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Financial decisions. They’re already hard enough as an individual, and even harder to do with another person who has their own independent ideas.

Our relationships with money are a very personal thing. We each grow up with preconceived notions about money and through our own individual experiences develop feelings about money, including how it should be spent and whether it should be saved.

Considering how personal and therefore complicated it already is to make financial decisions on our own, it probably comes as no surprise that doing so with a partner can pose even more of a challenge.

As with any difficult conversation with a partner, deep-seeded personal feelings are involved and that makes navigating money conversations feel tricky. The first step is understanding that financial decision making as a couple may not come naturally, and that’s completely fine! These conversations take practice.

And ultimately, the work is worth it. Arguments about money are the leading indicator for divorce —not disagreements about the children or even a rogue in-law or two. If you and your partner can devise a method for having productive conversations about financial decisions, it could preserve the relationship.

Here are a few strategies to try and ideas to keep in mind when making financial decisions with your partner.

Start Early

This doesn’t mean that you come into a first date armed with twenty questions about a person’s financial life. That would be weird. But it may not be smart to wait until you’re married to talk about money, either.

As your relationship with a person develops, it could be a good idea to make it a practice to talk about money as you would talk about other important factors in your relationship, such as whether you want to have kids.

At the beginning stages, start with easier topics, like who pays for dinner and whether or not you enjoy your jobs. With comfort and practice, you can begin to discuss weightier topics like debt and future financial goals.

The very fact that marriages are dissolving because of arguments over money makes the case for why it is so important to have these conversations early (and often). Not only are you able to practice without the stress of needing to take immediate action, but you can get a feel for how your partner navigates money decisions.

And if you have found that you are with someone who holds wildly different values about money, you may need to consider this before making any further commitments to this person.

Make a Date to Talk

Sometimes it feels easiest to dive headfirst into a big money talk in order to get it the heck out of the way. But this may not be your best strategy. Instead of bringing up the topic of money out of the blue, give your partner some notice.

No one is their best self when they feel caught off guard. A conversation about a tough financial decision will be more productive with two calm, prepared people at the table.

Set a time to talk about the financial decision at hand. Maybe, you’ll even want to make it into a “real” date and treat yourself to a coffee at the local shop or a favorite take-out dinner and wine.

No matter how you do it, the most important thing is that you have a designated time for the talk. This strategy can be applied to discussing one particular financial decision, or you can utilize it on a regular basis.

Write It Out

Sometimes, it’s just plain hard to communicate how you feel. This is especially true for topics that affect us deeply and in confusing ways, like money. If you and your partner are people that like to put their feelings down in written word, consider writing each other a letter prior to your financial “date.”

While this exercise may feel unrelated to financial decision making, it really isn’t. There is important work to be done in laying the groundwork for future conversations. No matter how pragmatic a financial decision may seem, feelings may (understandably) become involved.

In your letter, include some background on how you were raised to think about money, your money stressors, and your financial goals. Focus the letter on yourself and from where your financial beliefs stem.

Not only will this help your partner understand where you are coming from, but it will provide you with some very useful introspection about money and your system of values.

Be Prepared to Listen

When financial decision making, your first priority should not be to explain your point of view. To have a truly productive conversation, you must be committed to listening.

This is good practice in all conversations with your partner and loved ones, but especially when talking about financial decisions.

Here’s the thing about making financial decisions; it’s not usually black and white; there is generally no right and no wrong. Being open to listening often translates into being open to learning.

Not only is your partner’s perspective important, but you might even be able to learn something from them. We’re all learning as we go anyway, and by listening, you have a chance to learn and evolve as a couple.

Be Communicative

One key to a productive and healthy conversation regarding a financial decision with your partner is to communicate your feelings, thoughts, and fears. Something that seems obvious to you may not be obvious to them, so give your partner the grace of explaining yourself in a calm and thorough way.

When you communicate, stick with talking about how you feel regarding a matter and avoid making declarations about what your partner has done in the past or what you’re hoping that they will do in the future.

Making comments about how a person is spending can quickly turn accusatory, making a person defensive. Even when having tough conversations, do your best to remove judgment from the equation.

Also, accept that just because you have explained something to your partner once, that they understand what you mean and where you are coming from. Don’t lose your cool if you have to remind your partner what’s important or a priority to you, especially if that’s not the way they seem wired to operate.

Crunch the Numbers

If you are making a big (or small) financial decision, you and your partner are going to want to sit down and work out a plan. You might find it helpful to have a Google doc or some pen and paper handy so you can write it all down.

Because while it’s one thing to have money goals and plans, it’s another thing to map them out. Take the time to figure out exactly how each financial decision would play out over the short and long term. Break big costs down into monthly numbers. Enact plans for these reaching goals, such as setting up automatic transfers from checking accounts and into savings accounts.

Sometimes, the numbers help guide financial decision making within a relationship. You and your partner can see, on paper, what is possible (and what isn’t). The exercise may provide a new perspective altogether or at the very least, get you on the same page regarding the different options with your money.

If you feel at a loss for what you should be focusing on or how to accomplish your goals, you may want to hire a financial expert, such as a credentialed financial planner. Some financial guidance from a person skilled in financial planning could be just what a couple needs to step up their money game.

Compromise

If you’re in a partnership, you already know that compromise is the name of the game. The good news with money is, compromising is not only possible but often ideal. For example, you do not have to pick just one savings goal to work on at a time. Financial decisions don’t have to be “one or the other.”

Also, know that there is no perfect formula for how a couple makes financial decisions. Just because your best friend and her boo may divide up their finances in a certain way or prioritize working on a particular goal with their partner, it doesn’t mean that you have to do it this way. Part of compromise with your partner is abandoning the idea that your partnership should work like anyone else’s.

Compromise is certainly more difficult when partners disagree about big picture money issues, such as whether saving is a priority or paying off debt is important.

Put Plans Into Action

Once you’ve hashed out your money goals and fears with your honey, it’s time to take legitimate steps towards making your dreams a reality. Use the fact that you have a built-in accountability buddy and set weekly goals for accomplishing tasks.

One such goal should be to start a savings account that exists separate from your checking accounts. It may help you avoid the temptation of spending money that lingers in your account for too long.

You could try a bank account online like SoFi Checking and Savings®. You can use any ATM that accepts Mastercard and we’ll reimburse all of your ATM fees. Best of all? SoFi Checking and Savings has no account fees (fee structure subject to change), which means you can try it out without fear of being overcharged.

You (and your partner) are free to use it in a way that makes the most sense in accomplishing the financial goals you’ve laid out before you.

It’s the perfect option for setting up a new checking and savings account whether you’re doing it solo or jointly with a significant other. A SoFi Checking and Savings account can be used for a specific savings goal, or it can be used as your all-purpose money needs.

No matter your financial goals, take steps towards accomplishing them. You give your relationship the greatest gift of all by turning your financial dreams into reality.

Setting new savings goals with your partner? Merging your finances? Learn more about spending, saving, and earning, all in one product with SoFi Checking and Savings.

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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.
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2022 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
SoFi Money® is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member
FINRA / SIPC . SoFi Securities LLC is an affiliate of SoFi Bank, N.A. SoFi Money Debit Card issued by The Bancorp Bank.
SoFi has partnered with Allpoint to provide consumers with ATM access at any of the 55,000+ ATMs within the Allpoint network. Consumers will not be charged a fee when using an in-network ATM, however, third party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 4/25/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
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Navigating your personal finances can be a tricky business. Sometimes, a financial mentor is just what you need to get your finances on track. A financial mentor is essentially someone who can help you plan smart strategies for how to spend, save, and invest your money.

Money can get complicated and having a trusted financial mentor can bring clarity and context to your financial decisions and make things like investing and saving a little easier to manage.

Today, anyone with a website and a little bit of knowledge can claim to be an expert, so follow these steps to be sure you find a mentor whose intention is to truly help you.

Decide What You Want in a Mentor

First, take an honest look at your situation. List out your financial strengths and weaknesses, and set some goals. If you have a pretty good grasp of your personal budget but need guidance to break into the housing market, you might want to sit down with someone in your family who owns property and knows what it’s like to be a first-time house hunter.

If, on the other hand, you’ve tried—and failed—on numerous occasions to get a savings or retirement account built up, you may be in search of a money mentor who understands the vagaries of life and everyday finances.

Professionals and budding investors may want to hire a financial advisor to help put their money to work, but may not have the money to spend on one. This is where a financial mentor comes in handy.

Solidify Your Perspective

Before you begin your search in earnest, there’s one thing you may want to do, and continue to do throughout the entire process. Write down your goals and two questions to be answered about every step of the process: Will this help me meet my goal? Will this work well for my life?

This is important to not only help you remain focused but to remember that personal finance is just that—personal—and a legit mentor should always work toward your agenda, not theirs. Make it your screensaver, set a repeating reminder, or whatever method works best so the end goal stays in sight, and in mind.

Find Potential Candidates

Money mentors can come from anywhere—even your own family. Start with your circle of people, and create a list of those who have a good grasp on their finances. Look for relatives, friends or even acquaintances who successfully run small businesses or manage their debt well.

Partnering with a mentor whom you already know can not only save you money, but it also begins with a deeper level of trust. In many cases, people may also be more comfortable opening up to someone who isn’t a stranger.

If you need to reach outside your social circle, ask around for referrals. Word of mouth and personal references are typically much more reliable than a Google search, especially if you’re a beginner.

In fact, some wealth “gurus” prey on those who are inexperienced with money by selling overpriced programs that don’t offer much value, so the more you can rely on personal reputation, the better.

That said, the internet isn’t awash with predators waiting to take advantage of you. But if you head to the web, start with professional sites like LinkedIn, proceed with caution, and make ratings and reviews your friend.

When it comes to holding businesses and individuals accountable, they’re one of the greatest benefits of social media. Look for mentors who have both a high rating and a high number of reviews that sound relatable to you and your goals. (Even a comment as simple as “He was only available during work hours,” could be a negative for someone who has a day job.)

Find ‘The One’

Once you narrow your search to a few potential mentors, make a list of questions to ask them, and to ask yourself. Here are a few to get you started:

For potential mentors:

•  How long have you been a coach?

•  What’s your business specialty?

•  What’s your greatest financial success/failure?

•  Have you ever been in my situation? What did you do about it?

•  What is your availability?

•  What’s your plan to help me reach my goals?

For yourself:

•  Can I relate to this person?

•  Do they present themselves as a financial success story?

•  Do they know how to teach?

•  Are they truly listening to me?

•  Are they trying to sell me anything?

•  What’s my gut reaction?

As you evaluate your answers, remember to keep your original goal in mind and be strict, because you aren’t looking for three or four mentors that might work out. You’re looking for the start of a beneficial relationship. Once you’ve found “the one,” make the leap and ask for guidance.

Be a Good Student

During your first few meetings, work together with your mentor to set expectations and lay the groundwork. Determine a plan, how you’ll get there, and how often you’ll communicate.

And remember that as much as you expect them to be a good coach, you should be a good student. Listen closely, take good notes, and implement your mentor’s suggestions. And, if at any point you feel like your mentor has ulterior motives or doesn’t have your best interests at heart, it’s your prerogative to back out.

Turn to Tech

If your social circle is lacking in financial gurus or you don’t have the budget to hire a pro, consider tech as your teacher. There is a wealth of resources on the internet where you can learn about money. Of course, you’ll want to proceed with caution on the internet—you can’t believe everything you read, and you might want to seek out multiple sources to verify claims.

Find a reputable source that you find interesting—there’s no shortage of financial content. From blogs to podcasts, websites, and magazines, there’s something for everyone. Building a solid educational foundation can go a long way when it comes to managing your finances.

If you’re ready to take the next step, consider opening an account that offers advising or automated investing. At SoFi, we’ve launched SoFi Invest® which offers just that. With an invest account with SoFi, you gain access to human financial advisors who will work with you to set your goals and risk tolerance.

You’ll also benefit from automated investing technology, that will automatically rebalance your portfolio to stay in line with your goals and risk tolerance. And you can begin investing with as little as $1.

Another fantastic option to kickstart your savings is with SoFi Checking and Savings®, a checking and savings account where you can save and spend all in one place. With SoFi Checking and Savings you can take advantage of the ease of online access with perks like photo deposits, online transfers, and excellent customer service just a touch away.

In addition to the convenience, one of the biggest benefits of SoFi Checking and Savings is that there are no account fees (subject to change). With SoFi, you will know that your money is going toward your financial goals instead of going to fees.

Start saving with SoFi Checking and Savings. Join today.

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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.
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 4/25/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

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When it comes to creating or improving upon a budget for yourself, your family and your household, the last thing you want to do is keep it all in your head.

That’s not a negative comment on your cognitive skills or intelligence; it’s just that when you write it all down and can see it with a bird’s eye view, you can get a deeper understanding of where your money is going, or where it could be going.

Many people would be surprised to see how they might be bleeding money by a thousand cuts: ATM and other banking fees, subscriptions they had forgotten about, restaurants, gasoline, that daily cup of joe (or three) at the coffee shop, cranking up the air conditioner or the heat, one streaming service too many, or more mani-pedis than are really needed. If you look closer, you could find even more cracks in your budget.

Here are nine steps to take that can help you to budget money better and get your budget in top shape, which could lead to more stability and excess money to use for your future.

Counting Only Your After-Tax Income

If you include your gross salary, you’re not doing your budget any favors. You can only work with the money that’s left over after your taxes are deducted; that’s called your net income. The money that was taxed goes directly to Uncle Sam. If you think you may be getting a tax refund or a bonus at work, wait until you actually get them before including them in your budget.

Recording What You Spend — to the Penny

The more accurate you can make your budget, the more you can understand how it’s helping or hurting you. Mortgage loans, rent, utilities, insurance, groceries, credit cards, loans, gas, and Internet are just a few of the facts of life.

Don’t round off to the nearest dollar; if pennies are involved in the charges, be sure to include them. The goal is to have more money coming in then what is going out every month. Once you have this figured out in dollars, you can start planning from there.

Setting Goals

Instant gratification (buying that coffee or that restaurant meal) is nowhere near as satisfying as setting a long-term goal and saving for it. A special trip, a down payment on a car or a house, or even just building a nest egg can be done with better budgeting.

Try opening one account specifically for that one goal, and put what you can into it week to week or paycheck to paycheck — or whenever you can. You’ll likely become even more motivated when you see that account grow as you grow closer to your goal.

Getting Granular and Detail-Oriented

Your cash can jump out of your hands in ways that you often don’t even realize. ATM fees, tips, a quick Uber ride, buying a buddy a coffee, or a bag of peanuts at the convenience store can start to add up. Be sure to save receipts and include these spends on your budget chart. To help keep track of your spending, get started with SoFi Relay. SoFi Relay tracks all of your money, all in one place.

In essence, write down everything you spend, and try to record them as they happen, or at least on the same day. This way, the receipts won’t pile up as much and make you feel reluctant to continue on. Becoming conscious of these little costs during the course of your day can help you start thinking about getting more budget-conscious and thrifty, and on your way to budget better.

Saving for the Inevitable

Christmas comes at the same time every year. So do birthdays. And Valentine’s Day. Figure out what you may be spending for those events that always seem to creep up on you without warning, and make an attempt to save a little each week toward those goals.

Trimming the Fat

Once you start getting a better idea of how your existing budget is, you can start getting creative with where you can cut the unnecessary costs.

It could be as simple as eliminating a premium cable or Internet subscription, or keeping the a/c at a slightly higher temp. It sounds painful, but once you start cutting, it may actually feel good, and you may get tempted to keep going.

Paying Yourself First

You always want to have enough money in your budget to cover your most important expenses (rent/mortgage, health insurance, utilities), but consider getting into the habit of putting a percentage of your earnings into your savings. If you do this first, you may not come up short when it comes time to dip into an emergency fund.

Being Consistent

Get into the habit of paying attention to your better budgeting every single day. Do everything in your power not to trail off. It’s so easy to skip one month of your budget due to being especially busy or simply just life happening in general.

Skipping one month can lead to skipping a number of months, and then your better budgeting can become just a hazy memory in your rear-view mirror. Reaching your financial goals can be much easier when you have a plan and stick to it.

Getting Budgeting Help

Better budgeting is certainly not rocket science — spend less than you make — but many of us could use some help when it comes to money. Sometimes, the ultimate help is being able to step back and take a comprehensive view of where you stand.

One way to keep your better budgeting on track is with a SoFi Checking and Savings® account. It offers a great way to spend, save, and earn all in one product.

SoFi Checking and Savings has no account fees. Plus, with your SoFi Checking and Savings checking and savings account you’ll be able to see, on a weekly basis, what your spending looks like.

Plus, withdrawing cash is fee-free at 55,000+ ATMs worldwide (fee structure is subject to change at any time).

Whether it be saving or investing, SoFi can help you get on track and reach for your financial independence. More than half a million members have already used SoFi to get their financial house in order and their futures more secure.

Try SoFi Checking and Savings today to help keep track of your spending & budgeting.

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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.
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.
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2022 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
SoFi Money® is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member
FINRA / SIPC . SoFi Securities LLC is an affiliate of SoFi Bank, N.A. SoFi Money Debit Card issued by The Bancorp Bank.
SoFi has partnered with Allpoint to provide consumers with ATM access at any of the 55,000+ ATMs within the Allpoint network. Consumers will not be charged a fee when using an in-network ATM, however, third party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 4/25/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

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Financial wellness is something that everyone wants, in theory, but is very difficult to define. Sometimes, it feels more like a fleeting buzzword than a real state of being that a person can actually achieve.

Here’s the good news: You can accomplish financial wellness. It might not be easy, though, because financial wellness cannot be bought at a store, purchased online, or procured from a close family member.

Financial wellness is something that must be worked for. But financial wellness is worth every ounce of effort.

To work towards something, first, we must first understand it. The Consumer Financial Protection Bureau (CFPB)did a comprehensive study on financial wellness in 2017 where they found that because individuals value different things, strictly monetary measures such as income or net worth were not a perfect measure of financial wellness.

Instead, financial wellness relies on our ability to take care of our current and future selves with the resources we have. Naturally, this is going to look a little bit different for everybody.

Below, we will take some time to understand the definition of financial wellness. With this foundation, we can begin to design and enact a plan for anyone who wants to work towards financial well-being.

What Is Financial Wellness?

The CFPB defines the four elements of financial well-being, which include:

•  You have “Control over day-to-day, month-to-month finances.”

•  You have the “Capacity to absorb a financial shock.”

•  You are “On track to meet your financial goals.”

•  You have the “Financial freedom to make choices to enjoy life.”

Again, you’ll notice the absence of traditional markers of financial success, like earning a high income. While having a high income certainly helps, there are plenty of people who are high earners but are not financially well. Conversely, those who are low or middle earners are not precluded from achieving financial wellness.

Taking Steps Toward Financial Wellness

Next, we will cover some tips that can help you work toward financial wellness.

Paying Attention to Your Mindset

Financial wellness is connected to emotional wellness. These concepts are all related, and it is hard to have one without the other. Those who have experienced trauma or difficult experiences with money (such as growing up in poverty) may need to address what may be a tenuous relationship with money. Heck, all of us should take time to examine the way that money affects our mental states.

This process is going to look different for everyone. Some people may feel the need to do an examination of their beliefs about money they have from growing up. Others may want to explore issues with a professional.

For some folks, creating daily affirmations (such as “I am deserving of abundance”) or building a gratitude mindset (“I am grateful to live in a place where saving money is possible”) may work well. Keeping your money mindset in shape can take continual work, so try pairing exercises like these with the more logistical money tips we go through below.

Tracking Your Spending

It’s not glamorous, and it is that last thing that so many people want to do on their precious weekends, but tracking spending is essential to financial wellness. There is real truth to the saying “What gets measured gets improved.” There’s no way to fix problems like overspending without understanding exactly what goes in and what goes out.

Additionally, having a good budget is an important first step in building a solid overall financial infrastructure, which can include more advanced steps like saving and investing for long-term goals, like retirement.

It can feel overwhelming to start, but it doesn’t have to be. Begin with this month’s spending. Pull up your statements and organize purchases into categories, such as utilities, groceries, dining out, and shopping. Once it is added up, does a spending category jump out at you? This simple exercise often reveals at least a surprise or two.

If you don’t want to do manual tracking, you can use an app like SoFi Relay or see if your bank account provides a tracking feature. SoFi Checking and Savings® accounts provide weekly spending charts so you can visualize where your money is going.

Your next step would be to organize this information into a monthly cash flow report, where you compare your source(s) or income versus the money that was spent in that same month. Did you spend more than you earned? Or did you earn more than you spent, with some leftover for savings? Next month, go through the exercise again (it gets easier every time). What patterns are emerging? Understanding these habits will be crucial to your success.

Building Saving into Your Budget

An integral part of financial wellness is having money in the bank. People who have saved money also tend to have peace of mind knowing that they could afford an emergency or job layoff. Additionally, financially well people are also typically saving for their future. This means setting some money aside for long-term goals like retirement.

To begin a saving routine, you can start by opening a savings account and transferring a portion of the money in your checking account into your new account. It can be a good idea set up a savings account that is separate from your checking.

Some people may find that cutting back on their spending and moving extra funds into savings is the way that works best for them. (For tips on reducing spending, see below.) Other people may find that a more proactive approach is best.

To fully embrace your new savings plan, you can set up an automatic, recurring transfer from your checking account to your savings account. It’s okay to start small—even small amounts matter, and everyone has to start somewhere.

Looking for Big Wins to save Money

If you want to start saving more money, often the fastest way to do so is by spending less money.

Clipping coupons or not ordering the appetizer once a month aren’t going to be the items that make or break your budget. Instead, look for ways that you can win big on savings. Easy ways to do this include cutting back in one of the categories we tend to spend the most amount of money on—housing, transportation, food, and other bills.

There are almost always ways to spend less in these categories—it’s often a matter of what we’ve grown comfortable with or accustomed to. With housing, you could downsize or have roommates. On transportation, you could own a more affordable car or consider car alternatives.

For food, actually use those groceries that you buy, or consider cutting back or eliminating eating out. There are plenty of ways to lower phone, electric, and gas bills. As a bonus, you can cancel any and all subscriptions (like cable) that you aren’t using.

Controlling Your Debt

It can be hard to feel financially well if you are also feeling overwhelmed by debt. Debt can come in many forms—credit cards and other personal loans, auto loans, student loans, and mortgages. People incur debt for many reasons, some of which are in their control and some that aren’t. Either way, large debt loads or big monthly debt bills can trigger stress in a person.

What can you do to control debt that feels out of control? The first step is to remind yourself that debt can be overcome and that it does not define you or your future. Second, make a plan to get out of debt by listing out all sources of debt, and tackling them either by the avalanche or the snowball method.

If you are dealing with credit card debt, specifically, you can call the credit card companies and ask them to lower your annual percentage rate (APR). Explain to them your situation and that you are trying to improve and organize your finances. A lower APR means lower interest charges, which may help you make some headway in paying off your credit card debt.

Depending on your APR, you may want to consider paying off your credit cards with a personal loan at a lower rate. This probably won’t make your debt go away (or stem the problem that caused the debt), but it could help you pay off your debt faster.

Accepting That Financial Education Is Ongoing

According to the CFPB, a characteristic that all financially well people share is that they are committed to learning about how to manage their money. They understand that both work and education is a continuous process.

We’ve provided a lot to think about here, so you can start with one or two items, and build from there. Don’t expect yourself to get there right away—remember to embrace the idea that financial wellness is a journey and an ongoing process. Good luck as you find a path towards financial wellness that works the best for you.

Having the right checking and savings account can go a long way in helping a person achieve financial wellness. Learn more about SoFi Checking and Savings today!

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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.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Do you have multiple accounts that hold your money across different banks? If you’re like a lot of people, you keep one account for your savings, and yet another for checking. Some people have additional accounts for their retirement savings or after-tax investments—but that’s a whole different can of worms.

For those looking for a better way to manage their checking and savings, there’s another account that should be on your radar: a checking and savings account. It’s a hybrid between a checking and a high-yield savings account. You can write checks and they’ll even issue you a debit card. In this article, we’ll answer the question, “What is a checking and savings account,” along with a discussion of their benefits, how they’re used, and who might benefit from using this type of account.

What Is a Cash Management Vehicle?

A checking and savings account—also known as a cash management vehicle—is designed to manage cash, make payments, and earn interest. It’s a hybrid between a checking and savings account.

Cash management accounts typically come equipped with checking account features such as a debit card and ATM withdrawals. They also typically pay a higher rate of interest than keeping your money in a traditional savings account. If you have a checking account, you know how little they pay in interest; .08% is the national average .

Cash management accounts are often all-in-one accounts, and they can combine features of a checking account, brokerage account, and an interest-bearing savings account. (Not all checking and savings accounts include all these features, though.)

While checking and savings accounts used to be limited to those with high balances in brokerage accounts, this is no longer always the case. For example, online-only financial services companies are breaking the mold by offering similar accounts to those without a brokerage account or without having to meet a minimum balance requirement. They’re able to offer higher interest rates because they don’t maintain brick and mortar locations.

What to Look for in a Checking and Savings Account

While most checking and savings accounts share similarities, they won’t all be the same. Here are some items to consider when shopping around for a checking and savings account.

Safety

FDIC (Federal Deposit Insurance Corporation) insurance protects your money in the event your bank goes belly-up. For your safety and protection, it is essential that your checking and savings account is FDIC-insured. Some banks offer more coverage by using a system that spreads their deposits across several banks (this is done behind the scenes). For example, SoFi Checking and Savings offers $1.5 million in FDIC insurance per account.

Interest Rate

Generally, you’re able to get a higher rate of interest within a checking and savings account than you are with a savings account at a brick and mortar bank. This interest rate will likely not be as high as in an online-only savings account, the trade-off being that an online-only savings account will usually limit your access to your money. SoFi Checking and Savings has aspects of a high-yield savings account and a checking account.

Accessibility

When deciding on an account, you’ll want to investigate its accessibility. Cash management accounts usually offer either a credit card or debit card hooked up to the account, allowing you to use it as if it were a checking account.

Most will also allow you to withdraw money at an ATM and set up bill pay. (For comparison, some high-yield savings accounts only allow you to access your money a certain number of times per month. Limiting the number of transactions in an account allows them to offer a higher interest rate.)

Fees

As with most types of bank accounts, there is a possibility for fees, such as monthly or annual account maintenance fees, or fees to use out-of-network ATMs. Conversely, some checking and savings accounts will actually reimburse you for any ATM fees you incur.

If you travel internationally, also be sure to check the account’s policy on international transactions and ATM usage. SoFi Checking and Savings, for instance, reimburses 100% of all ATM fees, even internationally, on qualified accounts.

Bank Locations

Brick and mortar locations for checking and savings accounts are limited because in the past, most checking and savings accounts have been offered by brokerage banks. Brokerage banks do have physical locations, but they’re often limited to large cities.

If it’s important to you to be able to walk into a location, you’ll want to research whether there is on near you. Online-only banks specifically opt out of providing physical locations, often so they can offer more by way of interest rates. This will likely become more common as financial services move the majority of their operations online.

Who Should Use a Checking and Savings Account?

Because a cash management vehicle is a hybrid between checking and high-yield savings accounts, they would suit anyone who would like to consolidate the two. Most financially savvy folks understand that larger cash balances should be earning more interest than is offered in a “regular” checking account, but dislike coordinating checking and savings accounts at different banks.

Really, anyone looking to consolidate and elevate their finances should, at the very least, research a cash management vehicle to see whether it makes sense given their financial goals and the structure of their current accounts.

A checking and savings account is an excellent place to save up for short to mid-term goals, such as an emergency fund, a down payment for a home, for a wedding, or an exotic trip to celebrate paying off student loans.

As the landscape of financial services changes, it’s a good idea to stay up to date on advances in technology and improvements to the services provided to consumers. For a long time, brick and mortar banks had very little competition, as the physical locations (and convenience) were paramount to effective banking. As banking moves online, those with the most branches won’t necessarily be the ones providing the best customer service or the most competitive interest rates.

SoFi, who has been leading the charge in refinancing student loans to lower rates, is expanding its business to offer a checking and savings account that offers an interest rate competitive with high-yield savings accounts. They’re able to do so precisely because they don’t maintain physical branches—and understand the need for a more versatile checking and savings account that’s easy to use and and has no fees.

Thinking about merging checking and saving into one, interest-bearing account? Get the best of checking and savings—in one account. Learn more about SoFi Checking and Savings today!

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SoFi can’t guarantee future financial performance.
This information isn’t financial advice. Investment decisions should be based on specific financial needs, goals and risk appetite.
Neither SoFi nor its affiliates is a bank.
SoFi Checking and Savings^TM is offered through SoFi Securities, LLC, member FINRA/SIPC.
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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