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If you’re thinking about starting a family, the question of just how much it might cost has probably crossed your mind.

There are the countless diapers and burp cloths needed for newborn life, and the seemingly unlimited amount of fresh fruit a toddler will want to consume. But the biggest expense of having kids is no doubt child care.

Child-care costs may vary widely depending on where you live and what type of care you choose. But unless you can get the grandparents involved, be prepared for a hefty bill: 51% of parents who responded to Care.com’s 2022 Cost of Care Survey said they spent more than 20% of their household income on child care every year. Ouch.

For prospective parents, this means drawing up a budget might be in order. Know how much money you have coming in every month to determine what kind of care may be feasible for your household.

For help with the necessities of the first years, consider being specific with registries and wishes so that your loved ones can help you in meaningful and useful ways. Hand-me-downs and second-hand purchases can also help you save money.

Congrats on the Baby, But How Will You Pay for College?

It might be years until your little one goes to college, but that shouldn’t stop you from thinking about how to fund it.

College education in the U.S. isn’t cheap, and as with all big expenses, it pays off to start stashing away money early. Putting it in a 529 plan (also known as a “qualified tuition plan”) is a tax-advantaged way to save for education costs.

There are two types of 529 plans: prepaid tuition plans, which allow you to prepay tuition and fees at certain colleges and universities at today’s prices, and education savings plan, which is a more general savings vehicle for educational expenses. You can contribute at whatever cadence works for you, deposit a lump sum, or let extended family members pay into it.

It is even possible to change the beneficiary of a 529 plan to another eligible family member, for example, if one kid receives a scholarship.

All this may sound too far away if you’ve just had a baby, or are still awaiting the arrival of a new family member. But make no mistake, saving early, and getting your ducks in a row can set you, and your family, up for financial security in the future.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
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If you’re already saving for retirement, well done. Seriously, being consistent about putting money to the side takes discipline and consideration. But are you stashing your hard-earned cash in the right accounts for your financial situation?

There are many tax-advantage retirement accounts. If you have access to an employer-sponsored 401(k) plan, for example, you contribute pre-tax dollars, and lower your taxable income. That’s a win. Your employer might also offer to match your contributions up to a certain limit. Every year, the IRS sets maximum limits for how much you may contribute. In 2023, it was $22,500 , and next year it will be $23,000 .

Not all employers can offer 401(k) plans, and depending on the work you do, you might have access to a different kind of plan, such as 403(b), or profit-sharing plans.

And there are other ways to save, too, including cash-value life insurance plans, annuities, and IRAs. Complementing your retirement savings with different accounts might give you peace of mind as you plan for your future.

What’s an IRA and How Can It Help You Save for Retirement?

An IRA, or individual retirement account, is another way to save for retirement. Even though the IRS sets limits for how much you can contribute each year ($6,500 in 2023), you can grow the money in your account by investing it. Plus, you often also get tax breaks.

IRAs are available to anyone who earns income. And even if you’re a non-income earning spouse, you can still open a specific type of account.

The two most common types of IRAs are traditional and Roth IRAs. They’re different in the way they are taxed, with traditional IRAs being funded with pre-tax dollars, and Roth IRAs not tax deductible upon contribution, but tax-free in retirement.

You can fund your account with cash from your savings, set up regular monthly contributions, or get started with a tax refund to get the ball rolling. Importantly, if you change jobs but still have a 401(k) plan with your prior employer, you can rollover your plan into an IRA account.

Another nifty thing about IRAs: You can make your annual 2023 contributions until the unextended federal tax-filing deadline (aka April 18th) in 2024.

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Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

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In many cases, financial health starts with creating a budget. You might not even be saving up for anything in particular, but there is good reason to know where your money is coming from, and where it’s going. How else do you know if you’re living within your means, and in accordance with your goals?

Creating a budget is one thing, but sticking to it is a whole other pair of shoes. That’s why it’s important to find a method that suits you and your lifestyle.

Successful budgeting also means being realistic about other ‘wants’ you typically spend money on, such as the hairdresser, a gym membership, or going out for dinner with friends. These expenditures may be just as much part of your budget as your housing costs.

Once you have an idea of your spending patterns, you can tackle your savings. That’s easier done with a goal in mind. For example, are you building your rainy day fund, saving for a vacation, or putting away funds for retirement.

Your Budgeting Psychology

Psychology is a big part of budgeting.

For one, the word itself is uncomfortable for some. Living on a budget might make you feel like you’re not quite keeping up with friends, relatives, colleagues. But there’s another way to look at it. A budget simply means tracking your money: What comes in, and what goes out. There’s nothing wrong with that, and everyone should do it.

At times, you may be saving up for a big expense, and shift your spending pattern accordingly. When you’re operating like business as usual, perhaps you put away the same amount every month to shore up a longer-term nest egg.

Whatever the case, making your financial choices work for you is key. For some that’s taking a certain dollar amount out of every paycheck before you even start to budget. For other’s, it’s putting all unused funds at the end of the month into a high-yield savings account. Yet others find success putting cash into envelopes (and then in a safe place).

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Don’t be afraid to try and find out what works for you. SoFi can help get started with your budget — and even better, it’s free!

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

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SoFi Plus is a premium membership product that gives members access to our best APY, offer discounts, rewards, and more when they
set up direct deposit. Benefits are subject to change and may not be available to everyone. To learn more about SoFi Plus and all of the
terms and conditions, https://www.sofi.com/terms-of-use/#br22-764967_sofi-plus

¹New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus when they set up Direct Deposit of at least $1,000 during the Direct Deposit Bonus Period. Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 01/01/2023 and will be available through 12/31/23. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.

SoFi members with Direct Deposit can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.60% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.