Mar
31
2025
19 Financial Questions to Ask Yourself

19 Financial Questions to Ask Yourself

By | Budgeting & Goals, Financial Independence, money | Comments Off on 19 Financial Questions to Ask Yourself

You may have questions you’d like to ask a financial expert, but did you know there’s also value in asking yourself some questions about your money? These queries can help you organize your finances to spend efficiently, save more money, and achieve your goals, such as retiring comfortably.

While making money might be straightforward enough (you work and receive a paycheck), using your hard-earned dollars to improve your quality of life and achieve your goals can be less clear. Healthcare expenses, education, and keeping up with daily expenses (plus inflation) can be all-consuming.

Fortunately, good money management can help you think big-picture as well as identify small-scale ways to improve your finances. And checking in with yourself can be a vital step.

So here are 19 questions to ask yourself about money that can help you save, spend wisely, and retire well. They’re grouped into categories (baseline, weekly, monthly, and annually) to make them easy to navigate.

Key Points

•   Asking yourself a series of financial questions on a weekly, monthly, and annual basis can improve money management.

•   Start with baseline questions about short- and long-term goals, values, job satisfaction, and whether you need a financial advisor.

•   Consistent budgeting and paying yourself first every month are essential for financial security and freedom.

•   Build an emergency fund and plan for retirement to ensure long-term financial stability.

•   Check in on retirement savings and reassess other savings goals at least once a year.

Benefits of Keeping Yourself in Check Financially

Taking stock of your financial circumstances is more than a box to check off or a simple chore. It has numerous benefits for your bank account and mental health, such as:

•   Reflecting on and changing your spending habits

•   Creating a plan for achieving financial goals and building wealth

•   Gaining control over your finances and reducing stress

•   Adopting an investment style that fits your needs and risk tolerance

•   Reviewing your tax burden to see if allocating pre-tax dollars can boost your financial potential

•   Understanding how you can increase your financial security through budgeting and saving

•   Fostering a sense of confidence and independence

Now it’s time to dive into the questions themselves, including ones you can ask as a baseline, weekly, monthly, and annually to help keep your finances on target.

Baseline Questions to Ask About Money

Now that you know the benefits of investigating your finances, start here. These questions to ask about money can help you lay the groundwork for where you want to go financially. It’s a good idea to refer back to them throughout the year to stay on track.

1. What Do I Want Retirement to Look Like?

A precursor to financially preparing for retirement is asking yourself what you want it to be like. For instance, you might imagine yourself vacationing in foreign countries throughout the year or taking it easy at home with an occasional visit to the golf course. You might also consider part-time retirement, where you work around 20 hours a week, whether to pursue a passion project or earn extra money.

In any case, your desired retirement will determine your financial needs once you leave the workforce. Developing as detailed a picture as possible will help you answer the next question.

2. How Am I Preparing for Retirement?

Planning for retirement is more than starting a retirement fund contributing to a 401(k) or IRA (although this helps!). Your retirement age determines your healthcare situation, Social Security income, and investment strategy.

For example, if you’re planning on retiring at an older age, you’ll receive higher Social Security distributions, and your investment accounts can stay aggressive, earning you more money.

As a result, a sophisticated approach to retirement is crucial. Planning early and in depth will help you build wealth and afford the lifestyle you want. Foundational elements of a healthy retirement approach include diversifying your investments, figuring out when you can retire, and identifying your target annual income.

3. How Much of My Budget Should Be In Investments?

There’s no one universal rule that dictates how much you should invest per paycheck, and everyone’s financial circumstances are different. However, the following four guidelines can help you see where you are and then ensure you’re investing a sensible amount:

•   Investing a specific amount might substantially lower your taxes. For example, if you make $95,000 per year and put $20,000 pre-tax dollars into investments, you’ll drop your tax bracket and may pay a lower percentage of your paycheck to the government.

•   Taking advantage of any available employer match is critical. If your employer-sponsored 401(k) usually has matching funds up to a certain percentage, budget to snag it. For example, if your employer will match the first 5% of your paycheck contributions to your 401(k) plan, it’s wise to invest up to that amount to double your investment. It’s free money, and that’s hard to beat.

•   Sticking to your retirement plan is key. A detailed retirement plan should define a target amount to invest every month. For example, your plan might require you to invest $150 a month in an IRA. If you’re not saving for retirement already, it’s not too late to start a retirement fund.

•   Your debt burden might be more pressing than depositing money in a retirement account. For example, let’s say your investment portfolio has an estimated return of 6%. However, you also have credit card debt with an APR of 25% and an auto loan with a 7% interest rate. These debts are accruing faster than your investments. Therefore, it’s a good idea to pay them off ASAP so you can invest efficiently.

Recommended: Pay Down My Debt or Save Money: What to Consider

4. Do I Need to Have a Financial Advisor?

If you feel in over your head when asking yourself financial questions, a financial advisor can help. Financial advisors create customized financial plans and investment strategies. While they usually are competent across most financial subjects, you can also get specialized financial advice.

Remember, financial advisors charge you for their services. Usually, you’ll pay a percentage of the assets managed (around 1% for a human advisor, while robo-advisors can be as cheap as 0.25%) or a flat fee. However, if you’re feeling lost trying to organize your finances, the price can be well worth it.

5. How Can I Improve My Financial Literacy?

From student loans to home ownership, the financial world has many complex aspects. If you are feeling as if you could use more insight in one or more areas, educate yourself. There are plenty of books, podcasts, and websites that share knowledge on a multitude of financial topics. It’s also likely that your financial institution has content on money topics.

6. What Are My Financial Values?

Asking yourself this question can help shed light on your money mindset. Your financial values drive your decisions, whether you’re aware of them or not. For example, you might scrimp and save every penny but not pay any attention to investment opportunities. This value of preserving rather than growing your cash could be detrimental to your long-term financial health.

Or, you might buy luxury items as status symbols but be unable to afford a much-needed vacation. Writing down your financial values and asking yourself if you need to change any of them can help you evaluate your beliefs and direct your money to what matters most.

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No account or overdraft fees. No minimum balance.

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7. Am I Happy With My Job?

This question could help you understand your financial and/or emotional health. For example, your job might be financially stable but unfulfilling. In that case, you might need to weigh if it’s worth continuing in a job you don’t enjoy.

On the other hand, your job might not provide the income you need to reach your financial goals and retire comfortably. In this situation, you might consider whether you should ask for a raise or look for a better-paying job. Boosting your income might require going to school part-time to get a degree or evaluating the pros and cons of a part-time job.

Questions to Ask About Money Weekly

You will likely benefit from the previous questions on big-picture topics. However, the following are applicable in a weekly personal check-in. These financial questions to ask yourself don’t take long to answer and can help you readjust your spending.

8. Is My Budget Proper and Up to Date?

Budgeting is the structure that makes your financial plan realistic. As a result, updating it regularly to reflect your monthly expenses can help you focus your progress. For example, suppose you signed up for a new streaming service or changed internet providers to save money. You can revise your budget accordingly (reallocating any surplus money to a high yield savings account or investments can be a good way to get ahead). Or you might also realize that you need to cut back on spending and decide to, say, minimize dining out for the next couple of weeks.

9. Am I Staying Consistent in Saving Money?

Eyeballing your total income versus expenditures over the last few weeks can help you answer this question. If you’ve been able to set aside your target amount of money every paycheck, then you’re on track.

Recommended: Savings Calculator

10. Do I Have Enough Money for a Financial Emergency?

A crisis, such as job loss or needing a new furnace, can throw your finances into a tailspin. Gradually building up an emergency fund of three months’ of expenses can help you handle whatever comes your way. Earmarking even a few dollars per week can help you get there.

11. Is There a Way to Increase My Income?

When you ask yourself this financial question, you might decide to work weekends or ask your employer for a raise. Remember, your income isn’t set in stone, and increasing it is a matter of considering your options and taking action.

Questions to Ask About Money Monthly

Every month or so, you might want to check in with how your spending habits are evolving and whether you’re on the path toward achieving financial security.

12. Did I Pay Myself First This Month?

The purpose of paying yourself first is to allocate money towards your goals — usually retirement, savings, or an investment account — before all other expenses. While this strategy might make money tight the rest of the month, it can help you stay disciplined directing money toward what matters most.

13. Am I on Pace to Reach My Goals?

Asking yourself this financial question regularly can spare you from getting to December first and realizing, oops, you forgot to reach a goal. By checking in monthly, you can reset your budget or, if necessary, lower your goal accordingly. Your budget should reflect your financial capabilities, not set discouraging standards.

14. Do I Need to Make Any Financial Adjustments?

Making adjustments is a topic to tackle head-on and often; tweaks are what making a budget is all about. That’s what helps it provide the right guidance and guardrails. You may find that your budget is working perfectly or that there’s a bit of extra money you could be saving or an unnecessary expense to eliminate from your budget.

15. Have I Regretted a Recent Purchase?

You’re not asking this question to rub salt in the wound. It’s possible that you made an expensive purchase outside your budget and your conscience is catching up. When this happens, it can be wise to forgive yourself. Your budget is a guide, and next month is your opportunity to follow it and stay disciplined.

Questions to Ask About Money Annually

The following questions have a broad scope and can help you analyze your overall financial health. As a result, revisiting them annually or semiannually can provide helpful reminders for creating financial stability.

16. Am I Getting Closer to Financial Freedom?

Financial freedom may look like being able to retire without working. Or, you might define it as living without debt. In any case, finding ways to financial freedom likely entails accumulating savings, contributing to an investment account, and repaying debt. Asking this money question annually can help you prioritize these habits and progress toward financial freedom.

17. How Is My Credit and Could It Be Improved?

When was the last time you checked your credit score? Generally, lenders consider credit scores of 670 or higher as “good,” with better scores garnering consumers lower interest rates and favorable loan terms. Therefore, solid credit can help you get a less expensive mortgage or credit card. If you review your credit reports, you can pay down high-interest debt and report any mistakes you found as first steps towards building your credit.

18. How Am I Preparing for Retirement?

Having a dollar goal to save for your later years is crucial, but so is preparing a retirement plan to get you there. Checking in on your retirement assets can be a very wise move.

If you have an employer-sponsored 401(k), you can see whether there’s a way to increase your contribution in pre-tax dollars from your paycheck. This may be a highly accessible asset for retirement (not to mention your employer might match your contributions, doubling your investments). Otherwise, a traditional or Roth IRA can be your primary investment account for retirement.

19. What Are Your Personal Priorities for the Coming Year?

Life moves quickly, and your financial priorities can, too. When asking this question, you can zero in on key goals, such as paying for sleepaway camp for your child or reaching a specific dollar amount in your emergency fund. Setting your budget while also factoring in your personal goals can help you put money aside throughout the year.

The Takeaway

Managing your money well is an important responsibility, and it’s one that requires frequent check-ins to ensure you’re accounting for life’s twists and turns. The path to building wealth can involve asking yourself questions annually, monthly, and weekly to assess how you’re doing. You can then make necessary adjustments — from tweaking your budget to opening a retirement account — that keep you oriented toward your goals.

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.


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

FAQ

How can I change my financial goals?

You can change your financial goals by asking yourself what you’d like to achieve and then saving money for a new purpose. For example, if you add a child to your family, you might want to start a 529 plan to pay for their future education and make monthly contributions.

How do I financially plan?

You can financially plan by making a budget outlining your monthly income and expenses. Besides life’s essentials, such as food and housing, your expenses can also contain allocations for your goals, such as contributions to your retirement account or deposits into a savings account. A budget allows you to direct your income toward various priorities and re-assess as needed.

How often should I ask myself financial questions?

It’s a good idea to ask yourself financial questions regularly to keep tabs on your financial health. Some questions you can ask annually (such as those about retirement), but others are best asked and answered weekly and monthly. This allows you to course-correct in real time if you hit any issues with spending and saving.

About the author

Ashley Kilroy

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.


Photo credit: iStock/oatawa

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Mar
31
2025
How Much Money Should I Have After Paying Bills?

When All Your Money Goes to Bills

By | Budgeting & Goals, money | Comments Off on When All Your Money Goes to Bills
This content may include information about products, features, and/or services that SoFi does not provide and is intended to be educational in nature.

Do you pay all of your bills and then feel as if the amount of money you have left over for your financial goals is a big zero? Unfortunately, many Americans live paycheck to paycheck (78% of us according to a 2023 “Getting Paid In America” survey conducted by PayrollOrg) and economic trends such as inflation can strain even the most financially stable households.

It’s a frustrating feeling not to have cash to put towards longer-term goals like, say, buying a house or retirement. While every person’s financial circumstances differ, your budget should allow room for important goals, such as building an investment account or padding out an emergency fund.

The question is, how much extra money should you have after paying your bills? The answer will depend on your income, expenses, and financial goals. Here’s a closer look.

Key Points

•   Ideally, you want to have 20% of your take-home pay left over after paying all of your bills.

•   Track spending using an app or spreadsheet to determine why there isn’t more money left over after bills.

•   Consider cutting unnecessary bills (like cable, streaming networks, gym memberships) to save money.

•   Sell unused possessions to increase available funds.

•   Budgeting and managing money can reduce stress and help achieve financial goals.

What Is a Good Amount of Money to Have After Paying Bills?

Everyone’s financial circumstances are different, so it’s hard to pinpoint a good amount of leftover money after bills. For example, you might have a medical bill weighing down your otherwise healthy budget. Or you could have limited income as a student or retiree.

In most cases, it’s vital to prioritize spending on your needs and stay motivated when paying off debt. You’ll also want to start stashing away cash for other goals.

With this perspective in mind, the 50/30/20 rule represents a good way to allocate money. The numbers act as a guide: 50% of your take-home income pays for necessary expenses like food, housing, and debts. Unnecessary expenses, like entertainment or dining out, are considered wants, not needs, and they account for the next 30%. Finally, 20% of your income goes toward investments and savings (as well as debt payments beyond the minimum).

Based on this framework, it’s recommended to have at least 20% of your income left after paying all of your essential and nonessential expenses, which will allow you to save for both short- and long-term goals.

Tips for Managing Your Bills

Sometimes, though, putting aside 20% of your paycheck can be a real challenge. Here are some strategies that can help you pay your bills — and still have some money leftover to put towards your goals.

Getting to the Root Cause

If you often scramble to make it to payday, there’s likely a problem lurking in how your income and expenses are aligning. Fortunately, dozens of apps and banking tools are available to help you see where each dollar goes every month. Of course, you could also keep paper receipts and bill statements the old-fashioned way. Either way, keeping tabs on your cash flow can show you if you’re spending too much at restaurants or if you should up your income through a new job or a low-cost side hustle.

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Organizing Your Bills

Most of us have monthly obligations. One thing that can help you get on top of those living expenses is to take some time to organize your bills. For example, you might make a master list of all of your monthly bills, listing the amounts and when payment is due. It’s also a good idea to set up automatic bill payment — this ensures everything gets paid on time and helps you avoid late fees and interest. Just be sure you have enough funds in your checking account to cover these debits so you don’t wind up overdrafting your account (and triggering bank fees).

What Are the Bills That Are Necessary to Pay?

The following bills are essential for the average American household:

•   Rent or mortgage for housing

•   Food and toiletries

•   Utilities such as gas, water, and electricity, as well as WiFi

•   Transportation expenses, such as a car, vehicle upkeep, or bus pass

•   Minimum debt payments on student loans or credit cards

•   Premiums for health coverage, car insurance, and renters/homeowners insurance

Identifying these bills as top priority and knowing how much of your paycheck they account for can help you budget better. It can help you answer the question “How much extra money should I have after bills?” and hopefully tweak your spending to make sure you can save.

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Which Bills Are Expenses That Can Potentially Be Canceled?

Cutting back on luxuries and treats can be painful, but there’s no feeling quite as rewarding as ending the month with your bills paid and a substantial deposit to your retirement account with money to spare. If you need to make room in your budget, consider canceling the following expenses:

•   Cable television or streaming subscriptions you rarely watch

•   Smartphone upgrades and high data plans

•   Gym or workout memberships

•   Shopping memberships

•   Digital cloud services

•   Overly expensive gifts for holidays and birthdays

•   Dining out and takeout

•   Cigarettes, vapes, and alcohol

•   Items that you can buy used instead of new, such as clothing, books, and more

Budgeting All Expenses

One of the best ways to ensure that you can cover your bills and still have money leftover is to set up a simple budget. A budget will act as a spending and saving plan to help you stay on track.

To do this, you’ll need to comb through your bank and credit card statements from the last several months and list all of your monthly expenses, including both necessary and unnecessary spending. Next, you’ll want to tally up your average monthly income. Once you see how your cash inflows and outflows line up, you may find that you need to make some adjustments in your spending.

Get up to $300 when you bank with SoFi.

No account or overdraft fees. No minimum balance.

Up to 3.80% APY on savings balances.

Up to 2-day-early paycheck.

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Getting Another Job or Side Hustle

If you reduce your bills to a minimum but still experience financial challenges, picking up a side hustle can help you make ends meet. Whether you find a part-time job with an employer or work independently for a company like a ride-sharing or food delivery app, an extra 10 to 15 hours weekly can make a substantial difference in your budget. On the other hand, if your day job meets all your expenses, a second job can help you beef up your retirement account or pay for an expensive hobby.

Tracking Your Spending

Coffees and checkout impulse purchases at the grocery store can stealthily ding your budget. Luckily, there are more apps and tools than ever for tracking every expense. You can ditch pens, paper, and envelopes for a spending tracker on your phone or an Excel budget spreadsheet. Your bank might provide a free financial management app to help as well. Use these tools to help maximize how much money you should have leftover after bills.

Being Frugal for a Temporary Time

If you have lingering debts or want to save up a specific amount of money, being thrifty for several months can propel you into financial wellness. For example, you could make grocery shopping lists based on the coupons you clip each week. Or, if online shopping is your Achilles’ heel, you may want to unsubscribe from sales email lists for a while.

Some people enjoy monthly spending challenges. One month, you might say you are not going to spend any money on movies or music and put the savings towards your emergency fund. The next month, you might order takeout only twice and deposit the money you saved versus your usual habits into your travel fund.

Downsizing Your Possessions

Just as some monthly payments are unnecessary, you may have toys, gadgets, unused appliances, and more lying around that you don’t use regularly. You can pad your wallet by selling your stuff through Facebook Marketplace, eBay, or ThredUp. If selling online doesn’t appeal to you, a garage sale could be an option. These moves can help you have more money after bills.

Why Money Management Is Important

Life gets expensive, and making the most of your hard-earned dollars is crucial. Here are some principles to consider:

•   Failing to manage your money could cost you hundreds or thousands of dollars annually. Solid financial management can transform your spending habits, quality of life, and retirement income.

•   Money management can help you become more financially disciplined, which can be a key characteristic of successful people. The fortitude you build from sticking to a budget can help increase your overall stability in life.

•   Budgeting can help you achieve your future goals. For example, managing your money is vital for saving for your child’s education, affording a down payment for a house, or creating an emergency fund.

•   Actively managing your money can help you make more intelligent financial decisions. For example, you might have two main goals — building an emergency fund and repaying debts. However, you might only have enough income for one of the two. You can analyze your finances to understand whether it’s wiser to save or pay off debt.

•   Having your finances under control can reduce stress. Constantly worrying about money can present mental and physical health challenges. Getting a grip on your money is an excellent way to improve your life circumstances and create a bright future for you and your family.

The Takeaway

So, how much money should you have after paying bills?

Your financial situation will help determine the right amount of leftover money after bills. If you’re struggling to find leftover money at the end of the month, organizing your bills, setting up a budget, cutting back on nonessential spending, and picking up some extra income can help ensure you have money left after covering all of your bills. You can then use these funds to grow your savings, achieve your goals, and build wealth over time.

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.


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

FAQ

How do I avoid living paycheck to paycheck?

You can avoid living paycheck to paycheck by tracking your spending, following a budget, and cutting back on unnecessary expenses such as entertainment and dining out.

How do I get a second job when I do not have the time?

You might find a second job that fits into your off-hours, like walking dogs when you have free time on the weekend. Also if you can find a gig that pays well enough, you may be able to reduce how much you’ll have to work. It’s a good idea to map out a schedule to help divide work from leisure and maintain a healthy work-life balance.

Is the 50/30/20 budget the only good rule of thumb?

The 50/30/20 budget rule can be a helpful guideline. It states that you should spend up to 50% of your after-tax income on needs; 30% on wants; and 20% on saving and debt payments beyond the minimum. However, it’s fine to play with the percentages. If you live in an area with a high cost of living, for example, you may be better off with a 70/20/10 budget. The idea is that you include saving as part of your monthly spending plan.

About the author

Ashley Kilroy

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.


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SoFi members with Eligible Direct Deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. 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 during a 30-day Evaluation Period (as defined below).

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 3.80% APY, we encourage you to check your APY Details page the day after your Eligible Direct Deposit arrives. If your APY is not showing as 3.80%, 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 3.80% APY from the date you contact SoFi for the rest of the current 30-day Evaluation Period. You will also be eligible for 3.80% APY 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, 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 members with Eligible Direct Deposit are eligible for other SoFi Plus benefits.

As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Eligible Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Eligible Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Eligible Direct Deposit or Qualifying Deposits until SoFi Bank recognizes Eligible Direct Deposit activity or receives $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Eligible Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Eligible Direct Deposit.

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

Members without either Eligible Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, or who do not enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days, will earn 1.00% 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 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
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31
2025

Dual Income No Kids (DINKs): Definition and Explanation

By | Budgeting & Goals, Growing Wealth, invest, Investing | Comments Off on Dual Income No Kids (DINKs): Definition and Explanation

The acronym “DINK” stands for “dual income, no kids,” and references a household in which two adults are working for an income (dual incomes) but do not have children (no kids), and as a result, fewer expenses. DINKs have become more common over the years as many young adults have opted not to have children, often due to the financial resources required to raise them.

What Does DINK Mean?

As noted, DINK is short for “dual income, no kids,” or “double income, no kids.” It refers to households where there are two active incomes and no children. The two incomes can either come from both partners or one partner having two incomes.

Some couples opt to wait longer before having kids, so they fall into the “DINKY” category, which stands for “dual income, no kids yet,” allowing them to save money.


💡 Quick Tip: Investment fees are assessed in different ways, including trading costs, account management fees, and possibly broker commissions. When you set up an investment account, be sure to get the exact breakdown of your “all-in costs” so you know what you’re paying.

The Significance of Dual Income, No Kids

Without the added expense of children, DINK couples might have more disposable income available for spending and investing. Marketing campaigns for luxury vacations, homes, and other high-end items often target DINK couples.

However, just because a household has two incomes doesn’t automatically mean they have more money – there’s always room for improving your financial life, after all.

There are some reasons why they may still struggle financially, including:

•   Their two incomes are not very high

•   They live in an expensive area

•   They have spending habits that eat up a large portion of their income

Why Are More Couples Choosing the DINK Life?

One of the main reasons couples choose to wait or forgo having children is the financial cost, which can range well into the hundreds of thousands of dollars over the years.

Further, when the Great Recession hit in 2008, many Millennials were just graduating from college or starting their careers. That recession made it challenging to get jobs and begin investing for the future. On top of recovering from the recession, nearly half of Millenials and a third of Gen Xers have a significant amount of student loan debt.

These factors have made it difficult for young people to achieve financial milestones and start families earlier in life. However, there are some couples who choose to wait a few years before having kids after they get married for non-financial reasons. They prefer to use their time as a young couple to travel, make life plans, and enjoy an untethered lifestyle.

Types of DINKs

DINKs come in a variety of types, including new couples and empty-nesters.

New Couples

New couples can be newlyweds, or simply those living together in a single household who are not married. They may be young or older, too, and are still feeling out their relationship and planning out their next steps. Children may or may not be a part of those next steps, but for the time being, new couples are standing pat with double-incomes.

Empty Nesters

While empty nesters may be parents, they may be at the point in their lives where their children have grown up and moved out, no longer presenting a financial burden. With that, they have some significant space in their budgets unshackled, with which they can make different spending, saving, and investing decisions.

Same-sex Couples

While many same-sex couples do have children, many do not, and they might also fight into the DINK category.

Structuring a DINK Household

There are many costs associated with having children, including clothing, food, healthcare, and education. Partners who don’t have children might instead choose to splurge or save up for early retirement.

DINK couples with disposable income have many options for how to spend or invest their money. Some couples may choose to buy nice cars, while others may enjoy going out to eat. They also potentially have more free time to travel and spend money. In general, clothing, food, or travel that may have been too expensive for couples with children can be accessible for DINK couples.

A couple with no children likely won’t need as many bedrooms or as much space in terms of housing. They can either choose to save money by renting or buying a smaller place to live. They can also choose to use the extra space for other purposes, such as a home gym, art studio, or rent out a room for extra income.

Kids also take up a lot of time and have fairly rigid schedules. Some DINK couples may choose to take more time off for travel and leisure, while others might choose to work longer hours or find ways to earn supplemental income.

In addition to purchasing and leisure options, dual income couples may have the opportunity to invest their extra money. They might purchase stocks, bonds, real estate, or explore other opportunities.

They could also try and get by on a lower income, too – for some DINKs, one earning a salary of $40,000 is enough to make ends meet in certain circumstances, especially if the other partner earns more.

7 Financial Tips for DINKs

Learning about each other’s financial habits and goals is important so that couples can get on the same page, whether they’re planning to have children or not. It also helps to have productive conversations about finances.

Establishing open and honest communications before having kids may make things easier in the long run. There are some crucial areas for couples to work on if they want to live a successful DINK lifestyle or get their finances set up before having children:

1. Paying Off Debts

Before setting off on a lavish vacation, it’s wise for DINK couples to have a plan to pay off high-interest debts such as credit cards and student loans.

Without kids, home loans, and other monthly bills, couples may have more available funds to tackle their debt and. Once they’ve paid down the debt, they can use the extra money they’ve saved from monthly interest payments to invest or spend elsewhere.

2. Creating Sustainable Spending Habits

Whether a DINK couple is waiting to have kids or doesn’t ever plan on having them, practicing responsible spending habits is crucial for financial success. If a couple is always in debt, having kids probably won’t change that.

Similarly, not having kids could make it tempting to go out to eat or travel a lot. Having conversations about the type of lifestyle each person wants both now and over the long-term helps make day-to-day spending choices easier. Earning $100,000 is a good salary, but if you have bad spending habits, it may still not be enough.

3. Traveling Smart

Travel is a huge draw for many DINK couples, but it can quickly get expensive. If couples want to travel a lot, they might consider staying in less expensive places and skipping the luxury trips.

If luxury is important to a couple, they might think about only going on one big trip per year and taking advantage of points, credit cards, and other offers to maximize their ability to see the world.

4. Planning Ahead and Investing Early

The more couples can figure out what they want in life and get their finances organized, the easier it is to plan their finances. If they plan to have kids in the future, they might consider saving now for college and other child-related expenses that may come later.

Factoring in future raises, inheritances, and other additional income or expenses is also helpful. Even if couples don’t start with high incomes, the earlier they can start saving, the more their portfolio has time to grow.

5. Consolidating Stuff

Just as couples without kids may not need to live in a large home, they may not need as many things. DINK couples might choose only to have one car or bicycle. There might be other items that each person has been buying for themselves that could be shared.

6. Acquiring New Skills

Couples without kids may choose to invest some of their time and money into additional training and education. If they plan to have kids in the future, this might help them move up the career ladder or earn a larger salary when the kids do come.

7. Getting Wise About Taxes

DINK couples can make smart financial choices to minimize their taxes. Contributing to an HSA or putting pre-tax income into a 401K can help reduce the tax burden. Owning a home may also provide tax breaks to some homeowners.

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The Pros and Cons of a DINK Lifestyle

There is nothing dinky about the DINK lifestyle. Not having kids, or waiting to have kids presents a huge financial opportunity for many couples. However, if they aren’t smart about their savings and spending, couples may risk running into financial trouble.

Pros of Becoming a DINK Couple

•   More free time and money to travel for work or pleasure.

•   Ease of mobility — moving or traveling to a new house, city, or country is more manageable without kids.

•   Disposable income to spend on cars, clothing, food, or other items.

•   Ability to save money by living in a smaller house and not paying for children.

•   Opportunity to save and invest extra income.

Cons to Remaining a DINK Couple

•   Potential for overspending and splurging on travel and luxuries rather than saving and investing.

•   DINK couples may be in a higher income bracket and have to pay more taxes.

•   There may be less family support for caregiving as they age.

Planning for a Life Without Children

Life without kids might be an excellent decision for many couples. The extra free time and money can be used in many meaningful ways.

However, couples need to be on the same page about whether they want kids, and there are some things to keep in mind about a childless future.

Couples will need to figure out:

•   How they’ll spend their retirement years

•   Who will visit or take care of them when they’re older

•   And who they will leave their money and assets to after they die

Saving up extra money for caregivers, retirement, and unforeseen circumstances can be an intelligent strategy for DINK couples. DINK couples must also make sure that they create an estate plan, so that their assets get distributed according to their wishes after they pass away.

Key Financial Baselines To Keep in Mind

When doing financial planning for the future, a few things are certain. Couples will have to pay taxes, and they’ll need food, shelter, and basic necessities. Beyond that, there are some baselines couples can look to as they plan for retirement, investing, home buying, and any kids they might plan to have.

The 4% Rule

Using the 4% rule, most couples will likely need to sock away more than $1 million for retirement, in order not to outlive their savings.

Home Costs

As of the fall of 2023, the average house costs nearly $500,000 in the U.S. — something to keep in mind.

Although these numbers may sound like a lot of money, couples with two incomes and no children can start saving some of their extra cash early and take advantage of compound interest over time. If they are savvy about their savings and spending, couples can potentially retire early and enjoy more free time for travel and personal pursuits.

Planning for the Ultimate DINK Lifestyle

To recap, “DINK” stands for dual income, no kids, and refers to households with two earners and no children. These households do not have the financial responsibilities associated with children, and thus, tend to have greater purchasing power than other families or households that do have kids.

Going kid-free has many upsides, but it’s important to be money smart, plan, and work together to create a prosperous and secure future. Couples who are planning to never have children or to wait to have them, often have more disposable income to put toward their financial goals, including investing.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.

FAQ

What does the term DINKs refer to?

“DINKs” refers to households with two earners and no children. It’s an acronym that stands for “double income, no kids,” or “dual income, no kids.”

What are the benefits of dual income without kids?

The primary benefit of DINK households is that they do not have the financial responsibilities associated with raising children, and as a result, have more purchasing power or discretionary income. They may be able to save and invest more, accordingly.

What percentage of married couples don’t want kids?

While it’s hard to say exactly, a rough estimate would be that around 20%, or one out of five adults say they do not plan to, or want to have children.

About the author

Ashley Kilroy

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.


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Direct Deposits vs Paper Checks: What’s the Difference?

Direct Deposits vs Paper Checks: What’s the Difference?

By | Budgeting & Goals, Financial Independence, money | Comments Off on Direct Deposits vs Paper Checks: What’s the Difference?

Direct deposits and paper checks are both ways to move money from one bank account to another, typically for payroll purposes, but there’s a difference: A direct deposit automatically transfers wages from an employer to an employee’s bank account. While a paycheck is also a money transfer, it involves the employer cutting a check from their bank account. The payee or recipient can then deposit the funds into their bank account or cash the check at a local business.

Although both payment methods help employers pay their employees and conduct other fund transfers, each has its own advantages and disadvantages. It can be helpful to understand the pros and cons so you can decide the best way to receive your salary or move money around.

Read on to learn the details, including:

•   What is direct deposit?

•   What are the benefits and downsides of direct deposit?

•   What are the pros and cons of paper checks?

•   When should you use direct deposit vs. a paper check?

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What Is Direct Deposit?

Direct deposit is an electronic transfer of funds to a bank account. By using direct deposit, a payee can automatically send money to another party’s bank account without handling paper checks or cash. It’s quick and convenient for both an employer and employee, whisking funds from one account to another. This method can also help employers cut costs since they don’t have to print and mail checks every pay period.

For these reasons, direct deposit has become very popular. In fact, according to the 2022 “Getting Paid In America” survey, almost 94% of workers receive their paycheck via direct deposit.

That said, receiving a direct deposit from your employer isn’t the only way to use the technique for transferring funds. You can use it for other transactions including:

•   Getting a tax refund

•   Receiving child support

•   Getting Social Security benefits

•   Paying bills like garbage, electric, and water bills (this may be set up through your bank’s “bill pay” option).

Pros and Cons of Direct Deposit

Using direct deposit has its upsides and downsides. First, here are some of this the significant advantages of this financial process:

•   Convenient. Technological advancements have made direct deposits a fast and easy way to receive and send money. The payee and payer don’t need to travel to the bank to write or deposit checks since the funds transfer electronically from one account to the other.

•   Safe. When you exchange cash or a check, there is a possibility that funds can be lost or stolen. Since all direct deposits happen electronically, you don’t have to worry about a thief swiping your money.

•   Efficient. Many employers offer direct deposit because it helps expedite the payroll process. Funds are automatically transferred from their bank account to those of the recipients. There’s no need for an employee to pick up a check, deposit it, and wait for it to clear. The time it takes for direct deposit to go through can be hard to beat.

•   Avoid maintenance fees. Some banks will do away with maintenance fees if you set up direct deposit, which can be a nice financial perk.

•   Boost savings. Sometimes, you can identify a percentage of your paycheck and direct it to be deposited into your savings when you get paid. This way, you can automate your savings and pad that account without thinking about it.

While direct deposit is convenient, safe, and efficient, there are also some downsides you should consider.

•   Risk of cyber crimes. Yes, there are hackers and other sorts of criminals out there. Direct deposits are vulnerable to cyber crimes since all transactions occur electronically. While banks and financial institutions take precautions to keep bank accounts safe online, direct deposits may still be somewhat susceptible to cyber theft.

•   Requires a bank account. Direct deposits usually require the payee and payer to have a bank account. That’s not possible for folks who lack traditional bank accounts. They may need to find an alternative solution to send or receive payments.

•   Fees. Depending on your bank, you may have to pay a set-up fee to initiate direct deposits. Check with your bank to verify any potential costs before you get started.

•   Errors are easily missed. Because payments are 100% electronic, you may not have the opportunity or inclination to review the pay stub as you would with, say, a paper check. Not looking over your paystub regularly can make it easier to miss errors such as an incorrect paycheck amount.

Now, here’s how the pros and cons of direct deposit stack up in chart form:

Pros

Cons

No risk of losing cash or a checkRisk of cyber crimes
ConvenientRequires a bank account
May avoid account feesMay have to pay a fee to set up direct deposit
Can set up auto-transfers to savingsErrors can be easily missed

Recommended: What Is an Electronic Check?

Pros and Cons of Paper Checks

Now, let’s consider the benefits and disadvantages of using time-honored paper checks. First, the upsides:

•   Protects privacy. When you decide to use paper checks, you can keep your banking information private from your employer. For some people, it may provide peace of mind to know that your employer doesn’t have access to your bank account.

•   Save money on banking fees. Some banks charge fees for setting up direct deposit. If you prefer not to pay these fees, you can likely cash your paper checks for free.

•   May include an informative paystub. For some people, looking at their paystub is more convenient with a paper check. They can assess the deductions and other aspects of their wages without going hunting for the information online.

Drawbacks to using paper checks include:

•   Risk of theft. When you carry a physical check, it’s easier to misplace it or have it stolen. If this happens, your employer will likely be able to replace it. However, you may have to wait for the new check to process and pay a fee.

•   Time-consuming. When you receive a paper check, you must deposit it at the bank via a bank branch or online. Either way, it can eat up time that you could spend doing other things.

•   Waiting period. Even if you deposit a paper check right away, it could take several days to clear and hit your bank account, especially if it’s the weekend or a holiday.

Here’s how these advantages and disadvantages compare in chart format:

Pros

Cons

Protects bank information from employerRisk of theft or losing the check
Saves money on banking feesTime-consuming to get and deposit check
Makes payroll details easily accessibleMust wait for funds to clear

Recommended: Business Check vs. Personal Check: What’s the Difference?

When to Use Paper Checks Over Direct Deposit

When deciding to use checks vs. direct deposit, here are a few situations where it makes sense to opt for paper checks:

•   You don’t want to share your banking information with your employer. Using checks may make sense for folks who are worried about sharing banking information or who prefer not to put money into a bank account.

•   You distrust banks or don’t want to pay their fees. One of the top reasons millions of Americans choose not to have bank accounts is that they don’t trust banks and don’t want to pay banking fees. If you fall into this category, you may feel more comfortable opting for paper checks you can cash.

•   Don’t qualify for a bank account. Maybe you don’t have enough money or don’t meet the requirements to open an account. Whatever the situation, if you don’t have a bank account, it’s going to be hard to accept a direct deposit. Paper checks might be the only solution to receiving your paycheck.

Recommended: How Do You Write a Check to Yourself?

When to Use Direct Deposit Over Paper Checks

Now consider the flip side: situations in which direct deposit may make more sense than paper checks.

•   You want a quick, easy way to get paid. If direct deposit is a payment option, it could help you receive your wages or salary more quickly than with a paper check. Since funds are transferred electronically, your paycheck will be in your bank account on payday, ready to be used.

•   You struggle to save money. If you have difficulty setting aside savings, a direct deposit may help. Some direct deposit programs let you distribute a portion of your paycheck into your savings, allowing you to boost your emergency fund or another account without lifting a finger.

•   Your bank waives maintenance fees. Some banks waive maintenance fees when you meet specific requirements like setting up direct deposit.

The Takeaway

Paper checks and direct deposits are two payment options that allow your employer to transfer money so you can get paid. When comparing paper checks vs. direct deposit, know that direct deposit is usually the most convenient way for employees to receive their pay. However, employees who don’t have bank accounts or don’t like sharing their banking information may prefer paper checks instead. It’s all about what best suits your banking needs.

If you’re ready to open an online bank account, take a look at what SoFi has to offer. Our Checking and Savings account lets you avoid account fees (like those for direct deposit) and earn a competitive APY Qualifying accounts can get their paycheck up to two days early with direct deposit, too.

Are you ready to bank better? See how SoFi Checking and Savings puts you in control of your money.

FAQ

Do more people use direct deposit or paper checks?

Direct deposit is usually the deposit method of choice. In fact, about 94% of employees prefer to receive wage or salary payments via direct deposit.

Can you change from paper checks to direct deposit?

In many cases, yes. Whether you want to set up direct deposit with the IRS, your employer, or your utility company, you can follow a process to switch from checks to direct deposit.

Can you change from direct deposit to paper checks?

Yes, you can usually ask your employer to switch back to checks. Verify with your employer what the process is so you know what to expect.

About the author

Ashley Kilroy

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.


Photo credit: iStock/RyanJLane

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2025 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

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

SoFi members with Eligible Direct Deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. 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 during a 30-day Evaluation Period (as defined below).

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 3.80% APY, we encourage you to check your APY Details page the day after your Eligible Direct Deposit arrives. If your APY is not showing as 3.80%, 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 3.80% APY from the date you contact SoFi for the rest of the current 30-day Evaluation Period. You will also be eligible for 3.80% APY 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, 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 members with Eligible Direct Deposit are eligible for other SoFi Plus benefits.

As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Eligible Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Eligible Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Eligible Direct Deposit or Qualifying Deposits until SoFi Bank recognizes Eligible Direct Deposit activity or receives $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Eligible Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Eligible Direct Deposit.

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

Members without either Eligible Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, or who do not enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days, will earn 1.00% 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 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
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31
2025
What to Do if My Debit Card Expires

My Debit Card Expired! What Do I Do?

By | Budgeting & Goals, Financial Independence, money | Comments Off on My Debit Card Expired! What Do I Do?

If your debit card expired, it can no longer make purchases or payments whatsoever. You’ll need to request a new card from your bank if they haven’t already sent you a new one. Once you have that card, you’ll need to activate it and shred your old one for security reasons.

Your debit card can be a vital player in your ongoing financial life. It’s your primary link to your bank account. It allows you to pay for items at stores, restaurants, and online businesses. In addition, debit cards are quicker than checks and don’t accrue interest charges like credit cards do.

As a result, staying ahead of your debit card’s expiration date is critical to uninterrupted use.

Key Points

•   An expired debit card cannot be used for purchases or payments, requiring replacement through the bank for continued access to funds.

•   Banks typically send a new debit card before the current one expires, but contacting them proactively can expedite the process if one is not received.

•   After receiving a new card, it is essential to activate it and securely dispose of the old card to prevent identity theft.

•   Debit cards generally last two to five years and can become inactive on the first day of the month following the expiration date.

•   Regular monitoring of account balances and transaction statements can help avoid overdrafts and identify potential fraudulent activities.

What Happens if My Debit Card Expires?

You might not realize that your debit card expired until you try — and fail — to use it. However, it’s best to stay on top of that critical date. Otherwise, if your card expires, the following can occur:

•   You can’t make purchases with an expired debit card.

•   Automatic payments linked to your debit card, such as subscriptions or utilities, will stop.

•   You’ll have to contact your bank about getting a new debit card if they haven’t already sent it.

•   You’ll have to use alternative payment methods until you get a new card.

Get up to $300 when you bank with SoFi.

No account or overdraft fees. No minimum balance.

Up to 3.80% APY on savings balances.

Up to 2-day-early paycheck.

Up to $3M of additional
FDIC insurance.


Replacing an Expired Debit Card

What to do when your debit card expires? Generally, your bank will send you an updated debit card in the mail a month before yours expires. However, if that hasn’t happened, keep these steps in mind:

•   If you don’t receive one as the expiration date draws closer, it’s best to follow up with your bank about getting a new card. You can usually call your bank or log into your account online and ask for a new card. This can often take a week or so; perhaps less time if you pay a fee for expedited delivery.

•   When you receive your new debit card, you can activate it by following the directions on the card. Typically, you can use the website or call the phone number on the activation sticker. You can also likely activate it by inserting it into an ATM (hopefully in-network, to avoid incurring ATM fees), entering your PIN, and withdrawing cash. The process may be somewhat different depending on your financial institution’s policies.

•   Once you’re sure your new card works, it’s best to shred your old card. Throwing away an intact card invites the possibility of identity theft or bank fraud. To augment your security measures, you can discard portions of the shredded cards in different trash containers or throw away several bits at a time.

•   Lastly, think about where you automatically use your debit card online. It’s vital to update your payment information where you linked your old debit card. For any bills you linked your debit card to (like your phone or electricity bill), log into your account and update your payment information.

   The reason: Once your debit card expires, you won’t be able to make payments, and you could fall behind on your bills, which is exactly what you don’t want to happen when you automate your finances.

How Long Do Debit Cards Usually Last Before They Expire?

A debit card usually lasts two to five years from the date your bank issues it. You can use your debit card until the first day of the month after expiration. For example, if your card’s expiration date is January 2024, then your card will work through January 31, 2024. Then, on February 1, your card will become inactive.

Recommended: Features of Mobile Banking

Why Do Debit Cards Have an Expiration Date?

It might seem inconvenient when your debit card expires, but banks require a debit card renewal for practical reasons. Consider the following:

•   The change of expiration date and security code combats fraud. In other words, the new card’s information helps prevent criminals from successfully hacking into your funds, thereby keeping your bank account safe online.

•   Debit cards can get worn out with use. For example, the stripe or magnetic chip can become defective after several years. Or, the card might suffer scratches or begin to peel. Therefore, getting a new card preempts these scenarios.

•   Card technology improves regularly. For instance, cards have gone from swiping to insertion and tap-to-pay in the last decade. As a result, getting a new card can allow you to take advantage of tech advances that increase convenience and security.

Will Transactions Go Through if My Debit Card Is Expired?

An expired card cannot make transactions or payments. Period. So, it’s crucial to get that debit card renewal before your current one expires.

Remember, an expired card doesn’t mean your bank account is frozen, empty, or deactivated. You can still make ACH payments if your card is expired — but an expired card can’t transact payment or let you use an ATM.

Do I Have Debit Card Access Even After It Expires?

The primary issue with an expired debit card is you can’t use it to pay in any context. However, you can access your bank account if your debit card expires, pay by ACH, and use mobile banking features. In addition, your bank account will still be active.

Tips for Using Your Debit Card Wisely

Your debit card is an essential financial tool that enables purchases, provides rewards, and more. In that way, it can contribute to your sense of financial security. Follow these tips to make the most out of your debit card:

•   Memorize your PIN instead of storing it on your computer or other device. That way, no one can steal it and gain access to your account. And please: Don’t write it on the back of your debit card either.

•   Don’t use an obvious PIN that anyone could easily guess, such as your birth year or 1234.

•   Shred and then throw away all expired cards.

•   Stay up to date on your account balance, so you don’t overdraft your account.

•   Use cash instead of your card if the merchant charges a card usage fee. (Some retailers require a minimum purchase of $5 or more to prevent the card fee.)

•   If your debit card provides points or cashback rewards, use it as much as possible without overspending. Also, keep in mind whether your card might have a daily spending or withdrawal limit, restricting card usage.

•   Check account statements monthly, and let your bank know about any unfamiliar transactions, as they could be a sign of fraud.

•   Be aware of transaction fees, when they will be charged, and whether the fee varies, depending on where you use your debit card.

Lastly, notify your bank immediately if you lose your debit card, so you aren’t financially responsible for fraudulent charges. Here’s how this works:

•   When you report your card stolen within two days, there is a $50 cap on the fraudulent charges you must pay for.

•   When you report within 60 days, a $500 cap applies to fraudulent charges you’re responsible for.

•   You’re financially responsible for all fraudulent charges if you don’t report your card stolen within a 60-day window.

Quickly reporting the loss will help you avoid financial responsibility for extra charges that aren’t yours.

Recommended: Debit Card vs. Credit Card

The Takeaway

A debit card that’s expired can threaten to derail your financial life for a period of time, inconveniencing you as you try to pay for transactions and access cash. Being suddenly unable to use your card for purchases is frustrating and can even cause you to miss payments on crucial bills. Therefore, proactively communicating with your bank about a card that will expire soon can save you a headache.

If you’re in the market for a new debit card, you can open an online bank account with SoFi and enjoy many perks. For instance, you’ll have access to the global Allpoint Network of no-fee ATMs. In addition, you’ll enjoy spending and saving in one convenient place, earning a competitive annual percentage yield (APY), and paying no account fees. All this can help you manage your money more easily and maybe even grow your funds faster.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

FAQ

Do I need to reach out to a bank if my card expires?

Reaching out to your bank if your card expires allows you to obtain a replacement debit card as soon as possible. Although banks usually send your new card ahead of time, it’s possible the card went to the wrong address or was never sent. Calling your bank or chatting with a bank representative online if your card expires can help minimize the waiting period for a new card.

Do the debit card numbers stay the same after they expire?

When your debit card expires, you’ll receive a replacement card with a new expiration date and security code. These numbers change to improve the security of your bank account.

What should I do with my old debit card?

You should shred or otherwise cut up your old debit card after you receive and activate the new one. Throwing away an intact card without shredding it means someone could easily steal your financial information.

About the author

Ashley Kilroy

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.


Photo credit: iStock/fizkes

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2025 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with Eligible Direct Deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. 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 during a 30-day Evaluation Period (as defined below).

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 3.80% APY, we encourage you to check your APY Details page the day after your Eligible Direct Deposit arrives. If your APY is not showing as 3.80%, 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 3.80% APY from the date you contact SoFi for the rest of the current 30-day Evaluation Period. You will also be eligible for 3.80% APY 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, 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 members with Eligible Direct Deposit are eligible for other SoFi Plus benefits.

As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Eligible Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Eligible Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Eligible Direct Deposit or Qualifying Deposits until SoFi Bank recognizes Eligible Direct Deposit activity or receives $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Eligible Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Eligible Direct Deposit.

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

Members without either Eligible Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, or who do not enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days, will earn 1.00% 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 1/24/25. There is no minimum balance requirement. Additional information can be found at http://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.

SOBK0123013

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