InvestSLR Archives

Oct

2025

A jubilant young woman with curly hair and glasses holds a phone, pumping her fist in front of a laptop.

52 Companies that Offer Student Discounts in 2025

By Kaitlyn Farley | Budgeting & Goals, Going to College, Student Loans, student_loan | Comments Off

College comes with a lot of expenses. On top of tuition, fees, books, and housing, you might also want to occasionally go out and have fun. Maybe you want to go shopping, see a movie, or meet friends for lunch or dinner. That’s not always easy on a student budget. Fortunately, there are widely available deals and discounts designed just for college students. Here’s where you can find them.

Table of Contents

Major Retailers
Technology
Clothes
Restaurants
Travel & Transportation
Entertainment
Home Goods
FAQ

Key Points

• Major retailers like Amazon and Sam’s Club offer special pricing and membership benefits to college students.

• Technology companies such as Apple, Microsoft, and Dell provide discounts on products and software for students.

• Clothing stores like J.Crew, Aeropostale, and Levi’s offer a percentage off purchases upon showing a valid student ID.

• Restaurants including Burger King, Chick-fil-A, and Buffalo Wild Wings provide various discounts and deals for students.

• Travel and transportation services like Zipcar, Amtrak, and United Airlines offer reduced rates for students traveling domestically.

Major Retailers

1. Amazon

Amazon Prime for Young Adults gives college students a six-month free trial, followed by a discounted Prime subscription ($7.49/month). You also get access to student-exclusive offers, including free Grubhub+ and 5% cash back on a wide variety of purchases.

2. Sam’s Club

Sam’s Club offers qualified college students 60% off a Club membership or $50 off a Plus membership (which comes with free curbside pickup and free delivery on orders of $50-plus). Students need to apply online to qualify.

💡 Quick Tip: You’ll make no payments on some private student loans for six months after graduation.

3. Target

Target Circle’s College Student Appreciation program offers exclusive perks and discounts to students, which could come in handy when you’re shopping for your dorm room. To access deals, including 50% off Circle 360, you need to verify your student status (by uploading a student ID, class schedule, or tuition receipt) and join Target Circle for free.

4. Costco

A Costco membership can also help make college more affordable. College students who join Costco as a new Gold Star Member through UNiDAYS (a site that verifies student status and offers exclusive student deals) can get a $40 Digital Costco Shop Card.

Technology

5. Apple

Keep this in mind when you’re preparing for college: Apple offers special pricing for current and recently accepted college students (along with their parents). For example, you can get a 13” Macbook Air starting at $899 or an iPad air from $549.

6. Microsoft

Students (as well as parents and teachers) can save up to 10% off eligible computers and accessories with Microsoft’s student discount.

7. Dell

Dell offers 10% off when you register for Dell Rewards and verify your student status.

8. Lenovo

College students get an extra 5% off their tech purchases at Lenovo. Incoming students can also access the deal by providing a letter of acceptance. You simply need to verify your student status through ID.me during checkout.

9. Adobe

Adobe allows students to get Creative Cloud Pro for $24.99/month for the first year and $39.99/month after that (it’s normally $66.99/month). To get the deal, you need to provide a school-issued email address during purchase so you can be instantly verified.

52 Places with Student Discounts

Clothes

10. Aeropostale

Students can benefit from an extra 15% off at Aeropostale. To take advantage of the deal, you’ll simply need to register and verify your student status with UNiDAYS.

11. J.Crew

J.Crew gives students with a valid student ID 15% off purchases both in store and online. The discount can be used up to four times a month.

12. Hanes

Need some basics, like tees or undergarments? Hanes offers students 10% off online purchases. To score your discount, you need to verify your student status through ID.me and get a promo code.

13. The North Face

The North Face gives students a 10% discount when shopping in store or online. To get the discount in person, simply show your ID at the register. For online purchases, you’ll need to verify your student status on the site.

14. Tommy Hilfiger

Tommy Hilfiger offers students 15% off online or in-store. First, you have to create or log in to your ID.me account.

15. Levi’s

Levi’s offers students 15% off online purchases after you verify your student status on the site.

16. Club Monaco

Students who are Club Monaco fans can get 15% off both online and in-store through Student Beans, a money-saving website and app for college students.

17. Docker’s

Docker’s offers students a generous 25% off all purchases made online. You simply need to verify your student status through the site.

18. H&M

H&M gives students 10% off online orders through UniDAYS.

19. Champion

Champion offers college students 15% off full-price items and 5% off sale items through UniDAYS when shopping online.

Recommended: Guide to Saving Money in College

Restaurants

20. Burger King

You can typically get Burger King deals through Student Beans, such as free any size fries, when you order online and pick up in store.

21. Chick-fil-A

Student discounts vary by location, but many Chick-fil-As offer students deals, such as a free drink with any purchase.

22. Dunkin’

Dunkin’ offers a 10% off student discount at participating locations. To claim the deal, simply show your student ID to your cashier.

23. Arby’s

You can save 10% on your Arby’s meal when you show your student ID at participating locations.

24. Buffalo Wild Wings

Want to catch the game and eat some wings with friends? Students can score 10% off at many Buffalo Wild Wings locations.

25. Waffle House

Looking for a late-night meal? Students can enjoy a 10% discount at participating Waffle Houses.

26. IHOP

If you don’t have a Waffle House nearby, many IHOP locations also offer 10% off for students.

27. Qdoba

Qdoba offers a 10% student discount when you show a valid student ID at participating locations.

28. Taco Bell

Craving a Crunchwrap Supreme? You can get a 10% student discount at participating Taco Bells.

💡 Quick Tip: Need a private student loan to cover your school bills? Because approval for a private student loan is based on creditworthiness, a cosigner may help a student get loan approval and a more competitive rate.

Travel & Transportation

29. Zipcar

New Zipcar University members get their first year free. The student membership allows you to reserve cars by the hour or day, and includes gas, secondary insurance, and up to 180 miles per day. (Other fees, such as a young driver fee, may apply.) 

30. Amtrak

Students between the ages of 17 and 24 can travel by Amtrak train for 15% off when booking at least one day in advance.

31. United Airlines

United Airlines offers a 5% flight discount to MileagePlus® members who are 18 to 23 years old. To get the deal, you need to book through the United app.

32. Hotels.com

Through Student Beans, you can get a 10% student discount at Hotels.com. You’ll get a discount code that you can use at checkout. Better yet, it can be applied on top of on-site promotions.

33. FlixBus

You can get 10% off Flixbus tickets with Student Beans. Simply use your FlixBus student discount code at checkout.

34. Hertz

Hertz offers up to 25% off, and up to 2.0% cash back, for students through ID.me.

35. Budget Truck Rentals

Budget Truck Rentals offers students 20% off local moves and 15% off one-way moves any day of the week. Use the discount code TRUKU.

36. Penske

Penske offers college students a 10% discount on all truck rentals and unlimited miles on one-way moving truck rentals. Simply use the discount code STUDENT at checkout. You’ll need to provide a college ID or proof of enrollment status at pickup to receive the discount.

37. Red Coach

RedCoach offers high school, college, and graduate students 10% off tickets. To get the discount, check the student option at checkout then show your student ID card to the driver along with your ticket.

Recommended: College Move-In Day Tips for Parents

Entertainment

38. AMC

Students get a lower ticket price at select AMC theaters every day. Just bring your photo student ID (and maybe some extra money for popcorn).

39. Cinemark

Student discounts at Cinemark vary by location and time of day, so check with the local box office to see what kind of deal you can snag.

40. Apple Streaming

Apple’s student music subscription is $5.99 per month for up to 48 months (normally $10.99 per month). You also get Apple TV at no extra cost.

41. Hulu

Hulu offers students its ad-supported plan for just $1.99 a month (an 83% discount). If you’re interested in a bundle, check out the deal below.

42. Spotify Bundle

As a student, you can get Spotify Premium Student with Hulu (with ads) free for one month and $5.99/month after that. You can cancel anytime.

43. The Washington Post

The Washington Post has a digital all-access student subscription plan for just $1 every four weeks for one year, then $7 every four weeks after that.

44. Paramount+

As a student, you can get 50% off any Paramount+ Plan. You just need to verify your student status on their website.

45. YouTube Premium

YouTube Premium (which allows you to enjoy YouTube and YouTube Music ad⁠-⁠free) is available to students at a discounted rate of $7.99 a month, after a free one-month trial. You can cancel at any time.

46. The Economist

The Economist offers students an Espresso subscription (which offers quick daily updates on important issues) for free and an annual digital subscription for $62.25, a steep 75% off.

💡 Quick Tip: Even if you don’t think you qualify for financial aid, you should fill out the FAFSA form. Many schools require it for merit-based scholarships, too.

Home Goods

47. Ghost Bed

As a student or teacher, you can get 27% off your entire order at GhostBed. To take advantage of the deal, just click on the ID.me button and then “Student ID” to sign up and get verified.

48. Mattress Firm

After verifying your student status through ID.me, Mattress Firm will give you a single-use coupon code that can be used in-store or online. You get an extra 20% off select purchases or an extra 10% off Purple with the code.

49. Purple

You can also get a 10% discount directly from Purple. Once you verify your eligibility, you’ll be emailed a coupon for 10% off your order.

50. Helix

After verifying your student status at Helix, you’ll receive a one-time 25% discount code to apply during checkout.

51. Puffy

Puffy offers a generous student and educator discount — $1,425 off any Puffy mattress.

52. Brooklyn Bedding

Brooklyn Bedding offers a 5% discount and free shipping to students. You simply need to verify your eligibility through ID.me.

The Takeaway

Student discounts can help you save on everything from food and clothing to electronics and entertainment. Even with these deals, however, you may still need help covering your college expenses.

If you completed the FAFSA and didn’t get enough financial aid to pay all of your school bills, keep in mind that you may be able to get a private student loan to help fill in any gaps. Unlike federal student loans, which have strict application deadlines, you can apply for private student loans at any time — including mid-semester.

Private student loans also allow you to borrow up to 100% of the school-certified cost of attendance. Just keep in mind that private student loans don’t offer the borrower protections — like income-driven repayment plans and deferment or forbearance — that come with federal student loans.

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 many times can you use a student discount?

It depends on the company. Some retailers and restaurants allow you to use your student discount once per visit or purchase; others limit you to a certain number of times per month or year.

How much is the average student discount?

Student deals typically give you 10% to 15% off, though you may find some discounts for 50% off or even higher. In some cases, a student discount may come with restrictions, such as only being able to use it on full-price merchandise. So it’s always a good idea to compare your student discount to any other available deals and sales.

Do student discounts only apply to college students?

Typically, student discounts only apply to college and graduate students. In some cases, high school students can get deals if they have an email that ends in .edu. The colleges and programs that retailers recognize can vary, but you can expect most major colleges and universities to be eligible.

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., Puerto Rico, U.S. Virgin Islands, or American Samoa, 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 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Bank, N.A. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

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.

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.

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.

SOISL-Q425-020

Oct

2025

A man in a green shirt and ripped jeans researches student loans at a small table in a bright room.

Are Student Loans Worth It?

By Kayla McCormack | Student Loans, student_loan | No Comments

Table of Contents

College Costs Vary By School
Factoring in Financial Aid
Not All Majors Have the Same Income Potential
How Much Should I Borrow for College?
College Graduates May Have More Financial Stability
Here’s What You Might Consider if You Choose to Take Out Student Loans
FAQ

If you’re thinking about taking out student loans to pay for college, you’re in good company: More than half of college graduates leave school with debt. Like most loans, student loans charge interest, which is the cost of borrowing money from a lender. Whether you take out federal or private student loans, you’ll end up paying back more than your original borrowed.

Is it worth it?

The answer depends on your degree, major, and the type and size of your debt. Read on to learn more about whether the current cost of college is worth it, different ways to pay for school, and when it makes sense to take out student loans.

Key Points

• Whether student loans are worth it depends on your major, career path, and total debt, since some fields offer higher income potential than others.

• College costs vary: public in-state averages ~$27K per year, while private nonprofit schools average ~$58K+.

• A good rule of thumb is to borrow no more than your expected first-year salary to keep repayment manageable.

• Federal loans offer fixed rates and protections like income-driven repayment, while private loans may have higher or variable rates and fewer safeguards.

• Interest accrues and capitalizes on loans, so repayment length and strategy greatly affect total cost.

College Costs Vary By School

It’s no secret that college costs have gone up over the years, causing more students to take on debt as a means to afford a college education. Indeed, student debt has more than doubled over the last two decades. As of August 2025, about 42.5 million U.S. borrowers collectively owed more than $1.8 trillion in federal and private student loans.

But not all schools cost the same amount. In fact, some colleges cost considerably less than others. According to Educationdata.org, the average cost of attendance for a student living on campus at a public four-year in-state college is $27,146 per year. The average cost of attending a private, nonprofit university and living on campus, by contrast, is $58,628 per year.

💡 Quick Tip: You can fund your education with a competitive-rate, no-fees-required private student loan that covers up to 100% of school-certified costs.

Factoring in Financial Aid

Financial aid is another factor that affects the cost of going to college. Some schools may have a high sticker price but offer a variety of need- and merit-based aid options to students, which can lower the actual cost of attendance.

Colleges and universities will frequently publish what percentage of their students receive financial aid and will sometimes also publish the average award amount. This can be helpful information for students applying to colleges.

When deciding where to apply and attend school, keep in mind that even if the sticker price for College A is higher than College B, the financial aid package at College A may make it a more affordable option in the end.

Not All Majors Have the Same Income Potential

Another consideration when evaluating whether borrowing student loans is worth it is to factor in the earning potential based on your selected major, keeping in mind that not all majors offer the same income potential.

For example, students who graduate with degrees in software engineering earn an average starting salary of $104,863. Other majors, such as dance or drama, generally don’t offer the same earning potential to graduates.

It’s a good idea to do some research on the future income potential for the major and field you hope to pursue. This can be helpful in understanding how much you’d realistically stand to earn and, therefore, how long it may take to pay back student loans. Resources like the Payscale College Salary Report or the Bureau of Labor Statistics are two places to start.

How Much Should I Borrow for College?

A general rule of thumb is that students should limit what they borrow to what their potential career will reasonably allow them to repay. As a rough guideline, you may want to avoid borrowing anything more than you will likely be able to earn in your first year out of college.

Keep in mind that just because your financial aid package may include a certain amount in federal student loans, you are not required to borrow the maximum. Consider reviewing other sources of financial aid like private scholarships and grants, which are essentially “free money” for college. It can also be worth setting up an annual budget with anticipated costs for tuition, fees, room and board, and other expenses so you have an idea of how much you may actually want or need to borrow to pay for school.

College Graduates May Have More Financial Stability

In the long term, a college degree can lead to more financial stability. Research suggests that people with bachelor’s degrees have both a higher median income than those without a college degree and earn more over their lifetimes.

Another factor, based on unemployment rates, is that people with a college degree tend to have greater career stability than those without a college degree.

This isn’t always true, however. As some recent studies suggest, certain career paths that don’t require a degree — such as construction inspectors or cardiovascular technicians — also offer significant earning potential.

Here’s What You Might Consider if You Choose to Take Out Student Loans

There are a number of factors to consider when deciding what type of student loan will best suit your particular needs, so it’s important to do your research beforehand.

Things like whether the loan is federal or private, what the current interest rates are, and how long it will take to pay off the loan could all contribute to how much student loan debt you ultimately find yourself in and are important considerations before taking out a loan.

Federal Loans vs Private Loans

There are two main types of student loans — federal loans and private loans. Federal loans are borrowed directly from the government, whereas private loans are borrowed from private lenders like banks, credit unions, and other financial institutions.

While the two loans serve the same purpose, there are some important distinctions. Because federal loans are made by the government directly, the terms and conditions are set by law. These loans also come with certain perks and protections, such as low fixed interest rates and income-driven repayment, that may not be offered with private loans.

Private loans are less standardized, since the terms and conditions are set by the lenders themselves. For example, some may offer higher interest rates than federal loans, and interest rates may be fixed or variable. It’s important to understand the specific terms and conditions set by a private lender. Since private student loans may lack the borrower protections and benefits offered by federal loans, you generally want to tap financial aid and federal student loans first, then consider filling in any gaps with private student loans.

💡 Quick Tip: New to private student loans? Visit the Private Student Loans Glossary to get familiar with key terms you will see during the process.

Understanding Interest Rates

Sometimes people fail to consider the interest rate on the student loan and how it will affect the amount of money they will end up owing.

Interest is calculated as a percentage of the unpaid principal amount (total sum of money borrowed plus any interest that has been capitalized).

Capitalization is when unpaid interest is added to the principal balance of a loan, and interest is calculated using this new, higher amount. You might have interest capitalization if, for example, you decide not to make interest payments on an unsubsidized federal loan or private student loan while you are in school. This unpaid interest will be added to your loan balance and interest will be charged on this new, higher balance.

For all federal student loans, interest rates are set by the government and are fixed, which means they won’t change over the life of the loan. With private student loans, it’s up to the lender to set the rate and terms. Generally, students (or their parent cosigners) who have strong credit qualify for the best rates. If you are interested in borrowing private student loans, it’s a good idea to do some research and shop around so you can find the loan that best meets your needs.

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

How Long Will it Take to Repay Your Loan?

Paying more money sooner can significantly reduce the amount of time it takes you to pay off a loan (as well as lower the cost). But that may not always be a feasible option. It’s important to consider the implications of different kinds of repayment plans when you take out a loan.

Currently, the standard term to repay a federal student loan is 10 years. But you can also choose an extended repayment plan (that gives you up to 25 years to pay off your loans) and one of several income-driven repayment (IDR) plans, which base your monthly payment amount on how much money you make. For those that take out federal student loans on or after July 1, 2026, there will only be two repayment options: the standard repayment plan and an IDR plan called the Repayment Assistance Plan (or RAP). The standard repayment plan will also change, offering borrowers 10- to 25-year repayment terms depending on the amount borrowed.

When choosing your loan term, keep in mind that a longer repayment term will lead to lower payments but a higher overall cost, since you’ll be paying interest for a longer period of time.

The Takeaway

Student loans can help open up doors to higher education for students, but borrowing responsibly is important. When deciding if student loans are worth it for you — and how much you should borrow — you’ll want to consider multiple factors, including your choice of major, future career path and earning potential, and the cost of the school you hope to attend after factoring in financial aid.

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

Is it a good idea to take a student loan?

Whether taking out a student loan is a “good” idea depends on your individual circumstances. Student loans can be a valuable tool to pursue higher education, which often leads to increased earning potential and career stability. However, it’s crucial to borrow responsibly. Consider your chosen major’s earning potential, the total cost of your education after financial aid, and your ability to repay the loan. Research different loan types, interest rates, and repayment plans to make an informed decision that aligns with your financial goals.

Is $70,000 in student loans a lot?

Whether $70,000 in student loans is “a lot” depends on your individual circumstances, including your expected income after graduation, your living expenses, and the interest rates and repayment terms of your loans.

For some career paths with high earning potential, $70,000 might be manageable, while for others, it could be a significant burden. It’s generally recommended to keep your total student loan debt below your expected first-year salary to help ensure manageable repayment. You might research the average salaries in your chosen field to determine if this amount of debt is sustainable for you.

How much is a $30,000 student loan per month?

The monthly payment on a $30,000 student loan can vary significantly based on the interest rate and repayment term. For instance, with a 10-year repayment plan and a 5.00% interest rate, your monthly payment would be approximately $318. With a 20-year term and 7.00% interest rate, your monthly payments would be around $232. Keep in mind that longer terms can result in lower monthly payments but more total interest paid.

SoFi Bank, N.A. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

SOISL-Q425-014

Oct

2025

5 Popular Investing Trends to Watch in 2025

By Michael Flannelly | Growing Wealth, Investing | Comments Off

Table of Contents

Investor Sentiment in 2025: A Shift in Strategy
1. The Rapid Advance of Artificial Intelligence
2. A Renewed Focus on Alternative Investments
3. The Implications of Greater Longevity
4. New Approaches to Portfolio Risk Management
5. Navigating a Shifting Real Estate Market
How to Approach These Investing Trends
FAQ

Due to advances in artificial intelligence (AI) technology, as well as significant economic shifts and demographic changes, there are five top investing trends to know about in 2025.

These include the proliferation of AI and digital infrastructure; the impact of longevity on health care and other sectors; a continued interest in alternative assets; the importance of risk management; and renewed signs of life in the real estate sector.

As the 2025 SoFi Investor survey reveals, investors may or may not follow these specific trends, but respondents seem optimistic about investing overall, and interested in developing aspects of their own long-term strategies.

Key Points

• Five top investing trends for 2025 include AI, longevity-related industries, alternative assets, risk management, and real estate.

• Despite geopolitical turmoil, investors surveyed for the 2025 SoFi Investor Survey show optimism and a willingness to adapt their strategies.

• The rapid advancement of AI presents opportunities and challenges, with AI funds reaching record highs but also raising concerns about volatility.

• Alternative investments are gaining renewed focus among investors due to their potential for diversification and higher returns, despite being higher risk.

• Investment trends are not guarantees of seeing a profit. Investors must research trends and consider them in light of their own financial goals and risk tolerance.

Investor Sentiment in 2025: A Shift in Strategy

In the last few years, investors have faced geopolitical turmoil, higher-than-average inflation and interest rates — and more recently, global trade and tariff issues. Nonetheless, the investors who responded to the 2025 SoFi Investor survey revealed a sense of optimism, and an ability to manage stress in light of these volatile times.

Investor Confidence

Of the 1,000 individuals surveyed, over two-thirds (68%) plan to expand or shift their investing strategies in the coming months, and 65% feel optimistic or content about their strategies — both signals of investor confidence.

In a similar spirit, although inflation has been at historic highs, only 19% of investors said they were investing less in their portfolios — and 82% either wanted to invest more or maintain their holdings.

And a striking 40% said they didn’t experience stress in relation to market ups and downs.

Following are some of the leading investment trends that investors may be watching as 2025 draws to a close and 2026 comes into focus.

1. The Rapid Advance of Artificial Intelligence

As artificial intelligence technology has continued to skyrocket, the impact of these innovations and the widespread adoption of AI across industries has presented opportunities for investors, as well as challenges.

While global assets in AI funds reached a record $5.5 billion in Q2 of 2025, according to Morningstar, this rapid growth has also been met with concerns about capacity, energy needs, and the possibility of a bubble.

Nonetheless, AI has a strong appeal for investors, owing to its potential for growth. Investors must also consider the volatility in this industry, as well. This may be one reason investors seem to favor U.S. AI-focused ETFs than, say, stocks, according to Morningstar — given that AI ETFs may provide greater diversification as well as access to thematic investing.

2. A Renewed Focus on Alternative Investments

Investors were pursuing alternative assets at a record pace throughout 2024 and into early 2025, according to Morningstar. This trend is echoed by the sentiment reflected in the SoFi Investor Survey, where some 47% of respondents said that they invest in alternatives.

The Accessibility of Alts

Alternatives tend not to be correlated with traditional assets like stocks and bonds, and as such they can offer some portfolio diversification. Alternative assets were once restricted to qualified investors, but are increasingly available to ordinary investors through certain types of ETFs and other instruments.

Examples of alternative investments include tangible assets like real estate and commodities, as well as collectibles like art and antiques.

But alternative assets may also refer to the use of specific strategies: e.g., hedge funds, derivatives, and venture capital, as well as private market investments.

These assets may deliver higher returns when compared with conventional assets, but they are considered higher risk, owing to the lack of transparency, lower levels of regulation, lack of liquidity, and other risk factors investors may want to consider.

3. The Implications of Greater Longevity

People are living longer, with adults over age 65 projected to reach nearly a quarter (23%) of the U.S. population in the coming 30 years, according to the Pew Research Center. The result of this increased longevity has been a steady expansion of the science, technology, and business of living longer — with some estimates putting the global longevity market at $600 billion by the end of 2025.

While many investors are aware of advances in health care and medicine, the longevity market has expanded to include consumer goods, travel, computer and mobile technologies, caregiving services, housing developments, and more. Investing in longevity has obvious societal benefits, many of which may enable people to live longer as well as healthier and more rewarding lives.

That said, for all its focus on aging, the longevity sector itself is young — and from an investing perspective, it may be difficult to predict the winners and losers in the years to come. Nonetheless, this is a trend that’s unlikely to reverse, and investors may want to keep an eye on the opportunities emerging here.

Recommended: Investing in Commodities

4. New Approaches to Portfolio Risk Management

In the face of market swings, the majority of investors surveyed by SoFi (73%) chose to hold onto their assets rather than sell. This focus on staying the course is an important component of overall portfolio risk management, especially in light of ongoing volatility in many sectors.

Some tried-and-true strategies for managing portfolio risk factors include diversification, using dollar-cost averaging, and lowering overall portfolio volatility by rebalancing and similar approaches.

It’s also possible to gain a deeper understanding of one’s actual risk tolerance by seeking out a professional portfolio risk analysis, which can stress-test the holdings in your portfolio, and may provide insights about ways to adjust your investments.

5. Navigating a Shifting Real Estate Market

The real estate market will continue to be an area of focus for investors and potential homebuyers in 2025 and into 2026, largely owing to pent up demand while interest rates were high.

If interest rates continue to decrease as anticipated, the real estate and home building markets may see renewed growth — although the ongoing impact of tariffs on sector supplies such lumber, appliances, metals, and other goods could be significant.

As the SoFi Investor Survey revealed, some investors are intrigued by real estate opportunities, with 15% saying they have real estate investments, and 11% specifically invested in real estate investment trusts (REITs).

Recommended: Pros & Cons of Investing in REITs

How to Approach These Investing Trends

As noted above, investing trends are not a guarantee of success; they’re simply broader market movements that a wider swath of investors may be participating in at the moment. But as with trends in fashion or music or politics, investors must decide for themselves whether an investment trend is worth considering.

Do Your Own Research

One important way to evaluate investment trends is by doing your own research. Basic reading helps to keep investors informed about relevant news and industry factors that could impact a trend.

It’s also wise to compare a current trend in light of a company’s or fund’s actual performance and fundamentals. Some investments are poised to benefit from a trend, whereas others are not.

Align Trends With Your Long-Term Goals and Risk Tolerance

Above all, investing in a certain trend only makes sense when it aligns with your overall goals, your financial circumstances, and your risk tolerance.

By their very nature, trends are not necessarily going to last. There may be short-term opportunities investors can consider, or a trend may evolve in such a way that an investor may find it worthwhile to stick with it. That will depend on the trend and on the individual.

The Takeaway

Putting hard-earned dollars into any investment — whether it’s trendy or traditional — requires careful thought and due diligence. Investors should be aware that, while momentum can feed investment fads for long periods, some market trends can become vulnerable because of frothy valuations and turn on a dime.

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

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

FAQ

How can I add AI exposure to my portfolio?

There are many ways to invest in artificial intelligence, including individual stocks as well as ETFs. Investors may also want to consider the range of industries involved in AI and/or using this technology, from big data analysis to large language models to sectors such as media and healthcare, which are integrating AI technology.

What are the risks of investing in trends?

Trends can be higher risk in many cases, simply because most trends are driven by investor emotion, not company financials.

How are investors coping with market stress?

According to the SoFi Investor Survey, while 40% of investors say the markets don’t stress them out, others have multiple coping strategies, including talking to their broker, doing market research, and not checking their account balances.

Photo credit: iStock/MicroStockHub

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Dollar Cost Averaging (DCA): Dollar cost averaging is an investment strategy that involves regularly investing a fixed amount of money, regardless of market conditions. This approach can help reduce the impact of market volatility and lower the average cost per share over time. However, it does not guarantee a profit or protect against losses in declining markets. Investors should consider their financial goals, risk tolerance, and market conditions when deciding whether to use dollar cost averaging. Past performance is not indicative of future results. You should consult with a financial advisor to determine if this strategy is appropriate for your individual circumstances.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

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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SOIN-Q325-053

Oct

2025

A blonde woman smiles while holding a small dog in a stylish home office with a desk, computer, and guitar.

Budgeting For a New Dog

By Stacey Leasca | Budgeting & Goals, Life & Career, money | Comments Off

The United States is more than a little dog crazy: The percentage of households with a canine stands at 45.5%, meaning almost one out of two have a pooch. Owning a dog can be one of life’s great pleasures, whether you choose a tiny Chihuahua puppy or a mega, full-grown Great Dane as your new best friend.

But amid imagining all the cuddles and sloppy kisses, many prospective dog parents aren’t fully prepared for the expense of owning a pet.

This can be an important consideration, given that dog ownership generally requires a significant upfront and ongoing financial investment. Start-up costs tend to run around $2,127, while ongoing annual expenses average $2,489, according to the American Kennel Club.

If you’re considering bringing home a new pooch, here’s key information to know about budgeting for a dog.

Key Points

• The average annual cost to own a dog is $2,489.

• Adoption fees run between $50 and $500; breeder costs can be $800 to $4,000.

• Annual food costs range from $200 (for a small dog) to $720 (for a large dog).

• Pet insurance averages around $62 per month, providing emergency coverage.

• A $500 to $1,000 starter emergency fund is advised for unforeseen expenses.

8 Costs of Owning a Dog

It’s easy to fall in love with an adorable dog and feel as if you just must make it yours ASAP. But it’s wise to do a little research first about potential bills before you bring home a new pooch. Read on for eight costs that are likely to crop up.

1. Adoption Costs

The cost to adopt a dog varies depending on the organization, dog’s age, and breed, but fees from shelters can range anywhere from $50 to $500. The adoption fee helps cover some of the cost of holding the dog and getting them ready for adoption. At some pet rescues, adoption fees also cover the cost of veterinary services, like a pet physical exam, deworming, spaying or neutering, microchipping, and common vaccinations.

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Adoption vs Buying

Buying a dog from a breeder costs considerably more than adopting one from a shelter. Depending on the type of breed and the location of the breeder, you can expect to pay anywhere from $775 to $4,750.

The purchase price through a breeder typically includes the dog’s first round of shots and deworming. However, other medical costs — such as spaying or neutering and microchipping — are not typically covered by the breeder’s fee.

Recommended: 9 Cheapest Pets to Own

2. Food and Treats

Once you bring home your furbaby, you’ll also need to factor dog food and treats into your spending budget. The cost of feeding a dog can run anywhere from $200 per year for a small dog to $720 per year for a large dog. If you decide to serve your dog premium brands, freshly made food, or a specialized diet, your food costs could be significantly higher — as much as $3,000, possibly more, per year.

3. Toys

Toys may seem like a silly little add-on, but they can play an important role in puppy development and adult dogs’ mental stimulation. Toys can help dogs fight boredom when they are left at home alone and comfort them if they’re agitated. And with toys to gnaw on, dogs may be less likely to turn to shoes for a midday distraction.

One way to save money on pet costs is to keep toys simple. For example, a basic tennis ball will satisfy many dogs. And you can grab a can of three, fun-to-chase tennis balls for about $4. However, you may want to offer your new companion a range of fun things to play with. If so, you might set aside around $100 a year for doggie toys.

4. Pet Sitters or Walkers

If you work outside the home or plan to travel without Fido, it may be a good idea to factor in the cost of a dog walker or pet sitter. You can expect to pay between $24 and $34 for a 30-minute dog walking service. Hourly pet sitter rates can run anywhere $12 to $20 per hour, while the average cost to board a dog is around $40 per night.

It may be helpful to estimate how much outside care you’ll need for your new dog and add it to your budget.

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5. Medical Visits

Dogs need regular medical care, so health expenses are another cost to consider when setting up your budget. Just like humans, dogs need blood drawn to check for diseases, routine vaccinations to prevent disease, and a general physical exam once a year to make sure their health is in working order.

The cost of healthcare for a dog varies widely depending on the type of dog, care provider, and where you live. On average, an annual vet visit can run $50 to $250, but that doesn’t include vaccinations (around $20–$80 per vaccine); medications and supplements ($10-$150 annually), and dental cleanings ($300-$1,500 annually).

6. Pet Insurance

While pet insurance won’t cover routine veterinary visits, it could come in handy if an emergency occurs with the pup. For example, a new dog could eat something that causes it to get sick or develop a bacterial or viral infection.

Many pet insurance plans will cover a portion of medicines, treatments (including surgeries), and medical interventions that aren’t tied to a pre-existing condition. The cost of pet insurance can vary significantly by your pet’s breed, age, and health history. On average, pet insurance for a dog runs around $62 a month.

💡 Quick Tip: Want a simple way to save more each month? Grow your personal savings by opening an online savings account. SoFi offers high-interest savings accounts with no account fees. Open your savings account today!

7. Incidentals

A lot of smaller expenses can come when you own a dog, such as doggy waste bags and cleaning supplies for pet-related messes. The ASPCA estimates that miscellaneous costs can average around $35 for small dogs, $45 for medium dogs, and $65 for large dogs annually.

8. Emergency Fund

It can be wise to save up an emergency fund for pet-related expenses. Having a financial cushion helps ensure you can make fast decisions about your pet’s care without worrying about how you’ll afford the bill.

You might set up a dedicated savings account to cover unexpected pet-related costs, with a goal saving between $500 and $1,000 to start. Or you could simply add to your general emergency saving fund. Either way, it’s a good idea to keep your emergency funds in a dedicated savings account, such as a high-yield savings account or money market account, so you’re not tempted to dip into it for everyday expenses.

The Takeaway

More than 45% of US households have dogs as pets, which shows how beloved they are. But before you get a pet, it’s important to know the costs involved (which can add up to thousands per year) and budget wisely. Saving in advance can make adopting and then caring for a dog easier. You might look for a high-yield savings account to help your money grow for this purpose.

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 3.60% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

How much does it cost to buy a new dog?

The cost to buy a dog can vary widely depending on whether you adopt from a shelter or purchase from a breeder. Adoption is generally the more affordable option, with fees running anywhere from $50 to $500. The price for a puppy from a reputable breeder can run $775 to $4,750, depending on the breed’s popularity and rarity.

What is the monthly cost of owning a dog?

The average monthly cost of owning a dog ranges from approximately $64 to $248, depending on factors like size, breed, and location. These costs include food, toys and accessories, pet insurance, and grooming.

Can pet insurance save me money?

Buying pet insurance can be worth it if your pet is young and healthy or you don’t have enough savings to cover an expensive vet bill. However, it may not be a good deal if your pet is older or has health issues and/or you would be able to manage a hefty vet bill if it came up.

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SOBNK-Q425-031

Oct

2025

What Is a Stablecoin? Examples, Purpose, and Types

Understanding Stablecoins: How They Work and Their Role in Finance

By Brian Nibley | Financial Independence, invest, Investing | Comments Off

Table of Contents

What Are Stablecoins?
Why Stablecoins Matter in the Digital Currency Landscape
The 4 Types of Stablecoins
Factors Influencing Stablecoins Price Behavior
Stablecoins and Their Relationship With Traditional Finance
Practical Applications of Stablecoins for Businesses and Individuals
The Future of Stablecoins
FAQ

Stablecoins are digital currencies that are designed with the goal of maintaining a fixed, or stable, value. They are structured to function much like fiat currencies, but exist instead on the blockchain. This brings with it several benefits in terms of accessibility, usability, and speed.

There are multiple types of stablecoins, each defined by the mechanism used to maintain the one-to-one value peg to their respective fiat currencies. With broader institutional adoption of stablecoins only just beginning, however, there are still risks to consider with these relatively new digital currencies.

Key Points

• Stablecoins aim to reduce cryptocurrency volatility, providing a stable value that can help support various financial activities.

• Value stability is maintained through collateralization and algorithmic controls.

• Potential benefits may include enhanced financial access, security through the blockchain, and increased ease in making transactions.

• Potential drawbacks may include lack of transparency about reserves and fewer consumer protections compared to traditional banking.

• Practical applications encompass efficient cross-border payments and financial inclusion.

🛈 While SoFi members will soon be able to buy, sell, and hold a selection of cryptocurrencies, such as Bitcoin and Ethereum, other cryptocurrencies mentioned may not be offered by SoFi.

What Are Stablecoins?

Stablecoins are digital coins that maintain a stable value. Most stablecoins are pegged to popular fiat currencies like the U.S. Dollar, Chinese Yuan, or the Euro. Some are pegged to commodities, like gold, too.

How Stablecoins Differ From Other Cryptocurrencies

In theory, a stablecoin could have its value linked to just about anything. However, stablecoins pegged to a fiat currency are the most common. As such, when someone uses the term “stablecoin,” they are most likely referring to fiat currency coins.

In terms of value, the most stable cryptocurrency will, by definition, be a stablecoin. Some of these coins see their values fluctuate by small amounts, but they tend to correct back to their normal value in short order.

If there is any volatility in the value of a specific stablecoin, it’s likely much less than that seen in other types of cryptocurrencies.

The Purpose of Stablecoins in the Crypto Ecosystem

Stablecoins have a variety of potential use cases, but the main idea behind stablecoins is to create a cryptocurrency that is not subject to the volatility experienced by other cryptocurrencies, like Bitcoin and the many hundreds of altcoins. That, in some shape or form, could provide a sense of stability to the crypto ecosystem.

Key Benefits and Drawbacks

Stablecoin transactions tend to be faster, more efficient, and cheaper than conventional payment or money transfer systems. They may allow financial institutions that leverage them to offer lower fees in certain instances as well.

More broadly, stablecoins’ low cost and accessibility to those with internet access or a smartphone may allow unbanked or underbanked groups broader access to financial services, assuming they reside in an area where these cryptocurrencies are permitted. These coins also benefit from the security of blockchain technology.

Stablecoins could also be used as a store of value, as they are often pegged to a currency or commodity.

Conversely, as for drawbacks, stablecoins also don’t have the same consumer protections in place that traditional banks do. Users will need to hold their stablecoin balance via any number of crypto storage methods and the cryptocurrency wallet of their choice.

There could also be a potential lack of transparency regarding their reserves of stablecoins. Auditors must verify that reserve requirements are met, and it’s important to know that these third-party groups are reputable, as well. In other words, it can sometimes be difficult to know whether the company behind the coin actually holds one dollar for each dollar-backed stablecoin.

Why Stablecoins Matter in the Digital Currency Landscape

A stablecoins become more common in the crypto and financial spaces, it’s important to know why, exactly, they matter.

Addressing Volatility in Crypto Markets

As noted, they can play a stabilizing role in the broader markets. They’re stable, as much as a cryptocurrency likely could be. That doesn’t mean that they’re immune from volatility, of course, but stablecoins are designed to be, well, stable. As such, they can provide a sort of ballast in terms of volatility to the larger crypto space.

Use Cases and Real-World Applications

One of the primary use cases and applications of stablecoins, as of 2025, is that they can help enable fast and cheap global remittances, or cross-border transactions.

Traditional bank transfers typically take anywhere from three-to-five business days and can cost anywhere from a few dollars to dozens of dollars. International transfers tend to be the most expensive.

Stablecoin transactions can be confirmed within minutes, or less, and at very little cost. Two people with stablecoin wallets can transact with each other from anywhere in the world at any time without the need for a third-party intermediary.

Additionally, stablecoins could be used in other areas, such as running payroll for international work, or even as something that could dampen volatility in crypto markets, as they tend to maintain a fairly level valuation.

Market Growth and Adoption Trends

Looking forward, it’s likely that stablecoins will continue to grow in terms of usage and adoption in the broader financial space. Within 18 months, total issued stablecoin value more than doubled to $250 billion from $120 billion between early 2024 and mid-2025^[1], and also, more and more companies are looking to adopt or launch stablecoins.

As of September 2-25, 13% of financial institutions around the world use them, and 54% of those that do not plan to adopt them within a year.^[2]

The 4 Types of Stablecoins

Generally, there are four types of stablecoins: fiat-backed, commodity-backed, crypto-collateralized, and algorithmic stablecoins.

1. Fiat-Backed Stablecoins

Some of the most widely-used stablecoins today use a centralized model and back new token issues with fiat currency at a one-to-one ratio. U.S. Dollar Coin (USDC) and Tether (USDT) are examples of this type of coin.

2. Commodity-backed Stablecoins

Some stablecoins are backed by other assets, like gold. The overall functions remain the same, but the value is tied to the current price of gold, with physical gold used as collateral.

3. Crypto-collateralized Stablecoins

Some other stablecoins that use a decentralized model, like DAI, have grown in popularity in the crypto community. Rather than maintaining their stable value through fiat reserves, users can lock up cryptocurrency as collateral for borrowing DAI on the Maker DAO platform.

There are also a growing number of decentralized lending platforms that allow users to deposit DAI or other stablecoins and earn interest. Network consensus, rather than a centralized team, governs DAI (similar to how Bitcoin works), which maintains a value equal to one U.S. dollar.

4. Algorithmic Stablecoins

Decentralized algorithmic coins are a newer technology and differ from the other types of stablecoins in that they don’t involve any type of collateral backing. Instead, they rely on smart contracts to maintain their price.

Comparing Stablecoins Strengths and Weaknesses

The different types of stablecoins are designed for different reasons, and therefore, can serve different purposes. In other words, they may each have strengths and weaknesses, depending on what a user wants to do with them.

So, depending on what a user wants or hopes for out of a stablecoin, those strengths or weaknesses may revolve around a specific coin’s relative stability, its risks related to regulation and centralization, its liquidity, and perhaps even its specific complexity.

Factors Influencing Stablecoins Price Behavior

Getting more granular, there are a lot of things to understand as to how stablecoins’ value is maintained.

How Stablecoins Maintain Price Stability

Stablecoins use a variety of means to maintain their price stability, and that includes various forms of collateralization, as discussed, which means they’re “pegged” to or “backed” by various forms of fiat currency, crypto, or commodities. Smart contracts, housed on blockchain networks, automatically keep stablecoin supply in check by executing trades or burning coins, which evens out with dynamic demand, and keeps values relatively stable.

Algorithmic Price Controls and Protocols

For stablecoins that maintain their value via algorithmic price control mechanisms, the process is similar. An algorithm creates or burns (destroys) coins to maintain a certain level of total coins that reaches a level of equilibrium with supply and demand. That algorithm, accordingly, maintains the stablecoins’ value. Again: Similar to smart contracts, but slightly different.

The Role of Arbitrage and Redemption in Stabilization

Crypto arbitrage, or the act of buying and selling the same stablecoins to try to profit from price differences, along with redemption, or trading in a stablecoin for its equal value in fiat currency, may help level price differences across coins. In effect, these two market factors or mechanisms, in conjunction with algorithmic or smart contract-powered price controls, can help keep a stablecoin’s value steady.

Importance of Transparency and Auditing

Each stablecoin is different, and there can be varying levels of transparency, and auditing associated with each stablecoin. Those differences can make a difference in terms of demand for a specific coin. If a stablecoin A is less transparent or somewhat riskier than stablecoin B, for instance, which would you prefer to use?

Reserve Quality, Transparency, and Auditing

A stablecoin’s reserve can also play a role in influencing its value and behavior. We’ve discussed how some stablecoins are backed by commodities or fiat. If a stablecoin is backed by a low-quality or low-value commodity, such as dirt, while another is backed by gold, that can create some divisions.

Further, there is likely to be some regard for how those reserves are tracked or audited, and how a stablecoin’s value matches up with its underlying reserve. All of that can come into play for stablecoin users.

Regulatory Environment and Evolving Legal Frameworks

The rules are changing around stablecoins, and each country will have its own way of dealing with them. That can and will also have an effect on supply, demand, and values.

Market Confidence, Track Record, and Reputation

There’s been a long-standing issue in the crypto space surrounding scams and rug-pulls, and that can give some users pause when deciding to utilize one coin versus the next. Accordingly, market confidence, track record, and reputation related to a specific coin are important factors.

Liquidity, Adoption, and Technical Reliability

Further, how widely used and reliable a stablecoin is perceived to be can also be important. Stablecoin holders will want to know that they can get their money back — that is, liquidate their holdings if and when they choose to do so — without much effort or friction.

Common Risks and Failure Scenarios

It’s possible that stablecoins could lose their value due to depegging, which is when the price of a stablecoin moves more substantially away from its pegged value. This could result from loss of confidence in the stablecoin or its reserves, panic selling, operational failures, and other factors. There are a number of things that could go wrong, and with the crypto space still evolving and still less regulated than the financial space, users should know that risks exist.

Stablecoins and Their Relationship With Traditional Finance

We’re still in the early stages of stablecoins’ integration into the broader, traditional financial space, and it’s evolving right before our eyes. But there are some use cases to be aware of, such as using DeFi blockchain technology to make loans, and more.

Stablecoins in Financial Trading and DeFi

Stablecoins are becoming a necessary component of the decentralized finance (DeFi) space. Holders can make transactions like peer-to-peer lending — where people make direct loans to each other via blockchain — with stablecoins.

Some users might prefer this option to other cryptocurrencies, which could hurt their rate of return if the price goes down. A stablecoin’s steady value may also add an element of confidence to financial arrangements.

Integration WIth Existing Financial Systems

Stablecoins and crypto are again being increasingly adopted by traditional and long-standing financial institutions. As such, they’ll likely become further ingrained and integrated into the broader financial space.

Centralization vs. Decentralization Considerations

One thing that attracts many users to the crypto space is its decentralized nature, which may allow them to access financial services more easily — from their smartphone or computer — and with fewer and lower fees.

Stablecoins could become more centralized as they’re adopted by bigger players and further integrated into the financial industry. However, this could also allow these groups to offer lower fees in some cases and increase accessibility since fewer intermediaries, if any, may be needed for transactions.

Regulatory Oversight and Compliance Challenges

There have been new rules and regulations floated to help smooth the path for stablecoins’ wider adoption in the financial space. The GENIUS Act, specifically, tasks the Treasury Department to encourage stablecoin innovation and adoption, and lays out which existing laws and regulations that they may be subject to. This is all still being worked out, but in the U.S., it is a change in how the federal government has, in the past, viewed most cryptocurrencies.^[3]

Practical Applications of Stablecoins for Businesses and Individuals

There are numerous potential applications for stablecoins.

• Cross-border payments and remittances: Money, in its numerous forms, is designed to store and transfer value. Stablecoins can do the same, and perhaps with less associated costs. It can be expensive to make international payments or transfers, but it’s possible stablecoins could provide an alternative.

• Treasury protection in high-inflation economies: It’s possible that stablecoins could provide some protections from inflation since they’re often backed by treasuries, particularly in places where inflation is a very serious problem. While we’ve had issues in the U.S. related to inflation in recent years, some countries have much higher rates of inflation, and stablecoins could provide ways to alleviate it.

• Payroll solutions for remote teams and contractors: As discussed, stablecoins may prove useful in facilitating international payments. That could be a boon for business owners operating remote teams, or working with international freelancers or contractors.

• Ecommerce and settlement: Stablecoins could prove a viable alternative to simple fiat currencies, like U.S. dollars, in certain cases to facilitate other types of purchases.

• Addressing volatility in crypto markets: As mentioned, stablecoins may serve as a ballast in the crypto markets, lowering overall volatility.

• Promoting financial inclusion for the unbanked and underbanked: There are a significant number of “unbanked” individuals in the U.S., or those who either choose not to use traditional banking services, or otherwise can’t access them. Stablecoins could bring those people into the fold, or prove a way for them to access the financial space.

The Future of Stablecoins

The future of stablecoins is still up in the air, but they do have momentum.

Emerging Trends and Innovations

Stablecoins are trending, as more and more financial institutions are starting to use them to facilitate transactions, and some will likely issue their own. As that happens, innovation will occur, as well, as users find new use cases or other ways to take advantage of stablecoins going forward.

Potential Impact on Global Finance

We don’t know what’s going to happen, but stablecoins could potentially have a significant impact on global finance. If they do prove successful at offering a quicker and more accessible payment system that can be used worldwide, the implications are wide-ranging.

The Takeaway

Stablecoins are cryptocurrencies that are designed to keep their value stable in relation to another asset — most commonly, an existing fiat currency, such as the U.S. dollar. Issuing these coins on a blockchain may help remove certain barriers to entry associated with traditional, legacy financial systems at large. It also has the potential to provide greater access to financial services to those who may not otherwise have the opportunity to participate in the world of finance.

Soon, SoFi members will be able to buy, sell, and hold cryptocurrencies, such as Bitcoin, Ethereum, and more, and manage them all seamlessly alongside their other finances. This, however, is just the first of an expanding list of crypto services SoFi aims to provide, giving members more control and more ways to manage their money.

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FAQ

What is the most stable cryptocurrency?

Theoretically, any stablecoin should be stable; most of them see their values fluctuate very little on a daily basis. The decentralized and algorithmic stablecoins have experienced somewhat more volatility than the centralized coins, historically.

What are some examples of stablecoins?

There are numerous stablecoins on the market, including DAI, Tether, Binance USD, USD Coins, and Paxos.

Can stablecoins offer protection from inflation?

It’s possible that stablecoins could provide some protections from inflation since they’re often backed by treasuries, particularly in places where inflation is a very serious problem.

About the author

Brian Nibley

Brian Nibley is a freelance writer, author, and investor who has been covering the cryptocurrency space since 2017. His work has appeared in publications such as MSN Money, Blockworks, Business Insider, Cointelegraph, Finance Magnates, and Newsweek. Read full bio.

Article Sources

McKinsey & Company. The stable door opens: How tokenized cash enables next-gen payments.
EY Parthenon. Stablecoins: adoption, optimism and regulatory clarity.
U.S. Department of the Treasury. Treasury Seeks Public Comment on Implementation of the GENIUS Act.

Photo credit: iStock/tomap49

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