What Are the Consequences of Not Saving Money?

What Are the Consequences of Not Saving Money?

Many Americans struggle to save money, but it’s generally worth the effort to do so since there can be serious downsides to not stashing away cash. Those consequences can range from going into debt, facing financial hardship after losing your job, and not being able to achieve your aspirations, like homeownership.

There are a variety of strategies that may be helpful in saving more money, and it may be useful to put together a simple budget and set some savings goals. If all else fails, you may even want to consult with a financial professional, because neglecting to save can lead to some undesired outcomes, as noted.

The Importance of Saving Money

To help you get motivated to put money in the bank, here are a dozen dangers or potential consequences related to not saving money. They may help you understand why it’s best to put away cash and motivate you to tuck some into a savings account.

1. Going Into Debt

Without a savings cushion, any expense — from an unexpected car repair to paying for your child’s college education — can put you in debt. In addition, while credit cards and loans are convenient ways to afford more than your bank account, you pay more in the long run because of interest and loan fees.

Since debt often costs more than the actual expense, you can essentially save a considerable amount of money by plumping up your piggy bank. You can try easy ways to save, such as creating a simple budget or automating savings, to put aside a few dollars a month before you can spend it. These moves can ensure that you’ll be using savings instead of debt to pay for your upcoming expenses.


💡 Quick Tip: Want a simple way to save more everyday? When you turn on Roundups, all of your debit card purchases are automatically rounded up to the next dollar and deposited into your online savings account.

2. Having a Social Life Can Be Nonexistent

Spending time with your friends and family are likely on the list of things you enjoy most in life. But a full social calendar may put you in a sticky financial situation if you haven’t saved anything. From movie dates to happy hours to ball games, these expenses can add up.

No matter your income level, how much money you save each paycheck can make the difference between having a nonexistent social life and a happening one.

3. Life Being More Stressful

Most Americans say money is a major stressor in their lives. When you think about it, failing to save can make you feel stuck or overwhelmed. Your personal, financial, and professional life can suffer because a lack of savings has cut off your options.

Achieving your goals, financial and otherwise, may be a struggle without savings to propel you forward. The importance of saving money goes beyond paying an unexpected bill; it can affect your daily quality of life.

4. Not Having the Money for an Emergency

You’ll find many articles, resources, and financial professionals advising you to set aside an emergency fund. Life is expensive and doesn’t always go as planned. So, saving in advance helps you manage life’s unexpected costs.

For example, building an emergency fund might be a better choice than splurging if you get a raise. You’ll thank yourself later when, say, your furnace goes out or you wind up with a major medical bill. Typically, money experts recommend having at least three to six months’ worth of basic expenses salted away in an emergency or rainy day fund.

5. Not Being Able to Celebrate Events

Life can be full of amazing milestones like getting married, starting a family, or graduating from college. Unfortunately, celebrating these life events with your family often takes substantial cash. Not being able to recognize these events the way you’d like to is another one of the many dangers of not saving money. The lack of a financial cushion could also lead you to skip, say, a friend’s destination wedding.

Although you could put your celebration on your credit card, you run the risk of going into debt. This will likely cost more over the long run since you have to pay for interest. In other words, you might still be paying it off for years to come.

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6. Not Having a Viable Option if You Are Fired

No one plans on getting fired; however, it’s always possible to lose your job unexpectedly. Financial emergencies like this are an important reason to save. Saving can give you security during this kind of a crisis. If you don’t have some cash available, you might have to look into financially downsizing.

This underscores the importance of saving money from your salary when you are employed. You might consider having a small amount automatically transferred from your checking account into savings on payday.

As mentioned above, you should save at least three months of your expenses in an emergency fund. This way, you can have a solid safety net if you get laid off or are temporarily disabled and can’t work for an extended period.


💡 Quick Tip: Want to save more, spend smarter? Let your bank manage the basics. It’s surprisingly easy, and secure, when you open an online bank account.

7. Not Having an Inheritance for Your Children

If you’re a parent or plan to be one, you likely want to give your kids a leg up in life. An inheritance can help your children or heirs to build their nest eggs and meet life’s expenses without stress.

Having both savings and an estate plan can be a lasting, life-changing gift to those who matter to you most. These assets can serve to eliminate the possibility of financial legal challenges for your family. That said, being unable to leave a legacy is a consequence of not saving money.

8. Not Being Able to Buy a Home

Many people hope to buy a home one day, but you’ll probably need some cash saved up to initiate the purchase.

In many cases, you may need a 20% down payment to qualify for most conventional mortgages. Buying a home also usually involves other expenses, such as closing costs, repairs, moving costs, and more. Not having savings can make it almost impossible to afford the home of your dreams.

9. Not Being Able to Go on Vacation

Without savings, it’s challenging or even sometimes impossible to take time off for some rest. When you don’t set money aside, you can get sucked into the never-ending cycle of living paycheck-to-paycheck. Since you need to work to support yourself, vacations may become less frequent or disappear altogether.

While you may think you can put a vacation on credit, that can perpetuate the “can’t save” situation, because you’ll have debt to wrangle. You could wind up coming home from your getaway to face more bills.

10. Not Having Much Financial Freedom

One of the most potent limiting factors in life can be a lack of savings. With a robust bank account to fall back on, you increase your options and flexibility. Moving to a city or state with more opportunity, taking a professional course or college classes, and starting a business can all be possibilities if you’ve saved money.

Of course money can’t solve every problem life throws at you. However, it is a powerful tool that allows you to access opportunities. Remembering this can help you get serious about saving money.

11. Not Being Able to Invest

If you aren’t able to save money, you likely won’t be able to invest those savings, either. Which means potentially missing out on market gains over time (the market tends to go up over time, though it is volatile over the short-term).

There are different levels of risk, of course, when you decide to invest your money rather than keeping it in a savings account, but the main point is that if you can’t manage to save, you may also have a hard time managing to invest. That could mean that your money’s growth potential is stunted, and may delay you in reaching your financial goals.

12. Not Being Able to Help Others

When someone is in financial need, lending money can help them get back on their feet. Whether it’s through providing a micro-loan, donating to a charity, or contributing to a scholarship, you can make a difference in the lives of others no matter how much you give.

But, if you don’t have savings, you may not be able to afford a helping hand.

Why Saving Money Is Very Important

Since money touches almost every area of your life, saving it for what matters most can be essential. Reining in your spending habits can be hard, no doubt, but the payoff quite literally is being able to afford your needs and your goals.

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Reaching your financial goals will likely depend, in large part, on your ability to save your money. While this can be difficult in the moment (saying no to splurges, for instance), it can set you up for years of financial wellness.

Whether you want to be able to celebrate big moments with friends, start your own business, own a home, or take a major vacation, saving money can help put you on the right path.

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


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

FAQ

Can I get by without saving money?

While it’s possible to get by without savings, there may come a day when you run into an unexpected expense that causes financial hardship. If you live paycheck to paycheck without an emergency fund, an unforeseen cost could set you back and make it challenging to recover.

Is debt inevitable if you do not save?

Without savings to fall back on, it’s quite possible to go into debt when unforeseen expenses arise. Contributing to a savings account, even a small amount monthly, can make unexpected costs more manageable so you can sidestep debt.

When is the best time to start saving?

It’s best to start saving now to give yourself time to build a cushion. Remember, everyone has to start somewhere. Even if you can only save $20 per month, your future self will likely thank you.


About the author

Ashley Kilroy

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.



Photo credit: iStock/nicoletaionescu

SoFi members with Eligible Direct Deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below).

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning 3.80% APY, we encourage you to check your APY Details page the day after your Eligible Direct Deposit arrives. If your APY is not showing as 3.80%, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning 3.80% APY from the date you contact SoFi for the rest of the current 30-day Evaluation Period. You will also be eligible for 3.80% APY on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi members with Eligible Direct Deposit are eligible for other SoFi Plus benefits.

As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Eligible Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

Members without either Eligible Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, or who do not enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days, will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
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Scholarships for Computer Science Majors

Whether you’re dreaming of designing your own software or diving into cybersecurity, a computer science degree is a great way to launch your career. But figuring out how to pay for school can feel overwhelming, especially if your savings doesn’t cover all of your college costs. That’s where scholarships come in.

Computer science scholarships can help with tuition without adding extra debt. Since most scholarships have specific requirements you must meet to apply, it’s important to do your research and find the ones that are the best fit for you.

Here’s a look at the top scholarships for computer science majors, including how to find scholarships and tips for applying.

How to Find Scholarships for Computer Science Programs

There are many ways to find scholarships that could help cover computer science program costs. To start, reach out to the financial aid office at the school you’re planning to attend or begin searching online.

Here are some additional places to look:

•   Scholarship search sites, such as SoFi’s Scholarship Search Tool

•   Local resources, including libraries, businesses, and community organizations

•   The U.S. Department of Labor’s FREE scholarship search tool

•   Your employer or your parents’ workplace

•   Your library’s reference section

•   Your high school counselor

•   Professional organizations related to the computer science industry

•   Charities, faith-based or community groups, local companies, and service organizations

Word of caution: Always double-check that scholarship offers are legit. If someone asks you to pay to find scholarships or other financial aid, it’s probably a scam.

Why Undergraduate and Graduate Students Pursue Computer Science

Computer science is a fast-growing field, with more and more opportunities opening up every day. Degree programs let you dive into the latest tech and computer theories, preparing you to come up with innovative solutions to today’s challenges.

Some students combine computer science with other areas they’re interested in, like biology, business, security, or public policy, to tackle a wider range of complex problems. And with an average salary of $104,610 a year, computer science is definitely an appealing field to specialize in.

Recommended: How to Pay for College

Computer Science Scholarships for High School Students

Here are some scholarships to consider if you’re looking to fund your education in computer science or related fields.

Generation Google Scholarship

Scholarship amount: $10,000

Application deadline: Closed for 2024

Generation Google Scholarship offers $10,000 to help future computer scientists thrive in tech. To qualify, you need to be a high school senior or currently enrolled full-time in a bachelor’s program at an accredited university. You must also demonstrate a strong academic record and financial need.

Golden Door Scholarship

Scholarship amount: Funding for a four-year degree

Application deadline: Fall 2025 now open

The Golden Door Scholarship provides funding for a four-year degree for students studying software engineering, nursing, data analytics, or business analytics at GDS partner schools. Applicants must reside in North Carolina, South Carolina, or Georgia to be considered.

Stantec Equity & Diversity Scholarship

Scholarship amount: $1,500-$10,000

Application deadline: October 14

The Stantec Equity & Diversity Scholarship awards $200,000 annually in scholarships ranging from $1,500 to $10,000, plus 10 paid internships each year. To qualify, you must be pursuing a STEAM (science, technology, engineering, art/architecture, and mathematics) major and belong to a historically underrepresented population or group.

National Space Club and Foundation Keynote Scholar

Scholarship amount: Up to $15,000

Application deadline: November 15

The National Space Club and Foundation Keynote Scholar offers a scholarship up to $15,000 and the chance to give the keynote address at the annual Goddard Memorial Dinner. To qualify, you must be pursuing a degree in a STEM field, ideally with a focus on space.

IEEE Presidents’ Scholarship

Scholarship amount: $10,000 over four years

Application deadline: Varies

The IEEE Presidents’ Scholarship provides $10,000 over four years of undergraduate study, plus an IEEE Student membership. Second- and third-place winners receive $600 and $400, respectively. To qualify, you must present a project and be a finalist at the Regeneron International Science and Engineering Fair.

Regeneron Science Talent Search Scholarship

Scholarship amount: $250,000

Application deadline: November 7

The Regeneron Science Talent Search Scholarship is an annual science competition where high school seniors submit original research to win a first-place prize of $250,000, recognizing the next generation of STEM leaders.

ISC2 Undergraduate/Associate Scholarships

Scholarship amount: Up to $5,000

Application deadline: February 25

The ISC2 Undergraduate/Associate Scholarships awards range from $1,000 to $5,000, with funds sent directly to the school for tuition, fees, books, and materials. To qualify, you must be pursuing an undergraduate degree in cybersecurity or information assurance.

Recommended: What Types of Scholarships Are There?

Tips for Applying for Computer Science Scholarships

Applying for computer science scholarships — or any scholarship, for that matter — is a bit different from applying to colleges. Each scholarship has its own set of rules, deadlines, eligibility criteria, award amounts, and required paperwork. To avoid missing out, it’s important to stay organized.

Here are a few tips that can help you do just that:

Get a head start: Many scholarships begin accepting applications at the beginning of the year for the following school year. Start searching in advance to give yourself plenty of time to make sure you can meet all the requirements and hit all the deadlines.

Expand your search: You don’t have to stick to just computer science scholarships. You can explore other options related to your background, academic achievements, and talents. For example, sweepstakes scholarships, like SoFi’s Scholarship Giveaway, often offer awards simply for filling out an entry form.

Create a list: Jot down scholarships you’re interested in and their requirements. Then organize them by deadline to make sure you apply on time.

Get your materials ready: Even if the application window isn’t open yet, you can still start preparing. Begin with the basics — update your resume, gather letters of recommendation, and find out how to request transcripts. Then you’ll be ready to focus on writing any essays specific to each scholarship.

Submit as many scholarship applications as you can: With thousands of applicants competing for each scholarship, only a handful will be chosen. Boost your chances by applying to every scholarship that fits, even the smaller ones offering $100 to $500. Those smaller awards can add up, and you might have a better shot with scholarships that others overlook.

Create a backup financial plan: Scholarships can be a big help, but it’s wise to have other options lined up just in case. Make sure to fill out the FAFSA® to see what loans, grants, and other scholarships you might qualify for. Also consider exploring other funding options, like private student loans, to cover any gaps that federal financial aid won’t cover.

Extra Ways to Fund Your Computer Science Degree

Scholarship money might not always cover all of your college expenses. If you don’t have savings set aside, you might need to explore other financial aid options, like federal loans and grants.

Here are some ways to help you cover your college costs.

•   Grants: Grants can come from the government, your school, or private organizations. And like most scholarships, you don’t have to pay them back.

•   Federal student loans: Federal student loans are backed by the government and they usually don’t require a credit check. They come with fixed interest rates and offer extra benefits, like flexible repayment plans, income-driven options, and even potential loan forgiveness.

•   Private student loans: If federal aid and scholarships aren’t enough, private student loans can be an option to cover the remaining college costs. These loans can have fixed or variable rates and often need a credit check or cosigner. Just keep in mind that private loans don’t offer the same protections as federal loans do, like income-driven repayment plans.

The Takeaway

When looking for ways to fund your computer science degree, applying for scholarships can be a smart move. Keep in mind that the earlier you start exploring your options, the better your chances of finding and winning scholarship money.

If your scholarship award doesn’t cover all of your college costs, it’s worth exploring other ways to pay for school. It’s best to fill out your FAFSA to see what aid you qualify for. And remember, if federal aid isn’t enough, private student loans can help cover the remaining costs.

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

How can I get a scholarship for computer science in the USA?

If you’re looking for a computer science scholarship in the U.S., a great place to start is your school’s financial aid office — they might know about some you haven’t found yet. Just be sure to check the requirements and deadlines, and apply to as many as you can to increase your odds of receiving scholarship money.

How can I study computer science for free?

Schools like Harvard, Stanford, and MIT offer free online computer science courses, and some even give you a certificate when you complete the course. But if you want an actual degree, you’ll usually need to enroll in a college or university, which means you’ll typically need to pay tuition and other higher education costs.

Is Harvard computer science free?

Harvard University offers several free online computer science courses, including the popular CS50 intro course. While anyone can take these courses, earning a full computer science degree from Harvard still requires enrolling at the university and paying tuition.

What is the Microsoft tuition scholarship?

Microsoft hands out scholarships each year to students in computer science and other STEM fields. It offers partial tuition assistance to outstanding students who are passionate about technology, maintain excellent grades, and show leadership in the tech world.


About the author

Ashley Kilroy

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.



Photo credit: iStock/shironosov

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


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


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Tips for Comparing Life Insurance Policies

The idea behind life insurance — that it’s one way to help protect loved ones — is fairly simple. But navigating the sea of options and figuring out which policy to go with isn’t always so straightforward.

Below are tips for comparing life insurance policies and understanding the insurance buying process.

Choosing the Right Policy

Before you start reviewing different life insurance options, it’s a good idea to first decide which type of policy you need. The following guidelines can come in handy.

Buying Term Life Insurance

Term life insurance offers protection for a specific time period, usually in five, 10, 15, 20, 25, or 30 years. If you die during that time, your beneficiaries receive a cash benefit.

A term policy can be matched to a particular length of time when coverage is needed. For example, if your top priority is to provide enough income for your dependents to pay for college, then a 20-year policy fits your needs. Or if you need a policy that will help your beneficiaries repay outstanding debts, maybe a 25-year policy would make more sense.

If your budget is limited, buying term life insurance may make more sense. These policies tend to be more affordable than permanent life insurance because they are statistically less likely to pay out than permanent life policies.

Typically, there are a couple of reasons a term policy expires: if the insured stops paying the premiums or if they live past the term of the policy. Renewal is possible, but terms and rates may vary based on the applicant’s health and age. (The renewal is typically in one-year increments and the cost will likely be significantly more than the cost during the initial term.)

Insured people who wish to extend their policies may want to contact different providers to determine how continuing coverage after the end of their life insurance terms generally works.

If your financial needs change during the term of the life insurance policy, contact your insurer. Some may offer a convertible policy, which involves converting a term life policy to a permanent policy in exchange for higher premiums.

Buying Permanent Life Insurance

Permanent life insurance works a bit differently. For starters, it provides protection for the insured’s lifetime, as long as the premiums are paid.

Unlike term life, a permanent life insurance policy will pay a death benefit no matter when the insured passes away. It may also come with a savings component, which can grow on a tax-deferred basis and be used to borrow funds for a variety of reasons or pay premiums. Even if the insured has less than ideal credit, the funds can still be borrowed against. In that case, the death benefit is considered collateral for a loan. (Make sure to check with your insurance provider or other advisor before withdrawing money because taking cash out of the policy can cause it to collapse unless the death benefit or premiums are adjusted.)

In practice, this can mean that when the insured passes away before repaying what was borrowed against the policy, the life insurance company deducts what’s still owed from the beneficiary payout.

There are several other options for permanent life insurance, including:

•   Whole life insurance. This coverage provides foreseeable lifelong coverage, which includes a fixed premium and death benefit.

•   Universal life insurance. Universal life insurance provides flexible lifelong protection and several cash accumulation options.

•   Variable universal life insurance. This type of coverage offers flexible death benefits and several investment options for the cash accumulation component.

It’s important to note that permanent life insurance is typically more expensive than term life insurance. So, when weighing out the options, the cost of the policy might be a crucial factor to calculate.

Recommended: Term vs. Whole Life Insurance

Calculating the Right Amount of Coverage

There are several different ways to calculate how much coverage is necessary. Some insurers recommend multiplying the insured’s salary by five or 10. While that can be an effective rule of thumb, be sure to account for all your beneficiaries’ anticipated needs. For instance, you might need a higher coverage amount if you have children and plan on helping them pay for college. On the other hand, if additional resources or assets are available to your beneficiaries at the time of your death, a lower coverage amount might make more sense.

Another option is to use an online life insurance calculator to estimate the cost of different levels of coverage. If you go this route, be sure to include all the debt that beneficiaries or an estate may be responsible for, including shared revolving debt.

Keep in mind that the amount of life insurance coverage you choose will impact the price of your monthly premiums.

Comparing Life Insurance Providers

Once you’ve determined the right type and amount of life insurance coverage you need, it’s time to gather life insurance quotes. Look for insurance companies with established financial histories, strong consumer ratings, and flexible product offerings. Several credit rating agencies look at insurance providers’ overall financial strength and their ability to meet existing insurance obligations (i.e., paying out the benefits).

But ratings aren’t a guarantee, so be sure to review ratings for all the companies you’re considering. For example, A+ and A++ are A.M. Best’s superior ratings. They denote companies that, according to the agency’s analyses, have shown an exceptional ability to meet their insurance obligations and have evidenced financial strength. (All 50 states have a program to ensure that insurance proceeds are paid if an insurer becomes insolvent.)

Recommended: How to Buy Life Insurance in 9 Steps

Gathering Multiple Life Insurance Quotes

Some providers require you to complete a simple online application before you receive a quote. In order to provide an accurate quote, the insurance company may ask you to share some personal details, such as your age, location, gender, health, and desired coverage.

Since permanent life insurance policies tend to be more complex, it can be wise to consult with an agent who can help you compare the pros and cons of different types of policies.

Comparing Life Insurance Quotes

Here are some things to pay close attention to as you’re reviewing life insurance quotes and considering which policy meets your needs.

Cost

The cost of a policy is generally determined by underwriters employed by the life insurance provider. They look at numerous factors, including applicants’ age, health conditions, and medical history to determine the risk for covering them.

While each provider may use similar methodologies, costs can vary depending on the amount of coverage they are willing to provide and the price paid by the insured.

Again, the value of the company and the services offered can also play a role in how much a policy may cost. So while aiming to get the lowest monthly bill may seem like the right solution, it’s wise to evaluate if that lower-priced option can provide the desired coverage over the life of the policy.

Customization

Since no two people have the same financial goals or coverage expectations, some insurers offer policies designed to match a given applicant’s specific needs.

For example, insurers may offer different riders or payment plan options to customize a policy to fit an individual’s goals. Insurers who offer more flexibility might be a better fit for some buyers.

Product Range

Buying life insurance from a company that offers a wide range of products is not only a convenient way to shop for insurance, it may even help you save money. That’s because insurance companies sometimes offer discounts for bundling multiple insurance policies together, like life, automobile, or rental insurance.

People shopping for life insurance can review the other products each insurance company offers to determine if buying a bundled policy can save time, money, and the potential hassle of working with more than one provider.

Long-Term Cash Value Potential

Since permanent life insurance has a cash value component that can grow over time, it’s important to factor this trait when comparing each policy’s potential value. Although low-cost policies may seem like an attractive option, they may not provide as much coverage over the life of the policy.

For buyers who prioritize cash value and dividend distribution, picking a life insurance policy that offers either or both of those features may be a good choice. But keep in mind: Policies with higher dividend payouts are, typically, more costly each month. Many policies have guaranteed rates of return depending on the investment options. However, the market will often outpace the guarantees in insurance policies so consider your investment objectives and risk tolerance before getting a life insurance policy as an investment vehicle.

Using an Agent

While it’s possible to buy life insurance online, sometimes it’s wiser to contact an insurance agent. Because different life insurance products come with varying fine print details, an insurance agent could help buyers grasp the key differences between policies and products. Buyers can also ask them any lingering questions.

An agent who is well versed in the product’s details can also explain important distinctions like cost, coverage limits, and varying terms. It’s worth noting that any insurance agents are paid on commission. In most cases, you will not pay more by going through an insurance agent. The commission is included in the quote and goes to the insurer if the policyholder buys a policy directly from an insurance company.

The Takeaway

Life insurance can be a good way to provide for your loved ones after you’ve died. There are different types of policies to consider. Term life insurance offers coverage for a specific period of time; if you die during that time, your beneficiaries will receive a cash benefit. Permanent life insurance offers protection for the rest of the insured’s life and will pay beneficiaries a death benefit no matter when the insured dies. It often comes with a savings component that can grow on a tax-deferred basis and be used for a variety of purposes.

As you begin to research companies and gather quotes, take note of the cost, ability to customize, long-term cash potential, and range of products the insurer offers. An agent can help you make sense of your options and select the plan that’s right for you.

If you’re shopping for life insurance, SoFi has partnered with Ladder to offer competitive term life insurance policies that are quick to set up and easy to understand. You can apply in just minutes and get an instant decision. As your circumstances change, you can easily change or cancel your policy with no fees and no hassles.

Complete an application and get your quote in just minutes.


About the author

Ashley Kilroy

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.



Coverage and pricing is subject to eligibility and underwriting criteria.
Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers- for further details see ladderlife.com. All insurance products are governed by the terms set forth in the applicable insurance policy. Each insurer has financial responsibility for its own products.
Ladder, SoFi and SoFi Agency are separate, independent entities and are not responsible for the financial condition, business, or legal obligations of the other, SoFi Technologies, Inc. (SoFi) and SoFi Insurance Agency, LLC (SoFi Agency) do not issue, underwrite insurance or pay claims under LadderlifeTM policies. SoFi is compensated by Ladder for each issued term life policy.
Ladder offers coverage to people who are between the ages of 20 and 60 as of their nearest birthday. Your current age plus the term length cannot exceed 70 years.
All services from Ladder Insurance Services, LLC are their own. Once you reach Ladder, SoFi is not involved and has no control over the products or services involved. The Ladder service is limited to documents and does not provide legal advice. Individual circumstances are unique and using documents provided is not a substitute for obtaining legal advice.


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

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College Planning Checklist for Parents

College planning is an exciting time for you and your child. But, as exciting as it may be, there is a lot of preparation involved.

So, whether your child is entering into their freshman year of high school or a few months away from graduation, there is no better time to start planning than the present.

From figuring out your financials to helping your child prepare for admission exams, this college planning checklist for parents can help streamline your child’s transition from high school to college.

Starting a Savings Plan

College can be expensive. According to the Education Data Initiative, the average cost of college in the U.S. is $36,436 per year, including books, supplies, and daily living expenses. Indeed, the cost of going to college has more than doubled over the past two decades.

As prices continue to soar, it’s easy to become worried about how your child will pay for college or that they will have to take out a crushing amount of student debt in order to pay for the college of their dreams.

With this reality top-of-mind, it’s wise to start saving for your child’s college tuition and fees. But, while many parents may have the best intention of helping their children pay for their college expenses, they often fail to prepare.

So, even if your child is just now entering high school, you can still start saving and preparing for college costs. It’s never too late to start setting money aside for your children’s education.


💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.

Paying Close Attention to Grades and Curriculum

Since grades and curriculum are crucial to getting an acceptance letter, you may want to keep close tabs on your student’s grades and study habits. From helping with studying to supporting homework expectations, getting involved with your kid’s coursework may help them perform better in school.

You may also want to encourage them to take Advanced Placement courses. Since AP courses allow you to tackle college-level material while your child is still in high school, your student may get ahead by taking some.

Also, if your student passes the AP exam at the end of the class, they could be rewarded with college credits. Racking up college credits could save you time and money in the future.

For example, if your child takes AP English in high school, they might be able to skip freshman-level English once they get to the college or university of their choice.

There are fees associated with taking AP exams. Fee reductions may be available for qualified applicants.

Recommended: ACT vs. SAT: Which Do Colleges Prefer?

Encouraging Involvement with the Community

College applications were up sharply for fall 2023, according to data collected by the Common App. With the increase in competition, your child will need to stand out. While the top factors in admission decisions tend to be academics, the next most important factors typically include a student’s demonstrated interest and extracurricular activities.

Encouraging your child to get involved in the community could also potentially help them write a solid college application, and even help them decide what they want to do with the rest of their lives.

For example, if your child loves to run, they may want to try out for the track team to round out their classes or volunteer as a track coach for a youth team. Or, if they prefer journalism instead of sports, they may want to try writing for the school newspaper.

Not only will getting involved help with their college application but it will help sharpen their skills. So, don’t be afraid to encourage them to explore their passions and get involved with the school and/or local community. You might even want to get involved with them.

Planning for the SAT and ACT

Another key component to receiving acceptance letters from colleges and universities is having acceptable SAT and ACT scores. Some schools require the Scholastic Aptitude Test known as the SAT, while others may require the American College Testing, known as the ACT. Some schools will accept either one, but it’s a good idea to check the preference of the schools your child will apply to.

To help your child prepare, you can encourage them to sign up for an after-school prep class or practice at home by using online resources such as Khan Academy’s free SAT practice program in partnership with The College Board.

Recommended: How to Help Your Child with SAT Practice

Researching Schools

One of the most important components of college planning for your child is helping them decide which university or college is the right fit. Fortunately, there are plenty of options available to help you find a school that will fit your child’s education and experience needs.

To get started in the decision-making process you may first want to help your child decide what degree they would like to achieve. If they know they want to be an engineer, you may want to focus on schools with good engineering programs.

Even if you may think their degree is too niche, there is often a program that will support it. Whether they want to study astrobiology or comic art, there is often a program for your child. However, if they are unsure of a major, they may want help finding a school with more program options available.

It’s also wise to consider factors such as location and the type of college experience your child wants to have. For example, if they want to go to a school close to home and commute to save money, that desire will limit the search parameters.

Remember, while you may be the voice of reason, the ultimate decision is up to your child — the student. Simply help them evaluate all of the key factors in making an informed decision.

Scheduling College Visits

College visits can be a big help when it comes to finding the right fit. With this in mind, you may want to help your child plan a college visit well in advance of making a decision. The College Board recommends scheduling your visits during your child’s junior year in the spring if you have already researched schools.

For seniors, it may be best to schedule visits in the fall through the winter months. This may help seniors narrow down their options.

Since you want your child to get a feel of the college experience, you’ll want to make sure classes are in session. Therefore, it’s also wise to avoid visits during holidays or break weeks.


💡 Quick Tip: Would-be borrowers will want to understand the different types of student loans that are available: private student loans, federal Direct Subsidized and Unsubsidized loans, Direct PLUS loans, and more.

Investigating Financial Aid Options

Even if you have saved for your child’s education, you may want or need to explore other funding options, which could include your child taking on some of the cost.

Completing a Free Application for Federal Student Aid (FAFSA) is one of the first recommended steps to applying for student financial aid, whether that is in the form of grants, scholarships, federal loans, or work-study. Filing for the 2025-2026 school year opens in December, 2024 (a delay from the usual October 1) and will continue until June 30, 2025.

It’s recommended to complete the form as soon as possible because there are differing deadlines to be aware of, including for individual colleges as well as federal and state deadlines. The sooner you submit your FAFSA, generally, the better your chances of receiving aid will be.

Colleges and universities will use the information reported on the FAFSA to determine how much aid a student is eligible for. Even if your child has not applied to a school yet, they can list that school on the FAFSA, so encourage them to include their dream school as well as those they consider safety schools.

A Student Aid Report (SAR), which is a summary of information provided on the FAFSA, will be sent within three weeks — sometimes sooner. Corrections to the FAFSA, if needed, can be made after reviewing this report. The SAR contains information about a student’s Expected Family Contribution (EFC) (which will soon be called the Student Aid Index or SAI). It is recommended that the report be kept for your records.

The schools listed on the FAFSA will have access to the information within a few days of when the form is submitted. If your student is approved for financial aid, they will receive financial aid award letters from each school they applied and were accepted to. These letters will include information such as the cost of attendance (COA), EFC/SAI, grants, scholarships, loans, and other financial aid that your child might be eligible for.

Comparing each financial aid award letter can help you and your child determine the financial obligation of attending each school. It is recommended to exhaust all federal aid options before considering a private loan. But if you are looking for supplemental funding for your child’s education, private student loans may be an option.

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.


About the author

Ashley Kilroy

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.




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


SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 04/24/2024 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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


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

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Throwing a Gender Reveal Party on a Budget

6 Cheap Gender Reveal Ideas for Those on a Tight Budget

Congratulations! If you’re reading this, it probably means you or someone you care about is starting a family (or adding to one). One popular way to celebrate is with a gender reveal party: It’s a fun way to get all the expectant parents’ loved ones involved before the new addition arrives.

But gender reveal parties, like any kind of get-together, can quickly get expensive. Renting a space, ordering flowers and decorations, and wrangling the menu can add up. Which can be an issue, especially if the couple that is expecting or the person hosting is trying to also save for, say, the baby’s nursery or a baby shower.

So read on for six gender reveal party ideas that will be a fun way to share the news without breaking the bank.

Cheap Gender Reveal Ideas

When ​​saving for a baby, it’s vital to protect your finances, even during celebrations. Sure, you want to share the excitement in a stylish way, but there are cribs, strollers, and lots of diapers to be bought! To help you pull off a gender reveal on a budget, read on.

💡 Quick Tip: Make money easy. Enjoy the convenience of managing bills, deposits, and transfers from one online bank account with SoFi.

1. Keep It Small

You can save money by downsizing your event. Instead of inviting anyone and everyone, try including just friends and family. Not only will a smaller party keep costs low, but it will make the event more personal and a whole lot less frantic. An intimate gathering with those closest to you can be a lovely way to celebrate learning a baby’s gender. Plus, it allows the host or guest of honor to get more quality time with each invitee.

However, you may want to run this by the expectant mother if you are organizing the party on her behalf. She should have the last say about the invite list so that no one significant gets missed.

2. Choose a Cheap or Free Venue

You can hold a gender reveal party anywhere. When you think about it, it’s a very accommodating event without a lot of rules about the dress code, timing, or the activities involved. So, you can likely make any location work, whether it’s at home, a local restaurant, or elsewhere.

•   Be creative with the location. Instead of a full (pricey) restaurant meal, could you host a party at a local coffee bar (some host events)? Or could you do an afternoon tea at a favorite eatery, before they open for dinner? These kinds of options can help you save a considerable amount of money.

•   When picking where to have the party, you may need to factor in the size of your guest list and the type of gender reveal you want. For example, if you plan to use a gender-reveal powder cannon, you probably need a venue outdoors.

•   Rented venues can be expensive, so for a gender reveal on a budget, consider hosting at home.

•   Look at other cheap locations like a nearby green space. Many gender reveal parties are happily hosted in a local park. You bring cushions, a picnic blanket, and all the trimmings, and you’re set, without the cost of renting.

3. Send Digital Invites

Invitations are where many people let their creativity shine. But physically mailing them out may not be the most cost-effective option; you’ll have to buy the cards and spend money on postage, too. If you are looking for a way to send fun invites but for a fraction of the price and time, consider digital versions.

•   There are apps and websites that offer digital invite services. You can find a wide range of gender-reveal invitation templates on them. Spend a few minutes scrolling; you may find some totally free options, or you might spend anywhere from $10 to $20 on them. You can also find fun graphics and animations to make them unique.

•   These resources make planning a party more straightforward for the host. That’s because they usually come with a function that lets guests RSVP digitally, so you can keep track of who is coming. You can also usually automate updates and reminders.

•   Where to start? Try exploring Punchbowl, Evite, and Paperless Post for some great evite options.

4. Make Your Own Decorations

Similar to birthday parties, a gender reveal party isn’t complete without a few decorations. Here are some ways to keep costs down:

•   Easy DIY décor can include banners, streamers, candles, and table centerpieces. Often, you only need cardstock, ribbon, and paper to get creative. You might also be able to find printable images online. Sayings like “Whether pink or blue, we love you” and the like can be a fun way to underscore the reason everyone has gathered.

•   Use what you already have — outside. Anyone with a green thumb can take advantage of their garden to liven up their party. You can set the whole event up outdoors if the weather is nice or use flowers to decorate your home. For example, fresh flowers in mason jars or dollar-store vases are a simple but effective centerpiece.

•   A quick reminder: Even if the parents know the gender already, decorations shouldn’t give it away. Instead, aim for a gender-neutral look or a mix of pinks and blues so that nothing spoils the surprise.

5. Do a Potluck

Hosting a gender reveal party that includes a meal can get very pricey, very fast. No matter the size of your guest’s appetite, you have to purchase food per head. Some recommend around a half-pound of meat and half a bottle of wine for each person at an event. That alone could rack up a bill equal to a few months’ worth of baby supplies.

Instead, consider a potluck.

•   A potluck can save you significant costs in the food department.

•   It’s a great way to bond as a community or family. Everyone plays a role. You may find that having a number of people contributing makes the endeavor more creative.

•   Hosting a potluck does take a bit of organization to make sure, say, that not everyone brings a dessert, but the savings and sense of teamwork may be well worth it.

6. Opt for These Ways to Do the Reveal

The most important part of a gender reveal party is the reveal itself. But, you don’t have to pay for expensive fireworks, a band, or an entire room of balloons to make a statement. Some budget-friendly ideas include:

•   Gender reveal confetti or powder cannons

•   A giant balloon filled with colored confetti; pop it to reveal the gender

•   Cupcakes or cake with the gender color inside

•   A pinata filled with either pink or blue ribbons and glitter

You can also set the stage with color-themed food and drink. Some hosts like to have pitchers of fun fruit drinks, one tinted pink and the other blue with berries.

Recommended: A Guide to Using Savings Clubs

Setting Your Gender Reveal Party Budget

Your budget will obviously vary with the type of party you are planning. If you have a backyard potluck for 10 close friends it will, of course, be much more affordable than a meal for a few dozen guests at a rented space.

For example, let’s say you choose a large venue; that alone may cost you upwards of $200 to rent. In addition, decorating the location may be expensive, anywhere from $50 to $100 and up. That’s because there is more space to cover than your garden or living room. Plus you’ll need to factor in the food as well. Ka-ching! And double ka-ching if you live in a major city; your costs are likely to be higher.

That said, only you and your loved ones know what will be the right way to celebrate the upcoming birth. Just like putting together a budget for a baby, be methodical.

Budget Beforehand

Sit down early in the planning process and create a budget for your party. If there is more than one host, pool your resources and determine the total you can spend. It’s essential to do this before you start party planning.

•   Go line by line, item by item. Write down what you need and estimate the cost. That way, you know exactly what you need to buy and how much it will cost. Otherwise, there’s every chance that you’ll discover your cheap gender reveal party wound up being a high-cost celebration.

•   Understand where the funds are coming from. Is the expectant couple or individual footing the bill? If you are organizing, who else might contribute? Sometimes family members of the parents-to-be are also willing to help. They may contribute some cash or offer to bring items to the event.

Stick to Your Budget

It sounds self-explanatory: Stick to the budget you make. However, any party planner knows that it’s easier said than done, whether you have a baby shower, birthday, or anniversary on your hands.

•   Hold yourself and the team that’s organizing the event accountable. It’s very easy to dip a little further into your funds for extra decorations, more flowers, or a beautifully decorated dessert. While those gestures are nice, they come at a financial cost. You may need to separate your “party fund” from your savings account. Or, if you have a co-host, report your spending to each other. You’ll be less inclined to go overboard that way.

•   Play around with your distribution of funds. For instance, maybe you have a baker in the family who can bake a fab gender reveal cake. In that case, you can put more money toward a venue. Or, perhaps you are hosting a potluck version of a gender reveal party. That frees up some cash for decorations or how you handle the big reveal.

It’s a balancing act, for sure, but with a little planning and a strong commitment to your budget, you can host a gender reveal party that won’t leave you with debt to pay off.

Recommended: Budgeting for Beginners

The Takeaway

Hosting a gender reveal on a budget may take a bit of extra planning. But spending less won’t make the event any less memorable. Instead, think of it as an opportunity to test your creative muscles and come together as loved ones. Play around with your budget to find the best party plan. Maybe you host it at a restaurant but it’s a tea party instead of a full meal. Or perhaps you gather in someone’s yard or a local park and then have enough to splurge on an amazing cake. It’s all about balance.

Whether you’re expecting a baby or simply planning a party for one of your besties, life is expensive. That’s why finding a banking partner that offers competitive interest rates and low (or no fees) can be important.

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

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

FAQ

What is a good budget for a gender reveal party?

Budgets will vary depending on the host’s means and goals and the expectant parents’ desires. However, you can stretch a fund further with a more relaxed event. For example, a small barbecue in your backyard with a few friends won’t cost as much as a luxe rented location but may make up for that with the warm, intimate vibe.

Who usually throws a gender reveal party?

There is no norm; anyone can throw a gender reveal party, from a close family member to the parents to a best friend. It’s all good! In some cases, there are even multiple hosts. This allows everyone to take on a smaller financial burden than a singular host. The only rule is to keep the gender a secret during planning.

How much should a gender reveal cake cost?

The cost of gender reveal cake can vary in price depending on where you buy it, how big it is, and how ornate it is. Prices often land in the range of $25 to $50. However, features like surprise candy inside will likely run you more money. And if you purchase a cake from a highly rated patisserie in a big city it will probably be considerably more expensive than one at a local bakery in the suburbs.


About the author

Ashley Kilroy

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.



Photo credit: iStock/Ievgeniia Shugaliia

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SoFi members with Eligible Direct Deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below).

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning 3.80% APY, we encourage you to check your APY Details page the day after your Eligible Direct Deposit arrives. If your APY is not showing as 3.80%, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning 3.80% APY from the date you contact SoFi for the rest of the current 30-day Evaluation Period. You will also be eligible for 3.80% APY on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi members with Eligible Direct Deposit are eligible for other SoFi Plus benefits.

As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Eligible Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

Members without either Eligible Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, or who do not enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days, will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


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

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