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Some people may believe that money is everything, but is that truly the case? There’s no denying that money plays a central role in our lives. It provides access to healthcare, education, and the freedom to pursue passions. It offers security, stability, and, at a basic level, ensures our survival.

However, money isn’t without its downsides. Research suggests that an increase in wealth can sometimes lead to higher levels of stress. Constant comparisons with others can breed dissatisfaction and financial disagreements remain a leading cause of divorce, regardless of wealth.

This raises an important question: Is money really everything in life? To answer that, it’s worth exploring what money can and cannot do for us — and whether its value is as absolute as it often seems.

Needing Money to Survive

Money has the ability to improve one’s life, but the question of whether more money always leads to more happiness has long been up for debate.

Amid all the misconceptions about money, however, there is a fundamental truth: We need money to survive.

According to the American Academy of Family Physicians (AAFP), poverty and low-income status can lead to shorter life expectancy, higher death rates for the 14 leading causes of death, and higher infant mortality rates.

From food and shelter to health care and education, money provides the things needed to survive.

💡 Quick Tip: Want to save more, spend smarter? Let your bank manage the basics. It’s surprisingly easy, and secure, when you open an online bank account.

What Money Can Do For Us

Is money everything? Probably not: Things like love, friendship, time, and passion are all important aspects of life (though money can help in those areas —for example, money can enable you to pursue passions and afford experiences with family and friends).

But even if money isn’t everything, it can do a lot of important things, such as:

Meeting Basic Needs

Money allows us to meet our most basic needs, like food, shelter, and health care. Without those things, we would die.

On Maslow’s hierarchy of needs — a well-known model for understanding the motivations behind human behavior — humans must satisfy such basic needs before they can focus on more complex needs like love and belonging, esteem, and self-actualization.

Paying Down Debts

Multiple studies indicate that carrying debt is bad for your mental and physical health. Adverse effects include high blood pressure, anxiety, depression, and even a weakened immune system.

On top of that, debt can lead to money fights with a significant other. It can also impact your ability to secure credit in the future — whether for a car, house, or even a credit card.

Thus, having enough money to pay down your debts can help avoid a lot of figurative and literal headaches.

Recommended: How to Manage Your Money

Improving Our Quality of Life

Beyond meeting basic needs, money can help improve one’s quality of life. Having more money makes it easier to see expensive doctors, join a gym, and buy healthier foods. It also enables the pursuit of higher education without needing to get a student loan.

Money also allows you to afford experiences with friends and family — whether it’s going to a concert, traveling with your family, or just having lunch out with a coworker. Beyond that, money allows a person to pursue passions and hobbies, such as gardening, woodworking, painting, playing in sports leagues, or fixing up cars.

Feeling Secure and Free

Having enough money to pay the bills and provide for your family can create a sense of security. With a well-padded emergency fund, you may not worry about the cost of emergencies like unexpected vet bills or car trouble like those living paycheck to paycheck might. “An integral part of financial wellness is having a cash reserve,” says Brian Walsh, CFP® and Head of Advice & Planning at SoFi. “Research shows that having cash to cover the unexpected has a big impact on financial stress, anxiety, and satisfaction.”

Not only can money provide you with a sense of security, but it can also give you more freedom to pursue passions and buy material goods you enjoy without worrying about the price tag.

💡 Quick Tip: If you’re saving for a short-term goal — whether it’s a vacation, a wedding, or the down payment on a house — consider opening a high-yield savings account. The higher APY that you’ll earn will help your money grow faster, but the funds stay liquid, so they are easy to access when you reach your goal.

Making a Difference

Parents with more money may be able to provide things for their children that others cannot — like paying for a child’s college education, which can help pave the way to a promising future. Beyond your own family, money can allow you to make a difference in the world through charitable donations to causes you care about.

What Money Can’t Do For Us

After reading the list above, you may wonder: Is everything about money? While money can purchase material possessions and enable certain experiences, there are some things money simply cannot do.

Buying More Time

No matter how much money you have, no one can buy more time. If you spend a large chunk of your life working at a job you don’t like — and miss out on experiences and memories with people you love — you can’t buy that time back. And while deep pockets can perhaps enhance one’s health and healthcare, it won’t necessarily extend your life.

Creating Real Relationships

You cannot buy deep connections with friends and family. You may gain new friends with more money, but real relationships are typically based on love and respect for one another. In fact, the more time you spend trying to make money, the less time you’ll likely have to focus on building relationships with people you care about.

Recommended: How to Change Your Money Mindset

Fulfilling Passions

Some people may have high-paying jobs and love what they do. But others may take high-paying jobs just for the paycheck, even if there’s something else they’d rather be doing.

While it’s important to earn money to care for yourself and family, remember that it’s also valuable to allow yourself to do things that make you happy.

Can Money Buy You Happiness?

Science says yes, to a certain extent. In 2010, Daniel Kahneman and Angus Deaton released their now-famous research that indicates money does buy you happiness, but only up to a certain point. They found that the effect plateaus around $75,000 ($108,000 in today’s dollars) annually. Beyond that threshold, additional income doesn’t significantly boost emotional well-being and happiness.

A more recent study, however, throws that into question. The 2021 paper by Matthew Killingsworth demonstrates a continued, linear correlation between money and happiness. That is, a person who makes $150,000 is likely to be significantly happier than one who makes $100,000.

But there is also data to suggest that more money can lead to unhappiness. For example, per capita income in the United States increased by 150% from 1946 to 1990, yet the percentage of people who considered themselves happy dropped during that time.

Research also indicates that more income can lead to more stress, that materialism can contribute to unhappiness, and that comparing one’s finances with one’s peers can contribute to dissatisfaction.

So can money buy you happiness? The answer: yes and no.

What’s More Important Than Money?

Science can only go so far to prove fundamental truths about the human experience. How can a person truly measure the value of love, family, and friendship to each individual? And how can you separate money from things you deem important, like your mental and physical health?

Understanding that it’s a nuanced subject, here are some things that you may find are more important than wealth; things that refute the the idea that money is everything:

•   Love: For many people, sharing love and companionship with friends, family, partners, and children is paramount. It can be the most valuable thing in the world.

•   Health: Having a sound body and sound mind are important. Many rely on jobs for health insurance and the money they need to afford everything from prescriptions to gym memberships to emergency room visits. However, one can overdo it at work. It can be important to remember to also focus on your mental health, especially if you’re working too much and too hard to make money.

•   Passion: While some people would prefer to work a high-pressure job for more money, the Great Resignation (in which people left their jobs in droves as the COVID-19 pandemic progressed) showed us that many people would rather pursue their passions and accept a lower paycheck for it. To them, a passion-filled life is more important than money.

•   Time: Each person has a finite amount of time in life. If you spend too much of it focused on making money, you may miss out on life-changing experiences and wonderful memories with friends and family.

The Takeaway

Money can allow you to satisfy basic needs like food and shelter. It may also enable you to pursue higher education, access higher-quality health care, and fund experiences and hobbies that you are passionate about. That said, money can never buy you more time or true relationships, and having more money could even make you unhappy. So while money may matter, it’s not necessarily everything when one thinks about happiness at a basic, human level.

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.

FAQ

Where did the phrase “money isn’t everything” come from?

The origin of the phrase “money isn’t everything” isn’t clear, but it’s a common expression in the English language. The intent of the expression is that you shouldn’t focus solely on money because other things — love, friendship, time, passion, etc. — are also important and can bring you happiness.

What happens if we are too dependent on money?

Money is important for affording the basic things we need to survive, but research shows that focusing too much on money can lead to more stress, isolate us from people we care about, and even cause depression.

Is too much money a bad thing to have?

We need money to survive and to improve our quality of life. Having more money allows us to care for ourselves and the people we love. However, if you’re earning that money at the expense of your mental and physical health — and missing out on core life experiences because you’re busy with work — having more money could be a bad thing. Some research indicates that well-off people can experience stress factors that relate specifically to being wealthy, such as feeling pressured to live up to certain expectations, needing to support family members, and feeling obligated to maintain their social status.

Photo credit: iStock/Irina Kashaeva

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.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOBNK-Q325-015

When researching new bank accounts, you may find some that offer sign-up bonuses — or cash rewards for opening an account and depositing some money — and wonder if it’s worthwhile. The answer is: It depends. This can make a bank account seem more attractive because of the quick payout, but it’s important to think about the long-term value of a bank account before opening it.

Are bank bonuses worth it for you? They can be if the bank also offers other features that align with your needs, like a high interest rate, no monthly fees, a large ATM network, and cash back rewards.

But in other cases, they may wind up just being an incentive that leads you into an arrangement that involves, say, high fees and low interest rates.

Read on for a closer look at how bank account bonuses work, their pros and cons, and how to determine if they’re worth it.

What Is a Bank Account Bonus?

A bank account bonus is a reward that customers generally earn for opening a bank account, such as a checking account or savings account, and meeting specific criteria during a set period. That might include setting up direct deposit, funding the account with a set amount of cash, using your new debit card a certain number of times, or meeting a specific spend threshold.

Bank account bonuses can vary in size, with some banks offering $100 and others offering $600 or more.

Banks may offer other types of bonuses, but sign-up bonuses are the most common and are meant to entice you to open a new bank account.

Note: Banks generally offer bonuses during promotional periods that last a set number of months. At the end of that period, they may choose to extend the bonus, end it, or offer a new bonus that could be more (or less) valuable than the preceding one.

How Do Bank Account Bonuses Work?

A traditional sign-up checking account bonus generally requires that you are a new client of the bank — or haven’t had an account with the bank for a set number of years. Each bank will have varying criteria to earn the bonus. Depending on the bank, you might:

•   Simply need to set up and receive qualifying direct deposits

•   Deposit a certain amount of money into the account (say, through an external bank transfer) and keep the account funded for a set number of days

•   Use your debit card a set number of times or for a minimum spend amount in a given timeframe

•   Pay a minimum amount of bills using the account

Evaluation periods for such bonuses may range from a few weeks to several months to an entire year. That means it could take a while to receive the sign-up bonus.

Some banks may also take back the bonus if you close the account too soon after receiving the bonus. That’s why it’s a good idea to read all the fine print for a bank bonus before opening a new account or switching banks.

What Are Some Common Bank Account Bonuses?

Here are some common bank account bonuses to watch for:

•   New account bonus: A sign-up bonus, or new account bonus, is what we generally think of when we hear “bank bonus.” Consumers can earn these bonuses for opening a new account and meeting specific criteria.

•   Referral bonus: Some banks may offer referral bonuses. Get friends and family to sign up for a new account, and you — and maybe your referral — can earn a cash bonus.

•   Cash back bonuses: Though we often think of cash back with rewards credit cards, some banks may pay out cash back with debit cards. You might get a percentage back when you make qualifying purchases.

•   Waived fees: Some bank accounts charge monthly service fees for keeping the account open. Often, these banks offer a way for you to have the fees waived — usually by maintaining a minimum balance, earning direct deposits, or meeting certain spending criteria. While you won’t earn cash, you’ll avoid paying fees; in that way, it’s like a bonus.

And don’t forget: Many banks offer sign-up bonuses on their credit cards as well. These also have their own criteria for earning the bonus that you may want to review before applying.

Pros of Bank Account Bonuses

Bank bonuses can be advantageous for consumers who are looking for a new account. Here are some of the pros:

Many Are Offered for Opening a New Account

Sign-up bonuses are a common form of bank bonus. Because the criteria are built around things you’d commonly do with a new checking account — setting up direct deposit, funding it with cash, using the debit card on everyday purchases — it can be easy to earn the bonus for activities you would’ve done anyway.

Bonuses Can Be Enough to Pay Off Potential Fees

While it’s wise to prioritize a bank account without any monthly fees, big bonuses can offset such fees for several months. And even if you find a bank account with no monthly fees, you may still end up paying:

•   ATM fees

•   Minimum balance fees

•   Overdraft and NSF fees

•   Foreign transaction fees

Such occasional fees might be easier to swallow if you’ve already earned a bonus worth several hundreds of dollars.

Bonuses Can Help You Build Your Savings

If you earn a bonus for opening a new savings account, you can keep that money in your account where it will continue to earn interest. This makes bank account bonuses an easy way to jump-start your savings, whether you’re building an emergency fund or saving for a wedding, house down payment, or vacation.

Recommended: Different Types of Savings Accounts

Cons of Bank Account Bonuses

While it’s hard to imagine how free money could be a bad thing, bank account bonuses may have drawbacks for certain consumers. Here are some considerations as you decide if bank bonuses are worth it.

Bonuses Are Considered Taxable Income

First and foremost, a bank account bonus is never as big as it sounds. Here’s why: because Uncle Sam takes his cut. The IRS considers bank account bonuses earned income, just like any interest you earn on the account.

You Might Pay More in Fees

Sign-up bonuses are meant to entice you to open a new account, but it’s a good idea to consider the account as a whole before moving forward. While a shiny sign-up bonus may offer you money up front, consider how much you’ll spend on fees (or how much you’ll miss out on in interest if it’s a low-interest account).

Once you factor in fees and missed earning opportunities, a bank account offering even a large bonus may not be the best long-term option for you.

There Are Often Many Requirements to Receive the Bonus

Sign-up bonuses often come with specific requirements, such as minimum deposit amounts, minimum on-going balance requirements, and/or direct deposit requirements. If you’ll struggle to meet all the criteria, it probably doesn’t make sense to open the account for the bonus alone.

Is It Worth It to Switch Banks for a Bonus?

So are bank account bonuses worth it? That depends on your needs. If you’re happy with your current bank and like all the features it offers, it may not be worth the hassle to switch.

But if you have other reasons to switch banks right now — like you want a higher interest rate, better mobile app, or fee-free overdraft — it could be worth your time to compare bank bonuses and make the switch.

That said, sign-up bonuses are a one-time benefit. It’s a good idea to weigh other features, like annual percentage yield (APY), monthly fees, mobile banking features, and ATM access, along with new account bonuses when making your decision.

The Takeaway

Bank bonuses can be easy to earn and may offer a great jump-start to your savings. For most consumers, however, it makes sense to consider sign-up bonuses alongside other important banking features, like interest rates and fees, to make a sound financial decision.

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.

FAQ

How can I qualify for a bank account bonus?

Banks offering sign-up bonuses for new accounts have specific terms and conditions to achieve the bonus. Read the fine print of any bank account bonus program to ensure you understand all the steps you need to take to qualify for the bonus.

What are the different types of bank bonuses?

The most common type of bank bonus is a sign-up bonus, which some banks offer when you open a new account and meet certain criteria during an evaluation period. Some banks may also offer referral bonuses for getting friends and family members to open an account, cash back bonuses when you swipe your debit card, and waived accounts fees for meeting criteria every month (which is similar to a bonus).

Banks might also have unique credit card rewards, like sign-up bonuses and cash back, travel points, or miles with every swipe.

Does SoFi offer a bank account bonus?

SoFi may offer a bank account bonus to new members when they sign up for the SoFi Checking and Savings Account; it may require setting up direct deposit. Check here to see what may be available right now.

Photo credit: iStock/Prostock-Studio

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.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOBNK-Q325-018

Flipping furniture — the process of turning someone’s discarded pieces into beautiful, revitalized treasures — offers many benefits. It’s a unique way to earn extra income, learn new skills, and even send less waste to landfills. But how profitable can flipping furniture be, what tools do you need, and how do you get started? Let’s dive in.

What Is Furniture Flipping?

Though flipping furniture has recently gained popularity on TikTok, it’s been a profitable side hustle for many people much longer. Flipping furniture means taking an old piece of furniture, restoring it, and selling it for a profit. Restoring furniture generally involves cleaning an old piece, sanding or stripping it, then painting or staining it — and maybe installing more chic hardware, like knobs and handles.

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

How Do I Get Started Flipping Furniture for a Profit?

To start flipping furniture for a profit, you’ll need to find old pieces of furniture, research methods for restoring them, buy the necessary tools and materials, and perform the actual work.

Your first few attempts at flipping furniture may not be good enough to sell, but the pieces could make great gifts for friends and family. As with any new skill, mastery takes practice.

Once you’ve gotten the hang of flipping furniture, you can begin to look for places to sell your pieces.

Recommended: Best Time to Purchase Furniture

Where Can I Find Furniture to Flip?

To make money flipping furniture, you need to source old furniture cheaply — or (ideally) for free.

You can find free furniture by driving around neighborhoods on trash day. The saying “one man’s trash is another man’s treasure” applies here: If a neighbor has put out an old dresser or end table for trash pickup, you can carry it or throw it in your truck and take it home to restore. Similarly, watch for neighbors who are moving; many dispose of furniture they don’t want to take to a new place.

If you’re willing to spend a little money, it may be easier to find the right pieces. Here are some places where you may be able to buy furniture on a budget:

•   Thrift stores

•   Garage sales and yard sales

•   Estate sales

•   Facebook Marketplace and Craigslist

It’s always wise to thoroughly clean used furniture before starting the restoration process — and ideally before bringing it into your home or workspace.

What Types of Furniture Can I Flip?

Any furniture that you can get your hands on and improve could theoretically make for a good flip, but in general, some of the best furniture items to flip for a profit include:

•   Coffee tables

•   End tables

•   Dining tables

•   Dining chairs*

•   Nightstands

•   Dressers

•   China cabinets

•   Buffets

•   Baby furniture

*Fabric chairs that require reupholstering may take more work than they’re worth and also present more risk (bed bugs and fleas, namely) than all-wood furniture.

What Do I Need to Look For When Flipping Furniture?

Knowing how to flip furniture for a profit comes down to more than being able to strip paint and install handles. To maximize efficiency and profit, you’ll want to know how to spot the right kinds of furniture.

Here are some things to watch for:

•   Heavier items: If a piece of furniture is heavy, don’t let it scare you off. That’s a good sign that it uses real, solid wood. This kind of wood is more durable and thus attractive to buyers. Particleboard pieces, on the other hand, are cheap and tend to fall apart easily; these are likely not worth your time.

•   Transportation ease: If you spot a great piece of furniture that looks a little bulky, measure it before purchasing. You’ve got to be able to transport it to your workspace and to the end customer or your retail space. If you can’t transport the furniture without renting a vehicle, it may not be profitable to flip it.

•   Craftsmanship: Look for dovetail joints in antique furniture. These are a mark of skill by the original furniture maker — not only do dovetail joints last longer than dowel joints, but they’re also more attractive to look at. Visible nails and staples are a sign of lower quality.

•   Easy flip: Some furniture pieces require less work than others. Think about how much work each piece will need. If some just need a light cleaning (or power washing) and a few screws tightened before you can sell them, these pieces may be more profitable than those requiring hours or even days of labor.

💡 Quick Tip: Don’t think too hard about your money. Automate your budgeting, saving, and spending with SoFi’s seamless and secure mobile banking app.

How Much Do I Need to Start Flipping Furniture?

You don’t need much money to start flipping furniture for profit. If you’re able to source your first few pieces for free, you’ll just need to purchase basic tools and some paint and stain. Many flippers start with as little as $100.

As you begin to profit off your first furniture flips, you can start to invest in higher-quality pieces, better tools, and maybe even booth space at an antique store or flea market.

What Do I Need to Flip Furniture?

To start flipping furniture, you’ll need a few things, including transportation, a workspace, tools and other materials, and a place to sell the furniture.

Good Transportation

When flipping furniture, you’ll need a reliable mode of transportation that can fit multiple pieces to bring back to your workspace. Trucks and SUVs are great options, but if you turn your side hustle into a full-time gig, you may even want a trailer to transport even more furniture to and from your workspace.

You’ll also need blankets to protect furniture in transit and possibly ways to keep it from moving around too much as it’s transported.

Space to Work on Furniture

If you’re flipping furniture as a hobby or an easy way to make extra money on weekends, you don’t need to rent out a dedicated workshop. Depending on the weather, you could work on furniture flipping in your yard. Basements and garages can also be great places to start your flips — but remember that your space should have adequate ventilation.

If you become more serious about flipping furniture, it might make sense to lease a workspace.

Equipment to Restore Furniture

Each furniture flip may require a different set of tools. In general, the following tools and materials should be in your arsenal:

•   Paint

•   Paintbrushes

•   Painters tape

•   Stain

•   Sealer

•   Paint stripper

•   Sanding materials

•   Rags

•   Drop cloth

•   Sewing kit or sewing machine

•   Staple gun

•   Hammer and nails

•   Drill

•   Screwdrivers and screws

•   Wood glue

•   Steel wool

•   Soap

•   Sponges

Recommended: Common Budgeting Mistakes that People Often Make

A Place to Sell the Finished Product

Knowing how to start flipping furniture for a profit requires more than just knowing where to buy furniture and how to restore it. You also need to know how and where to sell it.

When you’re just starting out, you may find success advertising to friends and family on social media or to neighbors on a neighborhood app like Nextdoor. You can also list the furniture on Facebook Marketplace, Craigslist, and OfferUp.

Pro Tip: If you’re selling online, take good photos. Nice staging can go a long way in making your finished product appear more upscale.

If furniture flipping becomes more lucrative for you, it might make sense to rent booth space at antique stores and flea markets to sell your flips.

Recommended: 39 Passive Income Ideas to Build Wealth

Pros and Cons of Furniture Flipping

Furniture flipping can be a great side gig or second job, but it’s not for everybody. Here are the pros and cons of starting a furniture flipping business:

How Much Can I Resell Furniture For?

How much you can resell furniture for will depend on the type of piece and how much work you’ve done to it. Consider the time and money you put into the piece and the level of transformation it’s undergone.

Though it can vary by piece, you may be able to mark up an item 200% to 400%. For example, if you spent $100 on a table and materials to restore it, you may be able to charge between $200 and $400 for it.

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

Is Furniture Flipping Profitable?

Furniture flipping can be profitable. Just remember to keep expenses low, choose pieces strategically, and mark up the end result enough to justify the time and money you put into the project. Flipping furniture may not generate enough revenue for you to quit your day job, but it can be a fun way to make some extra money.

Skills to Learn to Improve Furniture Flipping

With each project, you can learn a new skill or try a new technique. Over time, you’ll have a roster of skills and techniques that allow you to transform furniture in new and exciting ways.

Here are some skills that are worth learning for flipping furniture:

•   Carpentry

•   Upholstering

•   Stripping paint, sanding, and priming

•   Painting and staining

•   Polishing

•   Tiling

You’ll also need to learn basic finance skills to treat your furniture flipping like a real business:

•   Accounting (including what taxes you may have to collect on items you sell)

•   Sales

•   Customer service

The Takeaway

Furniture flipping can be a lucrative side hustle if you’re willing to put in the effort to source good pieces, learn new skills, and do the actual hard work. While flipping furniture may not pay enough to be a full-time job, it can be a rewarding side hustle that allows you to be creative, try new things, help the environment, and put some extra padding in your checking or savings account.

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.

FAQ

How much should I pay for furniture I’m planning to flip?

How much you should pay for a piece of furniture to flip depends on how much you think a person might pay for it fully restored. In general, it’s smart to aim for a 200% to 400% markup. If the cost of the furniture is too high for you to reasonably sell it for even more, it’s probably not a good piece to purchase.

Is flipping furniture always legal?

Flipping furniture is a legal way to make money. Remember that you must pay taxes on all income, so it’s important to track your expenses (save your receipts!) and earnings, then report it on your tax return each tax season.

Where can I sell furniture?

You can sell furniture online using sites and apps like Facebook Marketplace, Craigslist, Nextdoor, and OfferUp. If you have enough furniture to sell, it may make sense to rent a booth at an antique store or flea market.

Photo credit: iStock/ljubaphoto

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.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
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.

SOBNK-Q325-014

Excessive transaction fees are penalties incurred by consumers when they make too many withdrawals from a savings account or money market account in a single month.

These fees were once tied to a federal law (Regulation D) that capped certain types of withdrawals and transfers from savings accounts to six per month. However, the Federal Reserve suspended the six-per-month limit in April 2020 to give consumers greater access to their funds during the pandemic. Transactions limits (and fees) are still optional today; some financial institutions impose them and others don’t.

Since most people want to avoid fees as often as possible, read on to learn how excessive transaction fees work and how much they cost.

What Is an Excessive Withdrawal Fee?

Excessive transaction fees (also called excess transfer fees, withdrawal limit fees, or excessive withdrawal fees) refer to penalties for excessive withdrawals from any type of savings account. Historically, Regulation D restricted consumers to six “convenient transfers and withdrawals” each month.

Though the Federal Reserve revised Regulation D in 2020, many banks have maintained the six-transaction limit, while others have increased the number of allowable transactions from savings accounts. If you exceed your bank’s transaction limit, you may get hit with an excessive withdrawal fee.

If you repeatedly exceed them, you may face more than fees — the bank could potentially convert your savings account into a checking account, which could mean losing interest and potentially getting hit with monthly fees.

Recommended: What Is the Difference Between a Deposit vs. Withdrawal

Types of Transactions Considered

Not every withdrawal from a savings account counts toward the transaction limit. Below are the types of transactions that could get you to the six-a-month max:

•   Electronic funds transfers (EFTs), like when you transfer money from your savings account to checking account (or transfer money from one bank to another)

•   Automated Clearing House (ACH) payments, including online bill pay

•   Pre-authorized transfers, like overdraft transfers to avoid overdraft fees

•   Wire transfers

•   Online and phone transfers

•   Debit card and check transactions drawing from the savings account.

Notably absent from this list are in-person withdrawals at banks and ATMs. Such withdrawals typically do not count toward a bank’s transaction limit. You can generally also move funds from savings to checking at an ATM or with a teller in person without it counting toward your limit.

How Much Do Excessive Transaction Fees Cost?

Though Regulation D previously specified a maximum of six convenient withdrawals, it did not specify the amount of any resulting excess transfer fee. Financial institutions were free to set that amount — and still are today, if they continue to charge excessive transaction fees.

Typically, excessive transaction fees cost between $3 and $5 per transaction. Under Regulation DD (Truth in Savings), financial institutions must disclose the fee amount (if applicable) at account opening; if the bank changes the amount afterward, it must legally notify you at least 30 days before the change.

If you’re not sure what your bank charges, you can typically find this information on the bank’s website or in the fine print of your account documents.

Recommended: What Are Bank Transaction Deposits?

Why Do Banks Charge Excessive Transaction Fees?

Before the Federal Reserve revised Regulation D, banks were expected to either prevent excess transactions from savings accounts or monitor for them. One way institutions discouraged customers from exceeding the six-per-month limit was by charging excess withdrawal fees.

The federal government created Regulation D to ensure that financial institutions had enough cash reserves available. Though this meant consumer funds were a little less liquid in a savings account or money market account, banks made such accounts appealing to consumers by offering interest on those funds. Consumers who wanted easier access to their money could use a checking account.

Even though the Federal Reserve has eradicated that mandate, some banks have chosen to continue to maintain transaction limits and charge fees if customers exceed them. The reasoning for this decision may vary at each financial institution, though banks generally leverage fees to make a profit (they are a business, after all).

And remember: The federally imposed transfer limit previously served to ensure banks maintained proper cash reserves; banks still charging this fee may be doing so to discourage excessive withdrawals and thus protect their reserves.

Tips to Avoid Excessive Transaction Fees

How can you avoid excessive transaction penalties? Consider these tips to cut out this common bank fee.

•   Finding a bank that doesn’t charge excess transfer fees: Some banks do not charge excessive transaction fees.

•   Using your checking account: Banks may leverage fees when you make too many savings withdrawals by writing a check or paying bills online. Rather than using your savings account for such transactions, you may benefit from using a checking account, where such fees don’t apply, and making withdrawals from the cleared funds in that account.

•   Banking in person or at ATMs: Withdrawals at physical bank branches and ATMs typically don’t count toward your limit. By using these options to take funds out of your savings account (or money market account), you should be able to avoid excessive withdrawal fees. Just keep in mind that there may be ATM withdrawal limits in terms of how much you can take out in a certain time period.

•   Making fewer (but bigger) withdrawals: If you’re able to anticipate your needs throughout the month, you may be able to make one or two big electronic funds transfers from savings to checking each month, rather than several smaller ones. Doing so may mean you can avoid excess transfer fees.

•   Opting out of overdraft coverage: If your savings account is tied to your overdraft program and you overdraw too many times in one month, you could wind up paying an excessive transfer fee. You can avoid this by opting out of overdraft protection (though it’s crucial that you understand what that means for your checking account if you overdraw). Or you might tap a line of credit as the source for your overdraft protection instead of your savings account.

•   Getting bank alerts: Monitoring your bank account is good for several reasons, including fraud protection and avoiding overdrafts. Opting into banking notifications can also help you keep track of when you’re approaching the monthly withdrawal limit.

The Takeaway

Though federal law no longer mandates limits on monthly savings account withdrawals, many banks and credit unions still charge excessive transaction fees. To avoid such fees, it’s important to monitor your monthly transactions and find other ways to access your savings. For example, you may be able to avoid excessive transaction fees by using ATMs or making fewer, larger transfers and/or withdrawals. Finding a bank whose policies are flexible and suit your needs is a wise move too.

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.

FAQ

How much are excessive transaction fees?

Excessive transaction fees can typically range from $3 to $5 each, depending on the institution’s policies.

Do all banks charge excessive transaction fees?

No, not all banks charge excessive transaction fees. Before signing up for any account, it’s a good idea to read the fine print, including the fee structure. Federal law requires that banks disclose these fees to consumers.

Why do banks charge excessive transaction fees?

Regulation D was initially created to ensure banks could maintain enough cash reserves. Though Regulation D no longer limits convenient withdrawals from savings accounts to six, many banks still impose monthly transaction limits and will charge you a fee if you exceed them, potentially to protect their reserves and/or to make a profit.

Photo credit: iStock/MTStock Studio
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.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOBNK-Q325-021

Single parents typically carry a lot of weight on their shoulders, paying for their child’s food, clothes, medical care, after-school programs, and more.
It can be challenging to make ends meet and avoid credit card debt. Saving for the future, including college, can be difficult.

Fortunately, there are smart strategies that help make it possible for single moms and dads and their kids to thrive. Establishing a basic budget, knowing how to handle taxes, and whittling down debt can all play a part in boosting your financial wealth.

Read on to learn some important financial moves for single parents.

9 Ways to Budget As a Single Parent

Setting up a simple budget can be a smart strategy for a single parent. It can help you take control of your cash and also make your money work harder for you. Here’s how to do it.

1. Crunching the Numbers and Creating a Single Parent Budget

A great way to get on a better financial path is to first figure out where you currently stand and come up with a monthly budget.

How to budget as a single mom or dad is similar to what anyone else would do. Get started by gathering your financial statements for the past several months, then using them to figure out your average monthly income (after taxes), including any child support or alimony you receive.

Next, you can tally up your fixed expenses (monthly bills) and variable expenses (clothing, food, entertainment) to see how much, on average, you are spending each month.

Ideally, you want your monthly inflow to be larger than the outflow — that way, you have money left over for savings and paying off debt. One helpful technique can be the 50/30/20 budget rule, which divides your income into three parts: 50% for needs, 30% for wants, and 20% for savings and paying off debt beyond the minimum amount due.

If your current income isn’t high enough to make that work, you can re-jigger the percentages and come up with a spending and saving plan that works for you.

2. Trimming Expenses in Your Single Mom Budget

Next, you need to figure out how to live on a budget.

If you find yourself breaking even or, worse, going backwards each month, you may want to look hard at your list of expenses and start searching for ways to save money.

A key single parent budgeting move is to hone in on your recurring bills to see if there are any ways to lower them. You may now be living on a single income, which can involve some lifestyle tweaks. You might be able to switch to a cheaper cell phone, for example. Or, maybe you can find a better deal on car insurance or ditch one of your streaming services.

You can also look for ways to cut everyday spending, such as breaking a morning coffee shop habit, cooking more often and getting less take-out, and using coupons (say, via RetailMeNot or Coupons.com) whenever you shop.

3. Opening an Interest-Bearing Account

Once you start freeing up some money each month, it can be a good idea to start siphoning it off into a high-yield savings account. This can help you create some financial security for your family, as well as help you reach short-term goals, like going on a vacation or putting a downpayment on a home.

Even if you can only afford to set aside $25 or $50 per month, it will begin to add up.

Some good places to stash cash you may need in the next two or three years include a high-yield savings account, an online savings account, or a checking and savings account. These accounts typically earn more interest than a standard savings account, yet allow you to have easy access to your money when you need it.

You may want to keep an eye out for fees, and shop around for financial institutions that won’t charge you monthly and other account fees (which can take a bite out of your hard-earned savings).

4. Prioritizing Emergency Savings

Expensive problems you can’t plan for often come up, like a car or home repair, taking a child to urgent care, or a sudden loss of income. Without a cushion, small money problems can quickly balloon into big ones if you are forced to run up high interest credit card debt to deal with them.

As you start building savings as part of your monthly single parent budget, it can be wise to prioritize emergency savings. Financial professionals often recommend having at least three- to six-months worth of living expenses stashed away in a separate savings account where you won’t be tempted to spend it. That way it’s there when you need it.

An emergency fund calculator can help you determine how much you should have on hand for a rainy day.

5. Paying Off Your Credit Cards

A debt elimination plan can make a significant change in your monthly cash flow. When creating a budget for a single mom or dad, it can be a good idea to leave room for credit card payments that are higher than the minimum.

You may want to start with the debt that has the highest interest first since borrowing from those creditors is costing you the most money. However, if you’re likely to get discouraged because it’s taking a long time to pay off that debt, you can start with the lowest balance debt. Getting some small debts paid off may motivate you to keep going.

Whatever debt you target, you can then pay more than the minimum payment on that debt while continuing to pay the minimum on others, with the goal to eliminate them one by one.

Another option: personal loans for single moms can help pay off the debt and substitute a lower-interest payment for what you were paying the credit card company. This might be an avenue to explore.

6. Planning for the Future

Once you’ve mastered your day-to-day finances, you may want to look toward your two big long-term financial security goals: retirement and your children’s college education.

If you can’t comfortably save for both at the same time, retirement may be the place to start. While your kids can likely get loans for college, there aren’t loans for retirement.

You may want to begin by contributing to any employer-sponsored 401(k) plan. If your employer is matching 401(k) contributions, it can be a good idea to chip in at least enough to get the match (otherwise you’re turning away free money!). Or you can set up an IRA; even $25 or $50 a month at first is a start.

When you’re in the habit of regularly contributing to a retirement savings account, you may want to turn your attention to saving for college: An ESA (education savings account) or 529 college savings fund can help you save towards college expenses while typically getting a tax break.

7. Automating Your Finances

As a single parent, you may be super busy, and end up paying bills late simply because you forgot. Automating your finances can simplify your budget (and your life) and help ensure you don’t get slapped with expensive fees or interest charges for being late with payments.

A good place to start is to set up autopay for all your recurring bills, either through your service providers or your bank. This way you don’t have to stay on top of due dates and remember to make every payment.

Automating can also be a great idea when it comes to saving. Often referred to as “paying yourself first,” you may want to set up an automatic transfer of money from your checking to your savings account on the same day each month, perhaps right after your paycheck gets deposited. This prevents you from spending those dollars or having to remember to transfer the funds to your savings at a later time.

8. Increasing Your Income

If your budget is super tight even after cutting expenses, then you may want to find ways to increase your income. This can help take a lot of the stress off budgeting as a single mom or dad.

There are many ways you can increase your income. For starters, if you’ve been at your job for a while and are performing well, you may want to consider asking for a raise. It can be helpful to research what the industry average pay is for your position with your experience to get an idea of how much you should ask for.

Another way to increase your income is to start a side hustle, like walking dogs, becoming a virtual assistant, taking on freelance work in your profession, selling your crafts, becoming a tutor, caring for other people’s kids, or offering music lessons.

9. Taking Advantage of Tax Breaks

Tax credits for single vs. married people can vary. When you’re budgeting as a single mom or dad, it can be smart to be aware of all the tax benefits you may be entitled to. A tax credit is directly subtracted from the amount you owe in taxes, while an exemption means that amount is deducted from your total income before your taxes are calculated.

Here are few tax benefits that may be worth investigating:

•   Filing as “Head of Household” instead of “Single.” If you meet the requirements, you may be able to get a higher standard deduction.

•   The child tax credit. Only the custodial parent can claim this. Even if you share equal custody of your child with your ex, the parent who has the child for more nights during the year (183 nights vs. 182 nights, for example) is able to claim the child tax credit. However, the custodial parent can use IRS Form 8332 to allow the other parent to claim the credit. In this case, you may want to consider alternating years.

•   The earned income tax credit. Single working parents with low to moderate incomes often qualify.

•   The child and dependent care credit. If you’ve been paying for childcare so that you can work (or look for work), you may be entitled to this. But only one parent can claim it each year.

The Takeaway

Budgeting as a single mom or dad can be challenging. With some simple financial planning, however, you can start to feel less stressed about money and get closer to both your short- and long-term goals.

Key steps for single moms and dads include taking a close look at your monthly cash flow, trimming expenses, paying off your credit cards, taking advantage of tax benefits for parents, and saving a little each month to create financial security. If you’re looking for a simple way to stay on top of your single parent budget, you may want to consider if you have the right banking partner.

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.

FAQ

How do single parents survive financially?

Single parents can survive financially by taking control of their money and budgeting, managing expenses, building up an emergency fund and savings, and minimizing debt. Budgeting for single moms and dads is important since you are likely the only income stream so every dollar counts.

How can a single parent afford everything?

To afford everything (meaning all the expenses related to raising a child), single parents can budget wisely, seek child support, bring in additional income with a side hustle, for example, and seek government assistance if needed.

How much should a single parent have in savings?

It’s important for single parents to have an emergency fund with a minimum of three to six months’ worth of living expenses set aside. This can help if there’s an unexpected medical or car repair bill or if you are laid off; since you don’t have another income in the family, this is a very important move. Beyond that, financial professionals recommend saving 20% of your salary if possible.

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.

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/.

¹SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.

^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.

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.

*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.

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

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

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

SOBNK-Q325-003