repayment, so to speak, grows over time.

Benefits of the Snowball Method

The snowball method is one of the fastest ways to pay off debt. And over time, this method will help you have fewer payments as you pay off credit cards and loans and put more money to the remaining debt.

Drawbacks of the Snowball Method

The smallest debts you have may not be the ones with the highest interest. So while you’re paying off the little loans, the debts with higher interest continue to accumulate interest, which adds to your debt.

Debt Snowball vs. Debt Avalanche

If you have larger loans with higher interest, the debt snowball method may not be your best option. You might also explore another popular way to way to pay off debt: the debt avalanche method.

With the debt avalanche method, you start paying down the loans and credit cards with the highest interest first. By doing so, you reduce the amount of debt you have at those higher interest rates, which slows down the amount of interest that accumulates over time.

Just like with the snowball, you pay off one debt and then put the money you were paying on that debt toward the loan or card with the next highest interest rate until it’s all paid off.


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

How Is Debt Snowball Payoff Calculated?

To use the debt snowball payoff method, you’ll need to gather information about all the debt you have. Let’s use the following example:

•   Personal loan 1 balance: $3,000

◦   12% interest

◦   Minimum payment: $100 per month

•   Credit card A balance: $2,000

◦   17% interest

◦   Minimum payment: $25 per month

•   Credit card B balance: $1,000

◦   22% interest

◦   Minimum payment: $30 per month

•   Personal loan 2 balance: $750

◦   8% interest

◦   Minimum payment: $20 per month

Even without a snowball debt payoff calculation table, you can reorder these debts so that you focus on the one with the lowest balance first:

•   Personal loan 2: $750

•   Credit card B: $1,000

•   Credit card A: $2,000

•   Personal loan 1: $3,000

Now that you’ve ordered your debts from least to greatest, you can see how once you pay off the $750 loan, that money can go toward the credit card with the $1,000 balance. Once that’s paid off, you put all that money toward paying off the $2,000 credit card balance, and then finally, to pay off the $3,000 loan.

Debt Snowball Payoff Examples

Let’s look at what the monthly payments for these reordered debts would look like if you were able to set aside $400 a month toward paying them off.

As the chart shows, what might have taken you years to pay off can be paid off in under two years with the debt snowball method.

One way to keep your finances on track while you’re paying off debt is to create a budget. A money tracker app can help you come up with a spending and saving plan that works for you.

Is a Debt Snowball for You?

To determine whether the debt snowball method is right for you, consider how many different debts you have as well as their interest rates. If your larger debts have higher interest rates, you might consider the avalanche method.

But if your interest rates vary, or the smaller debts have higher interest, you might benefit from paying off those lower amounts first before snowballing those payments into the larger debts.

Recommended: Tips for Paying Off Outstanding Debt

The Takeaway

If you’re trying to pay off outstanding debt, you have options. The debt snowball method has been proven effective for many people. If nothing else, it’s a way for you to focus your attention on whittling down debt and minimizing how much you pay in interest.

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

FAQ

How long does it take to pay off debt using the snowball method?

The time it takes to pay off debt using the snowball method depends on your total debt, interest rates, and how much extra you can pay each month. Generally, people may become debt-free within a few years, as the method builds motivation by quickly eliminating smaller balances first.

What is the best way to pay off debt using the snowball method?

The debt snowball method pays off your smallest balances first, then rolls those payments up toward the larger debts until they are all paid off.

What are the 3 biggest strategies for paying down debt?

To pay down or pay off debt, you can consider the debt snowball method (which pays off the smallest balances first), the debt avalanche method (which pays off the balances with the highest interest first), or debt consolidation (which provides a new loan with a single payment and single interest rate).

Photo credit: iStock/Abu Hanifah

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.

This content is provided for informational and educational purposes only and should not be construed as financial 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.

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.

SORL-Q425-002

A check is typically good for six months, but you may still be able to cash one after that time period.

Granted, checks are not as popular a payment method as they were in the past. (In fact, it’s estimated that check writing has decreased 75% since the year 2000, according to CNN.) But they are still a widely used method for transferring funds. So you may sometimes need to cash a check that’s been sitting for a while. If you have, say, a tax refund check or one that your aunt sent you for your birthday, you may still be able to cash it after a half-year has passed. Learn the full story here.

But is a check still good if it’s not cashed right away? Learn the answers here.

How Long Is a Check Good for?

Both corporate checks and personal checks technically expire six months after the issue date. (There may be alternate void dates written on the check, such as 90 days, but that’s more of the issuer’s preference rather than a rule that’s etched in stone.) After six months, a bank considers it a stale check and isn’t legally required to cash it.

Here’s one reason why checks have expiration dates: If you wait too long to cash a personal check, there’s a fair chance that the issuer won’t have enough money in their checking account to cover the outstanding check. If this happens, the check bounces, and you’ll likely be charged a fee by the bank.

But consider the following:

•   Even if the check doesn’t bounce, the bank can refuse to cash it after the six-month mark. When that happens, you’ll generally need to reach out to the issuer and ask for another check. In that case, the issuer may ask you to return the first copy so they can properly void it.

•   In a best-case scenario, the bank could still honor the check. They’re not required to do so after six months by federal law, but they may accept it depending on the circumstances and their policies..

Expiration Dates for Different Types of Checks

Here’s a closer look at how long different kinds of checks are usually good for.

When Do Corporate and Personal Checks Expire?

Business and personal checks are typically good for up to six months after the date written on them. After that point, they may be considered a stale or stale-dated check. However, a bank may still cash them; it’s at their discretion.

When Do Local and State Checks Expire?

Checks issued by local and state governments may have varying expiration dates. Typically, these fall between six months and a year. In many cases, the expiration date will be printed on the check.

When Do US Treasury Checks Expire?

Checks from the U.S. Treasury usually don’t expire until one year after the date it’s issued, so you usually have more time to consider when and how to deposit these checks. Common types of Treasury checks include federal tax refunds, Social Security benefits, and Veterans Affairs benefits. If these checks expire, follow these steps:

•   In order to get an expired check reissued, you must contact the paying agency directly and go through the check claims process and appropriate paperwork.

•   You can avoid expired U.S. Treasury checks completely by signing up for electronic direct deposit or opting for a direct express card (designed for people without bank accounts). For those who receive federal benefits, like Social Security, receiving payments electronically is required by law.

When Do Cashier’s Checks Expire?

When you receive a cashier’s check from someone, the funds have already been withdrawn from their personal bank account and transferred into an escrow account with the issuing bank. The money sits there waiting until you cash the check. The bank may still place a void date on the check and no longer guarantee the funds after that point.

If you miss your window of opportunity, the bank may transfer the money to the state as unclaimed property.

Cashier’s checks are usually reserved for large amounts of money. When someone pays you with this method, it’s generally smart to cash it as quickly as possible. Plus, it can be very difficult to replace a hard copy of a cashier’s check if you lose it.

When Do Money Orders Expire?

A money order is another secure form of payment, but the issuer doesn’t transfer funds from their bank account. Instead, they can use cash, a debit card, or traveler’s check to pay for it. The money order then gets assigned a cash value and can be cashed or deposited.

Money orders never expire, but, depending on the terms of the money order, there may be fees incurred if it is not cashed in a certain amount of time.

When Do Certified Checks Expire?

With a certified check, the issuer’s bank guarantees the funds, but they remain in the individual’s account until you cash the check or deposit it to your checking or savings account. However, the bank puts a hold on the correct amount of cash so there’s no risk of the account being overdrawn before you deposit that check.

Still, there’s no hard and fast expiration date for a certified check. The main concern is that eventually, the bank may hand over the funds to the state in your name as unclaimed property if you fail to cash the check. Each state has its own process for reclaiming those abandoned funds, which you may learn more about from the state’s unclaimed property office.

Alternatively, you can visit MissingMoney.com, a multi-state database which may help you find your unclaimed cash from certified checks and other sources.

Recommended: What Is a Business Check vs. a Personal Check?

When Do Traveler’s Checks Expire?

Traveler’s checks are a sort of check that assumes cash value without ever expiring. You may choose to use them while traveling abroad to avoid carrying around large amounts of cash. When you arrive in your destination country, traveler’s checks can be exchanged for local currency.

If you have unused travelers check, you have options, since they don’t expire. You can save them to be used on a future trip, you can use them domestically, or you might be able to deposit them into your bank account.

What Happens If You Deposit an Expired Check?

If you deposit an expired check, there are a few options regarding what might happen:

•   The bank your account is held at might or might not accept it.

•   The bank the check is drawn upon might or might not pay it.

•   The check might bounce, and you’d have to pay related bank fees.

You might want to check with your bank’s customer service prior to depositing an expired check to avoid any surprises.

Recommended: How to Write a Check to Yourself

What to Do With an Old Check

It’s not uncommon to dig through a pile of unopened mail or a stack of papers and discover a check that you never cashed. What’s next in this situation? Consider these tips:

•   If it’s been less than six months for a conventional check, you can likely cash it as usual. Treasury checks are good for up to a year. Mobile deposit can make getting the funds into your bank account quick and easy.

•   If it’s past the expiration date, you may check with your traditional or online bank and see if they will honor it. If they believe the funds are available, they just might cash it.

•   If the check cannot be cashed, you will likely have to contact the issuer and request a new check. You may need to return the expired check as part of this process.
If you are the issuer of the check and see that six months have gone by and your check hasn’t been cashed, you may try reaching out to the payee to see if the check has been lost or stolen. If that is the case or they just let it sit uncashed, you may stop payment on the original check and reissue it as your next step.

Recommended: How to Sign Over a Check to Someone Else

The Takeaway

It’s wise to deposit checks quickly once you receive them. As a general rule of thumb, the six-month mark represents the strictest timeline. Cashing or depositing any check before then can help avoid problems with a check getting stale. Checks from the U.S. Treasury Department have a little more leeway — a full year from the issue date.

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

FAQ

Why do checks have expiration dates?

Checks typically have an expiration date as a way to nudge the recipient to cash it sooner rather than later. When people hold onto uncashed checks, it makes it challenging for the issuer to know how much money they actually have in their account and keep their personal finances up to date. An expiration date, whether it’s six months or a year, can help them balance their books and not worry about someone cashing a check years later.

Can I cash an expired check?

It depends. Your bank may still cash a cash that’s past the expiration date if they believe the funds are available. But they do have the right to refuse it if six months have passed since the date it was issued or one year in the case of checks from the U.S. Treasury.

How can banks tell if a check is expired?

The date on the check tells you and your bank when the check was issued. A check typically expires six months after that date or, in the case of U.S. Treasury checks, a year later. Some companies print on their checks “void after 90 days,” but most banks will honor a check up to 180 days.

Can an expired check be reissued?

Yes, an expired check can likely be reissued. Contact the payor to request this.

Can you deposit a two-year-old check?

Yes, you can deposit a two-year-old check, but it may not be cashed. The bank could reject it or it could be returned unpaid since funds were not available.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. 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.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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

This content is provided for informational and educational purposes only and should not be construed as financial 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.

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.

SOBNK-Q424-099