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The minimum wage is the lowest hourly wage under the law that an employer can pay employees. The current minimum wage in the U.S. is $7.25 an hour, and it’s been the same rate since 2009. The question of whether to raise the minimum wage is a matter of great debate.

There are a number of pros and cons of raising the minimum wage. For example, advocates say that increasing the minimum wage could help low-wage hourly workers make ends meet and keep up with inflation. Some proponents also believe that raising the minimum wage could increase consumer spending and strengthen employee retention and morale.

But opponents point to cons of raising the minimum wage, including potentially increasing the cost of living overall, reducing opportunities for inexperienced workers, and triggering more unemployment.

Read on to learn more about the pros and cons of increasing the minimum wage and potential effect it could have on the economy — and your finances.

What Is the Federal Minimum Wage in 2025?

The federal minimum wage in 2025 is $7.25 per hour. The last time the minimum wage increased was on July 24, 2009, when it grew from $6.55 an hour to $7.25. That was part of a three-phase increase enacted by Congress in 2007.

Tipped employees (like waiters) have a different minimum wage called the tipped minimum wage. The current federal tipped minimum wage is $2.13 an hour, as long as the worker’s tips make up the difference between that and the standard minimum wage.

Similar to the differences in the average salary by state, some states have their own minimum wage laws with a higher (or lower) starting wage than the federal minimum. In such states, employers must pay the higher of the two minimum wages.

Here are some minimum wage fast facts:

•   The state with the highest current minimum wage is Washington, where the rate is $16.66 per hour. Washington state’s minimum wage is expected to increase in 2026 (the amount of the increase has not yet been announced). Although it’s not a state, Washington, D.C. currently has the highest minimum wage in the country — $17.95 an hour as of July 1, 2025.

•   There are 67 cities and counties with minimum wages higher than their state’s minimum wages. Of these, the city of Burien, Washington, currently has the highest wage at $21.16 per hour for employees of large employers (those with more than 500 employees).

•   Three states — Georgia, Oklahoma, and Wyoming — have minimum wages that are lower than the federal minimum. But by law, employees in those states must be paid the federal minimum wage.

•   About 21 million US workers make less than $15 per hour, according to the most recent data (from 2023).

•   While the minimum wage has been stagnant since 2009, inflation has not. The spending power of $7.25 in 2009 is equivalent to $10.92 today. This means that $7.25 can buy today about 66% of what it could buy in 2009, which can impact the cost of living.

What Is the Purpose of the Minimum Wage?

The federal minimum wage was created in the late 1930s as part of the recovery effort after the Great Depression. At the time, Congress found that low wages in certain industries were causing one-third of the population of the U.S. to be “ill-nourished, ill-clad, and ill-housed.”

As part of President Franklin D. Roosevelt’s New Deal program, the Fair Labor Standards Act (FSLA) of 1938 officially established the first minimum wage of $0.25 an hour. The FSLA also created the 40-hour work week, banned child labor, and mandated overtime pay.

The minimum wage was gradually increased to $0.40 an hour in 1945. It has been raised 22 times since then, with the last increase taking place in 2009, as noted above.

Recommended: Salary vs. Hourly Pay

The Argument for Raising the Minimum Wage

Increasing the minimum wage could be beneficial for low-wage workers and the labor market, proponents say. These are some of the potential benefits of raising the minimum wage.

Pro: Boosting Consumer Purchasing Power Amidst Inflation

Even without minimum wage increases, inflation has been on a rollercoaster ride over the last several years. At the end of 2019, inflation was 2.3%. By December 2023, it was 3.4%. In August 2025, inflation was 2.9%. That means today, the average American family is likely paying more for the average cost of groceries, among other expenses, than they were six years ago.

The Raise the Wage Act of 2025 was introduced in Congress in April of 2025 to raise the minimum wage to $17 an hour by 2028. The goal of the Act is to give American workers a raise and more buying power to make ends meet. As of September 2025, the Act has not been voted on.

While raising the minimum wage will not necessarily beat inflation, earning more money could make it easier for lower-income families to afford basic necessities.

Pro: Reducing Poverty and Income Inequality

Data from the Bureau of Labor Statistics shows that low-wage earners spend a larger portion of their budget than higher-wage earners on immediate daily needs like food, shelter, transportation, and medical care. Raising the minimum wage could give these workers more money to spend on other things, including discretionary items such as eating out, travel, and streaming services.

Increased consumer spending helps stimulate the economy. It’s a positive economic indicator reflecting consumer confidence in the market, and it typically creates more revenue for businesses.

Pro: Improving Employee Retention in a Competitive Labor Market

According to a study by researchers at the Kellogg School of Management at Northwestern University, workers with a higher minimum wage tend to work harder and are more productive. Not only that, earning a higher wage could be an incentive for workers to stay with a company longer, which can help reduce turnover.

That’s generally considered beneficial since employee turnover is expensive. Replacing an employee with a new candidate can cost about 50% of the worker’s salary or possibly more, according to the HR firm G&A Partners. In that case, it could make more financial sense for a business to pay an employee a better salary to keep them on staff, rather than recruiting and training a new worker to replace them.

The Argument Against Raising the Minimum Wage

Increasing the minimum wage could lead to higher prices and unemployment, opponents say. These are some of the possible cons of raising the minimum wage.

Con: Potentially Increasing Prices for Consumers

If business owners have to raise the minimum wage they pay workers, they would likely raise the prices of their products and services to help pay for the higher labor costs. As employers pass the higher costs along to their customers, consumers will end up paying more for the things they buy. That means their dollars won’t go as far as they used to, which could contribute to inflation.

Con: Risking Job Losses, Especially for Small Businesses

The increased labor costs of a higher minimum wage could be substantial. If the minimum wage increased to, say, $15 an hour, businesses would suddenly need to give raises to everyone making less than that.

But not all companies can afford that. Small businesses that have a slim profit margin could struggle in particular. Restaurants, for example, operate at a 3% to 9% profit margin. Increasing labor costs could shrink (or eliminate) their margins, meaning they might have to let go of some staff or even go out of business.

Con: Could Accelerate a Shift Toward Automation

Employees without specialized skills often work some minimum wage jobs to earn what might be considered entry-level salaries. But as employers are forced to pay workers more, companies might invest in automated technology or artificial intelligence (AI) to do these jobs.

According to one recent survey, approximately 30% of hiring managers said they would use automation or AI if the minimum wage was raised. This could make it more challenging for unskilled laborers to find work; other workers could lose their jobs to automation or AI. They might then have to go on unemployment or try to rely on popular side hustles to try to earn a living and pay their bills.

What Is the Predicted Economic Impact of a Federal Minimum Wage Increase?

There are differing views on how raising the federal minimum might impact the economy. An analysis by the Economic Policy Institute (EPI) found that the $17 an hour minimum wage increase proposed by the Raise the Wage Act of 2025, would provide an additional $70 billion dollars each year in wages to the lowest-paid workers in the U.S. The average worker in this category would make an additional $3,200 a year, the EPI estimates.

However, according to the Congressional Budget Office (CBO), which has also examined the potential impact of the Raise the Wage Act, while the wages and family income of many low-paid workers would likely increase with a higher federal minimum wage, for other families, income would fall due to business owners absorbing the cost of higher wages among other reasons. Overall, the CBO says the number of families in poverty would likely decrease.

But higher wages would likely cause some employers to employ fewer workers, the CBO says. That could result in more unemployed and jobless workers.

How a Changing Minimum Wage Could Affect Your Personal Finances

Beyond the potential impact to the economy, a higher minimum wage could have an effect on individuals’ finances as well — including yours.

For example, an increase in spending by low-wage workers can drive up demand for goods and services and help stimulate the economy and boost economic growth. Employees already making more than the minimum wage might even see their own earnings increase if employers feel pressure to compensate them as well.

But prices may go up as businesses try to offset higher labor costs. That means you might pay more for the things you buy. Employers may also hire fewer workers or make reductions in workforce. And they might also outsource or automate more jobs, which could negatively impact many individuals’ employment opportunities and result in more unemployment.

Fortunately, there are some steps you can take to help protect your own bottom line. Here are some strategies to consider.

Reduce expenses where you can. Take a look at the cost of living in your city or town. Is it reasonable? Or are housing prices and grocery prices more expensive in your locale? Those living in the most affordable cities might find that their dollars go farther. Even relocating a few towns over to one with a lower cost of living might help you save money.

Give your savings a boost. Let’s say you have a goal of saving up for a downpayment on a house, or establishing an emergency fund. One step you might want to consider is opening a high-yield savings account. These accounts have higher interest rates than traditional bank accounts, which could help your savings grow.

Make it simple. Automating your finances can make it easier to save. With direct deposit, for example, your paycheck will go right into your bank account — without you even having to think about it. You might even be able to get your money in there faster. For example, by setting up direct deposit to your SoFi checking and savings account, you can get an early paycheck.

The Takeaway

The original intention for creating a federal minimum wage was to enable workers to have a standard of living that would improve and maintain their health and well-being. However, today’s minimum wage of $7.25 an hour has not risen since 2009. Increasing the minimum wage has a number of potential benefits, but there are possible negative economic effects to minimum wage increases as well.

While the debate over this complex issue will likely continue, remember that you have control over your own finances. Establishing financial goals, and setting up a plan to save for them, can help you manage your money.

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

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.60% APY on SoFi Checking and Savings.

FAQ

Why are state minimum wages different?

In general, states are able to enact laws that differ from federal laws according to their state needs. Many states with a higher cost of living, like California and Washington, have increased their minimum wage to roughly double the federal minimum. If a state’s minimum wage differs from the federal minimum wage, employers must pay the higher of the two rates.

Who benefits from a minimum wage increase?

Low-income workers can potentially benefit from a minimum wage cost, according to proponents of raising the minimum wage. That’s because earning a higher wage could give them more money to spend on things beyond basic needs like food, shelter, and medical care. For example, they could spend more on such discretionary items such as eating out, and streaming services. This kind of increased consumer spending might, in turn, stimulate the economy.

Does increasing the minimum wage affect cost of living?

It’s possible that increasing the minimum wage could raise the cost of living. This might happen if employers raise prices on the items or services they sell to help cover the cost of higher wages for employees. Higher prices, in turn, may cause inflation to rise, which means that dollars won’t go as far as they used to.

What state has the highest minimum wage?

The state with the highest minimum wage is Washington state, where the state minimum wage is currently $16.66 per hour, and it’s expected to increase in 2026. Although it’s not a state, Washington, D.C. has the highest minimum wage overall of $17.95 an hour.

What might be an opportunity cost of raising the minimum wage?

One possible opportunity cost of raising the minimum wage is that employers might reduce their labor force and lay off workers to help pay for the increased cost of higher wages. They might also automate certain jobs, which could result in more unemployment.

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Global remittances are an important resource for anyone who needs to send money internationally. Global remittances are used to send money to an individual (or group) in another country, commonly to family members abroad. Remittances may be sent in a number of different ways, such through wire transfers, money transfer apps, cash pick-up services, and more recently crypto-related services. Below, we’ll cover how global remittances work, how much they cost, and how you can safely send money around the globe.

What Is a Global Remittance?

A global remittance is a transfer of money from one country to another. According to the Consumer Financial Protection Bureau, the U.S. government considers any electronic transfer of $15 or more from consumers in the U.S. to another country to be a global remittance.^[1]

While the term “global remittance” is often used to describe money that migrants send to family members in their home countries^[2], people make international money transfers for many reasons. For instance, you may need to send a global remittance to make an international purchase, support a loved one traveling aboard, fund international travel or education, or contribute to charitable organizations in other countries.

How Is a Global Remittance Different From a Wire Transfer?

An international wire transfer is a specific type of global remittance. It refers to an electronic payment that moves funds from a bank account in one country to a bank account in another country using the SWIFT network (a system that connects thousands of banks worldwide). Wire transfers are processed individually, verified in real time, and are typically irreversible once completed, which makes it a preferred transfer method for large or time-sensitive transactions.

A global remittance, by contrast, is defined as any type of international money transfer. This includes transfers made via wire transfer, an international ACH transfer (an electronic bank-to-bank transfer made using a network called the Automated Clearing House), or via cash transfer services (like Western Union) or through an online transfer platform. More recently, some groups are beginning to integrate crypto-related services as a means of sending payments across borders.

(Note that SoFi announced plans in June 2025 to introduce a global remittance service transmitting payments through blockchain networks.)

Importance of Global Remittance

Global remittances are an important part of the global economy. They are used by migrant workers to send money to family and friends in their home countries, helping them afford food, shelter, health care, and education. According to the International Fund for Agricultural Development, one in eight people rely on remittances worldwide.^[3] In some low-income countries, remittances make up 30% to 40% of the county’s domestic product (GDP).^[2]

International payments are also crucial to global commerce by facilitating trade between countries and allowing businesses to expand their operations beyond domestic borders. Businesses in the U.S. and throughout the world use global remittances for a wide range of activities, including paying overseas suppliers for goods, compensating international employees, and receiving payments from foreign customers.

How a Global Remittance Works: Step by Step

The process for making an international money transfer varies by method and provider, but this is generally looks like this:

1.    Register with a transfer service. If you’re not using your bank, select a transfer service that meets your needs and create an account. You may be required to verify your identity by providing your driver’s license, passport, or other government-issued ID.

2.    Provide the recipient’s information. Enter specific details about your recipient, such as their name, bank account details, and/or the location where they will pick up the money.

3.    Select the amount you’d like to send. Choose how much money you want to send and in what currency.

4.    Pay for the transfer. You can typically pay by debit card, credit card, or direct transfer from your bank. The total cost typically includes the transfer amount, transfer fee, plus an exchange rate markup (an additional percentage added to the mid-market exchange rate).

5.    Track the transfer. Providers typically give you an expected delivery date and time and a tracking code so you follow the status of your remittance.

Depending on the provider and payment/transfer method, the total time for this process can range from minutes to several business days.

Example of a Global Remittance

Here’s an example of a global remittance. Suppose Maria needs to send $200 to her family in Mexico:

•   Maria logs into an online remittance app and chooses to send $200.

•   She pays with her debit card.

•   The service charges her a fee of $3.99 and converts dollars into Mexican pesos at the day’s rate and does not add a markup.

•   Within a few minutes, her family in Mexico receives the equivalent of $196.01 in Pesos, available for cash pick-up at a nearby location.

Common Methods for Sending Global Remittances

There are several ways to send money internationally. Here are a few options to consider:

1.    Bank wire transfers: You can use a traditional bank or financial institution to initiate an international wire transfer.

2.    Online money transfer services: Digital platforms, like Wise and Xoom, facilitate online payments using your debit/credit card or bank account; the money can be sent to a recipient’s bank account or mobile wallet.

3.    Cash pick-up services: If the recipient doesn’t have a bank account, services like Western Union and MoneyGram allow senders to transfer money to a physical agent location, where recipients can pick it up as cash.

4.    Mobile money transfers: International payment apps, such as WorldRemit, allow individuals to store, send, and receive money via their mobile phones.

5.    International money order: If an electronic transfer isn’t possible, you can purchase an international money order (a prepaid, paper-based payment) and mail it to your recipient. They are available through banks and some retailers. The recipient can cash or deposit it in their local currency.

How Much Does a Global Remittance Cost?

According to a March 2025 analysis by the World Bank, the average fee for sending global remittances is 6.5% of the remittance amount.^[1] However, fees vary widely by transfer method. Here’s a closer look:

Global average	6.5%
Digital transfers	4.9%
Non-digital transfers	5%
Mobile operators	5%
Banks	14.6%

How to Choose the Best Remittance Service

When researching a remittance service to send money internationally, here are key some key factors to consider:

•   Fees and exchange rate: Banks and transfer services typically charge a transfer fee, which may be a percentage of the transfer amount or a flat fee. They also generally charge a markup on the exchange rate, which could be anywhere from less than 1% to 6%, or more. Be sure to consider both fees and markups when comparing services.

•   Transfer speed: A traditional bank wire transfer can take three or five days, while online platforms and cash transfer services can often complete transactions within minutes or hours.

•   Convenience and accessibility: Consider how your recipient will be able to receive the money. Do they have a bank account? Do they need cash in hand right away? Can they make an account on a payment app? This will help you determine the best way to send money overseas.

•   Customer support: A reputable transfer service will offer various ways to contact customer service, such as phone, online chat, or email.

Best Practices for Sending Money Abroad Safely

International transfers can be risky if handled improperly, so safety is crucial.

Tips for Secure Transactions

To send money internationally safely be sure to:

•   Use only licensed, regulated remittances providers (more on this below)

•   Triple-check the recipient’s details.

•   Verify all fees and exchange rates up front.

•   Set up two-factor (2FA) authentication.

•   Keep all receipts and confirmation numbers.

Common Scams to Avoid

Unfortunately, wire transfer scams are common. Here are some of the most popular schemes identified by the Federal Trade Commission (FTC) and how they work:

•   Apartment and vacation rental scams: The fraudster will ask you to wire money before touring a unit.

•   Fake check scams: You’re asked to deposit a bad check and wire the money before the check is found to be fraudulent.

•   Family emergency scams: Someone poses as a loved one in an emergency and asks you to wire money.

•   Prize scams: You’re led to believe you’ve won a prize but must first wire money for something such as taxes or shipping and handling.

•   Romance scams: Someone online pretends to be romantically interested in you and eventually asks for money.

•   Utility scams: A scammer poses as your utility company and threatens to shut off services if you don’t wire money ASAP.

How to Verify a Remittance Service

To find a legitimate service, make sure the provider:

•   Is fully licensed and regulated in the countries where it operates. This ensures the provider meets strict financial regulations set up to ensure secure transfers. In addition, they must follow compliance standards that prevent money laundering and other illegal activities. A provider’s licensing should be detailed on its website.

•   Has a trusted reputation in the industry. Read online reviews and look for consistently positive feedback about the provider’s reliability, customer service, and transparency. Be wary if you see complaints about delays, hidden fees, or poor communication.

•   Offers a high level of security. Look for a service that uses multi-level authentication, such as verification codes or biometric logins (like fingerprint or face scans). These security features make it harder for unauthorized users to access your account.

•   Is transparent about refund and cancellation procedures. A legitimate service will make it easy to find these terms before you confirm a transaction. Under federal law, you have at least 30 minutes to cancel the remittance transfer at no charge, unless the transfer has already been picked up or deposited into the recipient’s account.

Comparison of Leading Global Remittance Services

According to a September 2025 analysis by CNBC, these six international money transfer providers are among the top options:

Service	Standout Features	Delivery Options	Drawbacks
Remitly	Can choose Economy or Express transfer; over 350,000 cash pickup locations	Bank account deposit, debit card, mobile wallet, cash pickup	Express transfer fees can be high
Wise	No exchange rate markup	Bank account deposit, mobile wallet	No cash pick-up locations
OFX	No transfer fees for U.S. customers; no maximum transfer limit	Bank account deposit	Bank transfer only; no cash pickup locations
Western Union	More than 500,000 cash pickup locations globally	Debit card, mobile wallet, bank account deposit, cash pickup	Charges fees plus exchange rate markups
MoneyGram	Over 400,000 cash pickup locations globally	Bank account deposit, debit card, mobile wallet, cash pickup	Charges fees plus exchange rate markups
Xoom	Can use PayPal or cryptocurrency to fund transfers; large network of cash pickup sites	Bank deposit, debit card, mobile wallet, cash pickup	Charges fees plus exchange rate markups

The Global Impact of Remittances

Remittances are a big part of the global economy. Let’s take a closer look.

Statistics on Remittance Flows

Here are some recent stats on global remittances:

•   In 2024, global remittances totaled $905 billion.^[2]

•   Migrant workers typically send $200 to $300 every one to two months to families in their home countries.^[3]

•   More than one-third of remittances go to rural areas, helping to improve financial stability and food security in those regions.^[3]

•   Global money transfers are now the largest source of external finance for low- and middle-income countries.^[5]

Economic Impact on Developing Nations

The impacts of remittances on low- to middle-income countries include:

•   Reducing poverty by providing stable household income

•   Boosting household consumption

•   Promoting financial literacy

•   Reducing a household’s reliance on credit

•   Fueling local entrepreneurship

The Takeaway

Global remittances are more than routine money transfers — they are essential tools that help families stay connected, provide financial security, and keep international commerce moving. Whether you’re supporting loved ones, covering overseas expenses, or conducting business, global remittances offer a reliable way to move funds across boards safely and effectively.

SoFi Checking and Savings members can now send money to 30+ countries, including Mexico, India, Brazil, and more. Plus, make three international money transfers by 3/31/26 to earn $30 in rewards points.

SoFi worldwide money transfers are a fast, affordable, and simple way to transfer money to loved ones abroad — directly from the SoFi app.

Fast, easy international money transfers.

FAQ

What is the average cost of a global remittance?

The average cost of a global remittance is 6.5% of the amount of money being transferred, according to a 2025 analysis by the World Bank. However, cost can vary widely depending on the transfer method (bank transfers are generally more expensive than online transfer services) and where you’re sending the money.

How long does it take for a global remittance to complete?

International money transfers can take anywhere from a few minutes to several business days, depending on how you send the money. Transfers using a cash pick-up service or digital transfer platform often take only minutes or hours, while traditional bank wire transfers can take one to five business days.

Can I send a global remittance without a bank account?

Yes, it is possible to send a global remittance without a bank account. Some cash transfers services like Western Union allow you to pay for the transfer in person using cash. In addition, many online transfer platforms permit you to fund a transfer using a prepaid card or credit card with no need to link a bank account.

Are there any limits on a global remittance?

There are no federal limits on the amount of money that can be sent from the U.S. to other countries. However, remittance providers may set their own limits on how much you can send in a single transaction or per day or month. For example, transfer limits for banks typically range from $1,000 to $50,000 per transaction; while some transfer platforms limit you to $5,000 per transaction or $15,000 every 30 days.

How can I track my global remittance?

Remittance services typically provide tracking tools to monitor the status of your transfer. After sending, you’ll likely receive a confirmation number or tracking code, which you can use on the provider’s website, app, or through customer support. Some services also send emails or text updates to notify you when the funds are processed or received. Tracking helps ensure transparency and can provide peace of mind, as you’ll know where your money is and when it reaches your recipient.

What are the potential security concerns with remittance services?

While remittance services are generally safe, there are potential risks to be aware of. International money transfer scams are common, especially if you send money to someone you don’t know. Data breaches or weak cybersecurity practices could expose your personal or financial information. To reduce risks, always use licensed providers that require multi-factor authentication, confirm the recipient’s details carefully, and avoid sharing sensitive information on unsecured networks or suspicious platforms.

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About the author

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Article Sources

1. Consumer Financial Protection Bureau (CFPB). What is a remittance transfer and what are my rights?.
2. Migration Data Portal. Remittances.
3. IFAD. 15 reasons remittances matter.
4. World Bank. Remittance Prices Worldwide Quarterly.
5. Niskanen Center. The 1% U.S. remittance levy: Impacts on Mexico & India.

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Photo credit: iStock/MicroStockHub

Global remittance services are available to SoFi members through SoFi Checking and Savings. SoFi Checking and Savings is offered by SoFi Bank, N.A., Member FDIC. Transfers are subject to the terms of the SoFi Bank Deposit Account Agreement in effect at the time of payment. Fees, exchange rates, and estimated delivery times will be presented prior to payment confirmation. Service availability may vary by country or recipient.

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 11/12/25. 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

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If you’re looking for a career that makes a lot of money, you might want to start your search in the health and medical field. Health-care jobs are the highest-paying jobs in America, and overall employment in this sector is expected to grow much faster than the average for all occupations through 2034, according to the U.S. Bureau of Labor Statistics (BLS).

Outside of health care, professional athletes and airline pilots are among the highest-paid professions. Three other fields that also made the top 25: chief executive officers (CEOs), computer/information systems managers, and financial managers.

Read on for a snapshot of the highest-paying jobs across the U.S., followed by a listing of the best-paying careers by state.

Top 25 Highest Paying Jobs in America

To compile this list of highest-paying jobs, we reviewed data from BLS’s most recent Occupational Employment and Wage Statistics report (May 2024). We also used government data to cite the minimum education requirements, projected growth, and which industries provide employment for each occupation. For more job description details, we tapped the Occupational Information Network (O*NET).

Here’s a look at the highest-paying jobs in America, ranked from highest average salary to lowest.

1. Pediatric Surgeon

Pediatric surgeons diagnose and perform surgery to treat fetal abnormalities and birth defects, diseases, and injuries in fetuses, premature and newborn infants, children, and adolescents.

Average Salary

$450,810

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•  Analyze patient’s medical history, physical condition, and examination results to verify operation’s necessity and to determine best procedure.

•  Conduct research to develop and test surgical techniques that can improve operating procedures and outcomes.

•  Consult with a patient’s other medical care specialists to determine if surgery is necessary.

•  Describe preoperative and postoperative treatments and procedures to parents or guardians of the patient.

•  Direct and coordinate activities of nurses, assistants, specialists, residents, and other medical staff.

Projected growth (2024-2034)

3% (as fast as average)

Top Industries

•  Hospitals

•  Offices of physicians

2. Cardiologist

Cardiologists diagnose, treat, manage, and prevent diseases or conditions of the cardiovascular system. They may further subspecialize in interventional procedures (e.g., balloon angioplasty and stent placement), echocardiography, or electrophysiology.

Average Salary

$432,490

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•  Administer emergency cardiac care for life-threatening heart problems.

•  Advise patients about diet, activity, and disease prevention.

•  Calculate valve areas from blood flow velocity measurements.

•  Compare measurements of heart wall thickness and chamber sizes to standards to identify abnormalities using echocardiogram results.

Projected growth (2024-2034)

3% (as fast as average)

Top Industries

•  Offices of physicians

•  Hospitals

•  Outpatient care centers

3. Surgeons

Surgeons operate on patients to treat injuries, such as broken bones; diseases, such as cancerous tumors; and deformities.

Average Salary

$371,280

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

Varies with specialty

Projected growth (2024-2034)

3% (as fast as average)

Top Industries

•  Offices of physicians

•  Hospitals

•  Outpatient care centers

•  Colleges, universities, and professional schools

4. Orthopedic Surgeon

Orthopedic surgeons diagnose and perform surgery to treat and prevent rheumatic and other diseases in the musculoskeletal system.

Average Salary

$365,060

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•  Analyze patient’s medical history, physical condition, and examination results to verify operation’s necessity and to determine best procedure.

•  Conduct research to develop and test surgical techniques that can improve operating procedures and outcomes related to musculoskeletal injuries and diseases.

•  Direct and coordinate activities of nurses, assistants, specialists, residents, and other medical staff.

Projected growth (2024-2034)

3% (as fast as average)

Top Industries

•  Offices of physicians

•  Hospitals

•  Outpatient care Centers

•  Colleges, universities, and professional schools

5. Radiologists

Radiologists diagnose and treat diseases and injuries using medical imaging techniques, such as x rays, magnetic resonance imaging (MRI), nuclear medicine, and ultrasounds. They may also perform minimally invasive medical procedures and tests.

Average Salary

$359,820

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•  Perform or interpret the outcomes of diagnostic imaging procedures including magnetic resonance imaging (MRI), computer tomography (CT), positron emission tomography (PET), nuclear cardiology treadmill studies, mammography, or ultrasound.

•  Prepare comprehensive interpretive reports of findings.

•  Communicate examination results or diagnostic information to referring physicians, patients, or families.

•  Obtain patients’ histories from electronic records, patient interviews, dictated reports, or by communicating with referring clinicians.

Projected growth (2024-2034)

3% (as fast as average)

Top Industries

•  Offices of physicians

•  Hospitals

•  Medical and diagnostic laboratories

•  Outpatient care centers

•  Colleges, universities, and professional schools

6. Dermatologists

Dermatologists diagnose and treat diseases relating to the skin, hair, and nails. They may perform both medical and dermatological surgery functions.

Average Salary

$347,810

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•  Conduct complete skin examinations.

•  Diagnose and treat pigmented lesions, such as common acquired nevi, congenital nevi, dysplastic nevi, Spitz nevi, blue nevi, or melanoma.

•  Perform incisional biopsies to diagnose melanoma.

•  Perform skin surgery to improve appearance, make early diagnoses, or control diseases such as skin cancer.

•  Counsel patients on topics such as the need for annual dermatologic screenings, sun protection, skin cancer awareness, or skin and lymph node self-examinations.

Projected growth (2024-2034)

3% (as fast as average)

Top Industries

•  Offices of physicians

•  Outpatient care centers

•  Offices of other health practitioners

•  Medical and diagnostic laboratories

•  Personal care services

7. Anesthesiologist

Anesthesiologists administer anesthetics and analgesics for pain management prior to, during, or after surgery.

Average Salary

$336,640

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•  Examine patients, obtain medical history, and use diagnostic tests to determine risk during surgical, obstetrical, and other medical procedures.

•  Administer anesthetic or sedation during medical procedures, using local, intravenous, spinal, or caudal methods.

•  Monitor patients before, during, and after anesthesia and counteract adverse reactions or complications.

•  Record type and amount of anesthesia and patient condition throughout procedures.

•  Provide and maintain life support and airway management and help prepare patients for emergency surgery.

Projected growth (2024-2034)

3% (as fast as average)

Top Industries

•  Offices of physicians

•  Hospitals

•  Outpatient care centers

•  Colleges, universities, and professional schools

•  Offices of other health practitioners

8. Oral and Maxillofacial Surgeons

Oral and maxillofacial surgeons perform surgery and related procedures on the hard and soft tissues of the oral and maxillofacial regions to treat diseases, injuries, or defects. They also diagnose problems of the oral and maxillofacial regions, and may perform surgery to improve function or appearance.

Average Salary

$334,310

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•  Administer general and local anesthetics.

•  Collaborate with other professionals, such as restorative dentists and orthodontists, to plan treatment.

•  Evaluate the position of the wisdom teeth to determine whether problems exist currently or might occur in the future.

•  Perform surgery to prepare the mouth for dental implants and to aid in the regeneration of deficient bone and gum tissues.

•  Remove impacted, damaged, and non-restorable teeth.

Projected growth (2024-2034)

5% to 8% (faster than average)

Top Industries

•  Offices of dentists

•  General medical and surgical hospitals

•  Outpatient care centers

•  Offices of physicians

9. Athletes and Sports Competitors

Athletes and sports competitors compete in athletic events.

Average Salary

$328,830

Typical Entry-Level Education

No formal educational credential

Primary Duties

•  Participate in athletic events or competitive sports, according to established rules and regulations.

•  Assess performance following athletic competition, identifying strengths and weaknesses and making adjustments to improve future performance.

•  Attend scheduled practice or training sessions.

•  Maintain optimum physical fitness levels by training regularly, following nutrition plans, or consulting with health professionals.

Projected growth (2024-2034)

5% (faster than average)

Top Industries

•  Spectator sports

•  Other amusement and recreation industries

•  Promoters of performing arts, sports, and similar events

•  Colleges, universities, and professional schools

10. Emergency Medicine Physicians

Emergency medicine physicians make immediate medical decisions and act to prevent death or further disability. They provide immediate recognition, evaluation, care, stabilization, and disposition of patients. They may also direct emergency medical staff in an emergency department.

Average Salary

$320,700

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•  Analyze records, examination information, or test results to diagnose medical conditions.

•  Assess patients’ pain levels or sedation requirements.

•  Collect and record patient information, such as medical history or examination results, in electronic or handwritten medical records.

•  Communicate likely outcomes of medical diseases or traumatic conditions to patients or their representatives.

•  Conduct primary patient assessments that include information from prior medical care.

Projected growth (2024-2034)

3% (as fast as average)

Top Industries

•  Offices of physicians

•  General medical and surgical hospitals

•  Outpatient care centers

•  Colleges, universities, and professional schools

11. Ophthalmologists

Ophthalmologists diagnose and perform surgery to treat and help prevent disorders and diseases of the eye. They may also provide vision services for treatment including glasses and contacts.

Average Salary

$301,500

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•  Perform comprehensive examinations of the visual system to determine the nature or extent of ocular disorders.

•  Diagnose or treat injuries, disorders, or diseases of the eye and eye structures including the cornea, sclera, conjunctiva, or eyelids.

•  Provide or direct the provision of postoperative care.

•  Develop or implement plans and procedures for ophthalmologic services.

•  Prescribe or administer topical or systemic medications to treat ophthalmic conditions and to manage pain.

Projected growth (2024-2034)

2% to 4% (as fast as average)

Top Industries

•  Offices of physicians

•  Offices of other health practitioners

•  Outpatient care centers

•  Colleges, universities, and professional schools

12. Neurologists

Neurologists diagnose, manage, and treat disorders and diseases of the brain, spinal cord, and peripheral nerves, with a primarily nonsurgical focus.

Average Salary

$286,310

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•  Interview patients to obtain information, such as complaints, symptoms, medical histories, and family histories.

•  Examine patients to obtain information about functional status of areas, such as vision, physical strength, coordination, reflexes, sensations, language skills, cognitive abilities, and mental status.

•  Perform or interpret the outcomes of procedures or diagnostic tests, such as lumbar punctures, electroencephalography, electromyography, and nerve conduction velocity tests.

•  Order or interpret results of laboratory analyses of patients’ blood or cerebrospinal fluid.

•  Diagnose neurological conditions based on interpretation of examination findings, histories, or test results.

Projected growth (2024-2034)

3% (as fast as average)

Top Industries

•  Offices of physicians

•  Hospitals

•  Outpatient care centers

•  Colleges, universities, and professional schools

13. Obstetricians and Gynecologists

Obstetricians and gynecologists provide medical care related to pregnancy or childbirth. They diagnose, treat, and help prevent diseases of women, particularly those affecting the reproductive system. They may also provide general care to women, and perform both medical and gynecological surgery functions.

Average Salary

$281,130

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•  Treat diseases of female organs.

•  Care for and treat women during prenatal, natal, and postnatal periods.

•  Analyze records, reports, test results, or examination information to diagnose medical condition of patients.

•  Perform cesarean sections or other surgical procedures as needed to preserve patients’ health and deliver babies safely.

•  Collect, record, and maintain patient information, such as medical histories, reports, or examination results.

Projected growth (2024-2034)

3% (as fast as average)

Top Industries

•  Offices of physicians

•  Hospitals

•  Outpatient care centers

•  Colleges, universities, and professional schools

14. Psychiatrists

Psychiatrists diagnose, treat, and help prevent mental disorders.

Average Salary

$269,120

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•  Prescribe, direct, or administer psychotherapeutic treatments or medications to treat mental, emotional, or behavioral disorders.

•  Gather and maintain patient information and records, including social or medical history obtained from patients, relatives, or other professionals.

•  Design individualized care plans, using a variety of treatments.

•  Collaborate with physicians, psychologists, social workers, psychiatric nurses, or other professionals to discuss treatment plans and progress.

•  Analyze and evaluate patient data or test findings to diagnose nature or extent of mental disorder.

Projected growth (2024-2034)

7% (faster than average)

Top Industries

•  Offices of physicians

•  Hospitals

•  Outpatient care centers

•  State government

15. Pathologists

Pathologists diagnose diseases and conduct lab tests using organs, body tissues, and fluids. Includes medical examiners.

Average Salary

$266,020

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•  Examine microscopic samples to identify diseases or other abnormalities.

•  Diagnose diseases or study medical conditions, using techniques such as gross pathology, histology, cytology, cytopathology, clinical chemistry, immunology, flow cytometry, or molecular biology.

•  Write pathology reports summarizing analyses, results, and conclusions.

•  Communicate pathologic findings to surgeons or other physicians.

•  Identify the etiology, pathogenesis, morphological change, and clinical significance of diseases.

Projected growth (2024-2034)

5% to 8% (faster than average)

Top Industries

•  Offices of physicians

•  Medical and diagnostic laboratories

•  Colleges, universities, and professional schools

•  Local government, excluding schools and hospitals

•  Scientific research and development services

16. General Internal Medicine Physicians

General internal medicine physicians diagnose and provide nonsurgical treatment for a wide range of diseases and injuries of internal organ systems. They provide care mainly for adults and adolescents, and are based primarily in an outpatient care setting.

Average Salary

$262,710

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•  Treat internal disorders, such as hypertension, heart disease, diabetes, or problems of the lung, brain, kidney, or gastrointestinal tract.

•  Analyze records, reports, test results, or examination information to diagnose medical condition of patients.

•  Prescribe or administer medication, therapy, and other specialized medical care to treat or prevent illness, disease, or injury.

•  Manage and treat common health problems, such as infections, influenza or pneumonia, as well as serious, chronic, and complex illnesses, in adolescents, adults, and the elderly.

•  Provide and manage long-term, comprehensive medical care, including diagnosis and nonsurgical treatment of diseases, for adult patients in an office or hospital.

Projected growth (2024-2034)

2% to 4% (average)

Top Industries

•  Offices of physicians

•  Hospitals

•  Colleges, universities, and professional schools

•  Outpatient care centers

17. Family Medicine Physicians

Family medicine physicians diagnose, treat, and provide preventive care to individuals and families across the lifespan. They may refer patients to specialists when needed for further diagnosis or treatment.

Average Salary

$256,830

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•  Prescribe or administer treatment, therapy, medication, vaccination, and other specialized medical care to treat or prevent illness, disease, or injury.

•  Order, perform, and interpret tests and analyze records, reports, and examination information to diagnose patients’ condition.

•  Collect, record, and maintain patient information, such as medical history, reports, or examination results.

•  Monitor patients’ conditions and progress and reevaluate treatments as necessary.

•  Explain procedures and discuss test results or prescribed treatments with patients.

Projected growth (2024-2034)

2% to 4% (average)

Top Industries

•  Offices of physicians

•  Hospitals

•  Outpatient care centers

•  Colleges, universities, and professional schools

18. Orthodontists

Orthodontists examine, diagnose, and treat dental malocclusions and oral cavity anomalies. They design and fabricate appliances to realign teeth and jaws to produce and maintain normal function and to improve appearance.

Average Salary

$243,620

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•  Examine patients to assess abnormalities of jaw development, tooth position, and other dental-facial structures.

•  Study diagnostic records, such as medical or dental histories, plaster models of the teeth, photos of a patient’s face and teeth, and X-rays, to develop patient treatment plans.

•  Fit dental appliances in patients’ mouths to alter the position and relationship of teeth and jaws or to realign teeth.

•  Adjust dental appliances to produce and maintain normal function.

Projected growth (2024-2034)

4% (as fast as average)

Top Industries

•  Offices of dentists

•  Hospitals

19. Airline Pilots, Copilots, and Flight Engineers

Airline pilots, copilots, and flight engineers pilot and navigate the flight of fixed-wing aircraft, usually on scheduled air carrier routes, for the transport of passengers and cargo. This job requires a Federal Air Transport certificate and rating for the specific aircraft type used.

Average Salary

$226,600

Typical Entry-Level Education

Bachelor’s degree

Primary Duties

•  Start engines, operate controls, and pilot airplanes to transport passengers, mail, or freight, adhering to flight plans, regulations, and procedures.

•  Work as part of a flight team with other crew members, especially during takeoffs and landings.

•  Respond to and report in-flight emergencies and malfunctions.

•  Inspect aircraft for defects and malfunctions, according to pre-flight checklists.

Projected growth (2024-2034)

4% (as fast as average)

Top Industries

•  Scheduled air transportation

•  Couriers and express delivery services

•  Federal executive branch

•  Support activities for air transportation

•  Management of companies and enterprises

20. Pediatricians

Pediatricians diagnose, treat, and help prevent diseases and injuries in children. They also refer patients to specialists for further diagnosis or treatment, as needed.

Average Salary

$222,340

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•  Prescribe or administer treatment, therapy, medication, vaccination, and other specialized medical care to treat or prevent illness, disease, or injury in infants and children.

•  Examine children regularly to assess their growth and development.

•  Treat children who have minor illnesses, acute and chronic health problems, and growth and development concerns.

•  Examine patients or order, perform, and interpret diagnostic tests to obtain information on medical conditions and determine diagnosis.

Projected growth (2024-2034)

3% to 4% (as fast as average)

Top Industries

•  Offices of physicians

•  Hospitals

•  Outpatient care centers

•  Colleges, universities, and professional Schools

21. Nurse Anesthetists

Nurse anesthetists administer anesthesia, monitor patient’s vital signs, and oversee patient recovery from anesthesia. They assist anesthesiologists, surgeons, other physicians, or dentists. They must be registered nurses who have specialized graduate education.

Average Salary

$214,200

Typical Entry-Level Education

Master’s degree

Primary Duties

•  Manage patients’ airway or pulmonary status, using techniques such as endotracheal intubation, mechanical ventilation, pharmacological support, respiratory therapy, and extubation.

•  Respond to emergency situations by providing airway management, administering emergency fluids or drugs, or using basic or advanced cardiac life support techniques.

•  Monitor patients’ responses, including skin color, pupil dilation, pulse, heart rate, blood pressure, respiration, ventilation, or urine output, using invasive and noninvasive techniques.

•  Select, order, or administer anesthetics, adjuvant drugs, accessory drugs, fluids or blood products as necessary.

•  Select, prepare, or use equipment, monitors, supplies, or drugs for the administration of anesthetics.

Projected growth (2024-2034)

35% (much faster than average)

Top Industries

•  Offices of physicians

•  Hospitals

•  Outpatient care centers

•  Offices of other health practitioners

•  Colleges, universities, and professional schools

22. Chief Executives

Chief executives determine and formulate policies and provide overall direction of companies or private and public sector organizations within guidelines set up by a board of directors or similar governing body. They plan, direct, or coordinate operational activities at the highest level of management with the help of subordinate executives and staff managers.

Average Salary

$206,420

Typical Entry-Level Education

Bachelor’s degree

Primary Duties

•  Direct or coordinate an organization’s financial or budget activities to fund operations, maximize investments, or increase efficiency.

•  Confer with board members, organization officials, or staff members to discuss issues, coordinate activities, or resolve problems.

•  Direct, plan, or implement policies, objectives, or activities of organizations or businesses to ensure continuing operations, to maximize returns on investments, or to increase productivity.

•  Prepare or present reports concerning activities, expenses, budgets, government statutes or rulings, or other items affecting businesses or program services.

Projected growth (2024-2034)

4% (as fast as average)

Top Industries

•  Local and state government

•  Management of companies and enterprises

•  Elementary and secondary schools

•  Computer systems design and related services

23. Dentists

Dentists examine, diagnose, and treat diseases, injuries, and malformations of teeth and gums. They treat diseases of nerve, pulp, and other dental tissues affecting oral hygiene and retention of teeth. They may also fit dental appliances or provide preventive care.

Average Salary

$179,210

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•  Examine teeth, gums, and related tissues, using dental instruments, x-rays, or other diagnostic equipment, to evaluate dental health, diagnose diseases or abnormalities, and plan appropriate treatments.

•  Administer anesthetics to limit the amount of pain experienced by patients during procedures.

•  Use dental air turbines, hand instruments, dental appliances, or surgical implements.

•  Formulate plan of treatment for patient’s teeth and mouth tissue.

Projected growth (2024-2034)

4% (as fast as average)

Top Industries

•  Offices of dentists

•  Hospitals

•  Outpatient care centers

•  General medical and surgical hospitals

24. Computer and Information Systems Managers

Computer and information systems managers plan, direct, or coordinate activities in such fields as electronic data processing, information systems, systems analysis, and computer programming

Average Salary

$171,200

Typical Entry-Level Education

Bachelor’s degree

Primary Duties

•  Direct daily operations of department, analyzing workflow, establishing priorities, developing standards and setting deadlines.

•  Meet with department heads, managers, supervisors, vendors, and others, to solicit cooperation and resolve problems.

•  Review project plans to plan and coordinate project activity.

•  Assign and review the work of systems analysts, programmers, and other computer-related workers.

•  Provide users with technical support for computer problems.

Projected growth (2024-2034)

15% (much faster than average)

Top Industries

•  Computer systems design and related services

•  Management of companies and enterprises

•  Software publishers

•  Management, scientific, and technical consulting services

•  Computing infrastructure providers, data processing, web hosting, and related services

25. Financial Managers

Financial managers plan, direct, or coordinate accounting, investing, banking, insurance, securities, and other financial activities of a branch, office, or department of an establishment.

Average Salary

$161,700

Typical Entry-Level Education

Bachelor’s degree

Primary Duties

•  Establish and maintain relationships with individual or business customers or provide assistance with problems these customers may encounter.

•  Oversee the flow of cash or financial instruments.

•  Plan, direct, or coordinate the activities of workers in branches, offices, or departments of establishments, such as branch banks, brokerage firms, risk and insurance departments, or credit departments.

•  Recruit staff members.

•  Evaluate data pertaining to costs to plan budgets.

Projected growth (2024-2034)

15% (much faster than average)

Top Industries

•  Credit intermediation and related activities

•  Management of companies and enterprises

•  Securities, commodity contracts, and other financial investments and related activities

•  Accounting, tax preparation, bookkeeping, and payroll services

•  Insurance carriers

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

What Are The Highest Paying Jobs Without a Degree?

Jobs that make a lot of money don’t always require a college education. These are five top high-paying jobs that don’t require a degree.

•   Commercial Pilot: The average annual salary of a commercial pilot is $122,670, and the projected job growth is 4% (as fast as average), according to the BLS. Commercial pilots typically need flight training and they must meet federal regulations regarding certifications and ratings.

•   Elevator and Escalator Installer and Repairer: The annual average salary for this position is $106,580, and the job is expected to grow faster than average between 2024 and 2034, BLS data shows. Most elevator and escalator installers and repairers learn the job through an apprenticeship, and most states require them to be licensed.

•   Transportation, Storage and Distribution Manager: The average annual salary for this job is 102,010, and the job is growing faster than average (6%) from 2024 to 2034, according to BLS. Those interested in this field typically need work-related experience, such as warehousing.

•   Aircraft and Avionics Equipment Mechanic and Technician: The average annual pay for these trade jobs ranges from $78,680 for aircraft mechanics and service technicians to $81,390 for avionics technicians. The field is expected to grow 5% (faster than average) between 2024 and 2034, BLS data finds. A certificate from a program approved by the Federal Aviation Administration may be required, though it’s possible to train on the job or in the military.

•   Police and Detective:

The average annual salary for these jobs is $77,270, and the projected job growth is about 3%, or as fast as average, according to the BLS. Most police officers and detectives must graduate from their agency’s training academy.

Recommended: Common Signs That You Need to Make More Money

How to Choose a Job Based on Your Personality

Finding a job that not only pays well so you’ll have plenty of money in your checking and savings account, and is an enjoyable position that will help you grow and thrive, is the ultimate goal for job seekers. One way to do it is to assess your personality to see what jobs might be the best fit for you.

To choose a job based on your personality, first consider your interests, values, and strengths. What are you good at? What kinds of things do you like to do? What types of tasks give you a sense of purpose? Think about things you’ve done in the past that made you feel fulfilled, confident, and energized.

Next, take an online career assessment test. These tests can help you identify your core strengths and find career paths that align with those traits. For example, are you creative or more of the analytical type? The answer to that question could help direct you into a field like public relations or marketing if you’re creative, or computers of finance if you’re analytical.

Are you social and enjoy working as part of a team? If so, you might look into the best jobs for extroverts so that you can make the most of your traits and skills.

On the other hand, if you prefer a more self-directed role where you can work independently and focus closely on the task at hand, you can explore the best jobs for introverts.

Finally, research different career options that match your personality traits and choose the ones that are most appealing and strike you as rewarding jobs. Is there anyone in your network who works in one of those fields? If so, get their contact information and reach out to see if you can set up an informational interview with them. Ask lots of questions about what the job is like day-to-day. Can you see it being a good long-term fit for you? If so, go ahead and start your job search!

💡 Quick Tip: Most savings accounts only earn a fraction of a percentage in interest. Not at SoFi. Our high-yield savings account can help you make meaningful progress towards your financial goals.

What are the Highest Paying Jobs in Each State?

The best-paying careers and occupations in the U.S. vary by location. Here’s a look at the best-paid jobs by state based on the BLS’s State Occupational Employment and Wage Estimates for 2024. This listing goes in alphabetical order and includes all 50 states.

Alabama

Career: Cardiologist

Average Salary: $443,520

Alaska

Career: Surgeon

Average Salary: $407,300

Arizona

Career: Pediatric Surgeon

Average Salary: $533,740

Arkansas

Career: Orthopedic Surgeon

Average Salary: $346,680

California

Career: Anesthesiologists

Average Salary: $452,930

Learn more: 20 Highest-Paying Jobs in California

Colorado

Career: Neurologists

Average Salary: $409,690

Connecticut

Career: Cardiologists

Average Salary:$381,730

Delaware

Career: Obstetricians and Gynecologists

Average Salary: $309,490

District of Columbia

Career: Radiologists

Average Salary: $353,800

Florida

Career: Cardiologist

Average Salary: 494,690

Georgia

Career: Surgeons

Average Salary: $446,490

Hawaii

Career: Opthamologists

Average Salary:$343,320

Idaho

Career: Dermatologists

Average Salary: $525,040

Illinois

Career: Opthamologists

Average Salary: $375,370

Indiana

Career: Surgeons

Average Salary: $429,250

Iowa

Career: Opthamologists

Average Salary: $430,910

Kansas

Career: Surgeons

Average Salary: $365,230

Kentucky

Career: Pathologists

Average Salary: $376,940

Louisiana

Career: Cardiologists

Average Salary: $422,290

Maine

Career: Opthamologists

Average Salary: $355,640

Maryland

Career: Emergency Medicine Physicians

Average Salary: $358,680

Massachusetts

Career: Radiologists

Average Salary: $369,490

Michigan

Career: Orthopedic Surgeons

Average Salary: $426,300

Minnesota

Career: Dermatologists

Average Salary: $581,560

Mississippi

Career: Cardiologists

Average Salary: $418,290

Missouri

Career: Radiologists

Average Salary: $363,870

Montana

Career: Surgeons

Average Salary: $415,030

Nebraska

Career: Anesthesiologists

Average Salary: $455,850

Nevada

Career: Emergency Medicine Physicians

Average Salary: $361,510

New Hampshire

Career: Radiologists

Average Salary: $388,410

New Jersey

Career: Chief Executives

Average Salary: $449,370

New Mexico

Career: Neurologists

Average Salary: $383,340

New York

Career: Cardiologists

Average Salary: $402,840

North Carolina

Career: Cardiologists

Average Salary: $450,610

North Dakota

Career: Physicians

Average Salary: $351,270

Ohio

Career: Cardiologists

Average Salary: $500,440

Oklahoma

Career: Pathologists

Average Salary: $296,030

Oregon

Career: Dermatologists

Average Salary: $481,330

Pennsylvania

Career: Cardiologists

Average Salary: $408,950

Rhode Island

Career: Surgeons

Average Salary: $379,330

South Carolina

Career: Orthopedic Surgeons

Average Salary: $398,350

South Dakota

Career: Radiologists

Average Salary: $475,780

Tennessee

Career: Cardiologists

Average Salary: $472,670

Texas

Career: Radiologists

Average Salary: $327,850

Utah

Career: Surgeons

Average Salary: $515,130

Vermont

Career: Orthopedic Surgeon

Average Salary: $449,240

Virginia

Career: Cardiologists

Average Salary: $399,570

Washington State

Career: Orthopedic Surgeons

Average Salary: $396,590

West Virginia

Career: Surgeons

Average Salary: $344,770

Wisconsin

Career: Orthopedic Surgeons

Average Salary: $534,270

Wyoming

Career: Cardiologists

Average Salary: $498,630

The Takeaway

Whether you look at the highest-paying fields nationally or by state, health-care professions dominate the list. However, a few other careers also show up in the highest-paid job rankings, including professional athletes, chief executives, airline pilots, and computer/information systems managers. Plus, there are many jobs that don’t require a degree that also pay well — proving that it’s possible to find a job that fits your skills, core personality traits, and interests and also lets you earn a good income.

Whatever field you choose to go into, choosing the right bank account for your hard-earned cash can help you make the most of your money.

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

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.60% APY on SoFi Checking and Savings.

FAQ

What job makes $500,000 a year?

Jobs that make $500,000 a year or more tend to be specialized medical professions, such as surgeons, dermatologists, and anesthesiologists. For example, in some states in the U.S., pediatric surgeons and dermatologists earn more than $500,000 a year.

What is the highest paying job in the world?

There is no one single highest-paying job in the world. However, the highest paying jobs across the globe include neurosurgeons, who can earn an average of $500,000 to $800,000 a year, chief executive officers, who can earn an average of $350,000 to $1.5 million, and Artificial Intelligence (AI) and Machine Learning (ML) Engineers, who can earn an average of $180,000 to $350,000.

What are the best paying careers in the medical field?

The best-paying careers in the medical field are typically surgical specialties, such as neurosurgeons and orthopedic surgeons who can earn more than $600,00 a year, and other medical specialists like cardiologists, anesthesiologists, and radiologists, who can earn around $500,000 a year or more.

What are some high-paying jobs that are in high demand?

High-paying jobs that are in high demand include those in the healthcare field like doctors and nurses; technology jobs, such as data scientists and information security analysts; and skilled trades like elevator and escalator installers and repairs, and transportation, storage, and distribution managers. Workers in all these jobs typically earn more than $100,000 a year.

Do you need an advanced degree to get a high-paying job?

No, you don’t need an advanced degree — or in some cases, even a Bachelor’s degree — to get a high-paying job. Commercial pilots, elevator and escalator installers and repairers, and transportation, storage, and distribution managers all make more than $100,000 without a college degree. Other high-paying jobs, such as software developers, computer hardware engineers, and human resource managers, typically don’t require an advanced degree.

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Photo credit: iStock/Eva-Katalin

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. 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.
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.

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

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

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It’s a common (and frustrating) experience to have to pay a fee when you access your cash at an out-of-network ATM. Especially considering how much ATM fees are.

While there are different ATM fees for different banks, currently, an ATM withdrawal will cost you $4.77 on average. When you are just trying to take out $20, that can be a lot! But no matter how much cash you are withdrawing, ATM fees can be costly.

To better understand ATM fees and avoid paying them, read on. You’ll learn typical costs and smart ways to avert those ATM charges and keep more of your hard-earned cash.

What Are the Different Types of ATM Fees?

Bank account holders typically pay no fees for using in-network ATMs. However, these machines may not always be conveniently located.

Indeed, approximately 60% of ATMs today are owned and serviced by independent operators and their affiliates — not banks. If you use an out-of-network ATM, you could end up paying a fee to your bank, as well as a fee to the ATM operator.

How much ATMs charge depends on the type of fees your bank and the owner of the ATM impose. Here are some typical charges for using an ATM:

The “Out-of-Network” Fee (From Your Bank)

This fee can be charged by your bank for using a non-branded or non-partner ATM. It’s kind of like going to a doctor that’s not on your insurance plan — you might be able to do it, but it could be more expensive.

On average, this charge accounts for about $1.58 of the total fee, according to Bankrate. The fee can apply to any type of transaction performed at an ATM, including withdrawals, transfers, and even balance inquiries. Typically, you will be told about such a fee — with a message that pops up on the screen — before you finalize your ATM transaction.

The Surcharge Fee (From the ATM Owner)

This one comes from the ATM owner, and can be thought of as a convenience charge for using an out-of-network ATM. The average ATM surcharge in the U.S. currently runs $3.19, according to Bankrate. However, surcharges can vary by state and venue, and you may encounter higher amounts in places where ATMs are in greater demand.

If you’re at an entertainment venue or theme park in a popular tourist destination, for instance, you could pay considerably more.

When using an ATM that isn’t part of your bank’s network of machines, the machine should notify you about a fee charged by the bank or company that operates the ATM.

International and Foreign Transaction Fees

Traveling overseas can come with even more fees to watch out for, such as foreign transaction fees on both purchases and ATM withdrawals.

When using an ATM in a foreign country, you can incur a fee of around 1% to 3% of the transaction amount. Some financial institutions, however, have no foreign transaction fees, and can be worth looking at if you frequently travel overseas.

💡 Quick Tip: Typically, checking accounts don’t earn interest. However, some accounts do, and online banks are more likely than brick-and-mortar banks to offer you the best rates.

How Much Are ATM Fees in 2025?

As mentioned above, ATM fees can take a bite out of your money. Here are specifics on how much ATMs charge, as of September 2025:

•  The average out-of-network fee that a bank charges its customers is $1.58.

•  The average surcharge by the ATM’s owner/operator when you use an out-of-network terminal is $3.19.

•  The total average out-of-network fee is approximately $4.77 per transaction.

Why Do Banks and ATM Owners Charge These Fees?

Banks and ATM owners typically charge these fees for several reasons, including to help cover the cost of operating ATMs and to process ATM transactions. For example, the surcharge fee charged by the ATM owner compensates them for the use of their machine. This fee typically goes for the operation and maintenance of the machines as well as to transaction processing costs. It also allows the ATM owner to make a profit.

If you use an out-of-network ATM, your bank may charge you for using an ATM that’s not in their network. This fee may also be a way to encourage you to use in-network ATMs.

💡 Quick Tip: The myth about online accounts is that it’s hard to access your cash. Not so! When you open the right online checking account, you’ll have ATM access at thousands of locations.

6 Smart Ways to Avoid or Minimize ATM Fees

If having to pay money to access your money frustrates you, there’s some good news — it is possible to avoid ATM fees or at least encounter them less frequently.

Here are some strategies to help you avoid these fees.

1. Use Your Own Bank’s Branded ATMs

Finding out where your financial institution’s ATMs are located in your area, or wherever you are traveling to, can save you money and hassle. These may be ATMs branded with the institution’s name and logo, or in a network of partner ATMs, such as Allpoint or Cirrus.

You can research this information on your bank’s website or app. For example, you can find fee-free ATMs via the SoFi app with just a few clicks on your phone.

Find a Bank With a Large Fee-Free ATM Network

When you’re choosing a bank, find out how big their ATM network is. The bigger the ATM network, the easier it should be to access an ATM, even when you’re traveling. For instance, SoFi makes it easy to find a fee-free ATM near you. When you open a SoFi checking account you have fee-free access to more than 55,000 ATMs worldwide.

3. Choose a Bank That Reimburses Out-of-Network Fees

Not all banks charge out-of-network ATM fees, so it can be in your best interest to shop around and compare ATM fees of different institutions. Look for a bank that doesn’t charge ATM fees, and/or a bank that refunds ATM fees charged by machine providers.

Online vs. traditional banks often have more lenient policies regarding ATM fees. They typically don’t have their own ATM networks, but will partner with large networks and may refund some fees charged by out-of-network ATM providers.

Another thing to consider as you’re choosing a bank is that some banks also charge fees for depositing cash at an ATM, especially out-of-network ATMs. Find out if any bank you’re considering does this, and search for an institution that doesn’t impose this fee. (While SoFi members are not able to deposit cash at ATMs, they can deposit money at participating retailers using the Green Dot Network. Just note that the retailers charge a small fee for this.)

4. Get Cash Back at the Point of Sale

Many retailers and convenience stores offer cash back when you make a purchase using a debit card. This can be a convenient way to get cash without paying an ATM fee. It can be a good idea, however, to make sure that neither the retailer, nor your bank, charges a cash-back fee.

That’s one difference between an ATM card vs. a debit card — with an ATM card you can only make ATM transactions, while a debit card allows you to make purchases at retailers and withdraw money at an ATM. However, you may still be charged ATM fees for withdrawing money with a debit card.

5. Use Peer-to-Peer Payment Apps to Pay People Directly

With a peer-to-peer (P2P) payment app like Venmo, PayPal, or Cash App — or a similar service offered by your financial institution — you can easily pay your friends via P2P transfers with just a few taps on your phone. That way you can avoid a trip to the ATM entirely.

Not only is sending money to friends online generally more convenient than having to go to the ATM, it also means you won’t have to carry sums of cash around.

6. Plan Ahead and Withdraw Larger Amounts Less Often

Fees are typically charged per transaction, so one way to avoid charges is to withdraw more cash than you need, whether you’re using your card or making a cardless withdrawal, whenever you go to the ATM. This can also yield significant savings when you are traveling overseas, where surcharges can be much higher than domestic ATM fees.

You may want to keep in mind, however, that there are usually some ATM withdrawal limits.

The Takeaway

ATM fees can be expensive and they can add up over time. Fortunately, there are ways to avoid these fees. Choose a bank with a large ATM network and use those in-network ATMs whenever you can. If your current bank charges ATM fees, consider switching to one that doesn’t, or look for a bank that reimburses you for these fees. A few simple steps like this can help you keep more of your cash.

FAQ

Do ATMs charge a fee just to check your balance?

ATMs may charge a fee to check your balance, especially if you use an out-of-network ATM. Before you check your balance at an ATM, find out if you will be charged for the service before proceeding.

Are ATM fees higher at airports?

ATM fees are often higher at busy locations like airports that get a lot of foot traffic. Since not all banks or ATM networks are located at airports, the ATMs that are there may charge higher fees for the convenience of using them.

Why do some ATMs have higher fees than others?

ATMs in popular areas that get a lot of traffic, such as airports or bars, for instance, may charge higher fees for the convenience and easy access they provide. Fees may also vary based on different operational costs ATMs or their networks might have.

How do I find in-network ATMs for my bank?

To find in-network ATMs for your bank, check your bank’s website or mobile app.Typically, there will be an ATM locator on the app or website where you can plug in your location and find in-network ATMs near you.

What Is the difference between a surcharge and an out-of-network fee?

A surcharge is a fee charged by an ATM owner when non-customers use their machines for transactions. An out-of-network fee is charged by banks when you use an ATM that’s not in their network.

Essentially, both fees are related to using an ATM out of your bank’s network. That’s why it’s a good idea to use in-network ATMs whenever you can.

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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.

^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.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. 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.
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/.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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

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

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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Paying off debt vs. saving money is a tough financial choice. Prioritizing debt repayment can help you repay what you owe faster, freeing up more money in your budget for saving. It can also help you spend less on interest charges.

But paying off debt and delaying saving might backfire. If you don’t have savings and you get hit with an unplanned expense, you could end up with even more high-interest debt.

Whether it makes sense to pay off debt or save depends largely on your financial situation. The right decision might be to try to do both.

The First Priority for Everyone: Build a Starter Emergency Fund

Without an emergency fund, an unplanned expense or loss of income could result in racking up even more debt, putting you further in the hole.

Financial professionals generally recommend building an emergency fund of three to six months’ worth of expenses. If you’re self-employed or work seasonally, you may want to aim closer to eight or even 12 months’ worth of expenses. An emergency fund calculator can help you figure out how much to save.

You could stash your emergency savings in a high-yield savings account. These accounts are designed to earn more interest than traditional savings accounts, which could potentially help your savings earn even more.

To figure out how quickly the balance in your savings account might grow, you can look at how frequently the interest compounds. (Compounding is when the interest is added to the principal in the account and then the total amount earns interest.) By plugging your information into an APY calculator, you can see the power of compound interest at work.

💡 Quick Tip: Are you paying pointless bank fees? Open a checking account with no account fees and avoid monthly charges (and likely earn a higher rate, too).

How to Decide What Comes Next: Compare Interest Rates

Once you’ve got your emergency fund in shape, you can focus on your debt. What’s important here is the kind of interest your debt has. Analyze all the debt you have — car loans, student loans, credit cards, and so on — and determine whether it’s high-interest debt or low-interest debt.

When to Aggressively Pay Down Debt (High-Interest Debt)

High-interest debt, such as credit card debt, can quickly accumulate and become overwhelming. The longer it takes to pay off, the more interest you’ll accrue, making it harder to escape the debt cycle. When you have high-interest debt, it makes sense to focus on paying off your debt first.

When to Prioritize Saving and Investing (Low-Interest Debt)

On the other hand, if you have debts with relatively low annual percentage rates (APRs) and you don’t feel unduly burdened by them, you could prioritize saving, while paying off your loans and other debts according to their payment schedules.

Recommended: Why Your Debt to Income Ratio Matters

The Best of Both Worlds: How to Pay Off Debt and Save Simultaneously

If you have high-interest debt under control and you also have an emergency fund, consider saving and paying down debt at the same time. Here are some tips to help you manage both.

•   Create a budget: A budget can help you track your income, expenses, and savings. The key is to allocate specific amounts for debt repayment and savings to ensure both are addressed every month.

•   Cut unnecessary expenses: Review your expenses and identify areas where you can cut back. Redirect these funds toward debt repayment and saving.

•   Automate saving: Once you have target monthly savings amounts, it’s a good idea to set up automatic transfers to your savings accounts. This ensures consistent saving without the temptation to spend the money.

While you’re at it, make sure you’re happy with your banking experience. You can compare bank accounts to get the best interest rates and customer service, for example.

•   Take advantage of your employer’s 401(k) match: If your employer offers a 401(k) plan with a company match, it’s a good idea to try to contribute at least enough to get the maximum employer match. This is essentially free money and it could help add to your retirement savings.

•   Increase income: You might also want to explore ways to boost your income, such as taking on a side gig, freelancing, or asking for a raise. You can then use the additional income to pay down debt faster and boost your savings.

•   Use windfalls wisely: If you receive a bonus, tax refund, or any unexpected sum of money, consider using it to pay down debt or boost your savings rather than going on a shopping spree.

Strategies to Pay Down Debt

Once you commit to paying down your debt, you’ll want to come up with a plan for how to do it. Here are some strategies to consider.

The Debt Snowball Method

With the snowball method, you list your debts in order of size. You then funnel extra money towards the smallest debt, while paying the minimum on the rest. When the smallest balance is paid off, you move on the next-smallest debt, and so on. This can provide psychological benefits by giving you quick wins and motivating you to continue.

As you’re paying down debt, be sure to monitor your checking account regularly to make sure you have enough money in it to cover your bill payments.

The Debt Avalanche Method

Another approach is the avalanche method. With this strategy, you list your debts in order of interest rate. You then direct any extra money toward the balance with the highest rate, while paying the minimums on the other debts. Once the highest-interest debt is paid off, you move to the next highest, and so on. The debt avalanche minimizes the amount of interest you pay over time.

Recommended: How to Set and Reach Your Savings Goals

The Takeaway

Saving and paying down debt is a balancing act. Which is more important? There’s no one-size-fits all answer. Generally speaking, you’ll want to fund your emergency savings account before you aggressively focus on debt payoff. After that, you can focus on saving and knocking down debt at the same time.

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

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.60% APY on SoFi Checking and Savings.

FAQ

What is considered high-interest debt?

While there is no one definition of high-interest debt, it is typically considered to be debt with a high interest rate, often in the double digits. For example, the average credit card interest rate as of August 2025 was 24.35%. Credit cards are considered high-interest debt, as are certain types of loans (such as personal loans) for borrowers whose credit is poor.

How much should I have in my emergency fund before aggressively paying down debt?

Before aggressively paying down debt, it’s a good idea to save three to six months’ worth of living expenses in an emergency fund. Otherwise, if you don’t have any savings to draw on to cover an unexpected expense or event, you might have to use high-interest credit cards to get by, which would compound your debt.

Should I use my savings to pay off my car loan or student loans early?

Whether you should use your savings to pay off your car loan or student loans early depends on your specific financial situation. Generally speaking, if you have additional savings beyond the recommended three to six months’ worth of money in an emergency savings fund, you might consider using some of that extra savings to pay off your car loan or student loans early. But it’s best not to use the money in your emergency fund for this, so that you’ll be covered if a surprise expense pops up.

Should I stop contributing to my 401(k) to pay off debt?

If your employer offers a 401(k) plan with matching employer funds, it’s wise to contribute at least enough to get the full employer match, if possible. This is essentially free money you would otherwise miss out on. Once you’ve received the 401(k) employer match, you could work on paying off your high-interest debt.

Does paying off debt or saving have a bigger impact on my credit score?

Paying off debt generally has a bigger impact on your credit score than saving does.That’s because paying off debt can reduce your credit utilization, which is the amount of credit you’re using compared to the amount of credit you have available. The lower your credit utilization, the better. A low credit utilization can have a significant positive impact on your credit score. In fact, credit utilization accounts for 30% of your FICO® Score.

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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 11/12/25. 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.
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