SoFi

It’s easy to get lost in the excitement of your wedding and focus on the fun parts, like trying on dresses. But before you get too far into planning, it’s a good idea to take a breath and crunch a few numbers.

In addition to being a joyous occasion, a wedding can also be a significant expense. While the price tag can vary widely depending on the level of luxury you go for and where you live, the median cost of a wedding is $10,000, according to SoFi’s most recent survey.

Besides the basic expenses like the dress, venue, catering, and rings, there are also lots of unexpected wedding costs, both small and large that can really add up. Being aware of these costs can help you plan ahead and save appropriately.

1. Bachelor and Bachelorette Parties

Since these events happen in advance of the wedding, it’s easy to forget to include them in your initial budget when saving for your dream wedding. But planning for these festivities is crucial, since they can come with a hefty price tag.

Guests spend an average of $1,300-$1,500 on these parties, according to the wedding site Joy.com. When travel is involved, the cost can go up even more.

Sometimes the host and guests will opt to cover the cost of accommodations and activities for the bride and groom, but that’s far from guaranteed.

And even if your costs are partially covered, you may still need to chip in for your airfare, meals, and incidentals.

Recommended: The Costs of Being in Someone’s Wedding

2. Marriage License

In the whirlwind of wedding planning, it can be easy to forget about some of the more technical steps of getting married.

You’ll need to apply for a marriage license, of course, typically with the relevant county clerk’s office. Some states have a fixed fee, while others vary by county or city. The fees can range from about $20 to $110.

3. Insurance

You know that you’ll need to pay for a wedding venue, but you may not be aware that many of them require you to also purchase insurance. These policies typically cover damage to the venue or injuries to guests or vendors.

Some wedding insurance policies also reimburse you if something goes wrong, such as a venue becoming unavailable or a vendor not showing up. Wedding insurance costs range from about $75 to $550 for basic coverage, but the price can be higher for more expensive events.

Recommended: Smart Short-Term Financial Goals to Set for Yourself

4. Postage

If you’re mailing correspondence to your guests, don’t forget that you’ll need stamps, too. These can add up when you consider that you may need them for save the date cards, invitations, RSVP envelopes, and thank you cards.

As of June 2025, a postcard stamp costs $0.56, and a First-Class Forever Stamp for an envelope costs $0.73. Say your save the date is a postcard and your invitations, RSVPs, and thank-you notes use envelopes. Mailing these items to 150 guests in the U.S. could cost hundreds of dollars.

5. Alterations

The perfect wedding-day outfit requires not only paying for a dress and a tuxedo or suit, but also likely shelling out for alterations.

Some stores and custom tailors include the cost of alterations in the price of the garment, but others don’t. For a wedding dress, changes such as hemming the gown, adding lace or beading, or taking it in can cost anywhere from $150 to $800 or more.

6. Beauty Treatments

You’ll want to look your best on your big day, and that likely requires spending some cash. Hair and makeup for brides costs $290 on average in mid-2025, and some stylists charge extra for a trial. If you’re paying for your bridesmaids to get hair and makeup done as well, the cost could also be around $230 per person for both services on average, according to The Knot’s latest data.

Brides may also choose other beauty treatments, such as facials, manicures and pedicures, application of false eyelashes, and body art, like mehndi for Indian brides. Costs can run from $25 to hundreds of dollars.

The groom may also choose to pay for services like a haircut (an average cost of $30 to $70) and professional shave.

7. Gifts

You are probably expecting to receive gifts from your guests, but don’t forget that you may want to give some out, too.

It’s customary to give thoughtful thank you gifts to your wedding party, with especially nice presents going to the maid of honor and best man. Expect to spend $75 to $150 for each bridesmaid or groomsman.

You may also want to give tokens of appreciation to your parents and grandparents, particularly if they helped pay for the wedding. If you have friends who helped out, perhaps by doing a reading at the ceremony or serving as an officiant, you may want to thank them with a gift as well. And you’ll also want to give a gift to any children participating in your day, such as a flower girl or ring bearer.

Last but not least, it can be meaningful to exchange gifts with your new husband or wife. By including these significant items in your budget, or by exploring the option of a wedding loan (a kind of personal loan) to help cover them, you can make sure you can afford them when the time comes.

8. Wedding Weekend Events

Your initial wedding budget may not have included other gatherings you’re hosting, such as the rehearsal dinner, welcome drinks, or a brunch.

Depending on the number of guests, all of these events can cost a pretty penny. The average cost of a rehearsal dinner is around $2,700 as of 2025.

9. Lodging and Transportation

You’ll probably be paying for a hotel for one or more nights if your wedding isn’t in your hometown, or if you just want to stay somewhere special.

You also likely won’t want to drive yourselves around on the big day. If that’s the case, factor in the cost of a limo or fancy bus to get you to and from the wedding locations. The average cost of a wedding limo is $75 to $150 an hour.

If you’re providing transportation for guests as well, expect the amount you spend on transportation to go up significantly.

10. Rentals

More likely than not, your wedding venue and caterer won’t provide everything you need. You’ll typically need to pay extra to rent linens, flatware, and glassware. You may also want to rent other items, such as heating lamps, a cake stand, string lights, candles, or a photobooth. These items can add hundreds of extra dollars to your costs.

Recommended: Guide to Unsecured Personal Loans

Financing Your Wedding

So how do you afford all the wedding expenses — both the ones you plan for and the hidden ones that crop up? Here are some ideas for financing your dream wedding.

Budgeting and Saving

The first step is to make a budget, but you’ll want to be sure to avoid some common budgeting mistakes. Add up all the anticipated wedding expenses, including the lesser-known charges above. Then, you and your partner-to-be can track your monthly expenses and income and see how much you have left over to save each month.

If that isn’t enough to get to your goal, see if you can find ways to reduce living expenses or earn extra cash. Your financial institution may offer a financial tracker to help you avoid going over budget — and help you save for the big day.

Trimming Expenses

If your wedding budget is more than you can afford, you may be able to find ways to lower some of the costs. For example, perhaps a friend can officiate instead of paying a professional.

Family and friends may be able to help you create DIY paper goods, bouquets, and centerpieces. Or you could send digital Save the Dates and invitations, rather than paying for printing and postage. Some couples even self-cater their weddings. There are a number of creative ways to save money.

Personal Loans

Along with saving and cutting costs, a wedding loan, which is a type of personal loan, could help finance your wedding. Borrowers may qualify for loans with interest rates that are generally lower than the interest rates charged by credit cards.

Personal loans are flexible and may be used for almost any purpose, so they can help you cover wedding expenses that come up. It can take just a few minutes to apply for a personal loan online, and these loans usually have fast funding and flexible repayment options.

The Takeaway

Most people planning a wedding know about the major expenses: the dress, the rings, the venue, food, and music. But the often forgotten extras, like hair and makeup, rehearsal dinner, and bridal party gifts can add hundreds to thousands of dollars to your budget. You’ll want to include these items in your budget so you can save appropriately or consider the right amount to borrow, say via a personal loan.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

Is $5,000 enough for a wedding?

While recent research suggests that $10,000 is the median cost of an American wedding, you can plan a wonderful wedding for $5,000. Ways to economize include having the wedding at your or a loved one’s home or in a park, having a pot luck meal, and asking friends and family to help out (say, but helping arrange flowers as centerpieces or play music).

What are some unexpected wedding expenses?

Some commonly overlooked wedding expenses include postage for Save the Date cards and invitations, hair and makeup for the wedding couple and bridal party, the cost of a rehearsal dinner, gifts for the bridal party, and the cost of a bachelor/bachelorette party if friends don’t pick up the tab.

How do people afford weddings?

People typically afford weddings by a combination of saving, receiving help from family, and borrowing via credit cards or loans.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q225-099

Twice a year, most Americans adjust their clocks — one hour forward in the spring, one hour back in the fall. This routine, known as Daylight Saving Time (DST), was originally designed to maximize daylight hours and reduce energy use. But as our modern lives evolve, so do questions about whether this time-shifting tradition still makes sense.

While DST comes with a number of benefits, it also comes with hidden costs — from disrupted sleep and reduced productivity to increased health risks and economic losses. So, does Daylight Saving Time actually save or cost the U.S. money? Let’s dive into the history, the original goals, and what the numbers really say.

What Is Daylight Savings Time?

Daylight Saving Time (DST), commonly referred to simply as “daylight savings,” is the practice of moving the clocks forward one hour ahead of local standard time in the spring to achieve longer evening daylight in summer. In effect, an hour of daylight is shifted from the morning to the evening each spring.

In the U.S., DST begins on the second Sunday of March and ends on the first Sunday of November, when we move the clocks back one hour, and always starts and ends at 2 a.m. People often rely on the phrases “spring forward” and “fall back” to remember which way to reset the clock.

The idea behind daylight savings is simple: by syncing the time people are active with daylight, we might use less artificial lighting — and, in theory, save energy and live more economically and efficiently.

A Brief History

The concept of DST dates back to the early 20th century. Though Benjamin Franklin is credited as the first to suggest shifting time to conserve energy, the modern practice wasn’t implemented until World War I, when it was temporarily adopted as a wartime measure to help conserve fuel and power and extend the work day. During World War II, DST was reintroduced and referred to as “War Time.”

After World War II, DST was repealed again, allowing states to establish their own standard time. For the next two decades, there were no set rules for DST, which led to significant confusion in the transportation and broadcast industries.

In 1966, the U.S. passed the Uniform Time Act, standardizing the start and end dates of DST, while allowing states to opt out by passing a state law. Currently, all states except Hawaii and most of Arizona observe DST. American territories, including Guam, American Samoa, Puerto Rico, and the Virgin Islands, do not follow DST.

Who Benefits From Daylight Savings Time?

Many people and industries benefit from Daylight Savings Time. Here’s a look at some of the advantages of moving the clocks ahead by an hour each spring.

•   Encourages activity: Proponents of DST note that longer evenings motivate people to get off the house and engage in outdoor recreation like walking, running, baseball, tennis, soccer, golf, etc. For parents, the extra hour of daylight can mean more outdoor activity for their children. As a result, changing the clocks each spring may help counteract our modern sedentary lifestyle.

•   Reduces lighting needs: An extra hour of daylight helps to reduce the need to use electricity for lighting, which can reduce energy costs. However, people today tend to use computers, screens, and air conditioning units whether it is light or dark out. As a result, many economists say the amount of energy saved from DST is minimal.

•   Improves public safety: Daylight Saving Time’s longer daylight hours can help reduce the risk of pedestrians and cyclists being hit by cars. Indeed, studies have found that DST reduces pedestrian fatalities by as much as 13% during dawn and dusk hours. An extra hour of sunshine can also deter criminals, who generally prefer to commit crimes at night. Research has found that robberies drop about 7% overall and 27% in the evening hours after the spring time change.

•   Stimulates the economy: More hours of daylight in the warm months may incentivize people to shop, dine, drive, play golf, and spend money in other ways after work, giving the economy a boost. Chambers of commerce generally support DST, saying it causes consumer spending to increase and has a positive effect on their local economies.

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

How Much Does Daylight Savings Cost Americans?

Despite the potential benefits, there’s growing evidence that DST also carries real and measurable downsides — from health consequences to lost productivity.

•   Health impacts: Moving the clock forward, even by just an hour, can have a negative effect on the body’s natural circadian rhythm, which can harm our health. One study found that the risk of a heart attack increases 10% the Monday and Tuesday following the Sunday we “spring forward.” Research also indicates that there is a higher incidence of strokes and suicides, along with a general decreased quality of life, on the days and weeks following the spring time shift.

•   Productivity loss: The Monday following the day we move the clocks one hour ahead is often referred to as “sleepy Monday,” since it’s one of the most sleep-deprived days of the year. Economists have found that the spring time change can actually kick off an entire week or lower worker productivity — including an increase in “cyberloafing” (i.e., wasting time on the internet while at work) — due to fatigue. Some also point out that the 10 minutes or so people spend simply changing clocks, watches and other devices forward (and then later reversing the process) also leads to lost productivity and earnings. In other words, we could be doing something better with that time.

•   Increased accidents: While longer daylight may help pedestrians, studies show a 6% increase in fatal car crashes during the five weeks after the spring shift — possibly due to drowsy driving or people rushing because they are running late.

•   The financial toll: A 2024 report by Chmura Economics & Analytics estimates that the total economic cost of DST is around $672.02 million per year, largely due to the health implications and increased traffic/workplace accidents attributed to the spring time shift.

   This total cost includes:

◦   $374.75 million from increased heart attacks

◦   $251.53 million from increases in strokes

◦   $18.35 million from additional workplace injuries

◦   $27.39 million from increases in traffic accidents

What Would Happen if Daylight Savings Time Was Removed?

Many Americans are in favor of getting rid of twice-annual clock changes. In fact, more than 30 states have introduced bills to replace daylight saving time with one stable time, and the issue has also been the subject of legislation in the U.S. Congress. As of this writing, however, daylight saving time is not ending across the U.S.

But what would happen if it did?

Whether the U.S. opted for permanent DST or permanent standard time, we would no longer need to worry about remembering to change the time on our watches and clocks, losing an hour of sleep, and feeling tired after we “spring forward.” This could help keep sleeping patterns more consistent year-round, potentially improving people’s health, productivity, and quality of life.

Many businesses would likely also benefit: Without the biannual adjustment, employees would maintain regular sleep schedules, and companies could avoid the drop in efficiency and focus that occurs after each time shift.
Getting rid of DST would also eliminate the temporary increase in auto and workplace accidents after we spring forward, along with confusion around timing caused by the fact that not all U.S. states, and not all countries, implement DST.

But there are also some downsides to getting rid of DST. If we opt for year-round standard time, we would lose that extra hour of evening sunlight in summer. Though the days are naturally longer in the spring/summer, losing that additional hour could lead to less outdoor recreation and physical activity. It could also reduce foot traffic for businesses like restaurants and retail shops during summer evenings.

If we opt for year-round DST, it wouldn’t get dark quite so early during the winter months, but mornings would be darker. This could make it harder to wake up for work, and also raise safety concerns for children walking to school and commuters traveling in the early hours.

The Takeaway

So, does Daylight Saving Time cost the U.S. money? The answer is: yes. Studies have estimated the annual cost could actually exceed $672 million per year.

While DST offers seasonal perks for retail, recreation, and crime prevention, its broader impacts on health, productivity, and safety are substantial. The original energy-saving rationale no longer holds much weight in the modern world — and research increasingly shows the economic and human costs of DST may outweigh its benefits.

While DST in the U.S. isn’t going away (yet), the debate continues — with each spring and fall reigniting questions about whether DST truly serves American citizens and the modern economy.

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

Does daylight saving time save money?

Daylight Saving Time was initially implemented to save energy, but its effectiveness in modern society is debated. Some studies suggest it can reduce electricity usage slightly by shifting peak demand, while others find no significant savings or even increased costs due to higher air conditioning use. The overall financial impact is minimal and varies by region.

How does daylight saving time boost the economy?

Daylight Saving Time can boost the economy by extending evening daylight, which encourages outdoor activities and shopping. This can lead to increased consumer spending, particularly in retail and entertainment sectors. Sports and leisure industries also benefit from more daylight hours, as people are more likely to engage in outdoor activities after work.

What are the downsides to daylight savings?

Daylight Saving Time has several downsides, including disrupted sleep patterns and increased risk of accidents and health issues (including heart attacks and strokes) in the days following the time change. It can also affect productivity and mood, especially for those with sleep disorders. Moreover, the energy savings are often negligible, and the transition can cause confusion and scheduling issues.

Photo credit: iStock/baona

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-Q225-056

While opening up your home and your heart to a new child may seem like the natural next step for you and your family, the process can actually be pretty complicated — and costly. Currently, costs are estimated at between $10,000 and $50,000 to adopt a child.

There are a few different adoption methods and each comes with its own unique costs and fees. Read on for a breakdown of some expenses you might run into in the adoption process.

Cost of Adoption from Foster Care

Adopting a child from foster care tends to be less expensive than other options. The process is often funded by the state and, typically, there are few or no fees passed on to the parents. However, some parents may opt to hire a private agency to help them through the process, which can come with out-of-pocket expenses. Parents may be able to recoup some or all of these costs through federal or state programs once the adoption is completed.

Home Study

One of the most important costs to account for in any adoption is the home study, which is when the prospective parents’ home is screened so that the adoption agency or a social worker can get a sense of their day-to-day life. While the cost of a home study might be included in the overall adoption fee from a private agency, the fees can range from a few hundred dollars to a few thousand dollars.

Foster care adoptions will also generally have a home study where a social worker observes the interaction between the potential adoptive parents and the child. In some cases, there may be state or federal programs to offset the cost of a home visit.

Tax Credits for Foster Care (and Other) Adoptions

The tax code currently offers an adoption tax credit that can help offset some of the costs involved in adoption, whether you adopt via public foster care, domestic private adoption, or international adoption. The total amount of adoption credits will depend on the tax year, so it’s a good idea to talk to an accountant for more specifics.

Families adopting children from foster care might also qualify for other types of federal assistance depending on the child’s eligibility. This assistance might include:

•   A one-time, non-recurring reimbursement for adoption transaction costs

•   Recurring monthly maintenance payments for the child’s care (Not to exceed what the state would have paid to keep the child in foster care).

Children adopted through foster care may also be eligible for health insurance coverage under Medicaid, and other medical assistance to cover some or all of the child’s needs like special education or therapy.

Planning for Private Agency Adoption

Private adoption costs in the U.S. can vary from state to state. According to the Children’s Bureau, the cost of a private, agency-assisted adoption can range anywhere from $10,000 to $50,000.

Court Documentation Fees

Legal representation for the adoptive parents can currently run from $2,500 to $12,000. Depending on the state, these fees may or may not be covered as part of an agency’s overall pricing.

Independent Adoption Costs

Some families choose to adopt a child without the assistance of an adoption agency and instead work directly through an attorney. It might seem like a cost-saving measure at first, but pricing can still vary. Expenses might be low if you match with a birth parent through word of mouth, or if the birth mother’s expenses are minimal.

However, these adoption costs can still range from around $15,000 to $45,000. This typically includes most of the same costs of any other domestic adoption, including the home study, the birth mom’s medical expenses, and legal and court fees for the adoptive parents and birth parents.

Recommended: Common Financial Mistakes First-Time Parents Make

Expenses for Intercountry Adoption

Adoption fees will differ depending on which country you plan to adopt a child from. Intercountry adoption costs tend to be higher than a U.S.-based adoption because there is usually foreign travel and immigration processing to factor into the equation, in addition to other higher court costs, mandatory adoption education, and other documentation. The average cost can range from $32,000 to $66,000 for a foreign adoption.

Costs can depend on the organization managing the adoption as well — whether it’s the government, private agency, orphanage, non-profit organization, private attorney, or some combination of the above. Some intercountry adoptions are finalized in the child’s home country, while others must be finalized in the United States. Finalizing an adoption in U.S. court can come with extra costs, but also provides additional legal protections and documentation.

Other costs to adopt a child from another country can include:

• Escort fees for when/if parents can’t travel to accompany the child to the U.S.
• Medical care and treatment for the child
• Translation fees
• Foreign attorney or foreign agency fees
• Passport and visa processing
• Counseling and support after placement

Recommended: New Parent’s Guide to Setting Up a Will

Financing the Cost of Adoption

So, with costs ranging from at least a few thousand dollars to up to $60,000 or more, funding an adoption may require some planning. Financially preparing for a child typically means looking into all associated costs, including raising your new child and tackling your own debt.

Some employers may offer financial and other support to help with the adoption process. These policies include financial reimbursement and paid leave for adoption, among other benefits.

Additionally, companies with 50 or more employees are required by federal law to grant parental leave to employees who have adopted a child. Mothers and fathers are eligible for up to 12 weeks of unpaid leave after the birth or adoption of a new child.

Grants and loans also exist to help with the cost of adoption and can help with any type of legal adoption, whether a foster care adoption, private agency, or overseas adoption. Most grants and loans have their own eligibility criteria based on things like marital status, income level, and other specifics.

You can also consider taking out a personal loan to help cover the cost of adoption. Some lenders actually offer “adoption loans,” which are typically personal loans designed to cover costs associated with adopting a child.

A personal loan is typically an unsecured loan in which the borrower receives a lump sum of cash (from a couple of thousand to $100,000). They then repay it with interest in installments, usually over a term of one to seven years.

Recommended: 5 Tips for Saving for a Baby

The Takeaway

The cost of adopting a child can vary widely, from a few thousand dollars to $60,000 or more. Foster care adoptions tend to be less expensive than private agency or intercountry adoptions. There are state or federal tax credits and programs that can help offset the cost of adoption. Other resources to pay for adoption include grants and personal loans.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

What is the least expensive way to adopt?

The least expensive way to adopt is via foster care. This can, in some cases, be free or cost a few thousand dollars, which is much less than private adoption.

How much does it cost to adopt a child in the U.S.?

Private adoption typically costs between $10,000 and $60,000+ depending on whether it’s domestic or international. Adoption via foster care can be more affordable, with costs ranging from no charges incurred to a few thousand dollars.

Is it cheaper to adopt or have a baby?

Adoption can be very expensive (up to $60,000 or more), so it is usually considered cheaper to have a baby.

About the author

Julia Califano

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

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q225-073

For many people, purchasing a home is the very definition of living their best life and achieving the American dream. But it’s not the right choice for everyone, and it might not be the right move to make at a given moment.

Owning a home may be the biggest financial commitment you’ll ever make, so it makes sense to carefully consider the upsides and downsides of buying vs. renting. Sometimes, the flexibility and affordability possible with renting can be a good fit.

Read on for advice that will help you answer, “Should I rent or buy a house?”

•   Learn the pros and cons of buying vs. renting a home

•   Take a quiz to help you decide if you should buy or rent a home

•   Find out the steps to take when you’re ready to start hitting the open houses

Rent or Buy a Home: Pros and Cons

Deciding whether to rent vs. buy is a very individual decision. There’s no rule about which is better; much will depend on your personal goals and your financial situation.

Let’s, take a closer look at whether it is better to buy or rent a house.

Advantages of Renting

Here, the upside of being a renter:

•   Low-maintenance lifestyle. Your landlord is typically responsible for repairs and maintenance, so your time and money can be spent elsewhere.

•   Potentially lower monthly expenses. Your landlord may also pay some of your monthly utilities, and you aren’t responsible for paying property taxes.

•   Flexibility. When your lease is up, you can renegotiate or move…across the street or across the country. If you aren’t ready to lock into a location for at least a few years, renting can be a smart step.

•   Low investment. You don’t need to make a big investment (like the down payment and closing costs associated with home buying) when you move into a rental. You might have to put down a security deposit, but that will typically be much less costly.

Disadvantages of Renting

Now, consider the downside of being a renter vs. a homeowner.

•   Rules to follow. Your landlord may have restrictions that you don’t like, such as no pets or no remodeling.

•   Not building wealth. The rent you pay each month doesn’t give you any equity in a property. It just goes to the owner, unless you set up a rent-to-own agreement.

•   Lack of control over your monthly charges. Your rent could spike due to inflation, the housing market heating up in your area, and other factors.

•   Uncertainty. If the owners decide to sell the building you live in, you may need to move unexpectedly and quickly, which can also get expensive.

Advantages of Buying

If you decide to buy vs. rent, here are some of the benefits you may enjoy.

•   Building wealth. As you make payments on your home loan, you are usually building home equity.

•   Tax advantages. Homeowners may be able to deduct both mortgage interest and their property tax payments (plus possibly other related expenses) from their federal income taxes if they choose to itemize their deductions.

•   Freedom. You have far fewer restrictions involving remodeling, pet ownership, and so forth. Want to paint a bathroom purple, rip out a wall, or adopt five rescue dogs? Go for it.

•   Stability. You can put down roots in a community and school district. When you decide to move, it’s your decision.

•   Affordability. Sometimes a mortgage payment can be cheaper than rent, especially if you get a good mortgage rate.

Looking at the price-to-rent ratio of a city helps gauge whether it makes more sense to buy or pay a landlord. The housing market dynamics of your location may determine this aspect of whether to buy or rent a house.

Disadvantages of Buying

Now that you know the potential upsides of owning your own home, take a look at the potential drawbacks.

•   High costs. The price of homeownership may be painful in a hot market. Accumulating the cash to make a down payment can be challenging and take years of saving. Plus, the closing costs when securing a home can be considerable.

•   Credit score. You typically need to qualify for a mortgage, and your credit score will be a factor. Those with excellent credit scores will get better rates; those with lesser scores may want to wait to build their rating before buying.

•   Maintenance. You’re generally responsible for all repairs, maintenance, and utilities, plus homeowners insurance, property taxes, and any homeowner association (HOA) dues. These can not only impact your finances but also your lifestyle. Taking care of a home and property can require an investment of time and energy.

•   Locked in place. You probably can’t pick up and move on a whim. If you decide to move, until your home is sold, you’re still responsible for mortgage payments and the expenses attached to your new place.

Take the Rent or Buy Quiz

Are You Really Ready to Buy?

When you’re supposed to be deciding between renting vs. buying a house, the answer may already be clear to you. If you’ve decided to buy, it might make sense to take the following steps.

•   Make sure you’re ready for a long-term commitment. If you’ve saved enough for a down payment and know how much house you can afford, those are good signs. Otherwise, create a home-buying budget and saving plan to get started.

•   Consider if your line of work allows for job continuity with steady income. Have you had this type of income for the past two years or more? That kind of stability can be important to lenders.

•   If your debt-to-income ratio (DTI) appears too high for a loan program you would like to apply for, you may need to consider paying down some debt. To calculate your DTI ratio, divide your monthly debt payments by your monthly gross (pretax) income. The federal Consumer Financial Protection Bureau advises renters to consider keeping a DTI ratio of 15% to 20% or less (rent is not included in this ratio). However, mortgage lenders usually like to see a DTI ratio of no more than 36%, though that is not necessarily the maximum.

•   Save money for a down payment, closing costs, and other fees, plus some funds for moving expenses and any remodeling/repairs.

•   Check if your credit score is good enough to buy a house, and, if it falls short, work on building it.

•   Do a gut check to see if you’re really ready to be your own landlord, meaning being responsible for your own home maintenance, inside and out.

•   Get prequalified or preapproved for a mortgage by providing a few financial details to one or more lenders. They will usually do a soft credit check and estimate how much you may be able to borrow and the terms. A prequalification or even a preapproval can also help give you a leg up when you start home shopping.

The Takeaway

Should you buy or rent a home? That will be a personal decision, reflecting your finances, the housing market’s dynamics, your willingness to take on the responsibilities of homeownership, and your inclination to put down roots in a certain location. Both owning and renting have pros and cons, and making the right decision will likely require careful consideration and thorough planning.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

Is it better to rent or buy a home?

There isn’t a simple yes/no answer to whether it is better to rent or buy a home. Each has its advantages and disadvantages and may or may not suit your needs at a given moment. For instance, owning a home can allow you to build equity and personal wealth, but the maintenance responsibilities and expenses may offset that for you. Renting may be cheaper, but you may not be able to personalize your space the way you’d like or perhaps own pets. Examine the tradeoffs to figure out what’s best for you.

Is renting cheaper than owning a home?

Renting can be cheaper than owning a home, though that can depend upon housing market conditions in a given area and the particulars of the home in question. In general, people who rent don’t have to pay property taxes and they may not be responsible for the cost of improvements and repairs, which can make renting more affordable.

Is homeownership a good investment?

Buying a home can be a good investment. It allows you to build equity and may offer tax deduction opportunities. However, if property taxes rise steeply or major home repairs loom (like a new roof), homeownership could prove financially challenging.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOHL-Q225-180

Moving can be stressful. Making sure your fragiles are packed so they don’t break, deciding on a DIY move or hiring professional movers, managing security deposits or down payments on both ends of the move — moving cross country could overwhelm even the most relaxed person.

But there are steps you can take ahead of time to help make the process go more smoothly.

Reduce, Reuse, Recycle

The three Rs aren’t just good environmental stewardship — they’re also essential for planning a cross-country move.

After all, moving is a great time to embrace your inner minimalist and get rid of absolutely everything that’s no longer needed. Not only does decluttering help cut down on moving costs, it also helps you avoid filling up the new place with meaningless stuff.

Instead of just throwing away unwanted goods, trying to find them a new home might give them a second life. Furniture items can be sold online or in consignment stores to raise a bit of extra money for the moving fund, or they can be donated to a thrift store.

Professional clothes that are no longer worn could help someone if donated to a job readiness program. Animal shelters often take donations of old sheets and blankets to make cuddly beds for their charges.

Local freecycle or buy-nothing groups can also be great places to unload unwanted home goods. You never know who has a use for those five dish strainers you’ve somehow accumulated.


💡 Quick Tip: Some lenders can release funds as quickly as the same day your loan is approved. SoFi personal loans offer same-day funding for qualified borrowers.

Pack Like a Pro

Once you’ve decluttered, it’s time to get packing. Resist the urge to throw everything into a medium-sized box and call it a day. Taking the time to pack up your home like a professional will make moving — and the subsequent unpacking — a whole lot easier.

First, gather your packing supplies. You’ll want to make sure you have plenty of boxes of varying sizes, several rolls of packing tape, large black markers, scissors, a utility knife, and several types of packing materials, like old newspaper, bubble wrap, and even old rags or sheets.

Start by packing up non-essentials, like seasonal home goods, out-of-season clothes, and rarely used kitchen goods.

Make sure to wrap all fragile items in paper or bubble wrap before putting them in boxes. Plates can be packed next to each other vertically, which helps prevent breaking. Likewise, adding a layer of crumbled newsprint or packing paper on the bottom of your box can also help prevent breakage.

Aim to keep each box light enough to lift alone, with heavy items on the bottom and lighter items on top. Don’t forget to pack similar items together. No one wants to arrive at their new home and find their dishes somehow got packed next to the cat’s litter box.

Recommended: 21 Items That You Can Recycle for Money

Choose Your Mode of Transportation

One of the most challenging parts of planning a move across the country — or even to another state — can be planning the actual transportation. Will you fly, and then ship your cargo to your new home? Hire a moving company to pack everything up and unpack it at your new place? Rent a cargo trailer and drive across the country?

Each option has its benefits and its drawbacks, but choosing the mode of transportation that best fits your needs and budget can help keep your move as stress-free as possible. And, depending on the mode you choose, it could help you keep your budget intact, too.

Hire a Moving Company

The easiest, and usually the most expensive, option is to hire a moving company and let them take care of the details. Using a moving company for a cross-country move can mean moving costs between $2,000 and $10,000. That figure can rise when you add in fuel costs, fees, and insurance.

Some moving companies will send someone out to take a look at how much stuff you plan to move to give a more accurate cost estimate or do a FaceTime call for the same purpose. They may also estimate the weight of the load and calculate how far you plan on moving when giving you the final estimate.

If you’re hiring movers, one way to cut down on expenses is to pack and unpack your stuff yourself. Asking for personal recommendations, reading online reviews, and getting a few different quotes before deciding on a moving company can help you get the best company for your needs.

Ship Your Belongings

If you don’t have any big furniture to move, you may be able to get away with shipping your goods and hopping on a plane with just your essentials.

Shipping your goods as freight can be a more affordable option, whether you send them via mail, train, or even take a few boxes as checked baggage on the flight.

The downside is that unless the boxes are traveling on your flight with you, you may end up waiting a while for them at your destination. And, like all mail, there is always a chance things could be lost or damaged during the journey.

Rent a Truck or Trailer

Many movers choose to take the DIY route and rent a cargo truck or trailer to haul their worldly possessions. This can be a budget-friendly option, but remember that for all the cost savings, you’ll be putting in a lot more hard work.

You’ll need to pack and load all your boxes and furniture into the trailer yourself. On top of packing, you’ll also have to be comfortable driving the cargo truck or trailer the hundreds or thousands of miles that lie between you and your destination.

Budgeting for Your Move

Still wondering how to move across the country without going broke? There’s no doubt about it: Moving is expensive.

As you make your moving budget, don’t forget to include the additional costs of moving, like a down payment on your new place, or first and last month’s rent, and the cost of setting up your new home with all the essentials.

On top of that, moving often coincides with changing jobs, which may mean that you have a few weeks where you could be without a paycheck. All of this makes moving across the country financially draining for many people.

If you know you’ll be moving in the future, saving up now and using any money you make selling unwanted goods can be a good way to build up your moving fund.

Some people, however, realize they need a little more help in covering the upfront costs of moving across the country. When you need quick cash for your move, a relocation loan (which is an unsecured personal loan) can be an option worth exploring, as some lenders disburse loan funds within a few days. The money can cover a wide range of moving costs, from deposits to storage to professional movers, transportation, and even hotel stays.

A personal loan may offer lower interest rates than many credit cards do and, unlike a credit card, a personal loan is not revolving credit. That means the loan is for a set amount of money and paid back over a fixed period of time.

Recommended: Get Your Personal Loan Approved

The Takeaway

Moving across the country can be overwhelming, but there are ways to help make the process feel less stressful. Getting rid of things you no longer want or need is a good place to start. Just as important is how you plan on transporting your belongings to your new home. As you’re creating your moving budget, be sure to factor in the cost of setting up your new home. This may include the down payment or security deposit on your new place and paying for groceries, new furniture, and other essentials. A personal loan may be a good option to cover these costs.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

What’s the least expensive way to move cross country?

The least expensive way to move cross country can involve selling what you don’t need before moving; finding used, free shipping supplies; shipping items or driving them yourself; and enlisting friends and family to help.

How much money should I save before moving cross country?

Moving cross country can require anywhere from $2,000 to $8,000 in moving expenses alone. There may also be funds needed for a security deposit on a place to live and expenses to be paid while you job-hunt. For these reasons, many experts advise having at least three to six months’ worth of living expenses saved before moving cross country.

When is the cheapest time to move?

The cheapest time to move is typically in January or February, when you could save 30% vs. moving during the most popular season, which is summer.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q225-052