How Are Leverage and Margin Similar and Different?

How Are Leverage and Margin Similar and Different?

The terms margin and leverage are often used interchangeably in the world of finance. While both terms refer to strategies that can be used to amplify an investor’s buying power when trading stocks and other securities, they have some key differences.

Margin trading, or “buying stocks on margin,” means borrowing money from your brokerage to purchase more stock than you could with your own funds. Your existing securities serve as collateral.

You will also pay interest on the amount borrowed from the broker.

Leverage is a broader financial concept, referring to the use of debt to take a larger position (whether in securities trading or business acquisitions) to potentially amplify returns. In the context of trading, leverage means using borrowing funds in order to increase trading positions — taking on more risk with the hope of more gains.

The use of leverage also means the possibility of losing more than you have. In addition to the risk of a trade going south, the borrowed funds must be repaid with interest. It’s important to understand how leverage works in terms of margin trading so that you know the amount of risk exposure you have.

Key Points

•   Margin trading and leverage use debt to increase buying power and potential returns.

•   Both methods significantly increase the risk of substantial financial losses.

•   Leverage can be applied through various financial instruments, not just margin accounts.

•   Margin trading involves borrowing funds from a broker, increasing exposure.

•   With a margin account, the borrowed funds must be repaid with interest, regardless of the outcome of the trade.

Leverage vs Margin

The reliance on borrowed funds, or debt, to enable bigger trades or purchases is commonly known as leverage. Margin trades are a type of leveraged trade.

What Is Leverage?

The use of leverage refers to investors who use debt to finance bigger positions.

The same is true in business: a highly leveraged company is one that has taken on large amounts of debt to fund an expansion or acquisition; in other words, a company with a high debt ratio.

What Is Margin?

Again, margin is a type of leverage. Investors use margin, i.e., borrowed funds, to place bigger trades than they could afford with cash. The securities in their brokerage account are used as collateral for the margin loan.

Margin, or margin accounts, can be set up through a traditional brokerage account or when investing online. Access to margin is highly regulated in terms of how much investors can borrow, and how much collateral is required to place a margin trade.

Investors can use leverage via other means (e.g., leveraged ETFs, which do not require margin accounts).

Recommended: Margin Trading vs Futures: Compared and Explained

A Closer Look at Margin

Margin trading is a sophisticated, higher-risk strategy that enables experienced investors to trade securities using money that they’ve borrowed from their broker. As noted, margin can allow bigger trades, with the potential for bigger gains — as well as the potential for steep losses.

For investors who qualify, a margin loan generally allows them to borrow up to 50% of the cost of a trade. Like any other loan, margin funds require collateral from the existing cash and securities in the account; in addition, the loan accrues interest. Margin interest rates fluctuate and are generally decided by the broker.

Traders must also maintain a minimum balance in their margin accounts called maintenance margin. Along with collateral, this can cover potential losses.

The Margin Call

If the account falls below that threshold, the broker can require a deposit to bring the balance up to the minimum amount. This is known as a margin call. If the investor fails to cover the shortfall, the broker can sell securities in the account to restore the necessary balance.

How Margin Trading Works

When using a cash account vs. a margin account to execute trades, every cash trade is secured by moneyfo in the investor’s account, entailing no risk to the broker.

With margin, though, a portion of each trade is secured by the initial margin (or cash), while the rest of the trade is covered by borrowed funds. If the margin requirement is 50%, and you want to place a $10,000 trade, you would need $5,000 in cash.

So while margin trading affords more buying power than investors could achieve with cash alone, the additional risk exposure means that investors always need to maintain a minimum level of collateral to meet margin requirements, or they may face a margin call.

Though margin requirements vary by broker, following are minimums currently required by financial regulators.

Term

Amount

Definition

Minimum margin $2,000 Deposit amount needed to open a margin account
Initial margin 50% Percentage of a trade that must be funded by cash
Maintenance margin 25% Minimum amount of equity in the margin account
Margin call Any If a margin account falls below the maintenance margin, the broker will require a deposit to cover the shortfall, or will sell securities in the account to do so.

As noted above, margin trading offers experienced investors some potential upsides as well as risks.

thumb_up

Pros:

•   Increases buying power

•   Potential for returns

•   Can provide an opportunity for diversification

thumb_down

Cons:

•   Must meet and maintain margin requirements

•   Potential for steep losses

•   Investors owe interest on borrowed funds

Increase your buying power with a margin loan from SoFi.

Borrow against your current investments at just 11%* and start margin trading.


*For full margin details, see terms.

A Closer Look at Leverage

Leverage in finance is a word used to describe borrowing money to increase returns. Investors might borrow capital from a broker or bank in order to make trades that are larger than their account’s equity, increasing their trading power.

Companies might use leverage to invest in parts of their business that they hope will ultimately raise the value of the company.

How Leverage Works

Leverage in a stock account is the result of borrowing money to trade securities, using an account’s margin feature. Leverage can work to the benefit or detriment of an investor depending on the movements of an account’s holdings.

Companies often use leverage to amplify returns on their investment projects, and the same logic applies to trading equities. You may see the potential for significant returns on the upside — or you may see your account value drop rapidly if the market moves against you.

Trading with leverage is riskier than strictly using your own cash, because there is the possibility of total loss.

Futures and forex trading often use higher leverage versus a margin account. Forex trading may allow a 1% initial margin. So a $1000 deposit would enable an investor to trade $100,000.

The initial margin amount required for a futures contract can range from 2% to 12%, depending on the commodity.

The Takeaway

Margin trading and leverage can be used to boost returns, but there are substantial risks to consider.
A margin account with stocks allows you to borrow against cash and securities when trading stocks online. Leverage measures the increase in trading power because of using margin.

It’s important to understand your personal risk tolerance before trading on margin and using leverage

If you’re an experienced trader and have the risk tolerance to try out trading on margin, consider enabling a SoFi margin account. With a SoFi margin account, experienced investors can take advantage of more investment opportunities, and potentially increase returns. That said, margin trading is a high-risk endeavor, and using margin loans can amplify losses as well as gains.


Get one of the most competitive margin loan rates with SoFi, 11%*

FAQ

Is leverage the same as margin?

Leverage is different from margin. You use a margin account to increase your leverage ratio when trading stocks. Futures and forex trading requires a trader to post margin to use leverage.

Can you trade without leverage?

You can trade without leverage, using securities with cash in your account instead. This method also avoids paying interest on margin balances. The downside is you will not be able to amplify returns as you would when trading on margin or with leverage. You can also trade leveraged ETFs without a margin trading account.

What is margin in stock trading?

Margin in stock trading happens when an investor takes out a loan on an investment with the goal of seeing that asset’s price rise. When the investment is sold, the borrowed funds are returned to the lender, but you as the investor keep the profits. The downside is if the security’s price drops, you will see enhanced losses. In either event, you owe the lender interest on borrowed funds.


Photo credit: iStock/DuxX

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.
For a full listing of the fees associated with Sofi Invest please view our fee schedule.

Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Characteristics and Risks of Standardized Options . Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes.
Exchange Traded Funds (ETFs): Investors should carefully consider the information contained in the prospectus, which contains the Fund’s investment objectives, risks, charges, expenses, and other relevant information. You may obtain a prospectus from the Fund company’s website or by email customer service at https://sofi.app.link/investchat. Please read the prospectus carefully prior to investing.
Shares of ETFs must be bought and sold at market price, which can vary significantly from the Fund’s net asset value (NAV). Investment returns are subject to market volatility and shares may be worth more or less their original value when redeemed. The diversification of an ETF will not protect against loss. An ETF may not achieve its stated investment objective. Rebalancing and other activities within the fund may be subject to tax consequences.

Disclaimer: The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.
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.

SOIN-Q125-113

Read more

How Much Does a UPS Driver Make a Year?

While the median annual salary for delivery drivers as of 2022 is $38,220, according to the Bureau of Labor Statistics, data from Zippia suggests that salaries in the $40K to $60K realm are possible. What’s more, UPS reports that the average overall compensation package for a full-time UPS delivery driver is $145,000, which reflects the benefits package that employees can receive.

For those who like working independently and being behind the wheel, a career as a UPS (United Parcel Service) driver could be a good fit. Keep reading for a breakdown of how much UPS drivers can earn and what this role entails.

Check your score with SoFi

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


What Are UPS Drivers?

UPS drivers pick up and deliver packages on a designated driving route for the UPS, a global package delivery and logistics company. They can have routes that include stops at residential and business addresses. You may well be familiar with the brown UPS trucks arriving and departing from your home or workplace.

Being a UPS driver can be a good option for introverted people since much of the day is spent solo, though there can be some social interaction when dropping off packages and getting signatures for them. Also, obviously, a UPS driver will need to be comfortable behind the wheel, in traffic, and ensuring that parcels get from point A to point B.

In terms of qualifications, you will likely need to be at least age 23, have a clean driving record, be trained to drive a truck, and be able to physically move packages of a certain weight (say, up to 70 pounds). If you have these qualifications, being a UPS driver can be a good-paying job without a college degree being required.


💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

How Much Do Starting UPS Drivers Make a Year?

If someone is new to working as a UPS driver, they shouldn’t expect to earn a top salary just yet. If you’re wondering how much a UPS delivery driver makes when they are entry-level, the lowest 10% of earners can expect to earn less than $26,740.

Recommended: Is $100K a Good Salary?

What Is the Average Salary for a UPS Driver?

You’re probably curious about how much a UPS driver can make annually, or on salary vs. hourly.

The answer to that question depends greatly on what state they work in. As the table illustrates below, the average hourly pay for UPS drivers can range from $19.56 to $30.05.

These figures are well above the national minimum wage.

What Is the Average UPS Driver Salary by State for 2023

State Average UPS Annual Salary Average UPS Hourly Pay
Washington $62,505 $30.05
Maryland $61,709 $29.67
Nebraska $60,422 $29.05
Virginia $59,629 $28.67
New York $59,560 $28.63
Delaware $57,768 $27.77
New Hampshire $57,620 $27.70
Oklahoma $56,158 $27.00
California $55,951 $26.90
Massachusetts $55,194 $26.54
Vermont $54,335 $26.12
Hawaii $90,774 $81,140
Wyoming $53,284 $25.62
Idaho $52,592 $25.28
Connecticut $51,960 $24.98
Maine $51,899 $24.95
West Virginia $51,761 $24.89
Rhode Island $51,216 $24.62
Texas $50,950 $24.50
Alaska $50,914 $24.48
Pennsylvania $50,885 $24.46
New Jersey $50,597 $24.33
Montana $50,538 $24.30
Nevada $50,513 $24.29
North Dakota $50,498 $24.28
Arizona $50,017 $24.05
Indiana $49,697 $23.89
Minnesota $49,294 $23.70
Tennessee $49,247 $23.68
Wisconsin $49,032 $23.57
South Dakota $49,023 $23.57
Ohio $48,890 $23.50
Oregon $48,264 $23.20
Utah $48,259 $23.20
Georgia $48,251 $23.20
Louisiana $47,806 $22.98
South Carolina $47,733 $22.95
Colorado $47,552 $22.86
Kansas $47,541 $22.86
Alabama $47,122 $22.65
Iowa $47,070 $22.63
New Mexico $46,586 $22.40
Florida $45,476 $21.86
Kentucky $45,448 $21.85
Arkansas $44,646 $21.46
Michigan $44,626 $21.45
Mississippi $44,537 $21.41
Illinois $44,403 $21.35
Missouri $43,694 $21.01
North Carolina $40,675 $19.56

Source: Zippia



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

UPS Driver Job Considerations for Pay & Benefits

A job as a UPS driver can appeal to those who have not earned a college degree and those who enjoy driving. However, this can be a physically demanding job, considering you are behind the wheel and carrying packages all day, and it may be stressful to be in traffic or dealing with the pressures of getting packages to their destination. Many workers, however, will enjoy the independence. It can be a good job for antisocial people, too.

Along with receiving a salary, UPS drivers also gain access to valuable employee benefits. This table highlights the current benefits for UPS drivers.

Healthcare Paid Time Off Retirement
$0 premiums Up to seven weeks vacation, 18 holidays, sick leave, and option days Defined benefit pension plan

Pros and Cons of UPS Driver Salary

There aren’t any notable cons associated with the UPS driver salary. These roles are in high demand and often regarded as having competitive pay and great employee benefits. The real question may be whether the job suits a particular employee’s needs and if they enjoy the challenges of the job, such as driving all day.

Recommended: How Much House Can I Afford?

The Takeaway

The average full-time truck driver in the US makes $38,220 a year, but UPS workers seem to average in the $40k to $60k range. In addition to pay, UPS drivers gain access to valuable employee benefits like employer-sponsored healthcare, paid time off, and a pension plan. These benefits can help people balance their budget and enjoy quality of life, personally and financially.

FAQ

Can you make 100k a year as a UPS driver?

Yes, it may be possible to make $100,000 or more a year as a UPS driver, depending on where you work, how long you have been on the job, and what your specific role is. UPS drivers earn good salaries and on average, full-time drivers earn a compensation package of up to $145,000, according to UPS.

Do people like being a UPS driver?

Many people enjoy being a UPS driver due to the independent and consistent nature of the work. Those who would prefer to spend their days on their own versus working on a team could enjoy this role.

Is it hard to get hired as a UPS driver?

Because UPS drivers earn good salaries and have robust benefits packages, these can be competitive roles to land. That being said, UPS hires drivers all across the country so there are many job opportunities with this company.


About the author

Jacqueline DeMarco

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.



Photo credit: iStock/sturti

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

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

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.

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.

SORL0124019

Read more

How Much Does a Travel Agent Make a Year?

The median annual pay for travel agents is $46,400, according to the Bureau of Labor Statistics most recent data.

Travel is a passion many people share, but not many people are fortunate enough to make their love of travel their full-time job. If someone is skilled at finding the best travel deals and building the perfect vacation itinerary, they may find that working as a travel agent is a rewarding way to earn a living.

To better understand what it’s like to work as a travel agent and how much they earn, keep reading.

Check your score with SoFi

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


What Are Travel Agents?

Travel agents help their clients plan and book their trips. They may work for an individual client to plan their vacation or a corporate client to book their work travel. No two trips they manage are likely to be exactly the same, but they can help arrange everything from flights to hotels to excursions to dining reservations. Many travel agents can also give their clients access to deals through partner hotels and other travel vendors.

A travel agent can work independently. In-house at a large corporation, or for a major travel company. They may pursue this work full-time or as a side hustle. Given that a significant part of this career involves working with individuals to understand their travel aspirations and needs, it’s likely not a good job for antisocial people.

Travel agents can train in different ways: Some have a bachelor’s degree in an allied field or an associate’s degree in travel and tourism. There are many professional training programs and certifications available, such as ASTA, IATA, TIDS, and CLIA for different dimensions of travel planning.

As part of their work, travel agents may have the opportunity to visit various properties and destinations to make sure they would be a good fit for clients and learn about their selling points. This is often available at a reduced rate or for free and can be a major perk of working as a travel agent.

However, it’s worth noting that travel agents likely have to be available 24/7 and can deal with considerable stress, if, say, a client misses their flight or extreme weather ruins a vacation.


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

How Much Do Starting Travel Agents Make a Year?

If you’re wondering how much money a travel agent makes, the answer will depend a lot on how experienced the travel agent in question is. For example, entry-level travel agents can earn a lot less than more experienced agents. The lowest 10% of earners in this role make less than $29,650.

The highest 10% make more competitive pay north of $64,100. And there are those travel agents who work in the luxury sector who make considerably more.

Indeed, some could make an annual salary of $100,000 or more.

What is the Average Salary for a Travel Agent?

The Bureau of Labor Statistics reports that the latest median pay per year for travel agents is $46,400 and the median hourly pay is $22.31.

Alongside experience, location can majorly impact a travel agent’s earning potential. The following table illustrates how much a travel agent’s average salary can vary by state, arranged from highest to lowest. For example, in New York, travel agents make an average annual salary of $51,002, but in Arkansas, they earn almost $20,000 less at an average of $33,194.

What is the Average Travel Agent Salary by State for 2023

State Annual Salary Monthly Pay Weekly Pay Hourly Wage
New York $51,002 $4,250 $980 $24.52
Pennsylvania $46,702 $3,891 $898 $22.45
New Hampshire $45,667 $3,805 $878 $21.96
New Jersey $44,975 $3,747 $864 $21.62
Wyoming $44,490 $3,707 $855 $21.39
Washington $44,429 $3,702 $854 $21.36
Wisconsin $44,110 $3,675 $848 $21.21
Massachusetts $44,109 $3,675 $848 $21.21
Alaska $43,993 $3,666 $846 $21.15
Oregon $43,637 $3,636 $839 $20.98
Indiana $43,568 $3,630 $837 $20.95
North Dakota $43,557 $3,629 $837 $20.94
Hawaii $42,711 $3,559 $821 $20.53
Arizona $42,667 $3,555 $820 $20.51
New Mexico $42,402 $3,533 $815 $20.39
Colorado $42,122 $3,510 $810 $20.25
Minnesota $42,111 $3,509 $809 $20.25
Montana $42,024 $3,502 $808 $20.20
Nevada $41,598 $3,466 $799 $20.00
Alabama $41,499 $3,458 $798 $19.95
South Dakota $41,167 $3,430 $791 $19.79
Vermont $41,101 $3,425 $790 $19.76
Ohio $41,077 $3,423 $789 $19.75
Rhode Island $40,418 $3,368 $777 $19.43
Iowa $39,934 $3,327 $767 $19.20
Delaware $39,881 $3,323 $766 $19.17
Connecticut $39,806 $3,317 $765 $19.14
Virginia $39,419 $3,284 $758 $18.95
Mississippi $39,257 $3,271 $754 $18.87
Tennessee $39,219 $3,268 $754 $18.86
Utah $39,017 $3,251 $750 $18.76
Illinois $38,900 $3,241 $748 $18.70
Georgia $38,659 $3,221 $743 $18.59
Maryland $38,651 $3,220 $743 $18.58
California $38,534 $3,211 $741 $18.53
Nebraska $37,909 $3,159 $729 $18.23
Maine $37,734 $3,144 $725 $18.14
Missouri $37,456 $3,121 $720 $18.01
South Carolina $37,087 $3,090 $713 $17.83
Kansas $36,952 $3,079 $710 $17.77
Idaho $36,789 $3,065 $707 $17.69
Louisiana $36,765 $3,063 $707 $17.68
Oklahoma $36,712 $3,059 $706 $17.65
Texas $36,475 $3,039 $701 $17.54
North Carolina $36,322 $3,026 $698 $17.46
West Virginia $36,068 $3,005 $693 $17.34
Kentucky $34,977 $2,914 $672 $16.82
Michigan $34,895 $2,907 $671 $16.78
Florida $34,212 $2,851 $657 $16.45
Arkansas $33,194 $2,766 $638 $15.96

Source: ZipRecruiter

Travel Agent Job Considerations for Pay & Benefits

Working as a travel agent can be very flexible. While full-time positions are available in this role, some travel agents choose to work part-time or for themselves as entrepreneurs.

When working full-time for a travel advisory firm, travel agents can expect to gain access to benefits like health insurance and retirement contribution matching. If they work part-time or are self-employed, they will need to provide themselves with those benefits, which can eat into their take-home pay.


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

Pros and Cons of Travel Agent Salary

The main disadvantage of a travel agent’s salary is that the median annual salary is on the lower side at just $46,400. That being said, one of the main advantages of this salary is that it can come with hefty bonuses based on travel bookings with partners that offer commissions to travel agents. Also, travel agents often get discounts and freebies as they themselves travel to check out new resorts and attractions.

Travel agents who work for themselves can also choose to set their own rates and can potentially earn more. Or those who cater to high net-worth individuals may be able to raise their income.

Recommended: Work-from-Home Jobs for Retirees

The Takeaway

A travel agent who is super organized and passionate about travel can help make their client’s lives easier and their trips more enjoyable. In exchange for their savviness, some travel agents earn good salaries doing work that they truly enjoy and have perks that involve more travel at lower or no cost for their own purposes.

SoFi helps you stay on top of your finances.

FAQ

Can you make 100k a year as a travel agent?

While most travel agents don’t earn $100,000 per year, those who choose to work for themselves and set their own rates or cater to an elite clientele can possibly make six figures. Many travel agents work on commission, so they can also stand to earn more if their clients book a lot of expensive trips.

Do people like being a travel agent?

Many people like working as a travel agent because it’s a fun way to put their love of travel to use. It tends to be a good job for those who consider themselves to be a “people person” since there’s lots of interaction with clients. Also, it’s good for people who can “roll with the punches” since travel plans often change for various reasons.

Is it hard to get hired as a travel agent?

The demand for travel agents is on par with the average of other professions. So, while it’s not seeing a surge in need, there should be availability of jobs as a travel agent.


About the author

Jacqueline DeMarco

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.



Photo credit: iStock/Dimensions

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

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

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.

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

SORL0124040

Read more

How Much Does a Teacher Make a Year?

The most recent mean annual salary for teachers nationwide is $66,450, according to the Bureau of Labor Statistics. However, there can be considerable variation depending on where a person lives, what level of student they teach, how much experience they have, and other factors.

Working as a teacher comes with an equal set of challenges and rewards. Being able to help shape young minds can be very fulfilling as well as challenging.

Want to learn more about how much teachers make and what the role entails? Read on for more insight.

Check your score with SoFi

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


What Are Teachers?

Working as a teacher can look a bit different depending on whether the teacher works in an elementary, middle, or high school setting. That being said, all teachers create lesson plans and deliver those lessons to their students. They often work individually with students who need a bit of extra support and can help foster social and emotional development. Alongside instructing pupils, they grade assignments, write report cards, and meet with parents to help them understand their child’s education progress.

Teaching may not be the right career for those who are introverts. It typically involves interacting with students, their parents, and other faculty members for much of the workday.

Worth noting: Qualifications for teaching can vary. Teachers may be required to have certificates in order to teach, which can mean time, energy, and expense to attain those credentials.


💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

How Much Do Starting Teachers Make a Year?

Like many chosen career paths, working as an entry-level teacher often comes with a lower salary. How much money might a teacher make a year when they are first starting out? The mean salary for the lowest 10% of earners in this role nationwide is $30,230.

Incidentally, some teachers do rise to earn six figures. As teachers gain years of experience, they can increase their salary (the top 10% of earners make $102,800 per year).

What is the Average Salary for a Teacher?

Regarding how much a teacher can expect to earn on average, as briefly noted earlier, the national mean is $66,450. That being said, the state you work in can greatly impact how much they earn. Cost of living and other factors are responsible for the variation in salaries, which can be significant. For example:

•   The average annual salary in Florida is $32,088.

•   In Oregon, the average is $52,816.

Prospective teachers can review the following chart to learn more about what their salary and hourly wage expectations should be in their state.

What is the Average Teacher Salary by State for 2023

State Annual Salary Monthly Pay Weekly Pay Hourly Wage
Oregon $52,816 $4,401 $1,015 $25.39
Alaska $52,647 $4,387 $1,012 $25.31
North Dakota $52,570 $4,380 $1,010 $25.27
Massachusetts $52,116 $4,343 $1,002 $25.06
Hawaii $51,472 $4,289 $989 $24.75
Washington $50,724 $4,227 $975 $24.39
Nevada $49,778 $4,148 $957 $23.93
South Dakota $49,685 $4,140 $955 $23.89
Colorado $49,299 $4,108 $948 $23.70
Rhode Island $48,919 $4,076 $940 $23.52
Mississippi $47,737 $3,978 $918 $22.95
New York $47,209 $3,934 $907 $22.70
Delaware $46,389 $3,865 $892 $22.30
Vermont $46,082 $3,840 $886 $22.15
Virginia $45,736 $3,811 $879 $21.99
Illinois $45,640 $3,803 $877 $21.94
Maryland $44,930 $3,744 $864 $21.60
Kansas $44,913 $3,742 $863 $21.59
Nebraska $43,985 $3,665 $845 $21.15
California $43,746 $3,645 $841 $21.03
Missouri $43,676 $3,639 $839 $21.00
South Carolina $43,292 $3,607 $832 $20.81
Pennsylvania $43,247 $3,603 $831 $20.79
New Jersey $43,214 $3,601 $831 $20.78
Wisconsin $42,811 $3,567 $823 $20.58
Maine $42,741 $3,561 $821 $20.55
Oklahoma $42,596 $3,549 $819 $20.48
North Carolina $42,399 $3,533 $815 $20.38
New Hampshire $42,049 $3,504 $808 $20.22
Idaho $41,837 $3,486 $804 $20.11
Texas $41,544 $3,462 $798 $19.97
Wyoming $41,397 $3,449 $796 $19.90
Minnesota $41,366 $3,447 $795 $19.89
Kentucky $41,187 $3,432 $792 $19.80
New Mexico $41,116 $3,426 $790 $19.77
Indiana $40,861 $3,405 $785 $19.64
Michigan $40,815 $3,401 $784 $19.62
Ohio $40,205 $3,350 $773 $19.33
Arizona $40,016 $3,334 $769 $19.24
Connecticut $39,902 $3,325 $767 $19.18
Iowa $39,557 $3,296 $760 $19.02
Montana $39,413 $3,284 $757 $18.95
Arkansas $38,945 $3,245 $748 $18.72
Alabama $38,921 $3,243 $748 $18.71
Utah $38,419 $3,201 $738 $18.47
Tennessee $38,383 $3,198 $738 $18.45
Georgia $36,258 $3,021 $697 $17.43
Louisiana $36,117 $3,009 $694 $17.36
West Virginia $33,400 $2,783 $642 $16.06
Florida $32,088 $2,674 $617 $15.43

Source: ZipRecruiter

Recommended: What Trade Makes the Most Money?

Teacher Job Considerations for Pay & Benefits

How much a teacher earns and what type of benefits they qualify for can depend on if they choose to work as a full-time teacher or as a substitute teacher. If someone works as a substitute, they are generally paid a day rate only for the days they work and don’t qualify for benefits like health care or retirement plans.

However, working as a substitute teacher can be a great job for retirees looking to earn a bit of extra cash without committing to a consistent part-time work schedule. It might be good for someone who has a side hustle going or can fill in free days with work as, say, a rideshare driver or babysitter.

Full-time teachers generally qualify for those benefits and other traditional employee benefits like paid time off for sick and personal days. Some may even still qualify for pensions, which can be a real plus when it comes to retirement planning.

There’s also the fact that school is out in the summer. Some teachers may love this time off and want that family time. Others may choose to teach summer school or at a camp or otherwise bring in extra income. Still others may use that time for creative or entrepreneurial projects, but it’s important to note whether or not you will receive a paycheck during those months.


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

Pros and Cons of Teacher Salary

Still on the fence about becoming a teacher? These are some of the common pros and cons associated with the salary.

Pros Cons
Full-time salaries available May not receive pay during summer or holiday breaks
Compensation package often includes benefits

Recommended: How to Negotiate for Competitive Pay

The Takeaway

The average teacher salary in the US tops $66,000. If someone has a passion for teaching and likes working with young people, they will likely love their job. There are also valuable benefits that may be available, such as paid vacations and summers off.

SoFi helps you stay on top of your finances.

FAQ

Can you make 100k a year as a teacher?

It is possible to make $100,000 a year as a teacher, which is a good salary. The 90th percentile of earners in this role nationwide brings home $102,800 annually. Teachers tend to see higher salaries as they gain years of work experience.

Do people like being a teacher?

Working as a teacher can be very hard work, but it is often very rewarding. Those who enjoy working with children and helping them learn will find they get a lot out of being a teacher. However, if they consider themselves to be antisocial, they may find this role very draining.

Is it hard to get hired as a teacher?

How challenging it is to get hired as a teacher can vary by location and year. It simply depends on what the current demand for teachers is. It is generally harder to find a role as a public school teacher as those jobs require having specific advanced degrees.


About the author

Jacqueline DeMarco

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.



Photo credit: iStock/baona

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

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

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.

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

SORL0124023

Read more

How Much Does a Surgical Tech Make a Year

The median pay for surgical techs is $56,350 annually, according to the Bureau of Labor Statistics.

Working as a surgical tech can be a great way to build a fulfilling career in the medical field. Read on to learn more about a surgical tech’s role and salary, as well as the pros and cons of this job.

What Are Surgical Techs

The role of a surgical tech can vary greatly but generally involves assisting surgeons with tasks, such as closing surgical sites and making incisions. Other common duties include:

•   Readying supplies for surgery

•   Sterilizing equipment

•   Getting the operating room surgery-ready

•   Physically preparing patients for surgery

•   Assisting surgeons during surgery

•   Maintaining sterile environment

•   Keeping track of supplies during and after surgery.

While some of these tasks are solitary, many involve interacting with patients and other members of the medical team. Given this degree of interaction, this can be a very rewarding career choice, although it may not be a good job for antisocial people.

Surgical techs often complete training at a community college or vocational school, typically requiring nine to 24 months of study. For this reason, being a surgical tech can be a good career without a college degree.


💡 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.

Check your score with SoFi

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


How Much Do Starting Surgical Techs Make a Year?

Here’s information about what a surgical tech can make as an entry-level salary and later on in their career. The lowest 10% of surgical tech earners make less than $35,130 as of 2022.

However, there is a lot of room to move up in this field. The top 10% of earners make on average $95,060, meaning they are very close to making a $100,000 salary per year.

If someone is looking to optimize their earning potential, they should look for a surgical tech role in a high-paying setting. The type of medical office a surgical tech works in can affect how much they earn:

•   Offices of physicians: $62,400

•   Outpatient care centers: $59,740

•   General medical and surgical hospitals; state, local, and private: $58,460

•   Offices of dentists: $48,810.

Recommended: The 50 Highest Paying Jobs in the US

What is the Average Salary for a Surgical Tech?

Those considering training to be a surgical tech may wonder about pay grades. The truth is, that answer depends a lot on the state they end up working in. The median hourly pay rate for this role is $27.09, but as the table illustrates below, can vary greatly by state.

The figures here for average salary and wages are arranged from highest to lowest paying.


What Is the Average Surgical Tech Salary by State for 2023

State

Annual Salary

Monthly Pay

Weekly Pay

Hourly Wage

Oregon $112,962 $9,413 $2,172 $54.31
Alaska $112,406 $9,367 $2,161 $54.04
North Dakota $112,389 $9,365 $2,161 $54.03
Massachusetts $111,047 $9,253 $2,135 $53.39
Hawaii $110,015 $9,167 $2,115 $52.89
Washington $107,487 $8,957 $2,067 $51.68
Nevada $106,280 $8,856 $2,043 $51.10
South Dakota $106,220 $8,851 $2,042 $51.07
Colorado $104,887 $8,740 $2,017 $50.43
Rhode Island $104,629 $8,719 $2,012 $50.30
New York $99,697 $8,308 $1,917 $47.93
Delaware $98,598 $8,216 $1,896 $47.40
Vermont $97,356 $8,113 $1,872 $46.81
Virginia $97,172 $8,097 $1,868 $46.72
Illinois $97,143 $8,095 $1,868 $46.70
Maryland $95,489 $7,957 $1,836 $45.91
Nebraska $93,450 $7,787 $1,797 $44.93
Missouri $92,871 $7,739 $1,785 $44.65
California $92,615 $7,717 $1,781 $44.53
South Carolina $92,071 $7,672 $1,770 $44.26
Pennsylvania $91,330 $7,610 $1,756 $43.91
New Jersey $91,143 $7,595 $1,752 $43.82
Oklahoma $90,500 $7,541 $1,740 $43.51
Maine $90,453 $7,537 $1,739 $43.49
Wisconsin $90,262 $7,521 $1,735 $43.40
North Carolina $90,170 $7,514 $1,734 $43.35
New Hampshire $88,816 $7,401 $1,708 $42.70
Idaho $88,596 $7,383 $1,703 $42.59
Texas $88,000 $7,333 $1,692 $42.31
Kentucky $87,715 $7,309 $1,686 $42.17
Wyoming $87,407 $7,283 $1,680 $42.02
Minnesota $87,181 $7,265 $1,676 $41.91
Michigan $86,830 $7,235 $1,669 $41.75
New Mexico $86,691 $7,224 $1,667 $41.68
Indiana $86,252 $7,187 $1,658 $41.47
Ohio $84,743 $7,061 $1,629 $40.74
Arizona $84,468 $7,039 $1,624 $40.61
Connecticut $84,039 $7,003 $1,616 $40.40
Mississippi $83,449 $6,954 $1,604 $40.12
Iowa $83,345 $6,945 $1,602 $40.07
Montana $83,195 $6,932 $1,599 $40.00
Arkansas $82,892 $6,907 $1,594 $39.85
Alabama $82,157 $6,846 $1,579 $39.50
Utah $80,963 $6,746 $1,556 $38.92
Tennessee $80,904 $6,742 $1,555 $38.90
Kansas $78,574 $6,547 $1,511 $37.78
Georgia $76,536 $6,378 $1,471 $36.80
Louisiana $76,117 $6,343 $1,463 $36.59
West Virginia $70,535 $5,877 $1,356 $33.91
Florida $67,735 $5,644 $1,302 $32.57

Source: Ziprecruiter



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

Surgical Tech Job Considerations for Pay & Benefits

It’s very common for surgical techs to hold full-time positions and as such, they tend to qualify for traditional employee benefits like paid time off, retirement accounts, and healthcare. This can be a very demanding role that may require being on call during weekends, holidays, and nights. Shifts can also be very lengthy and last longer than a typical eight-hour workday.

Pros and Cons of Surgical Tech Salary

Still not sure if working as a surgical tech is the right fit? Here are some pros and cons associated with this role’s salary and job requirements.

Pros

Cons

•   Median annual salary is high ($56,350)

•   May not need a college degree

•   Employment opportunities expected to grow by 5% from 2022 to 2032

•   Around 8,600 openings for this role per year

•   Long shifts that can surpass eight hours

•   Physically demanding work

•   Can be on call during nights, weekends, and holidays

Recommended: High-paying Trade and Vocational Jobs in 2024

The Takeaway

With a solid median annual salary of $56,350 and the top 10% of income earners in the surgical tech field making more than $95,060, there is a lot of earning potential in this role. The job can be demanding and being on call is often part of the job description, but the high pay can be worth the sacrifices.

FAQ

Can you make 100k a year as a surgical tech?

It may be possible to make $100,000 a year as a surgical tech for those with a lot of experience or who work in high-cost-of-living areas where standard pay is higher. The top 10% of surgical tech earners make more than $95,060 annually, so the potential to earn six figures is within reach.

Do people like being a surgical tech?

Many people enjoy working as a surgical tech, especially if they have an interest in the medical field and helping people. However, those who are introverts or who consider themselves antisocial may not enjoy this job.

Is it hard to get hired as a surgical tech?

While you have to meet very specific qualifications to work as a surgical tech, if you do, you can likely find job openings in this field. Between 2022 and 2023, surgical tech employment is projected to grow by 5%. This growth rate is faster than average compared to other occupations.


About the author

Jacqueline DeMarco

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.



Photo credit: iStock/SDI Productions

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

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

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.

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

SORL0124021

Read more
TLS 1.2 Encrypted
Equal Housing Lender