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A Master of Business Administration (MBA) degree is a popular degree for professionals looking to change their career or industry, move up within their company, and increase their earning potential. An MBA not only opens doors but, during your course of study, you typically have access to a variety of experiential learning opportunities. This can give you a chance to “try on” different jobs and find the industry and role that suits you best.

Reputable business schools also generally have strong job placement rates in multiple industries and tend to attract a wide mix of corporate recruiters. Indeed, MBA graduates frequently enter fields that are dramatically different from the areas they worked in prior to business school.

Whether you’re thinking about going to business school, are in the process of getting your MBA, or already have an MBA, here’s a look at how you can use this degree as a tool for career reinvention.

Exploring Career Change Opportunities

Before pursuing an MBA or using your MBA to change careers, it’s important to fully think through why you want a career change and exactly what you want to do with your MBA degree. Here are some steps that can help you find a career that matches your interest, skills, and core values.


💡 Quick Tip: Ready to refinance your student loan? With SoFi’s no-fee loans, you could save thousands.

Identifying Interests and Transferable Skills

When considering a career change, it’s often helpful to look at the areas where you’ve achieved success and satisfaction in the past, including both your academic and professional career. Looking at these highlights can provide clues into what interests you, what you’re good at, as well as how you might use those skills in a new field.

As you brainstorm, you may want to speak with friends, family members, and your professional network to bounce off ideas and get input on where they could envision you working and thriving. It might also be helpful to speak with a recruiter at a staffing agency or a professional career counselor.

Researching Industries and Job Markets

You might next create a list of careers you’d consider outside of your current industry, then research what job prospects look like in each area. You can use the U.S. Bureau of Labor Statistics employment projections to discover the fastest-growing jobs, along with sites that track average salaries and list top-paying jobs and companies by industry.

Recommended: Is Getting an MBA Worth It?

Exploring an MBA for a Career Change

An MBA is a comprehensive program that can give you an opportunity to update and enhance your existing knowledge and skills and put them into practice. It can also be ideal for exploring different avenues in business management to identify what works best for you.

While completing your degree, you’ll likely get exposed to a range of different business roles. You may discover that you have a passion for finance, strategy, or analysis, or maybe that you are interested in starting your own business as an entrepreneur.

MBA programs can also offer valuable networking opportunities, since they attract a wide variety of students who will likely go on to have business careers. Most B-schools also offer access to vast alumni networks and career fairs to offer additional chances to connect with potential employers and help build your professional network.

Recommended: Tips on How to Pay for MBA School

Choosing the Right MBA Program

To build a new career path with an MBA, it’s important to find an MBA program that fits your particular interests and goals. You might look for programs that offer specialized concentrations that match your desired career path. You can then take a close look at the curriculum and courses to see if they spark your interest.

Geographical location of the college is also something to consider, since it’s generally easier to explore jobs or pursue internships in the local area while completing your MBA.

It’s also a good idea to check the employment report of the previous years to know how many students have successfully managed career transitions and which companies tend to recruit from the school. Consider reaching out to alumni to obtain feedback about the program and their experiences.

Recommended: Examining the True Cost of An MBA Degree

Leveraging MBA Internships

An internship allows you to gain practical experience in a new field and see if it’s a good fit for you while also earning a stipend. Completing a summer or in-school internship during business school is important for all business school students, but it’s particularly key for those who are looking to make a significant career change.

Completing an internship in your target industry or function can also help connect you with the relevant contacts that can shape your next career and help you pursue and achieve your goals. For some career-switchers, a B-school internship can turn into a full-time job after graduation.

Tips for Using an MBA for a Career Change

Once you’ve been out in the work world, changing careers can feel like a mountain to climb, even if you have an additional degree. Here are some tips that can help you navigate a successful career transition.

Crafting a Compelling Career Change Story

Before you start writing your resume, cover letter, or LinkedIn profile, you’ll want to have a clear idea of what your career change story is. What are the main reasons why you decided to switch careers? What are the skills and qualities that you have developed or transferred from your previous roles? How do they relate to your target industry or position? What are the benefits or outcomes that you can deliver to your potential employer? Your core message should be concise, consistent, and relevant to your career goals.

Your career change story is likely not one-size-fits-all. You may want to tailor it to the specific needs, expectations, and values of your target employer. You can do this by researching the company, the industry, and the job description. Once you discover their main problems, goals, and priorities, you can tailor your story towards how you can help them address those issues or achieve those objectives.

Defining Your Personal Brand

The term “personal brand” refers to who you are professionally, separate from who you are as an employee of a certain company. If you can find a way to market who you are, then you can communicate why you’d be a strong worker for a different type of job and/or field.

It can be easier to pivot in your career if you’ve consistently marketed yourself and the skills you bring to the table. Here are some suggestions for building your personal brand:

•   Create a personal website or portfolio

•   Prepare an “elevator pitch” about what you do

•   Be active on social media platforms like LinkedIn, Twitter, or Facebook

•   Find ways to network

•   Revamp your resume to reflect your brand

Leveraging Your Degree

Once you have an MBA degree, it’s important to highlight your degree and MBA specialization on your resume so it’s easier for an employer to see where you’re most capable. You can also highlight how you have invested in your professional development, not just through your graduate degree but also through attending workshops, reading books, or joining networks.

If you are making a significant career switch, you may want to let potential employers know how you have applied or practiced what you have learned, such as working on projects, volunteering, or freelancing. Showing your learning and growth demonstrates your commitment, curiosity, and adaptability to the new career.


💡 Quick Tip: Refinancing could be a great choice for working graduates who have higher-interest graduate PLUS loans, Direct Unsubsidized Loans, and/or private loans.

Covering the Cost of Your Education

Pursuing an MBA program can be a valuable asset for those looking to change careers, but it comes with a significant price tag. The average cost of an MBA in the U.S. is $225,605,which is no small sum.

Fortunately, many business schools award merit-based fellowships, grants and scholarships to help students pay for school. This is funding you typically don’t need to pay back. And, generally, you don’t have to fill out a separate application to be considered for institutional merit aid. Often, you are automatically considered when you apply to a business school.

If you’re working, your employer may offer education benefits that partially or fully sponsor a graduate business degree. Consider reaching out to human resources to see what benefits your company offers and the requirements that come with them.

If you still have gaps in funding, you might consider taking out a federal or private student loan. The federal government offers two types of loans for graduate school students: Unsubsidized Direct Loans and graduate PLUS Loans. You generally want to max out Unsubsidized Direct Loans before turning to graduate PLUS loans, which come with higher interest rates. You might also explore getting an MBA student loan from a private lender. Just remember that, even if you find a private student loan with a lower rate than a grad PLUS Loan, it probably won’t include the same benefits and protections that federal student loans provide.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.

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Your personal finances can be an important but challenging aspect of your life to manage. Even if you are brilliant at math, computing things like the payoff amount on student loans or the optimal goal for retirement savings can be complicated.

That’s where financial calculators can swoop in and help you. These tools can make it simple to see how much you are spending in, say, credit card interest or what a mortgage payment might look like on your dream house.

Here’s a resource with a variety of financial calculators. Read on to learn what kind of assistance is out there to help you take control of your money and your goals.

1. Student Loan Calculator

There are plenty of student loan calculators out there that can help you estimate your monthly payment and total interest cost.

In addition, you are likely to find student loan refinancing calculators to get a basic idea of how refinancing might affect your bottom line.

Typically, you enter your current loan information, then adjust the term “slider” to see how your monthly payment and total savings amount could be impacted by refinancing.

You could see valuable information like how much you might be able to save every month by refinancing or how much you could potentially save over the lifetime of a loan if you were to refinance. (Calculated payments and savings are only estimates, and don’t factor in your current credit picture or financial situation.)

Just keep in mind that refinancing isn’t necessarily the right choice for everyone. If you have federal student loans and refinance, you will forfeit federal protections and benefits. Also, if you refinance for an extended term, you may pay more interest over the life of the loan.


💡 Quick Tip: A low-interest personal loan from SoFi can help you consolidate your debts, lower your monthly payments, and get you out of debt sooner.

2. Retirement Calculator

It’s almost impossible for one online retirement calculator to take into account all the variables that retirement planning requires. But a calculator could still be useful to give you a general idea of how much money you may want to be saving and how big your retirement nest egg could grow.

It might also give you some insight into how much you’re contributing now, and if you might want to think about adjusting your IRA (individual retirement account), 401(k), or other retirement investment.

One online tool that may be helpful is AARP’s Retirement Calculator . It asks for quite a bit of information, including information about your age, income, current savings and lifestyle expectations in retirement (i.e., will you need more, less, or the same amount of money as you now spend).

The calculator then gives an estimate of how much wealth you’re likely to accumulate and changes you could make — like working longer or saving more — that might help improve your outcomes. Understanding when to retire and what your expenses will be like at that life stage can be an important part of your future planning.

3. Budgeting Calculator

Making a budget — and sticking to it — is one important step on the road to financial security. By making a budget and sticking to it, you might be able to save some extra cash and even be able to gain some new insight and understanding about how you’re currently spending your money.

Setting up a budget might have a snowball effect, potentially empowering you to save even more money once you have a holistic view of current spending. By tracking your finances with a budgeting tool, you can get a better sense of how your earnings, spending, and savings are tracking. It can also help you course-correct if, say, you get hit with a big unexpected bill or move to an area with a different cost of living.

4. & 5. Credit Card Debt Payoff Calculator

Various tools can be helpful if you’re focused on paying down some credit card debt.

•   You might want to use this debt snowball calculator to figure out how long it could take you to completely pay down your balance. In this method, you eliminate your smallest debt first, which can build your motivation. You may want to see how increasing your monthly payments could affect your debt and help you save on interest, which might help keep you motivated in your payoff goals.

You could also use a calculator to see how much faster you could pay off your debt with the debt avalanche method. With this technique, you go after your highest interest-rate debt first.

•   Additionally, to take a look at debt in terms of your credit card interest rate, you might spend some time using a credit card interest calculator. Since credit card debt can be one of the most challenging debts to pay off, you might want to understand how much you are paying overall.

This kind of calculator shows roughly how much interest you could end up paying on your credit card debt. It can give a broad estimate of when that debt could be paid off in full if you continue to make the same payments. Equipped with that information, you might decide to opt for a different way to pay down your debt, such as looking for a lower-interest personal loan.

6. Student Loan Payoff Calculator

If you’re budgeting for your student loans, you could try working with a student loan payoff calculator. Simply add your basic information, and it calculates when your estimated payoff date could be. Plus, you can often click through and discover additional information and tips you could use to potentially shorten that payoff period.

Some of these ideas might include things like seeing if you can find a lower interest rate or making additional payments. Plugging these two data points into the calculator might give you a basic estimate of how much sooner you could pay off your loans.

7. Housing Costs Calculator

Is your attention focused on buying a home? Are you all about mood boards for the primary bedroom and vegetable garden you’ll plant? Then you’re in the right place.

A home affordability calculator can help you look at how much house you can afford. It will help you factor in such considerations mortgage amount, interest rate, property taxes, and so forth. It can be a great way to get a handle on just how much homeownership might cost you.

Additionally, a mortgage calculator can help you get a sense of how much you can save on your monthly payment by changing your down payment. This intel can help you decide whether to start bidding soon or wait until you have a bigger chunk of cash to put down.

These tools can help you decide whether to rent or buy in the near future, as well as (when buying) how to determine the right balance of down payment and financing to suit your budget.

Get Started on Your Goals With These Tools

Your goals are probably pretty unique to you and where you’re at career-wise, with money, and maybe even with outstanding loans. So there’s probably not one end-all, be-all financial calculator to help you achieve all of your financial goals. But there are an array of tools that can help you track your money and determine good options as you move forward.

As you evaluate where your finances stand, you may want to consider ways to pay down debt, such as using a personal loan to eliminate high-interest debt and lower your monthly outlay of funds.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

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.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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

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

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

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If you’re exploring career options, pharmacy might have popped up on your radar — and for good reason. Not only can pharmacists command a good salary, they also have job security, as the pharmaceutical industry is one that won’t vanish any time soon.

That said, how much does a pharmacist make? Is it worth all the trouble of going through pharmacy school to become one? Let’s find out.

What Are Pharmacists?

You’ve likely picked up a prescription or two at a pharmacy, but maybe you didn’t give any thought to the person behind the counter. This individual is your local pharmacist, and it’s their job to prepare and dispense prescription medications.

Pharmacist Job Responsibility Examples

In addition to doling out prescription drugs, pharmacists also consult with patients, provide instructions for how to take medications, and help patients find low-cost medications. Some also give health screenings and immunizations.

Keep in mind, a pharmacist often needs to be outgoing, since their work involves speaking with patients throughout the day. If that’s not your personality, you may want to look into jobs for introverts.

💡 Quick Tip: We love a good spreadsheet, but not everyone feels the same. An online budget planner can give you the same insight into your budgeting and spending at a glance, without the extra effort.

How Much Is a Starting Pharmacist Salary?

As with most professions, pharmacists tend to earn more money as they gain more experience. But what is a good entry-level salary for pharmacists?

Pharmacists with less than a year of experience generally earn, on average, about $54 per hour. That’s $112,320 per year.

Of course, how much you actually can earn depends on where you live, what your duties are, and whether you work for an independent pharmacy or a chain. It can also help to research the highest-paying jobs by state.

Recommended: Is a $100,000 Salary Good?

What Is the Average Salary for a Pharmacist?

Now that you see what starting salaries are for pharmacists, let’s address the next question: How much money does a more experienced pharmacist make?

Generally speaking, pharmacists are usually paid by the hour. A pharmacist with 10 years of experience earns an average of $67.05 per hour. That adds up to $139,464 per year.

What Is the Average Pharmacist Salary by State for 2023?

The amount you make will depend on where you live, among other factors. Here’s a look at the average pharmacist salaries by state, from highest to lowest.

Recommended: Pros and Cons of Raising the Minimum Wage

Pharmacist Job Considerations for Pay & Benefits

Where you live is one factor that can determine how much you earn as a pharmacist. Your on-the-job responsibilities may also play a role. For example, there are different job titles, and each has its own set of responsibilities, requirements, and salary ranges. Examples include:

•   Staff pharmacist

•   Pharmacy specialist

•   Clinical pharmacist

•   Pharmacy manager

•   Director of pharmacy

Some pharmacists may have roles and responsibilities beyond filling prescriptions, such as offering immunizations and health screenings. Some may be in charge of hiring and managing other employees. Some may work in traditional pharmacies, while others may work for companies focusing on chemotherapy, nuclear pharmacy, or long-term care.

Recommended: 25 High-Paying Trade Jobs in Demand

Pros and Cons of Pharmacist Salary

While being a pharmacist can be a rewarding job, there are potential drawbacks to keep in mind. Let’s look at some pros and cons.

Pros of Being a Pharmacist

Naturally, the high salary pharmacists tend to command may be one reason to consider this career path. Because many pharmacists get paid by the hour, they’ll be compensated fairly for their time even if they work more than 40 hours a week.

Another perk is that you may have a flexible schedule that allows you to work part-time or during certain hours. There could even be opportunities to work remotely, which may be useful if you’re working in a rural area.

You might also be able to open your own pharmacy instead of working for someone else. This brings freedom and flexibility to you as a business owner.

Finally, you’ll be a valuable member of your community, since it’s your job to help people on their path to wellness.

Cons of Becoming a Pharmacist

If becoming a pharmacist was easy, everyone would do it! For starters, you’ll need to have about six years of education after high school. And the cost of pharmacy school can range anywhere from $5,000 to $30,000 a year for an in-state public college, or $20,000 to $95,000 a year for a private school.

Depending on your financial situation, this could require you to tap into savings or take out student loans. (Creating a budget while you’re in school or just starting out can help you keep track of where your money is going. A money tracker app can help make the job easier.)

Another possible drawback? Some pharmacies may not guarantee a certain number of hours a week, and in that case, being paid hourly may not come with the big paycheck you’d expect.

Also keep in mind that some pharmacists work long hours, which can have a negative impact on your health and mental wellbeing.

💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

The Takeaway

If you’re looking for a rewarding and potentially lucrative job, becoming a pharmacist might fit the bill. You’ll help your local community get healthier, and depending on where you live and your level of experience, you could earn competitive pay, too.

FAQ

What is the highest pharmacist salary?

The state where pharmacists tend to earn the most is California. The average annual income of a pharmacist there is $161,597.

Is it hard to be hired as a pharmacist?

Becoming a pharmacist requires six years of education after high school. The workload is challenging, and pharmacies looking to hire generally have high expectations of applicants.

Photo credit: iStock/ADragan
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

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

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.

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Raising a child could be one of the most rewarding experiences you’ll ever know, from watching your little one grow, seeing their interests take shape, and sharing all kinds of experiences with them, from baby’s first trip to the beach to high school graduation.

But there are practical matters to consider as well when a baby arrives, including paying for your child’s care. Those expenses start coming at you quickly after your little one is born. Daycare, for instance, can be an urgent expense. Currently, the average weekly cost of daycare is around $216, which is just over 17% of the median national household income.

Making ends meet can be a challenge for many families. Perhaps your budget was running smoothly but now you have to accommodate this expense. Or maybe you are wondering how you can move ahead with saving for a house when you’ll have less money to stash into savings. Read on to take a closer look at the kinds of daycare available and wise strategies for making ends meet.

Types of Daycare

Yes, there’s a considerable cost to raising a child, and daycare is part of that. It can allow you to continue to work or attend to other priorities and ensure your little one is well cared for.

That said, there are a number of different types of daycare, but one of the most important distinctions is the difference between home-based care and formal daycare programs.

Home-based Daycare

Home-based, or informal, care is typically cheaper than formal daycare options, but there can be some drawbacks so it’s important to thoroughly review your options.

Each state determines their own regulations for home-based daycares. Most require providers to meet a certain level of training in order to provide care. Before you select a home-based daycare, you can check the requirements and regulations on sites like this one at Childcare.gov or visit your state’s website. You can likely find the information you are seeking via the Office of Children and Family Services.

It’s likely that safety will be one of your top concerns. Check that childcare providers are fully licensed and credentialed. Since many of the home-based providers are run by a sole proprietor, you may get less oversight than at a formal facility. That is, the operator may be so small that it’s not required to be licensed.

Licensing, however, can be a very important factor. It ensures such things as:

•   Criminal background checks for the staff

•   Training in such matters as CPR, safe sleep habits for children who are young enough to be napping at daycare, and first aid

•   Proper sanitation

•   Emergency and safety preparations.

Ask about the care providers’ background and qualifications. It’s more likely that those working at formal daycare centers (more on those below) will have specialized training. For instance, the work could be a side job for a teacher.

If you do decide to go with home-based daycare, make sure to check the provider’s references carefully, even if they have the appropriate licenses. You can also talk to them about the schedule for children in their care and how they will work to stimulate your child’s learning so that they’re ready for preschool. Many parents or prospective parents may ask to visit and observe how the daycare operates.

Formal Daycare

When it comes to formal childcare programs, there are also a lot of different options. Some employers offer childcare programs on site; others are Montessori schools or affiliated with other educational institutions. There may be some that are operated as franchises in your area.

Their approaches will probably vary as well: Some formal daycares aim to provide a cozy, relaxed atmosphere, while others focus on early childhood education and skill-building.

It may be wise to tour a few different options, just to get a fuller picture of how your child will spend their day. You’ll want to see what the premises and caregivers are like and understand the flow of the day.

Often, the more additional services that a daycare provider offers, the more it will cost. For instance, if you are looking for a bilingual daycare, it will probably cost more than one in which just English is spoken, as the provider has to spend more time and energy hiring its staff. Also, the more personalized the care (as in, the lower the child-to-caregiver ratio), the more expensive it may be.


💡 Quick Tip: A low-interest personal loan from SoFi can help you consolidate your debts, lower your monthly payments, and get you out of debt sooner.

Paying for Daycare

When you start a family or expand it, the expenses can come at you in a flurry: doctor’s appointments, food, clothing, furniture, strollers, and so forth. That alone is enough to stretch your budget to the max. Add daycare to the mix, and your income can feel the pressure.

Here, some steps to help you afford childcare.

Retool Your Budget: The first thing you can do is cut back on other areas of your budget in order to free up money to put towards daycare costs. You might be able to lower your food costs, say, or have staycations for the next few years.

If you don’t have a budget or aren’t happy with how yours is working, consider the different budgeting methods available, and experiment to find one that’s the right fit.

You might also look into apps to help you monitor spending. Your financial institution, whether a traditional or online bank, may have tools to help you do this.

Save in a Dependent Care Account: If your employer provides you with a Flexible Spending Account (FSA), then you can put up to $5,000 in your account tax-free that can be used for daycare. Beware of over-contributing, however; anything you don’t use by the end of the year will be forfeited.

Check on State Money: Each state has a child care assistance program designed to help low-income parents pay for care for dependents under 13. This program is funded by the federal government. You might see if you qualify.

Use the Child Care Tax Credit: While it won’t help you pay for daycare upfront, you can get a refund on some of your daycare costs by applying for the Child Care Tax Credit. If you itemize your taxes, you can get a tax credit by including up to $3,000 in daycare expenses per year per child or $6,000 per family.

Look into a Loan: If all else fails and you can’t find the money to pay for daycare, you may consider borrowing a personal loan rather than putting your daycare expenses on a credit card. You’ll likely enjoy lower interest rates with a personal loan.

Recommended: Guide to Paying for Child Care While in School

The Takeaway

Finding the right childcare for your family is a personal choice. The main options are home-based or formal daycare. Regardless, you’ll have to balance your child’s needs with your budget and financial plan. There are options such as budgeting, taking tax credits, getting government assistance, or taking out a 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. Checking your rate takes just a minute.

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.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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Owning a small business can mean keeping a lot of plates spinning, including making sure the cash is flowing during fluctuations in income and sales.

You may need to buy more materials, pay additional workers, improve your physical location (say, something breaks), and deal with other expenses. And, because you are a small business, it may all be on you to manage this.

At times, you may need a little outside help to cover costs. You may know about long-term business loans, which can be used for borrowing large sums and take many years to pay off, but how about short-term business loans? Here, you’ll learn more about them, their pros and cons, and whether they might be right for you.

What Is a Short-Term Small Business Loan?

A short-term small business loan is a loan that is designed to help small businesses maintain cash flow and cover small expenses. Because they are meant to be paid off on a shorter timeline (usually within three to 24 months) than long-term loans, they tend to have higher interest rates and can be secured very quickly. Basically, they can get you cash fast.


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What Can You Use a Short-Term Business Loan for?

There are several common uses for short-term loans. A popular one is to cover project start-up costs. If your business is launching a new product or service, a short-term loan can help you avoid disrupting your business’s cash flow.

They can also help bridge cash flow gaps related to uneven sales or seasonal effects, cover emergency repairs, and purchase discounted inventory that you’re confident will sell fast and at a profit.

A short-term loan can also help small businesses take advantage of unexpected growth opportunities by giving them the capital they need to keep production running in a short time period.

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What Are the Drawbacks of Short-Term Business Loans?

In addition to high interest rates, short-term loans often require frequent repayments. Instead of the customary monthly payments that come with a lot of loans, short-term business loans often require weekly, and in some cases daily, repayments. While these payments tend to be small, they can be difficult to manage, particularly if your business has uneven sales or a lower cash-flow.

There’s also a risk of accumulating debt when using short-term business loans. Because they can be so easy to get (note: there are still eligibility requirements for these types of loans), using them could potentially lead to a business owner relying on this type of small business debt financing.

This could lead to a debt trap where someone would continue rolling over their short-term debt instead of paying it off on the predetermined repayment timeline. Ultimately, rolling over the debt means the business owner would accrue significant interest if they weren’t able to pay the short-term business loan within the initial term.

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What Alternative Financing Options Are Available?

There are a number of alternative financing options when you need cash for your company.

•   A business credit card is another way to cover small expenses that you plan to pay back quickly. On the flip side, business credit cards can come with high interest rates. And credit card debt is considered “revolving,” which involves borrowing against a credit limit, as opposed to paying off your debt on a defined term.

•   Short-term lines of credit can help you manage day-to-day cash flow, too. Lines of credit can help provide flexibility for business owners. You can borrow up to a set amount of money but are only required to pay interest on the actual amount of money that you borrow.

You can then borrow and repay the funds on a payment schedule similar to how a credit card. Similar to credit cards, this is considered a “revolving debt.” Short-term lines of credit may come with maintenance fees. And the interest rate could go up if you fail to pay on time.

There are many financing options available to help pay for your business expenses. Short-term business loans can help you get the cash you need for your business quickly, and pay it off on the predetermined schedule, or add additional payments as your cash flow picks back up again.

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About SoFi Personal Loans

While you cannot use a personal loan for business expenses, there may be times in your life that a personal loan is appropriate; say, if you want to consolidate your credit card debt (which could free up funds for your small business). In those situations, see what SoFi offers.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

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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.

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