Oct
31
2024
Work From Home Jobs With Flexible Hours for Moms

Work From Home Jobs With Flexible Hours for Moms

By | Family Finances, Life & Career, relay | Comments Off on Work From Home Jobs With Flexible Hours for Moms

In the not-too-distant past, when couples had kids, one partner stayed home — and essentially gave up their career for a while. Today, however, more companies are accommodating remote work and flexible hours for an expanding roster of jobs. Stay-at-home parents may be surprised to see that the industry they left behind is now open to hiring them back on a part-time or freelance basis.

We’ve rounded up the most promising work-from-home jobs with flexible hours across a range of occupations. Some require a relevant degree or specialized training or experience, while others are more open to motivated generalists.

Key Points

•   Remote work and flexible hours are more common, which can help parents who are re-entering the workforce.

•   Some work-from-home jobs require specific degrees, while others are open to generalists.

•   Companies increasingly accept remote work, with many employees on hybrid or fully remote schedules.

•   Sales representatives, advertising sales agents, and public relations specialists have remote work opportunities.

•   Financial sector roles like financial analysts and accountants offer good entry-level salaries and remote work options.

Is Working From Home Here to Stay?

Companies are finally accepting that work-from-home situations can be beneficial for businesses and workers. Today, 41% of American workers who have the ability to do their job remotely are working a hybrid schedule, according to a 2023 Pew Research Center survey. And 14% are able to work from home the entire week.

This is great news for the millions of Americans who can’t swing a full-time office job, from job-seeking retirees to self-described “antisocial” folks.

That said, telework is unlikely to be available for occupations that have a need for workers at a jobsite, including trade jobs. But many more professional roles can be fulfilled by remote workers.

Are WFH Jobs and Remote Jobs the Same?

WFH and remote jobs may be different in how they’re set up. Some companies define “work from home” (WFH) as a temporary situation, like working from home on a Friday but coming into the office other days of the week. The expectation for remote workers is that they define their own workday and may never need to go into the office.

Do All Part-Time Jobs Have Flexible Hours?

No. Some part-time jobs have set hours rather than flexible hours. It all depends on what your employer requires. If you need flexible hours (or would prefer set hours), be sure to communicate that with the hiring manager.

Recommended: Pros and Cons of Raising the Minimum Wage

13 WFH Jobs With Flexible Hours for Moms

If you need or want to work from home, there’s never been a better time. Take a look at these 13 occupations with the most remote opportunities, per the Bureau of Labor Statistics. Some may pay hourly vs. salaried, but all pay considerably higher than minimum wage.

We hope this list will inspire you to pursue a job with flexible hours that previously might have shut you out.

1. Market Research Analyst / Marketing Specialist

Median annual wage: $74,680

Job growth outlook (2023-2033): 8%

Requirements: Bachelor’s degree

What they do: Market research analysts study consumer behavior and preferences, then make recommendations to businesses that promise greater profitability. They also research a company’s position in the marketplace relative to their competitors.

2. Marketing Manager

Median annual wage: $156,580

Job growth outlook (2023-2033): 8%

Requirements: Bachelor’s degree

What they do: Marketing managers create interest in a product or service using advertisements, promotions, and other marketing tactics. They develop pricing strategies and negotiate advertising contracts. This is the highest paying job on our list.

3. Fundraiser

Median annual wage: $64,160

Job growth outlook (2023-2033): 6%

Requirements: Bachelor’s degree

What they do: Fundraisers organize events and campaigns to help raise money for an organization. They may work for political campaigns, nonprofits, or educational institutions.

4. Compensation and Benefits Manager

Median annual wage: $136,380

Job growth outlook (2023-2033: 2%

Requirements: Bachelor’s degree

What they do: Compensation and benefits managers administer an organization’s salary and insurance plans for employees. They analyze market trends to determine competitive pay and perks that attract and retain talent.

5. Claims Adjuster / Examiner / Investigator

Median annual wage: $75,020

Job growth outlook (2023-2033): -5%

Requirements: High school diploma or equivalent

What they do: Claims adjusters, examiners, and investigators are responsible for processing an insurance’s company’s claims. They determine if the claim is eligible and how much should be paid out. It’s one of the few jobs that don’t require college.

6. Financial and Investment Analyst

Median annual wage: $99,890

Job growth outlook (2023-2033): 9%

Requirements: Bachelor’s degree

What they do: Financial and investment analysts help businesses and individuals make decisions to become more profitable. Analysts may work on the “buy-side” (for companies with a lot of money to invest), the “sell-side” (for agents who sell stocks and bonds), or the media. They may specialize in a particular area or market, like tech or energy. The financial sector tends to have very good entry-level salaries.

7. Accountant / Auditor

Median annual wage: $79,880

Job growth outlook (2023-2033): 6%

Requirements: Bachelor’s degree

What they do: Accountants and auditors are responsible for preparing accurate financial reports, analyzing the financial health of an organization, and filing taxes. They may make suggestions to a business about how to reduce costs, eliminate inefficiencies, and improve profitability. Accounting has long been considered a good job for introverts.

8. Computer Systems Analyst

Median annual wage: $103,800

Job growth outlook (2023-2033): 11%

Requirements: Bachelor’s degree

What they do: Computer systems analysts help businesses become more efficient with specific computer technologies. They analyze the cost and benefits of IT systems and help managers decide which are best for their organization. They are sometimes called systems architects and usually specialize in a specific type of computer system.

When you’re earning a six-figure salary, it helps to have a big picture of your money. Tools like a spending app let you keep tabs on your budget and savings goals.

9. Network and Computer Systems Administrator

Median annual wage: $95,360

Job growth outlook (2023-2033): -3%

Requirements: Bachelor’s degree

What they do: Network and computer systems administrators are responsible for the day-to-day operation of computer networks for an organization. They may install, test, make upgrades and repairs, and train users. They manage servers, desktops, and mobile equipment. Much of this can be done remotely.

10. Computer Support Specialist

Median annual wage: $60,810

Job growth outlook (2023-2033): 6%

Requirements: Some college

What they do: Computer support specialists help users with computer network problems. They also maintain existing network systems. The potential as a part time job with flexible hours for students is there.

11. Sales Rep, Wholesale and Manufacturing

Median annual wage: $73,080

Job growth outlook (2023-2033): 1%

Requirements: Bachelor’s degree

What they do: Sales representatives can make money by selling products or services for an employer. They explain the features of the product and help the customer understand how the product can benefit them. They negotiate prices, prepare sales contracts, and submit orders for processing. They maintain a relationship with the client for ongoing business exchanges.

12. Advertising Sales Agent

Median annual wage: $61,270

Job growth outlook (2023-2033): -7%

Requirements: High school diploma or equivalent

What they do: Advertising sales agents sell advertising space to businesses and individuals. They build relationships with clients and explain the design, contracts, and cost of the ad space.

13. Public Relations Specialist

Median annual wage: $66,750

Job growth outlook (2023-2033): 6%

Requirements: Bachelor’s degree

What they do: Public relations specialists are responsible for maintaining a positive image for their clients. They do this by preparing information for the media, running social media programs, and preparing clients for interviews with the media.

Recommended: Jobs That Pay Off Student Loans

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The Takeaway

There’s never been a better time to be a remote worker. Whether you’re an expert in your field or need to make a job transition, remote jobs with flexible hours are now possible for many workers. Sometimes, it’s just a matter of knowing where to look for the jobs and finding the right match for your skills.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

What kind of job can I do as a stay-at-home mom?

Any job that can be done remotely is one you can do as a stay-at-home mom. Many well-paying jobs can be done remotely, such as legal work, marketing, sales, and more.

What is the best part-time job for a housewife?

The best part-time job for a housewife is one that fulfills you and helps support your family at the same time. Look for industries, occupations, companies, and individuals that are supportive of your goals and needs. In the competitive labor market we’re in now, you can ask for things that are important to you, such as a flexible schedule or remote work.

Photo credit: iStock/lechatnoir

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.

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

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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Oct
29
2024
How to Stop or Reverse ACH Payments: All You Need to Know

All About Retail Banking: What It Is and How It Works

By | Family Finances, Life & Career, money | Comments Off on All About Retail Banking: What It Is and How It Works

Retail banking involves offering financial services to individual consumers rather than businesses or other banks. It encompasses a range of products and services, such as checking and savings accounts, mortgages, personal loans, credit cards, certificates of deposit (CDs), and more.

Retail banking is different from corporate banking, which is the part of the banking industry that serves large companies and corporate customers. Retail banks can be local community banks, online banks, or the divisions of large commercial banks. Credit unions also offer retail banking.

Read on for a closer look at what retail banking is and how it differs from corporate banking.

Key Points

•   Retail banking provides financial services directly to individual consumers, including checking and savings accounts, personal loans, and credit cards, rather than to businesses or corporations.

•   Various forms of retail banks exist, such as commercial banks, credit unions, online banks, and community banks, each catering to different customer needs.

•   Retail banks focus on accessible services, offering features like online banking, investment products, and personalized customer assistance to help individuals manage their finances.

•   The distinction between retail and corporate banking lies in their client bases, with retail serving individual consumers and corporate banking focusing on businesses and institutions.

•   Retail banking plays a vital role in the economy by facilitating transactions and helping individuals save, manage money, and access credit for their personal financial goals.

What Is Retail Banking?

Retail banking, also known as personal or consumer banking, refers to financial services provided to individuals. This type of banking is designed to serve the general public and to help people and families manage their money, obtain credit, and save for the future.

Retail banks focus on making banking services easily accessible, either through physical branches, ATMs, and/or online platforms. These banks play a crucial role in the economy by offering checking accounts, high-yield savings accounts, certificates of deposit, loans, and other financial products that help individuals safely store, manage, and grow their money.

Though some retail banks also work with small businesses, retail banking is different from corporate (also known as commercial) banking, which involves working with commercial entities, such as large businesses, governments, and institutions.

Most large-scale banks have retail banking divisions. Credit unions and smaller banks, on the other hand, may be exclusively focused on retail banking.

Recommended: 12 Things To Consider When Choosing A Bank

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How Does Retail Banking Work?

Retail banking works by offering financial products and services tailored to consumers. These services are designed to help individuals and families manage their finances efficiently, save for the future, and access credit cards and loans. Retail banks make money primarily through interest on loans, fees for services, and charges for various banking products.

Features of Retail Banking

Retail banking offers a hub for all of your basic financial transactions. Here’s a look at some of the products and services they provide.

•   Savings and checking accounts: Retail banks offer savings and checking accounts to help individuals manage their money. Savings accounts typically earn interest, while checking accounts provide easy access to funds for day-to-day transactions.

•   Consumer loans: Retail banks commonly offer personal loans, auto loans, and home mortgages. These loans can help people finance significant purchases or investments, such as buying a home or car.

•   Credit Cards: Retail banks issue credit cards that allow consumers to borrow money up to a certain limit for purchases. These cards often come with rewards, cash back, and other incentives.

•   Online and mobile banking: Retail banks typically provide online and mobile banking services, allowing you to manage your accounts, transfer money, pay bills, and access other banking services from your computer or smartphone.

•   Investment services: Some retail banks offer investment products like mutual funds, retirement accounts, and brokerage services to help customers build wealth over time.

•   Customer service: Retail banks typically emphasize customer service. Many provide personalized financial assistance through branch staff, call centers, and online support.

Types of Retail Banks

Retail banks come in various forms, each catering to different customer needs and preferences. Here’s a look at some of the main types of retail banks.

•   Commercial banks: Many people access retail banking through one of the large, commercial banks, which generally offer a retail banking division along with corporate banking services.

•   Credit unions: Credit unions are nonprofit financial institutions owned by their members. They often provide similar services to commercial banks but with a focus on serving the financial needs of their members, usually offering lower fees and better interest rates.

•   Online banks: Online banks operate exclusively online, without physical branches, though you typically have access to a partner network of ATMs. They often offer higher interest rates on savings accounts and lower fees due to reduced overhead costs.

•   Community Banks: Community banks are smaller, locally-focused institutions that prioritize serving the needs of their local communities. They offer personalized customer service and often have a strong understanding of their local markets.

Recommended: Big Banks vs Small Banks: Key Differences?

How Is Retail Banking Different From Corporate Banking?

Retail banking and corporate banking represent two different sectors of the banking industry, each serving different customer bases and offering different services.

Retail banking focuses on individual consumers, providing them with products like bank accounts, personal loans, and credit cards. Corporate banking, on the other hand, serves businesses and corporations, offering services like business bank accounts, commercial loans, trade finance, and employer services.

Transactions in retail banking are typically smaller in size and higher in volume compared to corporate banking, which tends to focus on larger, more complex transactions.

If you’re wondering whether you would be better served by retail vs. corporate banking, here’s a snapshot how the two compare.

Retail Banking Corporate Banking
Client base Individual consumers Businesses, institutions, banks, government entities
Products and services Personal checking/savings accounts, mortgages, personal loans, credit cards Business checking/saving accounts, business loans, merchant services, global trade services, employee benefits plans
Loan amounts Lower Higher
Transaction frequency and amounts High number of transactions for low amounts Low volume of transactions for more significant amounts

The Takeaway

Retail banking is the public face of banking that provides banking services directly to individual consumers rather than businesses or other banks. Most of us bank at a retail bank or retail division of a large commercial bank whether we realize it or not.

Whether you use a brick-and-mortar bank, online bank, or credit union, retail banking offers products and services that allow you to manage your money, access credit, save for the future, and work toward your financial goals.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.

FAQ

What is an example of retail banking?

An example of retail banking, also known as consumer banking, is when an individual opens a savings account at a local bank. The bank then allows them to deposit funds, withdraw money, and earn interest on their deposits. The same bank might also offer them a checking account for daily transactions, a mortgage to buy a home, and a credit card for everyday purchases. These services are all examples of retail banking, which is aimed at meeting the personal financial needs of individual consumers.

What are the largest retail banks?

The largest banks in the U.S. that offer retail banking include:

•   Chase

•   Bank of America

•   Wells Fargo

•   Citibank

•   U.S. Bank

•   PNC Bank

•   Goldman Sachs Bank

•   Truist Bank

•   Capital One

•   TD Bank

Who uses retail banking?

Retail banking is used by individual consumers to manage their personal finances. This includes:

•   Students

•   Young adults

•   Working professionals

•   Couples

•   Families

•   Retirees and seniors

•   Small business owners

What are the retail banking products?

Retail banking offers a variety of products and services tailored to the financial needs of individual consumers. These include:

•   Savings accounts

•   Checking accounts

•   Personal loans

•   Mortgages

•   Credit cards

•   Certificates of deposit (CDs)

•   Investment products

•   Online and mobile banking services

•   Debit cards

Photo credit: iStock/Passakorn Prothien

SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. 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 (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

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

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.

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Oct
29
2024

Tips for Overcoming Situational Poverty

By | events, Financial Independence, Life & Career | Comments Off on Tips for Overcoming Situational Poverty

There are unfortunately many things in life that can rock a person’s financial stability, ranging from divorce to a devastating flood. Situational poverty is a type of poverty that occurs due to a sudden change in circumstances such as a major life event or natural disaster.

If you’re in the grip of a situation like this, it can feel impossible to get back on your feet. But it is indeed possible to overcome situational poverty. Using a variety of techniques, it’s often possible for people to pull themselves out of a difficult and painful moment. Here’s a closer look at what causes situational poverty and how to break out of a poverty cycle once it starts.

Key Points

•   Situational poverty often arises from sudden life changes, such as natural disasters or personal tragedies, and is typically temporary compared to generational poverty.

•   Access to education and financial literacy plays a crucial role in overcoming situational poverty, helping individuals make informed financial decisions and improve their circumstances.

•   Establishing supportive relationships, such as finding mentors and connecting with well-informed organizations, can provide guidance and resources essential for escaping poverty.

•   Utilizing community and government resources, including financial assistance programs, can offer critical support to those experiencing situational poverty and aid in recovery efforts.

•   Developing a positive money mindset, setting clear financial goals, and practicing good budgeting habits can empower individuals to break the cycle of poverty and achieve stability.

What Is Situational Poverty?

Situational poverty is a type of poverty that is the result of a sudden or severe crisis. It usually has a specific cause or triggering event, and the financial difficulties may be only temporary. Those in situational poverty may have ways to steadily improve their finances.

This is in contrast to generational poverty, where at least two generations of a family are born into poverty. In this case, poverty is largely the result of circumstance; people don’t have the knowledge or skills to escape poverty, so often their finances do not improve.

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No account or overdraft fees. No minimum balance.

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Reasons for Situational Poverty

Situational poverty is often the result of a sudden or severe crisis in a person’s life. While there are many events that may lead to situational poverty, they are often temporary. Here’s a look at some of the triggers that can cause this sort of disadvantaged scenario.

Being Born Into a Disadvantaged Background

Being born into a disadvantaged background can contribute to situational poverty; it can also be a factor in generational poverty, which requires at least two generations to be born into poverty.

In terms of situational poverty, if you were born into poor circumstances, even if your parents had been wealthier earlier in their life, it may still be difficult for you to get ahead financially. You might face issues like lack of access to medical care and educational resources. You don’t get that boost into financially stable adulthood that some people do.

Making Bad Financial Decisions

When you are grappling with poverty, you may wonder, why am I so bad with money? But it’s not uncommon for people to make a series of unwise money moves and wind up in poverty as a result. Perhaps you made a bad investment or took on a large debt (say, a mortgage) that you couldn’t keep up with. Or maybe you poured all your savings into a business idea that didn’t succeed. Sadly, these things happen every day. In some cases, the consequences of these sorts of decisions can trigger situational poverty.

Experiencing a Tragedy

It’s painful to think about it, but there are many types of tragedies that can send a person’s finances into a downward spiral. For instance, you might lose your house in a hurricane or your spouse (with whom you share your finances) might die unexpectedly. These events can leave a person without the means to live above the poverty line.

Lack of Good Education

Education is a path out of poverty, and sadly, the inverse is also true: Not getting a solid education can lead to a person not succeeding financially. They may lack the skills to earn higher wages.

Lack of financial education, such as the importance of an emergency fund and how to manage your finances, can also result in or contribute to situational poverty. Unfortunately, many U.S. high schools don’t require personal finance education as a graduation requirement. As a result, many people enter adulthood without basic financial skills like how to open a new bank account, set up a basic budget, and avoid “bad” debts.

Tips for Breaking the Vicious Cycle of Poverty

The scenarios above reveal some of the ways that a person can slip into poverty. Once you’re in that situation and possibly struggling to pay bills, however, it can feel impossible to climb your way out. Fortunately, there are several paths that may help you rise up and get on better financial footing. Here, some ideas for how to get out of situational poverty.

1. Getting a Sound Education

A good education — and specifically a good financial education — is one of the first steps toward getting out of poverty. While financial education classes in school are ideal, you can still learn the basics on your own, even as an adult. For example, the FDIC’s How Money Smart Are You? can help you learn the basics. Many universities and organizations also have personal finance courses for adults. You can also find free educational materials online that can help boost your financial IQ and guide you towards making money-smart choices.

2. Having a Close Mentor

Having a great mentor is one of the best ways to get a leg up in life, and the same applies to escaping situational poverty. A career mentor can help you gain the skills and experience you need to find (or find a better) job, while a financial mentor can help you learn how to budget, save, and ultimately break the cycle of poverty.

It can take some searching but you may be able to find a mentor where you work or by networking with friends, family members, and neighbors. People who have achieved success and escaped poverty themselves are often happy to give back by helping others in the community.

3. Working With Well-Informed Organizations

Another way to improve your financial literacy and learn how to overcome situational poverty is to work with trusted organizations. There are a number of nonprofit groups that specialize in different aspects of personal finance that could be holding you back. For example, the National Foundation for Credit Counseling (NFCC) helps people who are saddled by large amounts of debt. Operation Hope provides financial education to underserved communities, while Accion is a nonprofit that is focused on bringing financial technology and tools to underserved communities.

4. Utilizing Community and Government Resources

There is no shortage of community and government resources that can help if you are experiencing situational poverty. Churches, schools, community centers, and public libraries can offer support within your community.

Beyond your community, there are extensive government resources that can also help. For example, you might qualify for benefits like SNAP (Supplemental Nutrition Assistance Program) or the child tax credit. There are dozens of government programs that use poverty as a qualifying criterion. The U.S. Department of Health & Human Services (HHS) has a list of programs on its website.

5. Changing Your Money Mindset

Your mindset can hold you back just as much as it can empower you. It’s worthwhile to try to improve your money mindset. Something that is important to remember is that situational poverty is often temporary.

This is especially true if a bad financial decision or a natural disaster was a major contributor to your lack of funds. These are passing, albeit difficult, moments. By leveraging some of the resources mentioned in this article and practicing financial self-care, you can make progress.

6. Setting Financial Goals

Setting financial goals is important whether you are experiencing poverty or not. But it is even more important when you are hoping to build up your financial resources. Money goals can help you work toward something specific. Consider taking some time to map out what steps you want to take to move through your situational poverty. Some common goals are developing a budget with positive cash flow and paying down high-interest credit card debt.

7. Cutting Expenses and Spending Wisely

One aspect of budgeting that can help you pull yourself out of a tough financial spot is cutting any nonessential expenses, and then funneling that money towards your goals, such as paying down debt (more on that below) or taking a class to learn a skill that can help you get a promotion or a higher-paying job.

To “find” money, it can help to look at your current expenses and see where you may be able to trim back. For example, if you have any streaming services, you might pause them until you have your finances in order. Or if you have a cell phone plan, you might switch to a prepaid plan so you aren’t being charged automatically and can take control of your spending. You might also negotiate lower interest rates by calling your credit card issuer; this tactic may yield rewards.

8. Paying Down Your Debt

If you have large amounts of debt, you’ll want to prioritize paying down those with the highest interest rates first. You might look into a balance transfer credit card, which may give you no or low interest for a period of time. That can help you whittle down debt as it gives you some breathing room from a high annual percentage rate (APR). If you can qualify for a low rate on a personal loan, you may use it to consolidate your debt. Working with a non-profit credit counseling organization is another option to help you manage this common aspect of poverty.

Recommended: What is the Average Credit Card Interest Rate?

9. Avoiding Payday and Predatory Loans

Payday loans offer cash advances before payday to those who need cash quickly, but this money infusion can really cost you. These loans typically have extremely high interest rates. Even with state laws limiting fees to no more than $30 per $100 borrowed, you could still end up paying the equivalent of 400% interest or more. And if you are unable to pay back a payday loan, you may end up in a debt cycle that can be difficult to break out of.

10. Making Saving a Priority

Saving is generally always smart, but situational poverty can highlight its importance. When you’re financially vulnerable, any expense you aren’t expecting could really rock your situation. A big medical or car repair bill could be a huge problem.

Even if you don’t have the means to put much aside, even a small contribution to savings each month can slowly but surely add up to a solid cash cushion over time, especially if you put the funds in a savings account that pays a competitive rate, such as a high-yield savings account. This allows your money to grow just by sitting in the bank. As your finances improve, you can gradually increase how much you siphon off into savings each month.

11. Finding Out Where You Stand

Finding out where you stand can be a powerful exercise. We tend to be our own biggest critics, and that applies to finances, too. When you take a look at the numbers (go ahead and really study your income, cash outflow, assets, and debt), you might find you are doing better than you think.

Granted, this may not be the case when you first find yourself in situational poverty. But as you start to work on things, you might find your debt declining. Or that your savings by age is better than you expect. That can give you the confidence boost you need to keep exercising good financial habits and continue to improve your situation.

Also, even if you are in the midst of situational poverty and your status isn’t great, you will at least know exactly where you are. That benchmark will be what you build from.

The Takeaway

Situational poverty is a type of poverty typically caused by a life event, such as a divorce, severe health problems (and the resulting bills), or a natural disaster. This type of poverty is usually temporary and can often be overcome by boosting your financial education, accessing community and government resources, and prioritizing debt elimination and saving.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.

FAQ

How can I overcome a poverty mindset?

Overcoming one’s mindset is often a key step to getting out of poverty. Here are some ways to break out of a poverty mindset and feel more empowered:

• Set achievable financial goals and celebrate small victories to build confidence.

• Educate yourself on personal finance through books, courses, and mentors.

• Surround yourself with positive influences and avoid those who reinforce negative stereotypes.

• Practice gratitude to appreciate what you have.

• Cultivate a growth mindset by seeing challenges as opportunities for learning.

How do I know if I am poor or not?

The federal poverty guideline for 2024 for the lower 48 states and D.C. is an annual income of $15,060 or less for an individual. For a couple, poverty is defined as an annual income of $20,440 or less. For a family of four, it’s defined as an income of $31,200 or less.

How many people are in situational poverty?

It is difficult to know exactly how many people live in situational poverty. However, a large number of people live in poverty in general. According to the latest data from the U.S. Census, the official poverty rate is 11.5% of the population, with 37.9 million people living in poverty.

Photo credit: iStock/malerapaso

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

*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.

SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. 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 (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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

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.

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Oct
29
2024
Gross vs Net Income: What’s the Difference?

What Are the Differences Between Gross and Net Income?

By | Family Finances, Life & Career, money | Comments Off on What Are the Differences Between Gross and Net Income?

If you’re a salaried employee, the amount of money that you bring home with each paycheck plays an important role in your overall financial picture. While there are several dollar amounts that likely appear on your paycheck, two of the most important are your gross income and your net income.

Your gross income represents the total amount of money that your employer has paid you. If you are an hourly employee, it will be your hourly wages multiplied by the number of hours that you worked. If you are salaried, then it is a proportional amount of your total annual salary.

But in terms of net income vs. gross income, the net amount is the sum that is on your paycheck or directly deposited to your bank account. This is the figure that results when you subtract withholding taxes, benefits, and other deductions from your gross salary.

Key Points

•   Gross income reflects the total earnings before any deductions, while net income is the amount received after taxes and other deductions are subtracted.

•   Different factors, such as marital status and retirement contributions, can affect the amount withheld from gross income, leading to variations in net income.

•   Gross income serves as a standard reference for comparing salaries, as it does not account for individual tax situations or deductions that can vary greatly.

•   Understanding the relationship between gross and net income is crucial for effective budgeting, as net income directly impacts available funds for expenses and savings.

•   Focusing on net income provides a clearer picture of financial health and aids in setting realistic budgets for living expenses and future goals.

What Is Gross Income?

Your gross income is your total salary or wages that you earn before any deductions or taxes are taken out of your paycheck. If you are a salaried employee, your gross income will be the portion of your salary that corresponds to the time period represented on your paycheck. For example, if you have a salary of $52,000 and are paid every two weeks, you will earn a gross income of $2,000 with each bi-weekly paycheck. If you were paid only once a month, however, your gross monthly income would be $4,333.33.

In some cases, an employee might be eligible for overtime pay, which could be reflected in their paycheck as well.

If you are an hourly employee, then your gross income will depend on the total number of hours you work and your hourly wage. If you work 80 hours during a pay period and have an hourly wage of $15/hour, your gross income will be $1,200 (80 times 15). In either case, any tips, bonuses, or one-time additions may also be added to your total gross income.

Recommended: How Long Does a Direct Deposit Take to Go Through?

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What Is Net Income?

Here’s the difference between gross income vs. net income: While your gross income represents the total amount of money that you earn in a given pay period, your net income is the amount of money that you’ll actually receive. From your gross income, taxes and common payroll deductions like health insurance and any 401(k) contributions will be subtracted. Other deductions could include wage garnishments or charitable giving via your workplace.

The result is your net income, which may then be sent to your bank account via direct deposit or given to you as a paper check.

Gross vs Net Income: What’s the Difference?

When comparing net and gross income, know this: Your gross income should always be equal to or more than your net income. If you don’t have any of what are known as withholding taxes or other deductions, it is possible that your gross income and net income will be the same. But if you do have any money withheld for taxes, insurance, retirement savings, or other common deductions, they will be subtracted from your gross income. The result is your net income and is also often referred to as “take-home pay.”

Why Do We Go by Gross Income?

When people compare earnings and salary, they often do so by comparing the gross income, and net income isn’t considered. One reason for this is that your gross income is the best indicator to compare the amount of money paid for a particular job or position. The amount of deductions or taxes withheld can vary greatly depending on a person’s situation.

Consider two people that make the same salary — one who is married with children will usually have less taxes withheld than a single person. Also, one person might contribute, say, 10% of their salary to a company-sponsored retirement plan while another chooses not to. Another example could be one person who has deductions that reflect their carrying their family’s health insurance costs while another individual could be married and on their spouse’s plan and therefore have no such deduction.

Another reason that gross income is often a better comparison than net income is because the money that is withheld from your paycheck usually represents actual value that you receive. Money deducted for retirement savings is transferred to your 401(k) account; insurance premiums are used to pay for medical or dental insurance and taxes are paid to the government. Those deductions are serving an important and valuable purpose.

How Do Gross and Net Income Relate to Taxes?

It’s important to understand your taxes and how they relate to your gross and net income. Taxes (along with deductions) are one of the things that is subtracted from your gross income to make up your net income. The more money that you have withheld for taxes from your paycheck, the lower your net income will be. However, this may help minimize the possibility of your owing additional money to the federal or local government come tax season.

How Gross and Net Income Affect Your Finances

While your gross income can be a useful point of comparison in terms of how much you make, it’s your net income that most impacts your budget and finances. When managing your money and wondering whether to focus on your gross or net income, it’s likely that the latter is where you may want to focus.

After all, it’s your net income that represents the money that you actually receive each pay period. This money that you receive each month can be a good starting point as you learn to spend wisely by budgeting.

You can work to best allocate funds to pay your living expenses, make discretionary purchases, pay off debt, and save towards future goals. A line item budget can help you balance your finances and meet your near-term and longer-term goals.

The Takeaway

Gross income and net income are two different points of reference for how much money that you make. Your gross income represents the total wage or salary that you earned during a particular pay period. After any taxes or deductions are taken out, the result is your net income. Your net income is how much money that you actually take home and can be a starting point as you set up your budget.

Understanding how your gross income and net income affect your overall finances is a good first step on the path to a solid financial future. SoFi Checking and Savings can also help you manage your finances. It’s a single, convenient place to spend and save, pays a competitive Annual Percentage Yield (APY), and charges you zero account fees. What’s more, our tools like Vaults and Roundups can help you enhance your savings, and if you open a qualifying account with direct deposit, you can access your paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.

FAQ

How can I increase my net income?

Because net income and gross income are correlated, one way to increase your net income is to increase your gross income. You might do this by finding a new, higher-paying job or by starting a side hustle. The other option to raise your net income would be to lower the amount of taxes and deductions that are taken out each pay period. This could involve, say, increasing your tax allowances to lower the amount that is withheld for taxes or decreasing your other deductions, such as how much you contribute to retirement savings.

What are some budgeting tips to help you with your income?

One budgeting tip is to make sure you start with your net income and list out all of your expenses. Make sure that your total expenses are less than your total income (this may involve making some cuts) and create a plan to save at least some of the difference. You might want to research such budget guidelines at the 50/30/20 rule for inspiration.

Is gross income more important than net income?

Gross income and net income are both important and useful in different circumstances. For example, if you are wondering whether 40K a year is a good salary, it will depend on your situation. If you are single and/or live in an area with a low cost of living, it might be. But if you are the sole source of income for a family of four, live in a location with a high cost of living, and/or have considerable debt, that same gross income could be a challenge in terms of making ends meet.

Photo credit: iStock/Vasyl Faievych

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

SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. 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 (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

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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Oct
29
2024
Can I Use Checks With an Old Address?

Can I Use Checks With an Old Address?

By | Financial Independence, Life & Career, money | Comments Off on Can I Use Checks With an Old Address?

If you’re wondering if it’s okay to use checks with an old address, the answer is yes — most of the time.

Having a checkbook with your old address isn’t so unusual these days. Checks can come in handy sometimes, but many of us don’t need to use them too often in this era of online electronic payments. Because of this, it’s easy to see how the address on checks might become outdated.

Key Points

•   Using checks with an old address is generally acceptable as long as the routing and account numbers remain accurate for processing payments.

•   Informing recipients about an outdated address on a check is advisable to ensure smooth communication regarding payments or receipts.

•   New checks should be ordered if there are changes to the bank account number or routing number due to bank mergers or account closures.

•   Checks do not expire as long as the bank account is open and the check details are accurate, but closed accounts render checks unusable.

•   Alternative payment methods like money orders, cashier’s checks, or P2P transfer apps can be considered if using checks is not preferred.

Can You Use a Personal Check With an Old Address?

It is possible to use a personal check with an old address on it as long as it still has the correct routing and account numbers on it. If those numbers properly identify which bank and account the money should come from in order to pay a check, you’re good to go. However, it’s a good idea to let the bank know about a change of address to ensure they send statements and other important information about the account to the correct location.

In addition, it can be helpful to let the check recipient know that the address on the check is old just in case they need to send a receipt or any other correspondence regarding the payment via mail.

It’s a different story if you get a new bank account number or the bank changed routing numbers — this can happen, for instance, when one bank merges with another. In this situation, it is necessary to order new checks with the correct information on them.

It’s important to make sure a check’s routing numbers and account number are accurate. If someone knowingly writes a check for an account that has already been closed, this is considered writing a bad check, which is a form of fraud. Because of this, it’s a good idea to confirm check details, including your address, are current and accurate whenever you move or switch banks or set up a new checking account.

Get up to $300 when you bank with SoFi.

No account or overdraft fees. No minimum balance.

Up to 4.00% APY on savings balances.

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Can You Use a Business Check With an Old Address

It is possible to use a business check vs. a personal check that has an old address on it as long as the account number and routing number are accurate. The main difference between business checks and personal checks is that business checks are drawn on personal accounts and business checks are drawn on business accounts.

Can You Use a Personal Check With a Wrong Address?

It’s fair to wonder, is it really okay if my checks have the wrong address? Whether it’s a typo on the check or you moved, this situation definitely happens.

While writing a personal check with the wrong address on it isn’t ideal, it is possible to use one. As mentioned earlier, as long as the routing number and account number for your checking account are accurate, the check can be cashed properly. However, as noted previously, you may want to inform the check recipient of your current correct address in case they need it. And, of course, if you open a new bank account, you’ll want to make sure that your address on the checks you order is correct.

Can You Use a Business Check With a Wrong Address?

Even if the address on a business check isn’t just outdated but wrong, it is still possible to write a business check with the wrong address on it as long as the routing number and account number listed on the check remain accurate.

Most businesses will want to order new checks with the correct address on them to avoid confusion about where their business is located and where correspondence should be directed. But they don’t need to worry if they have old checks left to use up. Those checks should still be fine to use.

Do Unwritten Checks Expire?

As long as an individual keeps their account open and the correct account number and routing number remain on a check, the check won’t expire. There is an important exception, however. If someone closes a bank account, this means the checks associated with the account become unusable.

Another situation to be aware of is that bank routing numbers can change, especially when banks merge. So it’s a good idea to confirm from time to time that a check’s information is up to date.

When Are Checks With an Old Address Unusable?

Checks with an old address on them only become unusable if the routing number or account number listed on the check are inaccurate. This causes problems because these numbers are used to verify that the check is good and identify the account the money needs to be withdrawn from in order to process the check.

Ordering New and Correct Checks

If an individual needs new checks for any reason — such as a desire to update their address — these are the steps they’ll generally take to order new ones.

•   Log on to their online bank account. It’s usually possible to order checks online or via a mobile account dashboard.

•   Request a counter check. If someone is really in a rush and can’t wait for new checks to come in the mail, they can go to a local bank branch and purchase counter checks. These are temporary checks that will have your account information on them, and they typically cost $1 or $2 per check, though fees may vary.

•   Review terms and fees. All banks charge different fees to buy checks or a checkbook, so double check how much doing so will cost.

Changing Your Address on Checks

If you need to change the address listed on the checks in your personal checkbook, order more checks via one of the methods previously mentioned. This can be done online or via your mobile banking app. You may also be able to order checks in person at your bank.

Do You Need to Write Your Address on a Check?

Checks typically have an address already printed on them. Therefore it is not necessary for the check writer to write it on the check themselves. However, some people may prefer that only their name appears on their checks. Maybe they know they’ll be moving soon, or perhaps they simply prefer this for privacy and security reasons.

If you do need to write your address on a check that doesn’t have your address — perhaps because the recipient such as a merchant is requesting it — it’s generally best to:

•   Use blue or black pen

•   Print your new address under your name at the upper lefthand corner of the check

•   See if the business or merchant wants your phone number as well; this is a fairly common request so they can reach you if necessary.

Do Checks Need an Address?

Checks do not need to have an address printed on them. However, if you choose to omit an address (say, because you know you’ll likely be moving soon), some businesses may hesitate to accept the check. They might ask for a form of ID or a phone number in case they need to contact you.

Alternatives to Personal Checks

If an individual doesn’t want to write a check for whatever reason, these are some alternative payment options.

Money Orders

It’s possible to buy a money order from the post office and other locations, including some big box stores and grocery stores. Money orders are a very quick form of payment, and can cost about $2 in fees.

Cashier’s Checks

A cashier’s check, which usually costs a small fee, can be bought at the bank and is a check that is guaranteed by the bank. It will usually require a visit to the bank to get one, though.

P2P Money Transfer Apps

P2P money transfer apps — like Venmo — that allow users to instantly transfer cash electronically to an individual as long as they have enough money in their bank account can be a convenient option. These are often free to use but they can involve a small fee (a percentage of the transaction) in certain situations, such as if you’re sending money via credit card. (Sometimes e-checks, or electronic checks, are a payment option for utilities and other accounts. While not a P2P app, they do allow for a seamless transfer of funds.)

The Takeaway

As long as the routing and account numbers on the check are accurate, it’s possible to use a check with an old, incorrect address on it. That said, it’s a good idea to order new checks with the correct address on them to help lessen any confusion the wrong address might cause with check recipients. Having all your details correct can help make banking as simple as possible.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.

FAQ

Does it matter if the address on my check is wrong?

It is possible to use a check with a wrong address on it. The key is to make sure both the routing number and account number are still accurate on the check before using it.

Can you cash a check with an incorrect address?

Yes, you can cash a check with the incorrect address on it as long as the routing and account numbers on the check are accurate.

Do checks need an address?

Checks commonly have an address on them, but it’s not a requirement. If you are using a check without an address, the business or service you are playing may require some additional ID or info.

Photo credit: iStock/MicroStockHub

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.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

4.00% APY
SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. 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 (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found 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.

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