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It’s easy to put off writing a will. The process can seem complicated, not to mention expensive. And, if you’re single and don’t own a house, you may also feel like a will is unnecessary.

But writing a will actually doesn’t have to take a lot of time, or money. And even if you don’t have a lot of assets, having a will can give you peace of mind that your preferences will be followed.

Here’s what you need to know to write your own will.

What Is a Will?

Simply defined, a will (also known as a last will and testament) is a legal document that details what you want to be done with your possessions after your death. Your will may also identify a guardian if you have young children, as well as an executor, the person who will carry out the terms of your will.

What a will doesn’t cover is any asset in which you’ve designated beneficiaries. Named beneficiaries override a will. For example, if you designate all your property to go to your parents but you have bank accounts in which your brother is listed as a beneficiary, your brother will get the funds in those accounts while your parents would get the rest of your assets.

There are other important documents people may create at the same time as they create a will, and are all a part of an estate plan. These include:

•   Living will: If you were to become incapacitated, what are your preferences as far as medical treatments? This document legally outlines your wishes.

•   Power of attorney: If you are unable to make decisions for yourself, who has the authority to make those decisions on your behalf? Power of attorney may be divided into medical power of attorney — the person who has power to make medical decisions for you — and financial power of attorney. Both can be the same person.

•   Do Not Resuscitate (DNR) order: This document communicates that, in the event of your heart no longer beating or you no longer being able to breathe independently, that you do not want doctors to perform any life-saving action.

•   Organ and tissue donation: If you were to die, would you want your organs and tissue to be donated? Having a form explicitly stating your wishes can make it easier for loved ones to fulfill your desires, instead of guessing what they think you would have wanted.

Not all documents need to be filled out at once. For example, some people may only fill out a DNR order if they have a terminal illness or are unlikely to recover.

Recommended: Important Estate Planning Documents to Know

Dying Without a Will

Even if you think you own nothing of great value and you’re still working on money management, chances are you do own things that matter to your family. And if you die without a will, your loved ones may become involved in a complicated court process that will freeze your assets until state inheritance laws are followed.

If you’re single and die without a will, your assets will likely go to your closest blood relatives, which may be your parents or siblings. While this may be the preferred choice for some people, having a will allows you to earmark certain assets (or pets) for a charity or close friends.

It’s also a final chance to communicate your wishes to your loved ones and allows your loved ones to avoid a potentially drawn-out court process.

Dying without a will can become even more problematic if you have children. If you die without a will, the court will appoint a guardian. And while the court attempts to choose a guardian with the best interest of children in mind, that choice may not be the same choice you would make.

How To Create a Will

Below are simple steps that can help you make a will.

1. Choosing How You’ll Create Your Will

For people who own a lot of property or assets, and may want to set up trusts as a way to minimize taxes and ensure their heirs follow their wishes, it can be well worth the investment to hire an attorney who can walk them through the basics of estate planning.

However, online templates and will-creating platforms can be sufficient for many people. These DIY options can be much less expensive than working directly with an attorney and are legal and binding provided they are signed appropriately. Some of these online options are even free.

Recommended: How to Write a Will Online in 8 Steps

2. Making a List of Your Assets

In order to leave property to your loved ones, you need to know exactly what you have. So it can be a good idea to start by making a list of all your significant assets, including jewelry, artwork, real estate/land, cars, and bank accounts that don’t name a beneficiary.

If you have retirement funds and/or life insurance, you don’t need to write out who is going to receive the proceeds, as these require naming beneficiaries within the account or policy.

3. Being Specific About Who Gets What

Once you have a list of all your assets, you can decide who you would like to get what. Here, it’s helpful to be as specific as possible, such as using full names and being detailed in describing the assets.

4. Considering Guardianship

For many parents, including pet parents, guardianship can be the most fraught element of their will. This can be a decision that takes time.

For example, some parents love the bond their children have with their grandparents but worry about how aging parents would handle the physical stressors of raising young kids. Other parents may wish to appoint a sister or brother who already has children, so their own kids can be brought up alongside other children. There is no wrong answer, but thinking through contingencies and what-ifs can be helpful in making the most informed decision.

It can also be a good idea to discuss the idea of guardianship with the intended recipient. Maybe a single uncle loves your kids but is uncomfortable taking on the role of parent, or maybe grandparents have similar reservations as to their fitness for taking on the role.

Recommended: What Happens to a Bank Account After a Death?

5. Choosing an Executor

Naming an executor for your will is an important choice. This is the person who will make sure that the wishes laid out in your will are followed. The duties of an executor include paying any remaining bills and debts using your checking account, distributing your assets, and handling probate (transferring the titling of assets).

If you wish, you can name more than one person as an executor of your will.

6. Signing Your Will and Storing it in a Safe Place

A will is only legal when it is made legal — that is, printed and signed according to instructions. You generally need to sign a will in the presence of at least two witnesses. In some cases (such as if you’re using a document called a “self-proving affidavit” to simplify the process of going through probate court), your signature must be notarized as well.

You’ll also want to make sure you keep copies as directed. Many people keep a physical copy in a safe place, as well as a digital copy. Some might also share their will with their executor, or tell them where it is so it can be easily and quickly accessed if you were to die unexpectedly.

7. Updating Your Will as Appropriate

As your life changes, you may need to return to your will and update it. This could be due to:

•   Asset changes. Buying a house, opening an investment portfolio, and other financial moves may lead you to revisit your will.

•   Relationship changes. If you get married or have a serious partner, you may want to change your will to reflect that.

•   The addition of children or pets to your family.

•   The death or incapacitation of an appointed guardian.

It can also be good practice to assess your will after every life change, or every year or so. To update a will, you can either write what’s called a codicil (essentially a document stating any updates, written and signed by witnesses) or create a new will, depending on the extent of the changes.

The Takeaway

While the topic of death and end-of-life wishes can seem overwhelming, creating a will can be relatively straightforward. And thanks to the many online templates now available, you can often make your own will for a relatively low flat fee, or even for free.

The process of writing a will typically includes coming up with a list of assets, choosing where you’d like each asset to go, as well as choosing a guardian (if you have children) and an executor of your will.

While you may not think you need a will, having one (and updating it as appropriate) can be a gift to your loved ones when they may need it most.

As you get your affairs in order, you may also want to get your financial life organized. If you’re looking for a new banking partner, see what SoFi has to offer. 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

What Is the Easiest Way to Make a Will?

The easiest way to make a will is to use an online will-making service. These tools generally guide you through the process with clear instructions and templates and run anywhere from free to around $200. For complex assets and estates, however, consulting a lawyer is recommended to ensure the will is legally sound and comprehensive.

What Is the Biggest Mistake in a Will?

One of the biggest mistakes in a will is failing to update it regularly. Life changes, such as marriage, divorce, or the birth of children, can render an old will ineffective. Other common mistakes include unclear language, not accounting for all your assets, not signing it properly, and not having witnesses. Working with a lawyer can help ensure you avoid these errors.

How Much Do Most Lawyers Charge for a Will?

Most lawyers charge between $300 and $1,000 for a basic will, depending on the complexity and location. More complex estates or additional services like trusts can increase the cost. Shop around and ask for a quote to find a lawyer that fits your budget and needs.

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/.

SOBNK-Q225-053

From hiring a video arcade on wheels to treating 10 little princesses to a spa day, today’s birthday parties have gone next level. You could easily drop $500-plus on your kid’s next shindig.

Fortunately, you don’t have to. It’s possible to host a fun and memorable birthday celebration for friends and family without breaking the bank.

Here are some inexpensive party ideas to consider when planning your next birthday bash.

1. Being Selective with the Guest List

As tempting as it might be to invite everyone in your child’s class or the whole soccer team, limiting the guest count is a simple way to save money on a birthday party.

Less people means less food, less party supplies, and fewer favors — but not necessarily less fun. It’s possible to have a close knit vibe at a birthday party that gets people talking to each other and enjoying themselves even more than they would have at a big event.

If your child is willing to invite only one or two friends, you might consider skipping a party altogether and opting for an experience. Going bowling or spending a couple of hours at a play space, zoo, or museum can suddenly become an affordable option.

2. Sharing the Party with a Friend

If your child’s birthday falls around the same time as one of their close friends, you might want to consider teaming up and having a dual birthday party.

This enables you to share the costs and responsibilities with another family and, if the kids have a similar friend group, it would not necessarily have to be a much larger party. It can be a good idea, however, to make sure each child gets their own cake and presents.

Recommended: 27 Cheap Date Night Ideas

3. Choosing a Cheap (or Free) Venue

While hosting a party at a local climbing gym or other entertainment venue can be appealing, you can end up dropping as much as $450 just for the space.

One way to throw a birthday party on a tight budget is to have the party at home. That said, the wear and tear on your floors and furnishings might not be worth the savings. In good weather, however, a backyard party can be a great, low-cost option. Or, you might consider having the party in a local park or garden.

If your child’s birthday lands in a cold weather season, you can save money on a venue by limiting the guest list and going with the most basic package (such as just food and drinks for each child), and providing your own cake and goody bags. You can also check deal websites for discounts and promotions or ask the venue about a discount for having the party at an off-peak time or day.

4. Sending Digital Invites

Skipping the paper and going with digital invitations can be kinder to the environment and also cut down on birthday party costs, since you won’t have to buy premade invites or stamps.

You can design your own digital invitation and send them via email or text, or you may want to take advantage of one of the many online (and free) e-invitation sites.

Recommended: 15 Creative Ways to Save Money

5. Getting Creative With Decorations

One of the best things about the internet is that somebody’s probably already created precisely what you need. Rather than drop a chunk of money at the party store on themed decor, you may want to check out Pinterest for free printables.

You can also find ideas for DIY decorations on Pinterest (along with many other sites) using low cost supplies, possibly even things you already have on hand. Dollar stores can also be great places to shop for decorations and supplies.

If you do hit the party store, you may want to consider going with just one or two premium themed items and keeping the rest of the decor colorful and fun.

Recommended: How to Have a Baby Shower on a Budget

6. Making a Semi-Homemade Birthday Cake

A custom bakery cake that serves 20 to 22 people can run as much as $90, while a cake large enough for 30-plus guests can easily run more than $100.

A cheaper option is to buy a cake mix, then make it look and taste homemade with a few simple baking hacks, such as swapping butter for oil and milk for water, adding an extra egg, and making your own buttercream frosting.

To make cupcakes that look like they came from a bakery, you can pipe icing on top using a ziplock bag with a tiny hole snipped in the corner.

💡 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.

7. Timing the Party Right

If the party takes place during lunch or dinner time, there’s a good chance people will expect to be fed a meal.

Choosing an off-time to celebrate — such as 10:30am or 2:30pm — means you can steer the party away from heartier, and costly, fare (like freshly delivered pizzas or a sandwich platter) and stick to serving finger foods and snacks instead.

8. Buying in Bulk for Gift Bags

If you’ll be giving each guest a swag bag, consider buying toys and trinkets in bulk sets and then dividing them up. This can be a real cost-saver when compared to purchasing items individually (even at the dollar store).

Fun items like paper airplanes, wooden yoyos, squishy toys, stampers, fidget spinners and Slinkys can often be purchased in packs at stores as well as online.

9. Playing Some Free Games

You don’t necessarily have to rent a bouncy house or hire live entertainment to keep a birthday party lively and fun. There are a number of inexpensive ways to make sure there is plenty of action, activity, and laughter. Here are a few fun, free games you might consider:

•   Duck Duck Goose

•   Charades

•   Musical Chairs

•   Red Rover

•   Rock Paper Scissor Tournaments

•   Three Legged Races

•   Marco Polo (you can even play on land)

•   Hot Potato

•   Simon Says

The Takeaway

It can be tempting — and easy — to spend a lot creating a memorable birthday party. But with just a few cost-cutting strategies, such as trimming your guestlist, shifting the time of the party, choosing an inexpensive venue, and organizing some free games, you can throw a festive birthday bash without breaking the bank.

You can also make birthday celebrations more affordable by setting a budget and saving up in advance.

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 celebrate my birthday on a low budget?

You can celebrate your birthday on a low budget by keeping it simple and meaningful. You might host a potluck-style gathering at home or a local park, where guests each contribute food or drinks. Or you might plan a free or low-cost group activity, like a game night, movie marathon, or hike. If you’re celebrating at your or someone else’s home, consider going with DIY decorations and a home-made cake to cut costs. The key is to enjoy the company and create memorable moments without breaking the bank.

How do you throw a low-budget party?

To throw a low-budget party, start by choosing a free or low-cost venue, like your home or a public park. Make a guest list that fits your space and budget, and opt for homemade food and snacks instead of catering. Other cost-cutting tips include: using DIY decorations or items you already have, playing music through a phone or speaker, and planning simple games or activities. Focus on fun, not extravagance—it’s totally possible to host a great party without overspending.

What is a good budget for a kids’ birthday party?

A good budget for a kids’ birthday party can vary, but a reasonable range is $100 to $300. This can cover essentials like invitations, decorations, snacks, and a simple activity or game. Consider hosting the party at home or a local park to save on venue costs. DIY decorations and homemade treats can add a personal touch without breaking the bank. The key is to create a fun and memorable experience for the kids while staying within your financial limits.

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-Q225-048

Sure, there are lots of ways to get rid of your unwanted but still usable stuff. You could sell it online, haul it to a consignment shop…or maybe you’d just rather hold a garage or stoop sale and let people pay on the spot and walk away with their purchases.

No shipping, no schlepping, just a good old-fashioned transaction. You pick what you want to sell, you spruce it up, price it, publicize it, and then set up for your sale and staff it.

Whether you call it a “garage sale,” “yard sale,” “tag sale,” or “stoop sale,” you can boost the odds of success at an outdoor sale by following these tips and tactics.

1. Planning Your Garage Sale In Advance

Is it possible to pull together everything you need in a couple of days and hold a decent garage sale? Maybe. But your chances of success are likely to improve substantially if you put in some time planning your event.

Here are some things to consider ahead of time:

Knowing Your Goals

You’re probably hoping to make some quick cash while also clearing out some clutter. But knowing your top priority could help as you choose which items in your home you’re willing to part with and how you’ll price those goods.

Researching the Rules

Before you organize a sale, it’s a wise idea to check out how they’re handled in your community.

Some cities and counties require residents who want to hold a garage sale to obtain a permit online or in person. There may or may not be a fee involved, but, either way, you could face a fine if a permit is required and you fail to get one.

There also may be limits on how early the sale can start, how late it can go, how many days it can last, the number of signs you can post, as well as the type of merchandise you can sell.

If you belong to a homeowners association (HOA), you might have to seek permission there as well. Some HOAs may allow only one or two neighborhood-wide sales a year (especially if you live in a community with a gate that would have to remain open all day).

2. Setting Your Garage Sale Date

Once you know you’re able to have a sale, you can set a date and get the necessary permits.

Even if your schedule is pretty flexible, you may want to keep a few things in mind when you’re looking at your calendar:

•   Consider choosing a day that falls just after a common payday (the first or the 15th of the month).

•   You may want to avoid holding a sale on a holiday weekend, when many people will be away or have other plans.

•   The most popular sale days are Fridays, Saturdays, and Sundays because most people are off from work. Keep in mind, though, that many families have activities or church on those days, so you may want to start early and end in the late afternoon to attract the most shoppers. Or you could choose a weekday to avoid the weekend competition.

•   You may want to hold a two-day sale and use the second day as an “everything must go” event.

•   Mother Nature might not cooperate no matter when you hold your sale. Still, you can improve your chances of having better weather if you consider the season (not too hot, not too cold, not too rainy, not too windy) in your planning.

Recommended: Ways to Make Money From Home

3. Stockpiling Garage Sale Items

A good strategy is to move through each room of your house (the attic, basement, garage, and sheds, too), and start boxing up items you might want to sell. You might make a list of larger items you don’t want to move until you’re closer to the actual sale date, such as old furniture, artwork, or exercise equipment.

Kids who are reluctant to part with old toys, bikes, or sports equipment might be more willing if you offer to cut them in on the action. Consider negotiating a percentage of the profits, or offering to replace all the gently used toys they sell with one new one.

If you aren’t sure you have enough to grab shoppers’ interest on your own, you can ask friends and neighbors if they want to join in, or offer to sell their items on consignment.

4. Going All-In With Publicity

It’s probably not the best idea to count on word of mouth to bring bargain hunters to your door. Consider advertising your garage sale at least a week in advance — and tempting shoppers with a list of desirable items.

Some places to consider publicizing your sale:

Newspapers

You may want to list your garage sale in your local newspaper. You could see if the paper charges a reasonable rate (and get a digital ad while you’re at it). For a print ad, consider keeping the wording tight — you’ll likely pay more if you go over a pre-set maximum word count.

Online

You can typically advertise your sale for free on a growing number of websites, such as Facebook Marketplace , Garage Sale Finder, or Yard Sale Search. Many of these sites allow you to post a photo or photos with your ad, so it can help to have that ready, along with the wording you want to use.

Community Bulletin Boards

Some grocery stores, gyms, community centers, and schools have bulletin boards where you can post a flyer. Consider making yours stand out with bold lettering; be sure to include the sale date, hours, and address.

Signs for the Neighborhood

If signs are allowed in your area, consider putting out at least five or six on the day before the sale. Make them easy to read from the road, with the address in bold print and an arrow pointing the way.

Also consider tying balloons and a big sign to your mailbox on sale day to make your home more visible.


💡 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.

5. Preparing What You’ll Need for the Sale

A week before the sale, it’s a good idea to start considering, and gathering, everything you’ll need. This may include:

Sale Day Supplies

You’ll want to make sure you have as many folding tables as you’ll need to properly display your sale items, and enough chairs so you and your “staff” can sit comfortably. (It could be a long day.)

A Payment Station

Consider setting up a main payment station that’s easy for shoppers to get to when they’re ready to buy. You could make or buy a box to hold the money you collect and for change. (It’s wise to start out with plenty of ones, fives, and quarters in case early shoppers show up with bigger bills.)

Or you can wear a vendor apron with pockets for the money. You also may want to give family, friends, and neighbors you know the option of using a payment app to make their purchases.

Keeping some old boxes and plastic grocery store bags near the checkout table can be useful for customers who have a lot to carry home.

6. Setting Your Prices

One option is to set up a color-coded sticker system, with items grouped by cost. If you go that route, keep in mind that you’ll want to let those who are assisting at the sale know the code, as well as put up a sign for customers.

A simpler option is to just tag most of the items individually with a roll of painter’s tape (which is typically easier to remove than masking tape). Larger signs can point out bundled prices, such as “5 CDs for $2” or “3 paperbacks for $1.”

Remember your main goal when setting prices — if you want to get rid of everything, you may want to keep prices reasonably low.

To avoid cheating yourself, however, you might do some research ahead of time so you can get the best price for special items (such as antiques, collectibles, or anything that might be in high demand with garage sale regulars).

If possible, it’s wise to keep sentimentality from getting in the way of a solid sale.

Also, if several people will be working the sale, you may want to set ground rules for how low prices on certain items should go — and on haggling in general.

If someone offers a low price at the start of the day, and you think you can do better, you may want to exchange contact info, and agree to connect again later when the sale is over.


💡 Quick Tip: An emergency fund or rainy day fund is an important financial safety net. Aim to have at least three to six months’ worth of basic living expenses saved in case you get a major unexpected bill or lose income.

7. Making Your Garage Sale Appealing to Shoppers

You’ll likely want to give some thought to the presentation of your items. Organization can make the day go better for you and your customers. And a little extra effort could make a difference in how much you can get for your goods. Some ideas:

Cleaning Old Items

You can start washing, dusting, and polishing things as soon as you decide they’ll be included in your sale. This might include inflating balls and bicycle tires, putting light bulbs in lamps, and trying to have batteries and a power source available for customers who want to test an item before purchasing. (If something doesn’t work, it’s a good idea to mark it clearly.)

Arranging Things in a Way that Makes Sense

Consider making it as easy as possible for customers to find things using signs and a system. For example, books, CDs, DVDs, and videogames could be grouped together. Toys, board games, and puzzles might be another section.

You might place the biggest sale items out in front of the yard, if you can — both to attract attention, and so customers can get them to their cars without disturbing others.

If possible, hang clothing on a garment rack near hats, shoes, and purses, and set up a mirror close by.

If your sale goes well, you may have to rearrange your display several times during the day.

8. Being a Good Host

One way to keep garage sale shoppers from walking away without really looking is to make it fun to stick around. Consider playing some energetic music and greeting customers as they arrive. You might also sell water, lemonade, and maybe even baked goods. (It can be nice to have snacks and beverages ready for helpers, too.)

You might also want to have some bottles of hand sanitizer available for customers to use.

If you know your neighbors, they may pop by for a chat. While you may want to be polite and chat, it’s important to remind them that you need to pay attention to your customers — and the money box.

9. Remembering Sale Day Safety

Early birds sometimes show up long before a garage sale is scheduled to start. The more you have ready ahead of time, the more you’ll be able to stay focused on keeping everything and everyone (people, pets, breakables, and the money you make) safe.

Here are some security tips:

Locking Your Doors

It’s wise to keep the doors to your home and your car locked, and to avoid letting strangers use your bathroom.

Getting a Sitter

A sitter can keep an eye on young children and pets so you don’t have to.

Stashing Excess Cash

As profits start to pile up, it’s a good idea to have a method for how you’ll transfer excess cash to a safe spot in your home. It’s also wise to avoid talking about how much you’ve made.

10. Having a Plan for Unsold Items

When your sale ends, you’ll likely have at least a few unsold items to deal with.

If your primary goal was to clear the clutter, you may want to donate those leftovers to Goodwill, the Salvation Army, or some other nonprofit group that takes used goods. (If you itemize deductions, you may be able to include your donation on your tax return. Just be sure to keep a list of everything you gave and an estimate of the value.)

If the charitable organization you choose offers a pickup service, you may want to schedule the truck for the first available day after your sale. If not, you can arrange to drop off your items as soon as possible. (It’s a good idea to understand beforehand what the charity will and won’t accept.)

If you want to try to squeeze a little more money out of what’s left over — or there are some high-ticket items you aren’t willing to give away — you might post them on an online marketplace like OfferUp, Facebook Marketplace, VarageSale, or Poshmark.

Consider taking the time to include a photo with anything you list online. At the very least, it could save you from having to answer a lot of questions about your item.

11. Making the Most of Your Garage Sale Profits

One of the perks of holding a garage sale vs. a virtual sale is that you’ll be holding your profits in your hands (mostly in cash) when you’re finished. That also could be a problem, though, because it might be tempting to spend it. (And maybe even buy more stuff!)

Instead, consider what you’d like to do with your profits seven before you make your first sale. This may also help keep you motivated while you’re putting in the work to plan and host your sale. If you don’t have something specific you’re saving for, you might put the money you earn towards an emergency fund.

The Takeaway

Hosting a garage sale can be a great way to clear the clutter in your home and sell a large number of unwanted items all in one fell swoop.

A successful sale, however, requires some upfront work, as well a day (or two) or working the sale.

The process typically requires gathering and preparing your items, getting a permit, picking up sale supplies, advertising your event, and then setting everything up in an organized and appealing way early on the day of the sale.

While a profitable garage sale takes some time and effort to pull off, the rewards can be well worth it: You’ll not only free up space in your home but also earn some extra income you put towards your current savings goal.

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

What Sells Best at a Garage Sale?

Items that typically sell well at garage sales include small appliances, tools, children’s toys, books, and seasonal decor. Clean, functional items in good condition generally attract more buyers. Electronics (especially if they work), as well as gently used kids’ and adult clothing, are also popular at garage sales. Pricing items reasonably and clearly labeling them helps boost sales.

What is the 50/30/10 Rule for Selling?

The 50/30/10 rule for garage sales suggests pricing almost-new items at 50% of retail price, slightly used items at around 30% of their retail cost, and well-used items at 10% of retail. This strategy helps move items quickly.

How Do You Succeed in a Garage Sale?

To succeed in a garage sale, you’ll want to organize items neatly and clearly label prices. Other tips for having a successful garage sale include: advertising locally and online (to attract more buyers), starting early and ending late (to maximize foot traffic), being friendly and willing to negotiate, offering bundles for multiple items, and having change ready as soon as you open.

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-Q225-046

Today, it’s not uncommon for adult children to return home or never leave the nest to start with. About one in three 18- to 34-year-olds live with their parents, according to the most recent U.S. Census Bureau data.

Moving back home can be a wise move for grown kids who may be dealing with job uncertainty, earning a low income, and/or be facing a mountain of student loan debt.

And it can wind up being a good deal for parents as well.

Some of the benefits include: opportunities for companionship, the possibility of sharing household expenses, and the ability for adult children to pay down student debt and save money for longer-term financial goals (for instance, buying a house).

But living in the same household again can also bring opportunities for tension and misunderstandings.

That’s why parents who welcome their kids back may want to set a few guidelines. Here are some rules both parents and grown children might want to wrangle before moving back in under one roof.

What Is the Timeframe?

When adult children move back home, it’s helpful for both parties to have a timeframe in place, rather than the ’’foreseeable future.”

This may mean talking about why the move is happening. Is it to save money? If so, what is the money being saved for, and at what point should the child move out?

Some parents might find it helpful to set up a trial period, after which they can have a frank conversation about what is and is not working in the arrangement.


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Going Over the Financials

Many misunderstandings from adult children living at home stem from confusion over how much money, if any, they are expected to contribute.

It can be helpful for both parties to consider their expectations before coming together and talking through them. Some issues you may want to think about and then discuss:

•   Will adult children be expected to pay rent? And if so, how much will rent cost? When will it be due? Some parents might want to set a flat rate, while others might consider a percentage of the child’s income, if that income is currently low but expected to rise.

•   Will the child be responsible for a portion of bills, groceries, or other household costs?

•   How will resources be allocated? Is the fridge open for anyone? Can the child use the family car if they need it?

•   How much will bills go up with additional usage? Parents might decide they want their child to pay for any overages, or they might be okay with handling the increase themselves.

Recommended: How to Manage Money Better

Going Over House Rules and Behavior Expectations

Some parents have a “my house, my rules” expectation. But it can sometimes be mutually beneficial if both parties talk about behavior expectations with an attitude of give and take.

Often “unspoken expectations” don’t come up until a problem occurs. Talking through them proactively can make sure that everyone is on the same page.

Some issues parents and adult kids may want to go over:

•   What are expectations for guests? Is it okay for romantic partners to sleep over? Do parents need a heads up before guests come by?

•   What are communication expectations? Should a child inform their parents if they won’t be home by a certain time?

•   What chores are expected? It’s wise to go over whether or not you expect that your child to do some of the supermarket shopping and/or clean any areas of the house beyond their living spaces. It’s perfectly acceptable to have your adult child pitch in on dinner duty, take on cleaning, or otherwise contribute to the house as an adult. Perhaps they pay for their own monthly supermarket costs.

•   What do daily schedules look like? Maybe one family member needs quiet for work meetings. Maybe another needs access to family exercise equipment or the shower in the morning? Talking through routines — from breakfast to bedtime — will set expectations and avoid misunderstandings.

•   What does privacy mean when you’re under the same roof?

Both parties may be concerned about how the new arrangement will affect their lives, and talking through those concerns can help families find solutions that work for everyone.

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Helping Adult Children Achieve Financial Independence

There’s nothing like living together to get financial habits out in the open. This applies to adult children and their parents. But that’s not necessarily a bad thing. By keeping an open dialogue about money, you can help your adult children get on the right financial track (and perhaps move out sooner, rather than later).

Here are some ways you may be able to help adult children work towards financial security.

Talking Through Financial and Savings Goals

Instead of asking your adult child how much they have saved, or how much credit card debt they have, consider asking them to talk through their short-term financial goals and long-term ones too.

Putting Rent to Work

Some parents who are in a position to do so may want to charge their children rent and then use that money to gift their child a down payment on a home or car, help with tuition, or assist their child in reaching another financial goal.

Or, in lieu of rent, you might request that your child set up an automatic deposit into a savings account that could eventually become a security deposit on a rental or an emergency fund.

Teaching by Example

One way to encourage disclosure about your adult child’s financial picture is to talk through your own.

Talk broadly through your retirement plan, any long-term care plans, or how you hit your own financial goals (such as buying a house). This can help your child start good financial habits and build a positive money mindset.

After all, personal finance is not typically taught formally, and giving your adult child — no matter how old — some insight into the tools and strategies you use can give them ideas for how they can effectively manage their money.

Trying Not to Nitpick

While it can be helpful to talk through your own strategies, it may not be helpful if your child feels like you’re critical of the way they are spending money.

Let’s say your adult child buys a latte every day. Sure, you can point out how much they would potentially save if they put that money into a high-yield savings account instead. But for the sake of the relationship, it may be easier to let certain habits go and focus on what your child is doing to work toward financial goals, such as investing in their company’s 401(k) plan or doing their taxes well in advance of tax day.

The Takeaway

Living under one roof may not always be easy for adult children or parents, but it comes with an opportunity for growth for everyone, as well as a closer relationship as equals.

Part of forging that relationship may involve setting some parameters early on about what is expected from grown children while they are living at home, from how much they may be expected to contribute financially to how often they can use the car.

Letting kids move back home (where they can live more affordably), and having open discussions about money, can help them not only save, but also develop good financial habits.

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

What are reasonable expectations for an adult child living at home?

Reasonable expectations for an adult child living at home include contributing to household chores, paying a fair share of expenses, and maintaining a respectful and considerate attitude. They should also generally have a clear plan for their future, whether it’s pursuing education, employment, or other goals. Regular communication and setting clear boundaries can help ensure a harmonious living arrangement.

What if my adult child refuses to move out?

If your adult child refuses to move out, it’s a good idea to have an open and honest conversation about their reasons and your concerns. Ideally, you’ll want to set clear expectations and a timeline for moving out, and offer support in finding a place and securing employment. Consider creating a written agreement outlining responsibilities and consequences. If necessary, seek the help of a mediator or counselor to facilitate the discussion.

How to deal with disrespectful adult children living at home?

Dealing with disrespectful adult children generally involves setting firm boundaries and clear consequences. Consider having a calm and direct conversation about the specific behaviors that are unacceptable and the impact they have. Establish rules and consequences, and be consistent in enforcing them. At the same time, you’ll want to offer support and resources to help them become more independent. If the behavior continues, consider seeking family counseling or setting a deadline for them to move out.

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/.

SOBNK-Q225-044

Having roommates can be a great way to reduce your monthly living expenses. It can also mean living in a bigger apartment or a nicer area than you could otherwise afford.

But negotiating finances with friends (or strangers) also comes with potential pitfalls, especially if you have roommates who don’t always pay what they owe, when they owe it.

Luckily, whether you already won the roommate lottery or are just trying to make the best of living with someone you barely know, figuring out how to share roommate expenses doesn’t have to be hard.

What follows are tips for splitting expenses with roommates so that everyone feels like things are fair in your household.

Managing Money With Roommates

These 25 strategies can help ensure that monthly expenses get divvied up fairly — and everyone is on the same page from the moment you first move in together.

1. Making Decisions Together

Whether you and a friend are moving in together for the first time or you already live together and you’re bringing in someone new, it can be helpful if you decide as a group how you’re going to handle finances. You might consider having a meeting right away to establish how you’ll be splitting costs.

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2. Making a List of What You Both Own

Before moving in together, you and your roommates may want to make a list of what you both already own and can bring to the apartment for communal use. For example, if your roommate has a stand mixer and you have a nice collection of baking pans, that can be a useful combination. If you can contribute a couch, your roommate might be able to find a kitchen table.

3. Figuring Out How You’ll Split Monthly Expenses

Many roommates find that sharing a household might mean sharing more than just rent and utility bills. You may want to consider sitting down with your roomies to figure out what monthly expenses beyond rent and utilities will be shared and how you will split up these costs. This may include cable, wifi, and any subscription services like video streaming.

4. Splitting Costs Evenly…

Since it can be difficult to determine who used a certain amount of electricity or watched the most Netflix, it could make sense to simply split costs down the middle (or evenly among roommates). That can save a lot of time and energy and could be the most fair arrangement.

5. …Or Splitting By Percentage of Use

If you or your roommate uses certain utilities or services significantly more than other members of the household, you might want to consider splitting by percentage of use. For instance, perhaps your roommate is a photographer and is always plugging in lights to take photos, and maybe you’re only home four days a week. A percentage is more complicated, but could be more fair.

Recommended: Strategies to Lower Your Energy Bill When Working From Home

6. Deciding Who Will Pay the Bills

To streamline bill paying (and make sure no bills end up falling through the cracks), it can be wise to put one person in charge of actually paying the bills. You may want to designate that person from the get-go, and then everyone else can send this person the money before the bills are due every month.

7. Keeping a Written Document of Expenses

Whether you split each cost evenly or by a percentage of use, it can make sense to write down each person’s share of expenses and what they can roughly expect to pay each month — so no one is blindsided when it comes time to pay the bills.

8. Figuring Out How to Divide Household Supplies

Once you have the details of the non-negotiable bills nailed down, you might next look at how you want to manage the cost of household supplies.

For example, while some roommates don’t mind toting their own roll of toilet paper into the bathroom, many find that it is easier and more economical to split the cost of a bulk package.

9. Deciding Whether to Share Groceries

Even if you have different tastes in food and purchase the most of your groceries separately, you may find that sharing basics, like gallons of milk, coffee, and juice, even bags of rice or quinoa, may be more economical. If you cook meals together, you may want to go in on even more weekly groceries to help save money on food.

10. Keeping Some Purchases Separate

Just because you plan to share a couch doesn’t mean you need to share the bill. While it may seem sensible to split the cost of furnishings and electronics for your rental, you may also want to consider what will happen when your lease is up.

Unless you and your roommates plan on selling everything when the time comes to move out (and splitting the proceeds), paying for things separately can make things simpler in the end.

Recommended: 25 Tips for Buying Furniture on a Budget

11. Establishing a Budget

If you and your roommate have agreed to buy groceries or other items together, you may also want to discuss a monthly budget before you start making household purchases.

You might be fine with generic OJ and laundry detergent, while your roommate wants to spring for the expensive name-brand stuff. Getting on the same page about how much you’ll spend each month on communal items can help avoid money squabbles later.

12. Finding an Easy Way to Track Expenses

You might give one roommate the responsibility for keeping track of monthly expenses and how much each roommate owes, as well as logging who paid what and when. They could do this on a spreadsheet or through an app. That way, each person will know exactly how much they owe, as well as what they’ve already paid.

13. Deciding How You Will Pay Each Other

Gone are the days of writing checks or going to the ATM to reimburse roommates for rent and other expenses. With all the peer-to-peer money transfer options now available, you can quickly and easily pay each other without cash.

You may want to sit down with your roommates and decide which app you’re going to utilize, make sure everyone has it downloaded to their phones, and then use it to reimburse each other.

14. Drafting a Roommate Agreement

When you first move in with a roommate, or when another roommate is moving in, you might want to create a roommate agreement that is separate from the rental contract you have with your landlord.

The agreement could spell out all the financials, such as how you will split costs, as well as some basic ground rules, such as parking and having guests over.

15. Setting Consequences for Failure to Pay Your Share

Nobody wants to be the bad guy, but if a roommate isn’t paying their share of expenses, you may want to make sure that there are some consequences.

For instance, you could agree (and even include this in your “roommate agreement”) that if a roommate doesn’t pay the bills on time once, they would take on all the household chores until they can pay, and if they fail to pay a second time, they would need to to leave the rental.

Recommended: How to Manage Money

16. Making Late Payers Cover Late Fees

You may want to make it clear that If one roommate is late with their payment and, as a result, triggers a late fee or penalty, then that person would be responsible for paying those additional charges. (You may also want to make this rule clear in your “roommate agreement.”)

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17. Discussing Responsibility for Damage

It can be a good idea to also discuss who will be responsible for covering the cost of any unexpected expenses, such as damage to your rental.

You might agree (and put in your agreement), for example, that whoever is responsible for any damages must pay for them. That way, if your roommate’s dog chews up the door frame, it would be up to them to pay for the repairs.

18. Splitting the Security Deposit

It often makes sense to have all the roommates contribute to the security deposit. That way, they will all be equally invested in keeping the place nice so that they get their portion of it back upon moving out.

19. Sharing Expenses for Get-Togethers

Hosting get-togethers like BBQs and Super Bowl parties can be a great bonding experience for roommates and their friends. When having one of these events, all the roommates can chip in so that the celebration is fun, as well as affordable.


💡 Quick Tip: When you feel the urge to buy something that isn’t in your budget, try the 30-day rule. Make a note of the item in your calendar for 30 days into the future. When the date rolls around, there’s a good chance the “gotta have it” feeling will have subsided.

20. Having Monthly Meetings

Roommates that don’t communicate effectively can become resentful and end up disliking each other. By having monthly meetings to discuss finances and other issues, everyone has a chance to air their grievances and figure out solutions for problems going forward.

21. Avoiding Passive-Aggressive Notes

It can be tough to live with roommates and deal with all their quirks, especially when it comes to money. But even if someone is late paying a bill or otherwise not doing their fair share, posting notes can end up creating hostility.

You may be able to resolve the situation more effectively by being direct and honest with each other either in a one-on-one or monthly roommate meeting.

22. Not Laying Out Money for Bills Until Everyone Has Given Their Portion

If you are responsible for paying the bills, you may find that it’s easier to pay them with your money and then collect from your roommates later. However, this can put you in a bad position if your roommates take their time in paying you back.

Instead, you might want to set a rule that you will only pay the bills once your roommates have given you their share.

23. Discussing Ways to Save Money

If utility bills or other shared expenses are on the high side, you may want to sit down with your roommates and talk about some ways to cut expenses and save money. You might decide, for example, to invest in energy-saving light bulbs you can turn off using an app or get rid of one or two streaming services.

24. Finding Coupons Together

You can make saving money a group activity with your roommates. Every week, before you go shopping, you can all look for coupons to use at the store on sites like Coupons.com and Ibotta.

25. Choosing Responsible Roommates

When vetting potential roommates, it can be helpful to discuss some of the expense-sharing ideas listed here. If they are open and amenable to sharing expenses equitably, you should have very few issues when it comes to splitting costs.

You may also want to make sure any potential roomies have a steady income, good referrals, and a solid credit score, as this can indicate they tend to be responsible with money.

The Takeaway

While roommates come with many benefits, sharing a space — and expenses — with other people isn’t always easy.

Being open about finances and setting some ground rules from the get-go, however, can help ensure that everyone contributes their fair share and all your bills get paid on time.

Using technology and smart money management resources can also make it easier to track and share expenses with your roommates.

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 should roommates split expenses?

Roommates should split expenses fairly and transparently. Start by creating a budget that includes rent, utilities, groceries, and other shared costs. Next, you’ll want to discuss and agree on a method for splitting these expenses, such as equally or proportionally based on income or room size. You might use a shared spreadsheet or app to track payments and ensure everyone is contributing their fair share.

What should you not share with roommates?

While living with roommates, it’s important to set boundaries. You may want to avoid sharing personal items like clothing, toiletries, and electronics to prevent hygiene issues and misunderstandings. It’s also a good idea to keep financial information, such as bank details and passwords, private, especially if you’re living with someone you don’t know well. Establishing some boundaries and being clear on what is — and is not— communal can help maintain a respectful and comfortable living environment.

How do you divide expenses when living together?

To divide expenses when living together, you’ll want to first list all shared costs, including rent, utilities, groceries, and internet. The next step is to talk about and agree on a way to split these expenses. You might divide them up 50/50 or proportionally based on income. Or, you might designate specific expenses for each person. Whatever you decide, it’s a good idea to set a regular time (say monthly or quarterly) to review your monthly budget and make any needed adjustments.

About the author

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

SOBNK-Q225-051