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It’s human nature to wonder how you compare to everyone else. And that goes for money, too. For instance, are you spending more or less on housing? Food? Transportation?

In total, the average single person spends about $4,641 per month, according to the most recent (2023) Consumer Expenditure Survey from the U.S. Bureau of Labor Statistics (BLS).^[1] The numbers may be slightly higher for 2024. According to 4th quarter 2024 U.S. Bureau of Economic Analysis, the average monthly spending for a single person was $4,948 per month, when seasonally adjusted.^[2]

Of course, monthly expenses will vary depending on where and how you live. Still, knowing where you stand can help you budget better and see how your spending stacks up against other people’s outflow of cash.

Here, you’ll get a sense of how much an average person might spend per month so you can consider how your own budget looks.

Average Monthly Expenses in 2025

Housing

Housing tends to consume the highest portion of monthly income. Using BLS statistics, the average spending on housing is $1,684 per month for one person.^[1] Typically, single people devote more of their monthly income to housing (around 36%) than those living as a married couple or family (around 31%).^[3]

Costs can also vary significantly depending on whether you live alone (more costly) or have one or more roommates (less costly). That’s important to consider when estimating expenses and making a monthly budget.

Where you live can also have a major impact on your monthly housing costs. A single person living in a studio will generally spend more on housing in New York City than they would in a more affordable metro area. According to RentHop, the average price for a studio (one-room) rental in New York City was $3,550 in April 2025,^[4] compared to $2,450 in Oklahoma City, Oklahoma.^[5]

Transportation

Transportation costs can vary depending on your mode of transport (i.e., car vs. bus vs train), as well as what region of the country you live in.

But one thing that holds true for many of us: Transportation often accounts for the second-largest budget item, after housing.

The average single person shells out around $756 per month on transportation, including car or public transportation, gas, insurance and other related expenses, according to BLS statistics.^[1] Of course, you can take steps to lower those costs as needed, like learning how to save money on gas.

Health Care

Health care expenses can vary depending on each individual’s circumstances, and can also rise and fall from one month to the next. For example, there may be some months where unexpected medical costs crop up (such as emergency care), and other months where you only need to cover insurance premiums.

What you’ll have to spend on health care will also depend on where you live and what type of insurance coverage you choose. According to the BLS survey, individuals spend an average of $367 each month on health care.^[1] That number could be higher, however, for those who aren’t covered by an employer plan.

According to the Economic Policy Institute, an individual living in Columbus, Ohio spends about $470 per month on health care, including insurance premiums and out-of-pocket costs, assuming they purchase the lowest cost bronze plan on the Affordable Care Act health insurance exchange. That number rises to $696 per month for a single person living in New York City.^[6]

Recommended: How to Save Money Daily

Food

Everyone’s gotta eat, and the average single person spends about $572 on food per month, including food eaten at home as well as away from home, according to BLS data.^[1] However, the monthly cost for food for one person can vary widely depending on age, income, location, and eating habits.

While some monthly costs, like rent, are fixed, food is an area where consumers can often find savings if they need to reduce monthly spending (such as getting serious about meal planning and choosing lower cost brands at the supermarket).

Cell Phone

The average monthly cost of a cell phone plan is $141 per month, according to J.D. Power’s 2024 U.S. Wireless Retail Experience Study.^[7]

The good news? If your budget is particularly tight, you could spend as little as $25 a month for basic service and a monthly cap on data.

Utility Bills

After you’ve saved up and carefully budgeted to buy a home, you probably don’t want to be surprised by a higher-than-expected utility bill. The average monthly electricity bill in the U.S. is $137 per month, while the average monthly bill for natural gas runs around $69, according to Move.org.

Your monthly utilities may also include water, which runs $47 per month on average. Other monthly utility costs you may need to cover (and their average monthly costs) include: sewer ($65), trash ($62.50), and internet ($77). Americans also cough up an average of $59 monthly for streaming services.^[8]

Clothing

The average single adult spends about $123 on clothing per month, according to BLS data. If your budget is tight, this is one category where you can often pare back spending, whether by shopping your closet, hitting the sales racks, or bringing older clothes that need repairs or fit adjustments to the tailor. A clothing swap with friends can be another option.

Gym Memberships

The average gym membership runs anywhere from $10 to $100 per month, depending on location and amenities. If you can find one on the lower end of that range, it could be a good deal if you use it regularly.

If, however, you aren’t really using that membership or it’s too pricey for your budget, you could try going outside and hitting the pavement, joining an exercise meetup group, watching YouTube videos, and/or picking up some dumbbells and exercise bands to workout at home.

Recommended: Cost of Living per State

Getting Your Monthly Expenses in Check

Knowing the average cost of living can be helpful when you’re trying to determine how much of your budget you may need to allocate to different spending categories. (If you’re thinking, “What budget?” it’s likely a wise move to get busy creating a budget.)

These average monthly expenses shared above, though, are just that — averages.

To fine-tune your budget, and make sure your spending is in line with both your income and your goals, it’s a good idea to track your own spending (which means every cash/debit card/credit card payment and every bill you pay) for a month or two.

There are a few options for tracking spending. One easy method is to make all purchases for the month on one debit card or credit card, then, at the end of the month, take note of all the purchases made.

Another option is to use an app (your bank may provide a good one) that can help you log and track your spending. At the end of the month, you can then see everything you spent, as well as allocate each expense into key categories, such as housing, transportation, food, health care, etc.

You can then see how your spending compares to national averages, as well as where you might want to tweak things. For instance, if you don’t have enough at the end of the month to put any money away into your retirement fund, you might want to pare back non-essential spending (such as restaurants, clothing, gym memberships).

The same holds true if you haven’t been able to put money towards an emergency fund, which is an important safety net if you were to endure an emergency such as a job loss.

Recommended: Emergency Fund Calculator: Calculate How Much to Save

The Takeaway

Whether you’re creating a new budget or refreshing an old one, you’ve probably noticed how important (and tricky) it is to get your monthly expenses right.

Knowing the average amount people spend to live can help you figure out how your spending stacks up and, if you’re just starting out, help to ensure you’re budgeting enough for each category.

To stay on top of your money, you may want to track your daily spending for a month (or more), and then set up certain spending limits to keep your purchases in line with your income, as well as your savings goals.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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 a single person spend a month?

There’s no one-size-fits-all answer, as spending varies based on location, lifestyle, and income. However, a general guideline is to allocate your income as follows: 50% on necessities (rent, utilities, groceries), 30% on discretionary spending (entertainment, dining out), and 20% on savings and debt repayment beyond the minimum. Adjust these percentages based on your specific needs and financial goals.

What is the average living expenses for a single person in the US?

The average living expenses for a single person in the U.S. can vary widely depending on location. According to the most recent data from the U.S. Bureau of Labor Statistics (2023), the average single person spends around $4,641 per month. This includes housing, food, transportation, health care, and other essentials.

Living in urban areas or coastal cities tends to be more expensive, while costs are lower in rural or Midwest regions. Personal choices, such as eating out frequently or owning a car, can also significantly affect monthly living expenses.

What is a good monthly personal budget?

A good monthly personal budget should prioritize essential expenses like housing, food, and utilities, while also allowing for saving and discretionary spending. A popular method is the 50/30/20 rule: 50% of your income goes to necessities, 30% to wants, and 20% to savings and debt repayment. This balanced approach helps ensure you can cover your expenses while also progressing toward long-term goals. You may need to adjust the percentages based on your specific financial situation and priorities.

About the author

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.

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 12/23/25. 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/.
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.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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

SOBNK-Q225-043

Losing track of money might seem hard to imagine, but it’s actually not uncommon to forget about an old bank account or other source of money that is rightfully yours.

It could be an account you opened a long time ago that, after one or two moves, became both out of sight and out of mind. Or it might be lost paycheck, an old 401(k), or an unclaimed pension.

In fact, roughly one in seven people have unclaimed assets waiting for them, according to the National Association of Unclaimed Property Administrators (NAUPA).^[1] They report that billions of dollars in unclaimed property are currently being held by state governments and treasuries within the U.S.

If you’ve lost track of money that belongs to you, however, there’s no reason to panic, or consider the money gone for good. There are a number of ways to locate lost assets from a bank or other type of financial account, and most of them are completely free. It might take a bit of (virtual) leg work, but finding the unclaimed money due to you can be worth the effort.

How to Find an Old Bank Account

If you’ve accessed the bank account within the past year, you might be able to recover the account directly from the bank. Exactly how to recover a lost bank account will vary based on the financial institution. Your account information can be found on checks and often on old account statements.

If it’s been longer than a year, you might have to dig a little deeper to find and recover a lost bank account. To search for an old account in your name, you might start by combing through old financial records (paper and digital), including bank statements, correspondence/emails, and tax returns. You can also get information about closed bank accounts in your name through ChexSystems, a reporting agency that tracks consumer banking history.^[2] You can request a free copy of your ChexSystems report at ChexSystems.com.

How to Find Unclaimed Money

When a bank or other business loses contact with an account holder, they are legally required to turn any assets over to the state, typically after three to five years (it varies by state) of inactivity or returned mail.^[3]

That’s why a good place to start a quest for older unclaimed property is often through your state’s unclaimed property office. The unclaimed funds held by the state are typically from bank accounts, insurance policies, or your state government.

The NAUPA offers an interactive map, where you can click on your state and be directed to its unclaimed property office. To search for your unclaimed money, you may want to use both your current and maiden name (if you legally changed your last name).

Another good resource for tracking down unclaimed money is MissingMoney.com. This is a multi-state directory operated by the NAUPA that allows you to search by name for missing or unclaimed money.

If you belonged to a credit union in the past, it may be worth checking the unclaimed deposits listing run by the National Credit Union Administration.

Other Sources of Unclaimed Money

Unclaimed money isn’t limited to forgotten checking accounts and savings accounts from childhood.

There are a variety of reasons you could be missing money due to you — perhaps you switched jobs and lost track of a 401(k) or pension plan. Or maybe you forgot to update your address and missed a payment or tax refund.

If you previously worked for a company that offered a pension plan, you can search the Pension Benefit Guarantee Corporation’s (PBGC’s) database. PBGC is a federal agency created by the Employee Retirement Income Security Act of 1974 (ERISA) to protect pension benefits in the private sector.^[4]

For lost or missing retirement plan funds, you could check the National Registry of Unclaimed Retirement Benefits, which is a secure database of retirement plan account balances that have been left unclaimed by former participants of retirement plans.

USA.gov helps you search for assets due from employers, insurance companies, and the government (including tax refunds).

How to Claim Lost Money

If you find unclaimed assets in your name, the next step is typically to fill out a form or make an online request to make your claim.

Each state generally has its own rules and regulations for how individuals should go about proving ownership of the unclaimed money now being held by the government. Generally, states will require substantial evidence that the money rightfully belongs to you.

Claims usually require showing proof of identity (such as information from a driver’s license or passport), any former residential addresses, and documentation showing your right to ownership of the assets.

If the owner is deceased and you inherited the assets, additional documents are typically required. This may include a death certificate, as well as a probate court order.

Recommended: Can You Reopen a Closed Bank Account?

Are Companies That Help You Reclaim Assets Legit?

As you’re searching for lost bank accounts, you may find businesses that offer to find unclaimed money, generally for a fee. Sometimes known as “finders,” these are companies that are looking to earn money by reuniting people with their lost assets.

While it’s fine to pay someone to help you get lost money returned to you, you may want to keep in mind that you can complete a search and submit a claim for free by yourself.

It’s also a good idea to keep your eyes open to potential fraud. Unsolicited emails or letters offering to return unclaimed property to you for a fee, for example, are often scams.

You’ll want to be especially wary of an organization or individual who claims to be a part of the government and offers to send you unclaimed money for a fee. Government agencies will not contact individuals about unclaimed money, nor will they charge a fee.

If somebody contacts you regarding missing money, it’s a smart idea to do some research on the business before handing over any personal information, and also to avoid paying any money up front.

Recommended: Avoiding Mobile Deposit Scams

The Takeaway

Many people have unclaimed money floating around somewhere. Often this money comes from funds found in banks, financial institutions, or companies that haven’t been in contact with the owner for several years and, as a result, the funds have been turned over to the state.

A good place to start looking for unclaimed assets is NAUPA’s database of records from all 50 states. From there, you can find links to each state’s official unclaimed property program.

What to do if you come into some unexpected money? Whether your windfall is large or small, consider putting it in a checking or savings account that pays a competitive interest rate and charges no (or low) fees.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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

Is there a way to find all bank accounts in my name?

To find lost bank accounts, start by looking through your old and current financial documents (both paper and digital), including past bank statements, emails, and tax records. You can also get information about closed bank accounts in your name through ChexSystems, which is a national reporting agency that tracks consumer banking history. While your credit reports won’t include bank account information, they will list current and closed credit accounts.

If needed, you might contact individual banks directly to inquire about any accounts in your name, although they typically require proof of identity.

Is there a way to find lost bank accounts?

While there isn’t a central directory listing all bank accounts in your name, you can order a free copy of your ChexSystems report (at ChexSystems.com), which focuses on bank account history. You can also locate lost or forgotten bank accounts through your state’s unclaimed property office. Many states offer online databases where you can search by name to see if old accounts have been turned over. MissingMoney.com can be a good place to start.

You can also contact previous banks directly or check old records (like tax returns and bank statements) to find information about old bank accounts.

How to find bank accounts with a Social Security number?

There is no central public database you can use to search for bank accounts with a Social Security number. However, some banks may be willing to do a search for accounts using your Social Security number for you, especially if you think there may be accounts in your name you don’t know about. To access this service, you may need to submit a formal request and offer proof of identity.

Otherwise you can find old accounts by combing through old records (like tax returns, correspondence, and bank statements) and contacting previous banks directly. You can also do a search for unclaimed funds from old bank accounts at MissingMoney.com.

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 12/23/25. 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-Q225-050

The 30-day rule says, when tempted to make an impulse purchase, to wait 30 days and see if you still really want the item. This can help you avoid overspending, veering away from your budget, and taking on credit card debt. It forces you to pump the brakes on a purchase and wait before buying.

Here, you’ll learn more about the 30-day rule and how it can help you save money.

What Is the 30-Day Rule?

The 30-day rule is a simple strategy that has the power to help you control your spending and make solid financial choices. Here’s how it works:

Pros and Cons of the 30-Day Savings Rule

Now that you understand the principle behind the 30-days savings rule, consider the upside:

However, the 30-day savings rule can also have downsides:

Needs vs Wants

The 30-day rule can be an excellent way to manage the causes of overspending and help you differentiate needs from wants.

Examples of Needs

Needs are your basic living expenses; the items that are vital for daily life. For example, if you’re out of toilet paper, that clearly goes into the needs category, and doesn’t fit the rule. You could shop for a better price, sure, but it’s a pretty necessary purchase.

If your car is almost out of gas and you’ve got to drive to work in the morning, the same concept applies. Yes, if you need to eat dinner and the cupboards are bare and the fridge is empty, you’ll need food (but not necessarily steak and lobster).

Examples of Wants

On the other hand, wants are things that are not part of daily survival. Groceries to cook dinner are an example of needs, but a pricey sushi dinner or even that vanilla latte to go in the morning are clearly wants.

When it comes to shopping, you may find yourself giving into wants when you pick up some new shoes just because they’re on sale or decide to upgrade your phone even though your current one works fine.

There’s a middle ground, of course, where it may be tougher to decide if something is a need or want, and whether the rule applies. For example, you may have a big work conference coming up, and there’s a really sweet suit on sale.

On the one hand, you may have an outfit that will work just fine, but on the other, this one may be more appropriate, giving you the confidence to shine at the conference. In that case, it may make sense to think about the purchase for a day or two, rather than for a full 30.

The Role of FOMO Spending

FOMO (which stands for Fear of Missing Out) spending is the kind in which you feel that if you don’t buy a particular item, you might miss out on something important. This could happen if you see social media posts where friends (and perhaps even people you don’t know!) are buying something you don’t have. That can lead to what’s known as FOMO spending.

This anxiety can significantly influence how people spend their money, serving as motivation to spend funds that they can’t really afford. Some points to consider:

Each of these strategies is a way of practicing delayed gratification — and there are plenty of benefits to engaging in this healthy behavior (besides from possibly fattening your wallet).

Recommended: Why Do We Feel Guilty Spending Money?

Benefits of Delayed Gratification

Delayed gratification, according to studies, is often a trait found in successful people. When someone can delay satisfaction until the appropriate time, they are more likely to thrive financially, as well as in their relationships, careers, and health than those who haven’t yet mastered the skill.

It isn’t always easy to wait when doing something might make you feel good right now, but waiting can lead to bigger rewards in the future. As this becomes a practice, it can help to boost your overall self-control and achieve long-term goals.

One of the more well-known studies on delayed gratification involves, of all things, marshmallows. This study was conducted at Stanford University in the 1960s,^[1] and went like this:

The children who chose to wait, the researchers discovered, had higher standardized test scores. They also were found to have fewer behavioral issues and health problems.

You might use this study to think about your own ability to wait for greater rewards. Focusing on finances, you might consider times when a quick impulse purchase didn’t turn out to be the best move, as well as times when saving for something better was ultimately more rewarding. These moves can help you cut back on spending and, say, build up an emergency fund.

Recommended: How to Achieve Financial Discipline

Tracking Your Spending and Saving

The above strategies all have one thing in common. They involve tracking your spending and saving so that you can make choices that fit your budget, lifestyle, goals, and dreams.

As part of that process, it may make sense to identify where you’re overspending. The reality is that it’s gotten super easy to spend — and, therefore, overspend — in today’s frictionless financial world.

You may find that you’re spending literally hundreds of dollars a month in ways you didn’t realize, whether that’s by picking up a quick coffee at the drive-thru window, a subscription you rarely use, or something else entirely.

When you know where your money is going, down to the last penny, it can help you adjust your budget in a way that prioritizes your financial needs and money goals. That could involve paying down debt, saving up for a vacation next summer, or banking some cash for the down payment on a house in the future.

Recommended: Savings Calculator

4 Other Tips and Strategies to Save Money

Here are some additional savings strategies to consider:

Pay Yourself First

Want to pay yourself first? You can do this by having money automatically deducted from your paycheck and transferred into your savings account. By automating your savings, you can make sure that you don’t spend money that can be helping to fund your future dreams.

Try Out Different Budget Methods

It can take a little trial and error to find a budget that works for you and your unique situation. Some people like the 50/30/20 rule, others use the envelope system, and there are many other options. Do a little online searching and experimenting to find one that works for you.

Use an App

Technology can help you track your spending and save more. Your financial institution may have tools that make this a snap. Or you might decide to take advantage of a roundup app that puts a little money into savings with every purchase you make. Again, see what your bank offers, or an online search can reveal alternatives.

Start a Side Hustle

Another way to save more is to earn more. Starting a low-cost side hustle can be one way to do just that. Whether that means walking dogs, selling your nature photos, or providing social media services for local businesses, there could be a simple and satisfying way to tap your talents and bring in more cash.

The Takeaway

The 30-day rule can help you save money. It says that if you are thinking of making an impulse purchase, you should wait 30 days before buying. If, after the end of that time, you still really, really want the item, go ahead and buy it if you can finance it. This can help you avoid overspending and racking up credit card debt. It may help you keep more money in your budget for essential spending or debt payments or in your bank account, earning some interest.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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 30-day rule for saving money?

With the 30-day rule, you wait 30 days before making a major purchase to be sure you really want or need it. This technique of waiting can help you delay gratification, feel more in control of your finances, and potentially avoid overspending on impulse buys.

Does the 30-days rule work?

The 30-day rule can work if you stick with it. By waiting 30 days before making a major purchase, you have time to consider whether you really need it, shop around for the best price, or decide that it was an impulse buy and you don’t really want it anymore.

What is the golden rule of saving money?

The golden rule of saving money is to save money before you spend. Some people refer to this as “paying yourself first.” By prioritizing saving, you can potentially minimize debt and reach your financial goals.

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 12/23/25. 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.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

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

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

SOBNK-Q225-024

Having a baby can fill your house with love. It also can take a toll on your finances.

And you can expect the costs to keep growing right along with your baby. In fact, according to a 2025 estimate, it can cost almost $30,000 a year to raise a child.^[1]

That means you’ll likely have to reconfigure your household budget through the years (and then contemplate higher education expenses). If you break down the process and do a little at a time, it can make the task less daunting.

Read on for tips on getting started with the budgeting-for-baby process.

Assessing Your Income

As you create your budget, begin by looking at your household income after taxes and other deductions come out of your paycheck each month. That’s the money you have to work with, not the gross amount.

Also, if one parent plans to stay home with the baby full- or part-time, plan your budgeting accordingly. Be sure to consider the loss of any non-cash forms of employee compensation, such as insurance and retirement contributions. If those go away, the amount of money in your bank accounts will likely drop, which is something to plan for.

Looking at Your Current Expenses

Some things won’t change at all, but there may be costs that will go down or go away after you have the baby. For example, the amount you spend on date nights, dinners out, and travel might be reduced for a while.

If one parent decides to stop working, their wardrobe budget might drop. But you’ll also be adding plenty of expenses. And then there are some forgotten expenses, like maintenance for your home, yard and car, you’ll need to factor in.

This is a good time to identify your priorities and be prepared to make some trade-offs to curb spending. For instance, can you live without some of those streaming subscription services? Can you make coffee at home instead of going out?

Planning Ahead For Recurring New Expenses

Here are some of the expenses that will often turn up once you become a parent.

Child Care

Typically, child care is the biggest ongoing expense for a family with a new baby. The cost will vary depending on where you live, the type of care you choose, and whether you need part-time or full-time care, but according to the Care.com 2025 Cost of Care Survey, national averages ranged from $343 per week for a child-care center to $827 for a full-time nanny.^[2]

Feeding

Even if you plan to nurse the baby, you’ll need to prepare for the possibility that breastfeeding might not work out and formula could become a regular expense. A BabyCenter study in 2025 found that formula can cost $222 or more a month.^[3]

When your baby starts on solid foods, typically at about 4 to 6 months old, you’ll add to that expense.

Diapers

The average baby uses 2,500 to 3,000 diapers in the first year. That could add up to about $839 to $1,000 a year in disposable diapers.

House and Car

Maybe you’re lucky enough to have an extra room in your home that’s ready to be transformed into a nursery. And maybe a baby car seat will fit into your current ride without a struggle.

But if that’s not the case, and you have to make some adjustments for your growing family, you may have to add more expensive house or car payments to your get-ready-for-baby budget.

Recommended: How to Manage Your Money Better

Miscellaneous Expenses

You’ll need to furnish a nursery for your baby, which can range from several hundred to several thousands of dollars. You’ll also need a car seat; stroller; high chair; toys and books; pacifiers, tiny outfits and socks; lotions, shampoos, and creams — the list goes on and on. This is where you can prioritize.

You may get some of these items at your baby shower, and friends and family might supply you with some hand-me-downs, which will help save money on clothes and cut costs. But there will still be plenty of items you’ll need to buy.

Preparing for Some Upfront Costs

Depending on your insurance coverage, you could be going home from the hospital with a bundle of joy and a bundle of bills. Check your health insurance plan to gauge what your costs could be. To give you a sense, many new parents end up paying about $3,000 in out -of-pocket costs for pregnancy and delivery.^[4]

The amount of your hospital bill will depend on a lot of factors, including the part of the country in which you live, the size and location of the hospital, the length of your stay, and how much extra care you or your baby might require.

You’ll also need some starter equipment — a crib, changing table, dresser, and a baby monitor, for instance.

Smaller ticket items include a diaper bag and pail, a baby bathtub, bedding, and towels. Here’s another place where hand-me-downs and resale shops can help you save.

Recommended: Savings Calculator

Ready, Set, Transition

Remember those current expenses you thought about letting go of, like fancy coffees and some streaming services? You don’t have to wait until the baby arrives to make changes. You might want to practice by giving your new budget a test run before your delivery date.

To take it a step further, if one parent plans to quit working, even for a short while, you could start living on just one salary a few months early and put the extra income into an emergency fund. That money could come in handy later when unexpected expenses crop up.

Recommended: 5 Ways to Achieve Financial Security

Overwhelmed? Take Baby Steps

Preparing for a new baby, especially your first, can be exciting. It also can be a little overwhelming.

Doing a few breathing exercises may help reduce any financial stress you’re feeling as you’re working on your budget. Starting now with baby steps could help get you on track well before your little one arrives.

The Takeaway

The cost of raising a child can be as much as $30,000 a year (or even higher). As you plan for parenthood, it’s wise to develop a budget and see where you can economize. Hand-me-downs can help you save on purchases, and building an emergency fund can help you if an unexpected expense crops up. Having the right banking partner can also help you manage your money well as your family grows.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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 to budget when you have a baby?

One good system for assessing your new spending style once you have a baby is to use the 50/30/20 budget rule. That means 50% of your take-home pay goes to needs, 30% to wants, and 20% to savings or additional debt payments. As you see how much your baby-related expenses are, you can update your budget, trim spending as needed, and find a balance.

What is the biggest expense for having a baby?

Often, the biggest expense for having a baby is child care. The exact amount will depend on where you live and what kind of care you opt for, but costs currently can range from, on average, $343 to more than $800 a month.

How much are diapers a month?

Typically, diapers can cost $70 to $80 a month, though figures can vary depending on the type your choose and where you live.

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 12/23/25. 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.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

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-Q225-018

Prepaid debit cards can be used to buy almost anything, whether you’re shopping online or in person. They may also be a helpful budgeting tool, and they don’t affect your credit. You may even be able to recover your money if you lose the card.

However, prepaid debit cards do have some disadvantages, including possible fees. Learn how these cards work to help determine if a prepaid debit card makes sense for you.

What Is a Prepaid Debit Card?

A prepaid debit card shares some features of a credit card, debit card, and gift card. It’s a debit card that’s been preloaded with money that you can generally use at any retailer (online or in person) that accepts credit cards.

Like credit cards, prepaid debit cards may be associated with credit card networks. So a prepaid Visa debit card, for instance, can be used anywhere that accepts Visa.

Each purchase you make on a prepaid debit card will deduct from the amount that’s been preloaded onto the card. When you reach the end of your preloaded cash, you can’t buy anything else with the card.

It may be possible to add more money to the card when the balance gets low via cash or direct deposit, depending on the card. However, there might be a fee to reload the card with money.

Pros of Prepaid Debit Cards

Like most financial products, there are pros and cons to consider when it comes to using prepaid debit cards. Here are a few of the benefits.

No Interest or Bills

A prepaid debit card is not a credit card, and you generally can’t carry a balance on it. That means you pay no interest when you use the card, and there is no bill to pay at the end of the month. A prepaid debit card is basically the plastic equivalent of cash.

Limited Loss

It used to be that losing a prepaid debit card was like losing cash — you were out of luck. But legislation by the Consumer Financial Protection Bureau (CFPB) that took effect in 2019 required card issuers to provide protection against fraud and errors. In order to access this protection, you must usually follow instructions to register your card with the prepaid card issuer and report any theft or loss promptly.^[1]

Security for Personal Information

While you may need to provide personal information to activate or register a prepaid debit card, the prepaid cards don’t typically carry any of your personal or financial information. So if your card falls into the wrong hands, it’s generally not possible for someone to access your sensitive information. That said, protecting your account number, PIN, and CVV code can prevent others from accessing your balance.

Automatic Budgeting

Prepaid debit cards typically offer a hard stop on spending, meaning that if there’s $100 on the card, you can’t spend more than $100, which can be a helpful tool for managing your money.

For people who have a hard time with impulse purchases or those who are trying to stick to a strict budget, prepaid debit cards may provide a helpful tool to prevent overspending.

There are some prepaid cards that allow account holders to overdraft and spend more than the balance on the card. They may charge a fee for this. If going over the limit is a problem for you, it may be worth considering a card that doesn’t allow overdrafting.

Available to Those With Less-Than-Stellar Credit

There is no credit check required to get a prepaid debit card. This makes prepaid debit cards one option to consider for consumers who are unable to qualify for a traditional credit card.

If your credit is subpar, you can get a prepaid debit card and use it where major credit cards are accepted.

Teaching Tool

Those with children may find that prepaid debit cards could be a useful tool to teach them about money.

Prepaid debit cards could be used by parents to introduce concepts of spending within limits, to help children understand using plastic instead of cash, or to dole out allowances so kids can practice their money management skills.

Spending Tracker

Some cards offer email or text alerts based on card activity, or they’ll notify you when the card has been reloaded or the account balance is getting low.

Possible to Deposit Paychecks

You can have funds (like paychecks) directly deposited onto some prepaid debit cards, skipping the need to manually reload the card as the balance runs low. This could mean that funds are available faster than they would be if you were cashing a paper check.

Cons of Prepaid Debit Cards

Here are a few downsides to consider when it comes to prepaid debit cards.

No Credit Effect

Although there’s no credit check required to get these cards, it means prepaid debit cards aren’t connected to a line of credit like credit cards are.

Because the company that administers the prepaid debit card is not reporting your payment activity to the credit bureaus, these cards aren’t helpful for establishing or strengthening your credit history.

High Fees

Depending on the card, a prepaid credit card may come with a host of attached fees. Some prepaid cards may charge fees for certain activities including:

If you’re considering using a prepaid debit card, you may want to shop around and review the costs and fees associated with different types of prepaid debit cards.

Another option for your money — and one that could help it grow — is to open an online bank account that offers a high yield for your savings. With a bank account, you’ll typically also have access to ATMs and online and mobile banking for added convenience. And some bank accounts come with no fees, unlike certain debit cards.

Potential for Loss

If you don’t register your prepaid card and something happens to it — loss, theft or fraud — there may be no way to recover your cash.

Getting a Prepaid Debit Card

You can purchase prepaid debit cards at a variety of locations, including grocery stores and drug stores, online, or from some banks and credit unions.

Purchasing a prepaid debit card usually requires you to load money onto the card at the time you buy it. For example, if you want to buy a $50 prepaid Visa debit card at the drugstore, you would pay the fee to activate the card, plus the $50 you want to load onto it.

If you’re shopping for cards, pay attention to the card fees, which should be displayed on the card’s packaging. There may also be a toll-free number or website you can visit for complete fee information. To the extent possible, it’s worth trying to find prepaid debit cards with fewer fees.

After purchasing the card, to be protected against fraud, loss or theft of your card, you’ll usually need to register it.

The prepaid card will generally come with instructions for doing this. The card provider may request information such as your full name, contact information, date of birth, and Social Security number or tax ID.

The Takeaway

Sticking to a budget and avoiding excessive spending can be daunting. Balancing your income against your expenses and savings goals takes dedication and commitment.

Fortunately, the right tools can make it easier. Consider choosing a high-yield bank account that allows you to manage your spending and saving all in one place.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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 a prepaid debit card and how does it work?

A prepaid debit card is loaded with a specific amount of money you can use for purchases, generally wherever credit cards are accepted. Each transaction deducts from the preloaded balance. You can’t typically spend more than what’s on the card, though some cards allow you to reload funds. It functions similarly to a debit card but isn’t linked directly to a bank account.

Do prepaid debit cards help build credit?

No, prepaid debit cards do not help you build or establish credit. Since they are not a line of credit, your usage and payment activity are typically not reported to the major credit bureaus. Therefore, they don’t impact your credit score.

What are the main advantages of using a prepaid debit card?

Prepaid debit cards are accessible to most individuals, since a credit check is not necessary. They can also help you stick to a budget, since you typically can’t spend more than the balance on the card, which helps to avoid interest charges, as well. Prepaid cards also offer fraud protection if they’re registered and the loss is reported promptly, and some of them can even receive direct deposits.

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 12/23/25. 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.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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

*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.

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.
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-Q225-010