Are Mutual Funds Good for Retirement?

Are Mutual Funds Good for Retirement?

Mutual funds are one option investors may consider when building a retirement portfolio. A mutual fund represents a pooled investment that can hold a variety of different securities, including stocks and bonds. There are different types of mutual funds investors may choose from, including index funds, target date funds, and exchange-traded funds (ETFs).

But how do mutual funds work? Are mutual funds good for retirement or are there drawbacks to investing in them? What should be considered when choosing mutual funds for retirement planning?

Those are all important questions to ask when determining the best ways to build wealth for the long term.

Understanding Mutual Funds

A mutual fund pools money from multiple investors, then uses those funds to invest in a number of various securities. Mutual funds can hold stocks, bonds, short-term debt, and other types of securities.

How a mutual fund is classified or categorized can depend largely on what the fund invests in and what type of investment strategy it follows. For example, index funds follow a passive investment strategy, as these funds attempt to mimic the performance of a stock market benchmark. So a fund that tracks the S&P 500 index would attempt to replicate the returns of the companies included in that index.

Target-date funds utilize a different strategy. These funds automatically adjust their asset allocation based on a target retirement date. So a 2050 target-date fund, for example, may shift more of its asset allocation toward bonds or fixed-income and away from stocks as the year 2050 approaches.

Exchange-traded funds or ETFs trade on an exchange just like stocks. This is a departure from the way mutual funds are typically traded, with the price being set at the end of the trading day.

How Mutual Funds Work

Mutual funds work by allowing investors to purchase shares in the fund. Buying shares makes them part-owner of the fund and its underlying assets. As such, investors have the right to share in the profits of the fund. So if a mutual fund owns dividend-paying stocks, for example, any dividends received would be passed along to the fund’s investors.

Depending on how the fund is structured or what the brokerage selling the fund offers, investors may be able to receive any dividends or interest as cash payments or they may be able to reinvest them. With a dividend reinvestment plan or DRIP, investors can use dividends to purchase additional shares of stock, often bypassing brokerage commission fees in the process.

Investors pay an expense ratio to invest in mutual funds. This reflects the annual cost of owning the fund, expressed as a percentage. Passively managed mutual funds, including index funds and target date funds, tend to have lower expense ratios. Actively managed funds, on the other hand, tend to be more expensive, but the idea is that higher fees may seem justified if the fund produces above-average returns.

Investors can learn more about how a particular mutual fund works, what it invests in, and the fees involved by reading the fund’s prospectus.

💡 Quick Tip: Before opening an investment account, know your investment objectives, time horizon, and risk tolerance. These fundamentals will help keep your strategy on track and with the aim of meeting your goals.

Mutual Funds for Retirement Planning

Mutual funds are arguably one of the most popular investment options for retirement planning. According to the Investment Company Institute, 52.3% of U.S. households totaling approximately 115.3 million individual investors owned mutual funds in 2022. Older generations such as Baby Boomers and Gen Xers—those who may be planning for retirement—are more likely to have mutual funds, the research found.

So are mutual funds good for retirement? Here are some of the pros and cons to consider.

Pros of Using Mutual Funds for Retirement

Investing in mutual funds for retirement planning could be attractive for investors who want:

•   Convenience

•   Simplified diversification

•   Professional management

•   Reinvestment of dividends

Investing in a mutual fund can offer exposure to a wide range of securities, which can help with diversifying a portfolio. And it may be easier and less costly to purchase a single fund that holds 10 or 20 stocks than to purchase individual shares of each of those companies.

Mutual funds are professionally managed, so investors can rely on the fund manager’s expertise and knowledge. You don’t need to be as hands-on as you would need to be if you were day trading individual stocks. And if the fund includes dividend reinvestment, you can increase your holdings automatically which can make it easier to grow wealth.

Cons of Using Mutual Funds for Retirement

While there are some advantages to using mutual funds for retirement planning, there are also some possible disadvantages, including:

•   Potential for high fees

•   Overweighting risk

•   Under-performance

•   Tax inefficiency

As mentioned, mutual funds and ETFs carry expense ratios. While some index funds may charge as little as 0.15% in fees, there are some actively managed funds with expense ratios well above 1%. If those higher fees are not being offset by higher than expected returns (which is never a guarantee), the fund may not be worth it. Likewise, buying and selling mutual fund shares could get expensive if your brokerage charges steep trading fees.

While mutual funds make it easier to diversify, there’s the risk of overweighting one’s portfolio — owning the same holdings across different funds. For example, if you’re invested in five mutual funds that hold the same stock and the stock tanks, that could drag down your portfolio.

Something else to keep in mind is that a mutual fund is typically only as good as the fund manager behind it. Even the best fund managers don’t always get it right. So it’s possible that a fund’s returns may not live up to your expectations.

On the other hand, you may also have to contend with unexpected tax liability at the end of the year if the fund sells securities at a gain. Just like other investments, mutual funds and ETFs are subject to capital gains tax. Whether you pay short- or long-term capital gains tax rates depends on how long you held a fund before selling it.

Pros

Cons

•   Mutual funds offer convenience for investors

•   It may be easier and more cost-effective to diversify using mutual funds vs. individual securities

•   Investors benefit from the fund manager’s experience and knowledge

•   Dividend reinvestment can make it easier to grow wealth

•   Some mutual funds may carry higher expense ratios than others

•   Overweighting can occur if investors own multiple funds with the same underlying assets

•   Fund performance may not always live up to the investor or fund manager’s expectations

•   Income distributions can result in unexpected tax liability for investors

Investing in Mutual Funds for Retirement Planning

The steps to invest in mutual funds for retirement are simple and straightforward.

1.    Start with an online brokerage account, individual retirement account (IRA) or 401(k). You can also buy a mutual fund directly from the company that created it, but a brokerage account or retirement account is usually the easier way to go.

2.    Set your budget. Decide how much money you can afford to invest in mutual funds. Keep in mind that the minimum investment for a particular fund can vary. One fund may allow you to invest with as little as $100 while another might require $1,000 to $3,000 to get started.

3.    Choose funds. If you already have a brokerage account, this may simply mean logging in, navigating to the section designated for buying funds, selecting the fund or funds and entering in the amount you want to invest.

4.    Submit your order. You may be asked to consent to electronic delivery of the fund’s prospectus when you place your order. If your brokerage charges a fee to purchase mutual funds, that amount will likely be added to the order total. Once you submit your order to purchase mutual funds, it can take a few business days to process.

Determining If Mutual Funds Are Right for You

Whether it makes sense to invest in mutual funds for retirement can depend on your time horizon, risk tolerance, and overall investment goals. If you’re leaning toward mutual funds for retirement planning, here are a few things to consider.

Investment Strategy

When comparing mutual funds, it’s important to understand the overall strategy the fund follows. Whether a fund is actively or passively managed may influence the level of returns generated. The fund’s investment strategy may also determine what level of risk investors are exposed to.

For example, index funds are designed to meet the market. Growth funds, on the other hand, typically have a goal of beating the market. Between the two, growth funds may produce higher returns — but they may also entail more risk for the investor and carry higher expense ratios.

Choosing funds that align with your preferred strategy, risk tolerance, and goals matters. Otherwise, you may be disappointed by your returns or be exposed to more risk than you’re comfortable with.

Cost

Cost is an important consideration when choosing mutual funds for one reason: Higher expense ratios can drain away more of your returns.

When comparing mutual fund expense ratios, it’s important to look at the amount you’ll pay to own the fund each year. But it’s also important to consider what kind of returns the fund has produced historically. A low-fee fund may look like a bargain but if it generates low returns then the cost savings may not be worth much.

It’s possible, however, to find plenty of low-cost index funds that produce solid returns year over year. Likewise, you shouldn’t assume that a fund with a higher expense ratio is guaranteed to outperform a less expensive one.

Fund Holdings

It’s critical to look under the hood, so to speak, to understand what a particular mutual fund owns and how often those assets turn over. This can help you to avoid overweighting your portfolio toward any one stock or sector.

Reading through the prospectus or looking up a stock’s profile online can help you to understand:

•   What individual securities a mutual fund owns

•   Asset allocation for each security in the fund

•   How often securities are bought and sold

If you’re interested in tech stocks, for example, you may want to avoid buying two funds that each have 10% of assets tied up in the same company. Or you may want to choose a fund that has a lower turnover rate to minimize your capital gains tax liability for the year.

💡 Quick Tip: Did you know that you must choose the investments in your IRA? Once you open a new IRA and start saving, you get to decide which mutual funds, ETFs, or other investments you want — it’s totally up to you.

Other Types of Funds for Retirement

Mutual funds, and target date funds in particular, are one of the ways to save for retirement. But there are other options you might consider. Here’s a brief rundown of other types of funds that can be used for retirement planning.

Real Estate Investment Trusts (REITs)

A real estate investment trust isn’t a mutual fund, per se. But it is a pooled investment that allows multiple investors to own a share in real estate. REITs pay out 90% of their income to investors as dividends. You may consider a REIT if you’d like to reap the benefits of real estate investing (i.e. diversification, inflationary hedge, etc.) without actually owning property.

Exchange-Traded Funds (ETFs)

Exchange-traded funds are another retirement savings option. Investing in ETFs can offer more flexibility compared to mutual funds. They may carry lower expense ratios than traditional funds and be more tax-efficient if they follow a passive investment strategy.

Income Funds

An income fund is a specific type of mutual fund that focuses on generating income for investors. This income can take the form of interest or dividend payments. Income funds can be an attractive option for retirement planning if you’re interested in creating multiple income streams or reinvesting dividends until you’re ready to retire.

Bond Funds

Bond funds focus exclusively on bond holdings. The type of bonds the fund holds can depend on its objective or strategy. For example, you may find bond funds or bond ETFs that only hold corporate bonds or municipal bonds while others offer a mix of different bond types. Bond funds are generally considered fairly safe, and they may help round out the fixed-income portion of your retirement portfolio.

IPO ETFs

An initial public offering or IPO represents the first time a company makes its shares available for trade on a public exchange. Investors can invest in individual IPOs or multiple IPOs through an ETF. IPO ETFs invest in companies that have recently gone public so they offer an opportunity to get in on the ground floor. IPO ETFs are generally considered safer than IPOs, but still, they are relatively risky.

The Takeaway

Mutual funds can be part of a diversified retirement planning strategy. Regardless of whether you choose to invest in mutual funds, ETFs or something else, the key is getting started sooner rather than later. Time can be one of your most valuable resources when investing for retirement.

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


Invest with as little as $5 with a SoFi Active Investing account.

Photo credit: iStock/kali9


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 Invest®

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

SOIN0723079

Read more
7 Top Self-Employed Jobs for Parents in 2022

7 Top Self-Employed Jobs for Parents in 2024

Many busy parents find that a traditional 9-to-5 job isn’t the best option while they’re raising young children. Working for yourself can provide more flexibility and control, as well as better work-life balance. But there are trade-offs.

Let’s take a look at some of the best self-employed jobs in 2024. We’ll also provide tips on finding a self-employed job that helps support a family’s needs.

What Jobs Are Considered Self-Employed Jobs?

At one time, self-employed business people typically worked out of a storefront or office with a small staff. Today, many self-employed individuals work from home with no employees. They deliberately keep their operation small to maintain flexibility in their schedule (and keep overhead costs down). Solo entrepreneurs usually have a strong background in a specific service they can offer to clients, such as accounting, marketing, or graphic design.

There are a number of different ways self-employed workers get paid. For instance, they may identify as an independent contractor when they work for larger businesses. They can also start a sole proprietorship or a partnership with another entrepreneur.

Because of the amount of time spent attracting and communicating with clients, self-employment may not be the best choice of job for antisocial people.


💡 Quick Tip: Online tools make tracking your spending a breeze: You can easily set up budgets, then get instant updates on your progress, spot upcoming bills, analyze your spending habits, and more.

Examples of Self-Employed Jobs for Parents

Self-employed jobs can be logistical, analytical, creative, or involve a skilled trade. Parents may pursue self-employed work as a freelance writer or a lawyer. As long as the work can be done independently, there’s virtually no limit to the type of services someone can offer when working for themselves.

Recommended: Best On-Campus Jobs

Tips to Finding Self-Employed Jobs for Parents in 2024

Parents who are considering self-employment should first ask themselves these questions:

•   How much do I hope to make per hour?

•   How many hours per week do I want to work?

•   What is my strongest skill set?

•   What services can I offer based on that skill set?

Parents have two options for pursuing work. They can apply for posted contract or freelance roles that seem like a good fit for their skills and scheduling needs. Or they can advertise their services and work on attracting clients.

Difficulties Parents Can Encounter When Looking for Self-Employed Jobs

One element of self-employment that many people struggle with is making the transition to boss. Parents who have a lot of responsibilities on their plate may find it especially hard to create a structured workday, or to make time between projects to source new clients.

Many self-employed people find it tough to promote themselves or set appropriate rates. Another money challenge: budgeting with a fluctuating income.

All of these things get easier over time, but the early days of self-employment can be challenging. If money management is a concern for you, check out these financial planning tips for freelancers.

Recommended: Does Net Worth Include Home Equity?

Pros and Cons of Self-Employed Jobs for Parents

There are advantages and disadvantages to working for oneself.

Pros of Self-employment

Cons of Self-employment

•   Flexible schedule

•   Work from home — or wherever you work best

•   Choose clients you enjoy working with

•   Inconsistent income makes budget planning hard

•   Sourcing clients is time consuming

•   No paid sick days, vacation, bereavement, or parental leave

Check your score with SoFi

Track your credit score for free. Sign up and get $10.*


7 Self-Employed Jobs for Parents

What are the best self-employed jobs? The fact is, what’s best for one parent may not be right for another. Consider a broad range of possibilities before you settle on one. The following jobs were chosen because they offer flexibility and high wages.

1. Business Consultant

Average hourly pay: $37

A business consultant helps other businesses improve a select area of their business (such as their marketing department) or their business as a whole. Consultants can provide support to sales, finance, operations, HR, IT, and other areas. While business consultants can book time to work with clients in a way that fits their schedule, they will often need to do so during business hours since so much of their work involves client communications.

Requirements: Bachelor’s degree, master’s degree (preferred), or a certification from a business consultant association.

Schedule Flexibility [1-5]: 3

Duties:

•   Advising clients

•   Creating business plans

•   Improving employee performance

2. Software Developer

Average hourly pay: $37

Software developers write and test code for clients when creating systems software, apps, video games, and other products. Many clients need temporary or ongoing support in this area, which can provide software developers with a lot of flexibility. Developer roles usually appear on lists of ideal jobs for introverts.

Requirements: Knowledge of programming languages.

Schedule Flexibility [1-5]: 4

Duties:

•   Writing code

•   Testing code

•   Project planning

3. Virtual Assistant

Average hourly pay: $34

Supporting clients as an administrative assistant virtually. Because so much of this work can be done via email, and immediate responses aren’t expected, virtual assistants can often choose their own hours.

Requirements: Office skills

Schedule Flexibility [1-5]: 4

Duties:

•   Scheduling calls

•   Providing email support

•   Booking travel plans

4. Editor

Average hourly pay: $31

Editors polish writing projects across a variety of industries and media formats. This work can be done independently from home, but may require virtual meetings during traditional office hours.

Requirements: Bachelor’s degree and industry experience.

Schedule Flexibility [1-5]: 4

Duties:

•   Writing copy

•   Editing copy

•   Mentoring writers

5. Copywriter

Average hourly pay: $28

Similar to editors, copywriters can work from home and do their work independently. Many writers are hired on a freelance basis, which gives them the option of taking on more projects when they have the time.

Requirements: Bachelor’s degree and industry experience.

Schedule Flexibility [1-5]: 4

Duties:

•   Crafting headlines

•   Writing technical guides

•   Creative writing

6. Web Designer

Average hourly pay: $35

Web designers create websites for clients from scratch, update existing website designs, and provide ongoing website support. This work can be done independently, but does require meeting with project stakeholders during business hours.

Requirements: Knowledge of design programs, and HTML and CSS programing languages.

Schedule Flexibility [1-5]: 3

Duties:

•   Build and design websites

•   Enhance user interface (UI) and user experience (UX)

•   Bring client’s vision to life

7. Career Coach

Average hourly pay: $24

Working as a career coach can create really flexible working hours for parents because many clients want to book sessions on nights and weekends when they aren’t working.

Requirements: Bachelor’s degree or master’s degree (preferred)

Schedule Flexibility [1-5]: 5

Duties:

•   Advising clients on job search process

•   Helping clients plan career trajectory

•   Resume consulting


💡 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

Being self-employed can be very rewarding — especially for parents. Working for yourself can make it possible to have flexible working hours and to work from home. Almost any service can be offered on a freelance or consulting basis. The key is to evaluate your skills and give yourself time to build a client base.

Challenges may include creating your own workday structure, making time for administrative tasks that aren’t billable, no paid time off, and a fluctuating income. Before making the leap into self-employment, it can be helpful to take a good hard look at the family’s financial situation.

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.

SoFi helps you stay on top of your finances.

FAQ

How can a stay-at-home mom make money in 2024?

There are plenty of ways a stay-at-home mom can earn an income from home in 2024. One popular option for busy moms who need a flexible schedule is working as a virtual assistant on a part-time basis. These roles make it possible to work from home during times when children are napping or at school.

What is the best job to have as a parent?

There is no one best job for a parent to have, but there are some very desirable traits that appeal to most parents. Moms and dads are likely to value job opportunities that have flexible schedules, are remote, and have a high enough wage to support a family.

What job can I do from home with a baby

Nowadays, many job opportunities are remote, which can make it possible for people to work from home with a baby. Some parents may choose to create their own job by going the self-employed route. Others may pursue careers as a virtual assistant, bookkeeper, copywriter, web designer, or another role that they can perform from home.


Photo credit: iStock/pixdeluxe

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.

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.

SORL1023006

Read more
Guide to FAFSA Income Requirements

Guide to FAFSA Income Requirements

Editor’s Note: The new, simplified FAFSA form for the 2024-2025 academic year is available, although applicants are reporting a number of glitches. Try not to worry, take your time, and aim to submit your application as soon as possible.

Even if your parents are high earners (or you’re a grad student with a good salary), it’s worth filling out the Free Application for Federal Student Aid, or FAFSA®. While your earnings are a factor on the FAFSA, there are no income limits to apply or to qualify for aid, and not all programs are based on need. The FAFSA also provides access to non-need-based programs, including institutional merit aid and unsubsidized federal loans.

Regardless of income, It’s generally recommended to fill out the FAFSA as close to its release date as possible. Typically, the form becomes available on October 1 for the following academic year. The 2024-2025 academic year, however, is an exception. Due to upcoming changes to the FAFSA (and some adjustments in how student aid will be calculated), the application will be available in December 2023.

Read on to learn more about income requirements to be eligible for financial aid and why it’s probably a good idea to fill out the FAFSA.

What Are FAFSA Income Limits?

There is no income maximum when you file the FAFSA as an undergraduate or graduate student to attend college or career school. In other words, any student attending or applying to an eligible school can fill out and submit the online form, even if their parents are high earners.

In addition, there are no simple FAFSA income limits — or income cutoffs — for financial aid eligibility, in part due to the complexity of financial aid formulas.

In general, to be eligible for financial aid, you’ll need to:

•   Have a high school diploma or a recognized equivalency, such as a GED, or have completed a state-approved home-school high school education

•   Demonstrate financial need (for most programs)

•   Be a U.S. citizen or an eligible noncitizen

•   Have a valid Social Security Number

•   Be enrolled or accepted for enrollment as a regular student in an eligible degree or certificate program

•   Maintain satisfactory academic progress in college if you’re already enrolled. Standards for satisfactory academic progress vary by school


💡 Quick Tip: Make no payments on SoFi private student loans for six months after graduation.

How Are FAFSA Needs Calculated?

Your eligibility for scholarships, grants, work-study, and federal student loans depends on two key factors: your Student Aid Index (SAI) and the school’s cost of attendance (COA).

If you’re a dependent student with divorced parents, the parent who provided more financial support to you should complete the FAFSA. This is a new rule effective with the 2024-2025 FAFSA. (In prior years the parent you lived with more, or the custodial parent, would file the FAFSA.) If the parent that provides more financial support has remarried, you need to report the stepparent’s income and asset information as well.

SAI

The Student Aid Index (SAI) is the new name for Expected Family Contribution (EFC). Like EFC, SAI is an eligibility index number that a college’s financial aid office uses to determine how much federal aid a student would receive if they attended the school.

SAI is calculated using the information you provide in the FAFSA, including family income, assets, and the size of the household. One change from EFC is that the number of family members currently enrolled in college is no longer taken into consideration. As a result, families with more than one child in college will no longer have an advantage in getting aid over those with just one going to college. Another difference: Unlike EFC, SAI can dip into negative territory (as low as -$1,500) to better differentiate levels of need.

The new formula also increases the Income Protection Allowance (IPA) that shelters a certain amount of parental income (enough to cover a family’s basic living expenses) from inclusion in the calculation of total income. This means that more of a student’s or family’s income will be excluded from the calculation than with EFC, which could mean that more families will qualify for aid.

IPA is based on family size. For example, a family of three (not including the student) can exclude $29,040 from their income for 2024-2025, while a family of three can exclude $35,870. Income above those figures — the family’s so-called discretionary income — is what counts when calculating SAI.

Recommended: 2024-2025 FAFSA Changes, Explained

Cost of Attendance

The cost of attendance (COA) of a college or university refers to the estimated cost of a year of attendance at that school, including tuition, lodging, food, transportation, and personal expenses.

When financial aid staffers at a college or university calculate the amount of financial aid you can qualify for, they take their COA and subtract your SAI (and any other financial assistance you are already receiving) to determine your financial need.

You can get an estimate of how much financial aid you might qualify for by using the government’s Federal Student Aid Estimator .

Grants and Loans That Require Financial Need

Here’s a look at a few federal grants and loans that require you to demonstrate financial need in order to qualify:

•   Federal Pell Grants

•   Federal Supplemental Educational Opportunity Grants

•   Federal Work-Study Program

•   Direct Subsidized Loans

Different Kinds of Financial Aid

You may be eligible to receive different kinds of need-based financial aid as well as non-need-based aid, including Direct Unsubsidized Loans and Direct PLUS Loans for parents or graduate and professional students.

For the 2021-2022 school year, the most recent year for which these stats are available, undergraduate and graduate students received $234.6 billion in financial aid through grants, federal student loans, tax credits, and federal work-study, according to the Trends in Student Aid report from the College Board. The average full-time undergraduate student received $15,330, while the average graduate student received $27,300.

Pell Grants

The Pell Grant is a need-based financial aid program from the federal government that is designed to help undergraduates from low-income families afford college. The Federal Pell Grant award amount changes yearly. The maximum Pell Grant award for the 2023-24 academic year is $7,395. (The amount for 2024-2025 has not been announced yet.)

The actual amount of Pell Grant you can receive depends on your SAI, the COA at your college or university, your status as a full-time or part-time student, and the amount of time that you will attend school during the academic year.

Pell Grant eligibility will be simplified for the 2024-2025 academic year. The maximum available amount will go to students or, if dependent, their parent(s) who fall below income thresholds for tax filing — adjusted gross incomes below 225% (single) or 175% (married) of the poverty line.

FSEOG

The Federal Supplemental Educational Opportunity Grant (FSEOG), which typically doesn’t have to be repaid (unless you don’t fulfill your end of the bargain by completing school), goes to students who demonstrate high need, as determined through the FAFSA.

The awards range $100 to $4,000 a year. The amount of money you can get depends not only on your level of need but also on when you apply, the amount of other aid you get, and how much your college or university can offer students.

Work-Study Programs

Work-study is a federally (sometimes state-funded) program that helps college students with financial need get part-time jobs either on or off campus to earn money for college. Students are typically responsible for securing their own work-study jobs.

Not all schools offer work-study, so it’s a good idea to reach out to the financial aid offices at the schools you’re interested in to see if they offer the program. To apply for work-study, you simply need to select the box on the FAFSA that indicates you want to be considered for work-study.

Direct Subsidized Loans

A Direct Subsidized Loan is a loan provided by the federal government for students who demonstrate financial need. You do not have to pay interest on the loan while you’re in school, during any deferment, or during the grace period. The government picks up this tab.

Before receiving the funds from a Direct Subsidized Loan, you need to complete entrance counseling, which goes over your obligation to repay the loan, and sign a master promissory note, which indicates that you agree to the loan terms.

For undergraduate students who get (or got) loans after July 1, 2023 and before July 1, 2024, the interest rate for Direct Subsidized Loans is 5.50%.

Direct Unsubsidized Loans

Like a Direct Subsidized Loan, a Direct Unsubsidized Loan comes from the federal government, but graduate and professional students can also receive these loans.

Unlike Direct Subsidized Loans, Direct Unsubsidized Loans are non-need based and the government does not pay the interest while you’re in school, during any deferment, and during the grace period. You will be responsible for paying all interest, which begins accruing as soon as the loan is dispersed.

For undergraduate students who get (or got) loans after July 1, 2023 and before July 1, 2024, the interest rate for Direct Unsubsidized Loans is 5.50%.

For graduate or professional students, the interest rate for Direct Unsubsidized loans is 7.05%.

It’s worth noting that for both types of Direct loans, you do not need to undergo a credit check in order to qualify. These types of loans also have annual and aggregate loan limits .

Direct PLUS Loan

Parents of undergraduate students and graduate or professional students can receive a Direct PLUS Loan from a school that participates in the Direct Loan Program. Some schools call this loan type a parent PLUS loan or grad PLUS loan to differentiate the two.

For Direct PLUS Loans first disbursed on or after July 1, 2023, and before July 1, 2024, the interest rate is 8.05%. There is also a 4.228% origination fee for all Direct PLUS loans first disbursed on or after Oct. 1, 2020.

You’ll undergo a credit check as a parent or a graduate/professional student to look for adverse events, but eligibility does not depend on your credit scores.

You can obtain up to the full cost of attendance of the school minus any other financial aid you receive.


💡 Quick Tip: Parents and sponsors with strong credit and income may find much lower rates on no-fee private parent student loans than federal parent PLUS loans. Federal PLUS loans also come with an origination fee.

Beyond Federal Student Loans

Do you have to file the FAFSA? No, it’s not required, but it is a good idea to do so. Schools, states, and other programs also use the FAFSA to determine merit-based grants and scholarships.

Aside from federal loans, here’s a look at other ways to pay for college.

Savings

Some parents, and grandparents, prepare for the task of paying for college well in advance using a tax-advantaged savings account, such as a 529 account. A 529 plan allows your savings to grow tax-free, and some states even offer a tax deduction on your contributions.The advantage of tapping into savings is obvious: You don’t have to borrow funds and pay interest.

Private Student Loans

Private student loans come from a bank, credit union, or other private lender. Loan limits vary by lender, but you can often get up to the total cost of attendance for school. Each lender sets its own interest rate and you can often choose to go with a fixed or variable rate. Unlike some federal loans, qualification is not need-based. However, you will need to undergo a credit check and students often need a cosigner.

You generally want to exhaust federal loan options before turning to private student loans, since private loans generally don’t offer the borrower protections — like income-based repayment plans and deferment or forbearance — that come with federal student loans.

Grants

Grants, which are typically need-based, are a type of financial aid that students generally don’t have to repay (unless they fail to finish the semester or year in college). The U.S. Department of Education offers the following grants besides Pell Grants and Federal Supplemental Educational Opportunity Grants:

•   Iraq and Afghanistan Service Grants

•   Teacher Education Assistance for College and Higher Education (TEACH) Grants

A student can seek other grants from their state, their college or career school, or another organization.

Scholarships

Scholarships, like grants, are a type of financial aid that you don’t have to pay back. You can apply for scholarships anywhere — through professional organizations, your job or your parents’ jobs, local organizations, religious groups, your college or career school — the list goes on.

There are a number of scholarship finders available online.

Part-Time Work

Even if you don’t qualify for work-study, you can look for a part-time job. If you have the time and energy to pair a part-time job with your studies, you can consider doing so after classes or on the weekends. Part-time work can help you pay for school or additional expenses, such as rent or groceries.

Private Student Loans With SoFi

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.


Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

Can you get financial aid if your parents make over $100K?

The U.S. Department of Education doesn’t have an official income cutoff to qualify for federal financial aid. The reason is that the formula involved in determining need-based aid is complex and involves more than just your parents’ income. Assets, the size of your family, your school’s cost of attendance, and other factors all go into deciding how much aid you can receive.

Also keep in mind that not all financial aid is need-based, including Federal Direct Unsubsidized Loans and institutional merit aid. That’s why it’s important to fill out the Free Application for Federal Student Aid (FAFSA) each year.

How are FAFSA income limits different for divorced parents?

For the 2024-2025 FAFSA, the parent who provided more financial support to you is responsible for completing the FAFSA, regardless of who you live with. If the parent who provides greater financial support has remarried, your stepparent’s income and asset information must also be reported on the FAFSA.

Are FAFSA income limits different for independent students?

No. The U.S. Department of Education uses the same formula for calculating aid regardless of whether you are a dependent or independent student.

That said, independent students may receive more aid than dependent students simply because they tend to have less income and fewer assets to report. You can qualify as an independent student if you are any of these:

•   At least 24 years old

•   Married

•   A graduate or professional student

•   A veteran

•   A member of the armed forces

•   An orphan or a ward of the court

•   Taking care of legal dependents


Photo credit: iStock/Prostock-Studio

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.


SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.


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.

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.

SOIS1023008

Read more
8 Great Flexible Part-time Jobs in 2022 for Gen Z and Millennials

8 Great Flexible Part-time Jobs in 2024 for Gen Z and Millennials

Flexibility can be a real asset in a career. Maybe you’re young and figuring out your post-graduation path. Or you’re busy balancing the demands of running a home and caring for a family. Or you’re an athlete who needs plenty of time for training and recovery.

There are lots of flexible-schedule jobs out there, if you know where to look. Let’s check out some part-time jobs with flexible schedules.

What It Means for a Job to Have a Flexible Schedule

Whether you’re in college or caring for children or pursuing an unpaid passion, there are many reasons why someone would want some flexibility in their career.

But what does a flexible schedule mean exactly? According to the U.S. Department of Labor, a flexible schedule is one that allows people to work outside traditional 9 to 5 office hours. Aside from that, situations vary depending on the role and employer.

Workers may be able to choose the time they arrive at and depart work, for instance. With certain flexible work policies, employees still have to work a set number of hours per pay period or be available during a daily “core time.” So while the employee may not have to show up at 9am on the dot and leave at exactly 5pm, they may need to at least show up by 11am and stay until after 3pm. However, this type of shortened schedule could work for many people, including parents who are self-employed.


💡 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.

Tips for Finding a Flexible Part-time Job in 2024

Flexible part-time jobs can be logistical, analytical, creative, or involve a skilled trade. When it comes time to search for flexible-schedule jobs, keep in mind these tips.

•   Stay focused. Job applicants who know what they’re looking for and what they can offer an employer can plan a more effective job search. If someone knows they have to have a flexible part-time schedule in order to accept a job, they can save a lot of time and energy by only applying for jobs that offer that. Trying to convince an employer to change their staffing plans is an uphill battle.

•   Prepare to hear No. Know that it will take a while to find the right fit, and that rejection is a normal part of any job search. Psychologically preparing yourself can help you persevere until the right job comes along.

•   Don’t be a square peg. If a flexible part-time schedule is what matters most, you may need to be flexible yourself in other areas. For example, accept that you may need to compromise on title, salary, or industry. Giving up the highest-paying job for one with a more relaxed schedule can be worth it.

•   Go remote. Work-from-home jobs with flexible schedules can often be easier to find than on-site jobs that have flexible schedules. When reviewing online job boards, look for flexible schedule remote jobs.

Recommended: Does Net Worth Include Home Equity?

Why It Can Be Difficult to Find Part-time Jobs With Flexible Schedules

It can be difficult to find flexible-schedule part-time jobs because many jobs require being in a certain location at a certain time. For example, a hairstylist has to show up for work when they have appointments scheduled. A restaurant has to know they have enough servers on hand during operating hours. Even a corporate job where some work can be done remotely and independently can require being online during set times so that it’s easy to communicate with coworkers.

Check your score with SoFi

Track your credit score for free. Sign up and get $10.*


Great Part-Time Jobs With Flexible Schedules

Perhaps someone wants to take on a second job to help them pay down their debt or save for a dream vacation. Whatever the reason, it’s easy to see the appeal of a part-time job with a flexible schedule.

While there are countless part-time jobs on the market that can suit a variety of workers’ desired schedules, these are some of the best flexible schedule jobs for Gen Zers and Millennials. And if you’re in college, don’t miss our list of the best on-campus jobs.

1. Landscaper and Groundskeeper

Average hourly wage: $17.39

Job description: Landscapers and groundskeepers typically set their own schedules and plan which days they’ll tend to a client’s yard, but they don’t have to tell them exactly what hour they’ll show up to do their work.

Requirements: In some areas a license may be required to use pesticides and fertilizers.

Schedule flexibility: 4

Duties:

•   Mowing lawns

•   Removing weeds

•   Planting and maintaining flowers, bushes, and trees

2. Recreation and Fitness Worker

Average hourly wage: $22

Job description: Running a fitness or recreation class can be fun and rewarding work that is often performed on a part-time basis. Many instructors can choose when they host their classes (like when their young child is in school), but they do have to stick to those times.

Requirements: Licensing or background checks may be required.

Schedule flexibility: 4

Duties:

•   Plan programming

•   Run classes

•   Clean up post-class

3. Freelance Software Developer

Average hourly wage: $37

Job description: Many businesses hire freelance software developers to create computer programs and applications for business or consumer use. Some meetings during business hours may be required.

Requirements: Knowledge of select programming languages.

Schedule flexibility: 4

Duties:

•   Write code

•   Test code

•   Meet with project stakeholders

4. Virtual Assistant

Average hourly wage: $34

Job description: Plenty of professionals can’t afford or don’t need a full-time assistant. Instead, they hire virtual assistants who can tackle administrative work for a few hours a week. Virtual assistance can be a rewarding job for introverts who are conscientious and organized.

Requirements: Office skills

Schedule flexibility: 4

Duties:

•   Scheduling meetings

•   Managing clients’ inbox

•   Helping with administrative work

5. Freelance Copywriter

Average hourly wage: $28

Job description: A writer can work with many different brands as a freelance copywriter and can choose when they want to take on new projects and what hours of the week they work on them. Working as a freelance copywriter is also a great side hustle.

Requirements: Bachelor’s degree and industry experience

Schedule flexibility: 5

Duties:

•   Research

•   Writing copy

•   Editing copy

6. Freelance Web Designer

Average hourly wage: $35

Job description: Freelance web designers work independently designing websites for a variety of clients, instead of a full-time job. Work-from-home web design can be a well-paying and fulfilling job for antisocial people.

Requirements: Knowledge of design programs, and HTML and CSS programing languages.

Schedule flexibility: 3

Duties:

•   Design web pages and sites

•   Code designs

•   Present to clients and incorporate feedback

7. Freelance Editor

Average hourly wage: $31

Job description: Similar to copywriters, editors can work freelance for multiple clients.

Requirements: Bachelor’s degree and industry experience

Schedule flexibility: 4

Duties:

•   Nurturing writers

•   Editing copy

•   Publishing content

8. Business Consultant

Average hourly wage: $37

Job description: A business consultant can offer services to multiple businesses who need support as a whole or who are looking to improve a certain area of their business, such as their marketing efforts, operations, or HR.

Requirements: Bachelor’s degree, master’s degree (more advantageous), or a certification from a business consultant association.

Schedule flexibility: 3

Duties:

•   Assess potential areas of improvement

•   Create improvement plans

•   Find ways to cut costs


💡 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

There are plenty of great flexible-schedule jobs that millennials and Gen Zers can pursue to give them the time they need to attend school, start a business, or take care of young children. Some remote freelance roles can be entirely flexible — such as web designers, writers and editors — while other jobs require your presence during certain core hours.

Choose whether you prefer a more physically demanding job — such as landscaper or fitness worker — or an office job that requires a laptop (like virtual assistant). It may take time to find the right position, so be patient. It’s also a good idea to keep an eye on how your money comes and goes to ensure you’re sticking to your savings goals.

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.

SoFi helps you stay on top of your finances.

FAQ

What part-time job has the most flexible hours?

There is no single part-time job that has the most flexible hours. That said, jobs where work can be done independently and remotely usually have the most flexibility. Jobs like working as a freelance writer or graphic designer are good examples of jobs someone can usually do during times that work well for them.

What job gives you the most free time?

Flexible-schedule work-from-home jobs can give workers the most free time because they don’t have to worry about a commute. It’s also usually easier to control your work schedule when you work from home. As a bonus, you can use your breaks to be productive — by tackling household chores or working out — or enjoy down time.

What jobs can I make my own hours?

Some jobs with flexible schedules allow workers to set their own hours. The key is to look for a job where the hours someone works doesn’t matter as much as the type of work they produce.


Photo credit: iStock/Eva-Katalin

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.

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.

SORL1023004

Read more
Average Gas Prices by State and Year

Average Gas Prices by State and Year

Although gas prices hit new highs in 2022, that wasn’t the first time gas numbers have spiked. A look back at the average national gas price in previous decades can provide some context. So can observing how state regulations affect the price of gas in your area.

Keep reading to learn more about historical gas prices, get a sense of how things have changed over time, and learn tips for finding cheap gas in your area.

Key Points

•   Gas prices reached new highs in 2022, with fluctuations influenced by global events and oil production cuts.

•   As of early October 2023, the average price of gas was $3.77 per gallon.

•   Historical data shows significant changes in gas prices over the decades, adjusted for inflation.

•   State regulations and local market conditions significantly impact gas prices across different states.

•   Various apps and tools are available to help consumers find the cheapest gas prices in their area.

Why Gas Prices Are Rising in 2023

As anyone who’s gone to the pump in the past couple of years knows, filling up isn’t as cheap as it used to be. Gas prices have risen in the second half of 2023, due in large part to a drop in global oil production. In early October of 2023, the average price of gas was $3.77 per gallon, according to AAA — up 60 cents from the $3.17 average at the beginning of the year. Still, that’s lower than what consumers paid in June 2022, which saw the highest recorded average of $5.03.

Fuel prices have been soaring for a few reasons. Prior to coronavirus’s arrival in the U.S. in 2020, gas cost around $2.50 per gallon. During the pandemic, as fewer Americans were driving to work or for pleasure, the price of oil plummeted.

In 2021 people started driving and flying again, and demand for gas surged. The supply couldn’t keep up, so the price of gas increased.

Prices dropped a little in early 2022 as things started getting back to normal — until late February, when Russia invaded Ukraine. The ensuing war led to a steep increase in prices as Europe, the U.S., and other countries agreed to stop buying Russian oil.

Then, in mid-2023, Russia and Saudi Arabia announced an extension of their oil production cuts, which caused prices to jump up yet again. The U.S. Energy Information Administration expects gas prices to continue rising over the rest of the year.


💡 Quick Tip: Online tools make tracking your spending a breeze: You can easily set up budgets, then get instant updates on your progress, spot upcoming bills, analyze your spending habits, and more.

Average Price by State for Regular Unleaded in October 2023

Data is courtesy of AAA .

STATE NAME

Unleaded Price in October 2023

Alabama $3.28
Alaska $4.63
Arizona $4.59
Arkansas $3.33
California $5.93
Colorado $3.83
Connecticut $3.77
Delaware $3.29
Florida $3.52
Georgia $3.20
Hawaii $4.87
Idaho $4.11
Illinois $3.75
Indiana $3.52
Iowa $3.51
Kansas $3.56
Kentucky $3.37
Louisiana $3.29
Maine $3.74
Maryland $3.48
Massachusetts $3.73
Michigan $3.66
Minnesota $3.69
Mississippi $3.20
Missouri $3.45
Montana $4.05
Nebraska $3.67
Nevada $5.03
New Hampshire $3.64
New Jersey $3.59
New Mexico $3.68
New York $3.88
North Carolina $3.40
North Dakota $3.80
Ohio $3.35
Oklahoma $3.51
Oregon $4.72
Pennsylvania $3.85
Rhode Island $3.67
South Carolina $3.27
South Dakota $3.77
Tennessee $3.30
Texas $3.30
Utah $4.09
Vermont $3.79
Virginia $3.50
Washington $5.10
West Virginia $3.56
Wisconsin $3.41
Wyoming $3.86

Average Price by State for Premium in October 2023

Data is courtesy of AAA.

STATE NAME

Premium Price in October 2023

Alabama $4.05
Alaska $5.04
Arizona $5.20
Arkansas $4.11
California $6.33
Colorado $4.51
Connecticut $4.71
Delaware $4.16
Florida $4.25
Georgia $4.11
Hawaii $5.32
Idaho $4.56
Illinois $4.67
Indiana $4.48
Iowa $4.29
Kansas $4.19
Kentucky $4.25
Louisiana $4.03
Maine $4.59
Maryland $4.34
Massachusetts $4.61
Michigan $4.67
Minnesota $4.42
Mississippi $3.95
Missouri $4.11
Montana $4.63
Nebraska $4.31
Nevada $5.55
New Hampshire $4.50
New Jersey $4.45
New Mexico $4.33
New York $4.73
North Carolina $4.18
North Dakota $4.48
Ohio $4.27
Oklahoma $4.12
Oregon $5.18
Pennsylvania $4.58
Rhode Island $4.64
South Carolina $4.05
South Dakota $4.40
Tennessee $4.08
Texas $4.04
Utah $4.55
Vermont $4.62
Virginia $4.29
Washington $5.55
West Virginia $4.24
Wisconsin $4.30
Wyoming $4.41


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

Average Price by State for Diesel Gas in October 2023

Data is courtesy of AAA.

STATE NAME

Diesel Price in October 2023

Alabama $4.29
Alaska $4.77
Arizona $4.96
Arkansas $4.23
California $6.45
Colorado $4.43
Connecticut $4.62
Delaware $4.29
Florida $4.50
Georgia $4.21
Hawaii $5.83
Idaho $4.82
Illinois $4.32
Indiana $4.47
Iowa $4.30
Kansas $4.31
Kentucky $4.31
Louisiana $4.19
Maine $4.51
Maryland $4.40
Massachusetts $4.55
Michigan $4.40
Minnesota $4.38
Mississippi $4.11
Missouri $4.19
Montana $4.70
Nebraska $4.30
Nevada $5.25
New Hampshire $4.42
New Jersey $4.52
New Mexico $4.43
New York $4.74
North Carolina $4.33
North Dakota $4.41
Ohio $4.36
Oklahoma $4.22
Oregon $5.17
Pennsylvania $4.82
Rhode Island $4.54
South Carolina $4.30
South Dakota $4.41
Tennessee $4.27
Texas $4.09
Utah $4.72
Vermont $4.55
Virginia $4.36
Washington $5.67
West Virginia $4.32
Wisconsin $4.18
Wyoming $4.63

Average US Gas Price 1978 to 2022

Historical data courtesy of Axlewise. Prices are adjusted for inflation and shown in 2020 dollars.

Year

Gas Price

2020 $3.99
2021 $3.13
2020 $2.24
2019 $2.26
2018 $2.25
2017 $2.26
2016 $2.28
2015 $2.30
2014 $2.29
2013 $2.30
2012 $2.30
2011 $2.30
2010 $2.31
2009 $2.31
2008 $2.32
2007 $2.33
2006 $2.33
2005 $2.33
2004 $2.34
2003 $2.35
2002 $2.41
2001 $2.40
2000 $2.36
1999 $2.37
1998 $2.36
1997 $2.37
1996 $2.36
1995 $2.35
1994 $2.32
1993 $2.33
1992 $2.33
1991 $2.34
1990 $2.34
1989 $2.33
1988 $2.32
1987 $2.32
1986 $2.35
1985 $2.35
1984 $2.38
1983 $2.39
1982 $2.42
1981 $2.42
1980 $2.43
1979 $2.44
1978 $2.44

Check your score with SoFi

Track your credit score for free. Sign up and get $10.*


Tips for Finding Cheap Gas Stations in Your State

There are a few ways to find the cheapest gas in the nearby area and save money on your gas bill:

•   Use an app like GasBuddy to locate the lowest nearby price. The app lets drivers search by gas type, payment type, the brand of gas station, and other factors. The app also offers cashback deals, paid subscriptions, and more.

•   AAA has a gas price monitoring website that gets updated every day. Drivers can search by state and country to find the best prices.

•   Both Google Maps and Waze keep track of gas prices. When you search for gas stations within their maps, the price of gas at local stations will pop up. Although one can’t filter by price or automatically see the lowest price, it’s fairly easy to look around and find the cheapest option.

•   Another useful app is GetUpside. The app lets users compare gas prices near them, and also earn cash back every time they fill up their tank.

•   Besides the ability to buy in bulk, one of the perks of getting a Costco or Sam’s membership is getting discounts on gas. It’s often the cheapest option for club members.

•   Certain days of the week tend to have lower prices. Generally, Mondays are the cheapest, followed by Sunday, while Wednesday and Thursday are the most expensive days.

Recommended: What Credit Score is Needed to Buy a Car

The Takeaway

Gas prices go up and down in response to a variety of global and domestic factors. But there are a few ways to source the best deals on gas and stay within your budget, including apps and membership-only retailers.

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 was the price of gas in 1980?

In 1980, the average price of gas was $1.19. That is equivalent to $4.60 in 2023 dollars.

What year were gas prices the highest?

Before 2022, the highest average gas price was $4.11 in July 2008.

How much did gas cost in the 90s?

In the 1990s, gas cost between $1.11 and $1.15 per gallon.


Photo credit: iStock/skodonnell

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.

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.

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.

SORL1023003

Read more
TLS 1.2 Encrypted
Equal Housing Lender