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Streaming services deliver addictive TV (or movies, articles, or audio) that we all can’t stop talking about. If the content is good, we’ll willingly pay a fee every month to consume it. Who wants to be bored, or left out of the cultural conversations?

But now that the average viewer has four to five streaming services, the monthly price tag is on the rise. In 2024, Americans spent $61 a month on streaming services, which is up from $48 in 2023, according to Deloitte’s Digital Media Trends report.

Wondering how to save money on streaming video services, short of just canceling them all? We’ve got 12 tips for cutting costs without cutting (all) the content. Read on to learn about the different techniques, and see which are right for you.

13 Ways to Cut the Costs of Streaming

Monthly subscriptions to Netflix, Hulu, Disney+, Amazon Prime, and HBO Max — not to mention music subscriptions like Spotify, Apple Music, and Pandora — expose us to more content and more choice in terms of entertainment and education.

But the cost of streaming services is on the rise. In an age of higher prices, many of us want to protect our money from inflation. Cutting costs and sticking to a budget can be especially important.

Those are good reasons to examine how to save money on subscriptions. Here are 13 ways you might be able to save some cash on your streaming habits:

1. Paying Annually Over Monthly

Some streaming services allow you to pay a lump sum once a year instead of monthly payments. This can make it more challenging to build streaming services into a line item budget, but the reward could be worth it. Usually when you pay for a year in advance, streaming services offer you a discounted rate.

If you don’t plan to keep the service for a year — say, you only want Netflix the month that your favorite show releases a new season — paying the annual fee might not make sense. Instead, it could be more cost-effective to pay the monthly fee for one or two months a year when you want to use the service.This could be one way to be better with money.

2. Setting Renewal Reminders

Whether you pay once a year or month to month, it’s a good idea to know when your card will be charged again. If you set a reminder in your phone or on your digital calendar, you can receive an alert before paying for another month.

When you get the alert and think about how much you and your family used the streaming service over the last pay period, you might realize that it’s not worth it to keep paying. If that’s the case, consider canceling to add money back into your monthly budget.

3. Finding Streaming Bundle Deals

Many streaming services offer bundle deals that allow you to save. If you already plan on subscribing to two separate services, it is a good idea to explore discounts for bundles. For example, if your family wants Hulu and Disney+, you might be able to save money by bundling the two together.

However, if you don’t want one of the services in the bundle, calculating the cost of individual services vs. the bundle could also be helpful. If you are motivated to save money, opting out of a bundle that includes services you don’t really need could be a way to free up funds.

You could then use the money you save to open a savings account and start an emergency fund, or you might choose to put your freed-up funds into retirement savings. Every bit helps.

4. Utilizing Free Trials Before Paying for a Plan

Several major streaming platforms, including Hulu, Apple TV+, and Amazon Prime, allow you to try out their content before committing. Some people who only want to watch a specific movie or TV series that is released in a certain month might take advantage of free trials — signing up to watch their desired content and then canceling the service before it renews and charges their card.

Even if you aren’t utilizing free trials to game the system, they do get you a month of content without having to worry about fees. It’s a good idea to set a reminder at the end of the free trial to cancel the service if you don’t want to keep it; otherwise, your account may be charged.

5. Determining If You Really Need the Services — And Canceling What You Don’t Need

Regularly analyzing your budget is a good idea, especially as the cost of living increases. While reviewing your average monthly expenses, you might want to consider if you really need each of the streaming services to which you are subscribed.

If your family has any services that they rarely use, you can consider canceling those subscriptions to save money each month.

6. Seeing if a Phone Plan Comes With a Subscription Deal

When’s the last time you changed your phone plan? If you are thinking about upgrading to a new phone or a new plan, you might want to shop around to see what streaming deals phone carriers are offering.

Promotions are subject to change, but often, carriers like T-Mobile, Verizon, and AT&T offer free subscriptions to popular streaming platforms like Netflix, Apple TV+, and Paramount+. These are often for a year but sometimes for as long as you keep your phone contract.

Recommended: The Importance of Saving Money for the Future

7. Choosing Plans with Ads

Today, Streaming services typically offer viewers ad-free experiences that allow them to consume content unhindered. But increasingly, that comes at a cost. To save money on monthly subscription services, many families opt in for the lower-tier, less expensive “with ads” plans.

Streaming services like Hulu and Netflix offer their content at discounted rates if you opt into the “with ads” plan, and even streaming giant Netflix has announced its intentions to roll out a cheaper, ad-supported plan.

If you don’t mind watching ads in between your favorite shows and movies, downgrading to a cheaper, ad-supported subscription could save you money.

Recommended: How to Save Money From Your Salary Each Month

8. Downgrading to a Cheaper Plan if You Can

Ad-supported plans aren’t the only downgrade you can consider to save money on streaming services. Some services, like Hulu, have top-tier plans with live TV options. Others, like Netflix, allow you to pay more so that you can utilize additional screens at the same time.

Here’s another way to save money on streaming services: Consider whether you are fully utilizing every aspect of a service. (This is a good moment to tap your financial discipline.) If you aren’t truly using a service or realize you can pare down, it’s wise to explore what alternatives the platforms offer that could save you money.

Downgrading your plan could free up cash that you could funnel towards growing your emergency fund or saving for a vacation, or into your checking and savings account.

9. Sharing the Account With Your Household

Some streaming services allow you to share your account with friends and family, typically within the same household. Rather than maintaining separate accounts, you might be able to save money by sharing services with roommates.

If you opt to save money this way, you may find that streaming services even allow you to create separate, personalized profiles within your account as long as you are in the same residence.

10. Using Free Alternative Streaming Services

Not all content requires a subscription. If you have a smart TV or other internet-connected device, you can connect to free services like the Roku Channel and Pluto TV. While this may not give you access to the hot new shows everyone is talking about, it can definitely give you plenty of options for viewing.

11. Rotating Streaming Services Instead of Having Them All at Once

Most consumers have four to five streaming services in a given month, according to the Deloitte Digital Trends report. Depending on how much TV and music you consume, it’s possible to utilize that many services fully. But for many families, that might be too many. Just watching a few episodes of a show every month may not justify the expense.

If you find that you don’t regularly watch all your services, it could be a good idea to rotate them. For example, you could pay for two in the spring because they’ve got new shows you like, then switch to another two during summer vacation because they’ve got great content for kids, and then switch again in the fall and winter because you enjoy their holiday programming.

12. Using a Cash Back Credit Card

Earning money by spending money can make monthly expenses a little more manageable. For example, say you have a cash-back card that allows you to earn up to 3% back on qualifying purchases. While it might not sound like much, that’s 30 cents cash back for every $10 streaming service each month. It can add up.

Some cash back credit cards are actually designed for people who like streaming services; they might offer special cash back rates specifically for subscription services like Prime Video and Spotify.

13. Swapping Down on Resolution

Some people are obsessed with having the latest, most crystal-clear image as they view their shows; others, not so much. If you fall into the latter category, you might be able to score a cheaper subscription for lesser resolution. For instance, Netflix currently charges $15.49 for a monthly subscription without HD; a standard plan with HD is $15.49 (with perhaps other perks as well); and $22.99 for a premium one with Ultra HD available.

Banking With SoFi

Looking for more ways to lighten your monthly budget? Choosing the right bank account could help save you money. For instance, you might want to consider a high-yield bank account or one with low or no fees. Explore the options to see what makes the most sense for you.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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.

FAQ

Are streaming services continuing to increase in price?

Many streaming services have increased their prices in recent years. How their pricing will evolve depends on many factors, but we are at a moment of high inflation with price hikes likely. To save money on monthly subscriptions, consumers might want to cut back on the number of streaming services, look for ad-supported plans, and consider streaming bundles.

Is cable cheaper than streaming?

The Deloitte Digital Media Trends report found that the average American uses between four and five streaming services, with an average monthly bill of $61. While higher than it was pre-pandemic, Monthly spending on streaming services is still lower than the average cable bill, which is $113, according to a 2023 J.D.Powers study. Of course, you can find much cheaper basic cable packages, but you can also have a single streaming service to cut costs.

What streaming services have bundle deals?

You can find bundles with multiple streaming services, such as Hulu, Disney+, and ESPN+. Amazon Prime members get access to video content plus Prime shipping deals on Amazon.com; they can also take advantage of bundles with platforms like AMC+ and Paramount+. Bundle deals might not always be available, so it’s a good idea to research before signing up.

Photo credit: iStock/Brothers91

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

3.60% APY
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

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 every 31 calendar days.

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 the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, 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 the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit 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, Wise, 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 Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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

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


SOBNK-Q324-049

You probably like your home to be clean, but when it comes down to breaking out the mop and bucket, the vacuum cleaner, the wood polish, sponges, and bleach, do you really have the time or inclination to dive in?

If you feel like groaning just reading about tidying up, it could be worthwhile to hire a cleaning person or service.

There are many factors to consider when thinking about hiring out this task, and that’s where this guide will come in handy. Read on to learn:

•   What’s the difference between a cleaning person and a cleaning service?

•   How much does hiring a cleaning person or service cost?

•   What are the pros and cons of hiring a cleaning person vs. a cleaning service?

•   What are the alternatives to hiring a cleaning person or cleaning service for your home?

What Does a Cleaning Person or Service Do?

A cleaning person or service takes care of basic tasks such as dusting, vacuuming, sweeping, mopping, disinfecting the toilets, cleaning the sinks and bathtub/shower, and taking out the garbage.

There are typically add-on services available: laundry, changing the sheets, and doing the dishes for starters. Some of these could be included in the cost depending on the cleaning person or service.

“But, I can (or should) do all that myself!” you may be thinking. In which case, you are likely wondering: Is hiring a cleaning person worth it?

If a spic-and-span home is high on your checklist for maintaining a house, a little research can help determine if a cleaning person or service is right for you. Read on for more detail which can assist you as you make your decision.

How Much Does a House Cleaner Cost?

The cost for hiring a cleaning person (or independent contractor) will depend on where you live, the size of your home, and how often they will come, but individual cleaners typically charge between $50 and $100 an hour.

Going with an individual generally costs less than hiring a cleaning service. However, they may not offer as many guarantees as a large company.

How Much Do Cleaning Services Cost?

Full-service cleaning companies can charge between $175 and $300 per visit. You can typically get a customized quote based on the size of your home and services you want before you hire a cleaning service. Some companies may have a minimum fee per visit. Generally the more frequently a service comes, the lower the cost per cleaning.

You can also hire a service for specialized, one-time cleaning services, such as after an event or before moving out or moving into a home.

Things to Consider When Hiring a Cleaning Person or Service

When deciding if hiring a house cleaner or cleaning service is worth it, you’ll benefit from addressing a few questions about your monetary situation, schedule, and level of desired cleanliness.

Your Budget

The first step in determining if you can afford a cleaning person or service is to set up a basic budget if you don’t already have one up and running.

If you’re wondering how to make a budget, consider using the 50/30/20 rule. This means putting 50% of the household income toward necessities or musts (which typically includes housing, utilities, food, and debt); 30% towards wants (like dining out and entertainment); and 20% on saving (including retirement) and debt payments beyond the minimum.

Once you see how much cash you have coming in and going out, you’ll be better able to assess if you can afford to pay for cleaning from that 30% that covers “wants.”

Recommended: What is the 50/30/20 Budget?

How Valuable Is Your Time?

A good way to decide whether hiring a house cleaner is worth it is to remember this saying: Time is money. If paying a professional $50 an hour frees you up to make $65 an hour while working, the cost might be worth it, since you’ll come out ahead financially.

Schedules (How Often Are You Home?)

If you work long hours at an office or other workplace, outsourcing your house cleaning will allow you to enjoy your time at home without having to clean. And if the cleaning person or team comes while you’re at work, you won’t have to worry about staying out of their way.

However, if you are someone who works from home, or you or your spouse are a stay-at-home parent, a cleaning person or service can potentially be disruptive.

How Often You Need Your House Cleaned

Frequency of cleaning will matter. While a service may charge less per cleaning if they come weekly vs biweekly or monthly, you’ll still likely save money by having your home cleaned less frequently.

Worth noting: Do you sometimes list your house for renters? If you rent out on Airbnb, you’ll be asked to adhere to Airbnb’s cleaning protocol standards. A cleaning crew is helpful for a quick turnaround between renters.

Cleaning Requirements

The price of a house cleaner or cleaning service can go up depending on what is required of them:

•   Level of mess. Do you entertain frequently or have small children? It may take longer to clean up the aftermath. Or maybe you haven’t done a deep-clean in ages. That too may make cleaning take longer.

•   Area of mess. Does the whole house always have to be cleaned? You can save money by only having the common areas and bathrooms tidied up.

•   Pets. Vacuuming dog and cat hair can add many minutes to a cleaner’s timesheet.

•   Are you a neat freak? A deep-clean or super detailed job will cost more than basic dusting, vacuuming, and mopping.

How Good You Are At Cleaning

If you are a disciplined and effective cleaner who loves getting your place spotless, there may be no need to hire someone. That said, there might be times you get too busy to clean or want some help tidying up before the holidays or a houseguest’s arrival.

If you’re the kind of person who ignores dust bunnies or the sight of a broom stresses you out, perhaps you should outsource household tasks and enjoy some time elsewhere.

Cleaning Services vs Individual Cleaners: What’s the Difference?

An individual cleaning person typically costs less than a cleaning service. A cleaning person often works alone, while a cleaning service can be a crew of two, three, or more who clean simultaneously.

An independent cleaner generally keeps 100% of the earnings, while a portion of the money for a cleaning crew goes to the service provider.

There are other key differences between individual cleaners and cleaning services:

Pros of Hiring a House Cleaning Person

Here are some of the perks that can make a cleaning person worth it:

•   Lower costs. An independent contractor can be less expensive than a cleaning service. Fewer workers can mean cheaper rates.

•   Price flexibility. You may be able to negotiate cleaning add-ons more easily (and affordably) with an individual.

•   Familiarity. The same person comes to your home every time. This can provide a sense of comfort and trust for you and your family.

•   Personal recommendations. You can get referrals from someone you trust — a friend or a neighbor.

Recommended: 15 Creative Ways to Save Money

Pros of Hiring a Cleaning Service

If you’re considering getting help tidying up around the house, a cleaning service can be worth it. They come with several benefits:

•   Vetted employees. Full-service cleaning companies typically check their employees’ backgrounds, so you don’t have to.

•   Set standards. Many companies train their employees to uphold a certain level of cleaning criteria.

•   Faster service. Since cleaning services are composed of crews, a team of workers can get the job done faster than an individual house cleaner.

•   Customer service. If a job isn’t up to snuff, professional companies will deal with any complaints you may have.

Cons of Hiring a House Cleaning Person

•   You’ll do the vetting. The responsibility of getting references and background checks on the cleaning candidate will fall to you.

•   Longer cleaning time. Since a house cleaner usually works solo, they might not be as fast as a cleaning service with multiple workers.

•   Unpleasant boss duties. If your cleaning person is not meeting your expectations, it will be up to you to address the problem and, possibly, terminate the arrangement.

•   Inflexible schedule. If the contractor has a lot of clients, there could be fewer timeslot options available.

💡 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.

Cons of Hiring a Cleaning Service

•   Higher prices. A cleaning service generally costs more than an independent maid.

•   Lack of familiarity. The company could send different people every time.

•   Add-ons can be costly. Since the company sets the prices, you could spend a lot for a deep-clean of the fridge. A cleaning person, on the other hand, might not charge extra if they can get the job done within their hourly time frame.

Alternatives to House Cleaners or Cleaning Services

House cleaners and cleaning services are generally the route people take when hiring help, but there are a few other options:

•   Gig-based workers. Apps and online services such as Taskrabbit and Fiverr feature a variety of folks willing to do odd jobs, including house cleaning. Whether they pursue this full-time or as a side hustle, you may well find affordable options.

•   College students. If you live near a campus, check the online or physical job boards. Students are generally eager to make extra dough.

•   Your kids. Shelling out for an allowance can be a lot cheaper than a cleaning service.

Tips for Saving Money on Cleaning Services

There are a few things you can do to potentially reduce the cost of a cleaning person or service:

•   Shop around. It’s a good idea to interview more than one house cleaner or get estimates from multiple cleaning services.

•   Make the terms clear. You’ll want to clarify exactly what tasks need to be done, so you won’t get charged for any unexpected add-ons.

•   Consider a trial run. It can be a good idea to try out a house cleaner or cleaning service for a month or so before committing to a long-term agreement.

•   Inquire about fees. It’s a good idea to ask about any potential extra fees so you don’t hit with any surprises. Some cleaning services may tack on a processing fee if you pay with a credit card vs. direct deposit.

•   Look for promotional deals. Cleaning services will occasionally run specials. They may also offer package deals and referral bonuses.

•   Tidy up before they come. Keeping your house orderly in between appointments allows the hired cleaner to perform more efficiently.

Recommended: How to Set and Reach Savings Goals

The Takeaway

If your messy home is stressing you out, a cleaning person or service can take some of the weight off your shoulders. As long as you can justify the extra expense, hiring a professional can make your home look great and improve your mood, plus leave you with more free time to enjoy your favorite pursuits.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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.

FAQ

Are individual house cleaners better than cleaning services?

Both are good options if you need help cleaning your house. Typically, a cleaning person can be cheaper and is someone you see regularly and can build a relationship with. A cleaning service, on the other hand, may be able to get the job done faster and may have more professional training and customer service.

Is it safe to hire a cleaning person or service?

To feel secure, it’s a good idea to get recommendations and references (and check them) for an individual cleaning person. Cleaning service companies generally vet their employees for you.

Should you hire a house cleaner if your house is not very dirty?

Whether to hire a cleaning person or not depends on how clean you want to keep your home, and how much time you are willing to personally spend on it. Even if you’re a regular duster, a house cleaner can help with larger tasks like cleaning the fridge and oven, heavy-duty vacuuming, and/or window washing.

Photo credit: iStock/Tatiana

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

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

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 every 31 calendar days.

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 the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, 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 the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit 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, Wise, 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 Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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.

SOBNK-Q324-064

You might be wondering how easy it is to get approved for a $5,000 personal loan. In most cases, the process is straightforward and no collateral is required — though you might pay more in interest if your credit is poor. Overall, a $5,000 personal loan is a good way to access cash for unexpected bills and necessary expenses.

Learn more about the typical terms and requirements for a $5,000 personal loan.

Pros of a $5,000 Personal Loan

A personal loan is money that you borrow from a bank, credit union, or online lender that you pay back in regular installments with interest, usually over about two to seven years. Personal loans have several advantages over high-interest credit cards, making them a good option for a variety of borrowers.

Popular uses for personal loans include consolidating debt, covering medical bills, and home repairs or renovations. Here’s a look at some of the pros of taking out a $5,000 personal loan.

💡 Quick Tip: Planning a getaway? You can use a personal loan to cover travel expenses. Explore vacation loans with competitive rates and flexible terms to make your dream trip a reality.

Flexible Terms

With $5,000 personal loans, you can often choose the repayment terms to fit your budget. For example, you may be able to opt for a longer repayment term with a higher interest rate but a lower monthly payment, or you might be able to choose a shorter repayment term with a lower interest rate and a higher monthly payment.

No Collateral

Most personal loans are unsecured, meaning you aren’t required to provide collateral to be approved. That said, using collateral on a personal loan can increase your approval odds, especially if your credit is poor. Doing so could result in a larger loan amount, lower interest rate, and better terms.

Fixed Payments

The interest rate on a $5,000 personal loan is usually fixed, meaning your payments will stay the same for the life of the loan. Fixed payments are typically easier to budget for.

Cons of a $5,000 Personal Loan

Small personal loans of $5,000 or so also have disadvantages that should be considered before you apply.

Debt

You’ll be going into debt when you take out a $5,000 loan, which is the biggest downside. If you struggle to repay the loan, you can end up in a worse financial position than before you took it on.

Origination Fees

Personal loans can have many fees, including origination fees. This fee is separate from the interest the loan charges and has no direct benefit to you as the borrower.

Some origination fees can be high, up to 15% of the loan principal. Even just a 5% fee on a $5,000 loan is $250 — just to receive the money. Fortunately, there are ways to avoid loan origination fees.

Interest Rates

While personal loan interest rates are usually lower than credit cards’, they can cost you hundreds (or even thousands) over the life of the loan. When evaluating loan options, it’s helpful to compare personal loan rates with other common financing options, such as the average car loan interest rate, to ensure you’re securing the most cost-effective borrowing solution.

💡 Quick Tip: Compare options to find the lowest personal loan rate and secure the best terms for your $5,000 personal loan.

Requirements for a $5,000 Personal Loan

Requirements for a $5,000 loan vary by lender. But in general, you should have at least Fair credit, which is a score of 580 or above. Lenders may also look at other factors, such as your income and your debt-to-income ratio (DTI), during the application process.

Recommended: The Credit Score Required To Get a Personal Loan

$5,000 Personal Loan Terms

Repayment terms for a $5,000 personal loan are usually in the range of two to seven years. The length of the repayment term will play a role in determining the monthly payment amount and the interest rate.

Your credit score will also affect the interest rate. For example, the average interest rate for personal loans is 10.73%-12.50% for those with Very Good or Excellent credit. However, if you have Fair credit, the average jumps to 117.80%-19.90%.

If you’re looking for ways to secure a lower interest rate, programs like SoFi Plus offer eligible members a rate discount on new personal loans, helping to reduce borrowing costs.

Payment on a $5,000 Personal Loan

The payment on a $5,000 personal loan depends on the interest rate and the loan term. You can use a personal loan calculator to estimate your monthly payments based on different rates and terms. For example, a two-year $5,000 personal loan with a 7.80% interest rate results in your paying $226 per month. This means you’ll pay $416.34 in total interest over the life of the loan.

If, on the other hand, you take out a three-year $5,000 loan at an interest rate of 15%, you’ll pay $173 per month. In this case, you’ll pay a total of $1,239.76 in interest over the life of the loan.

Recommended: Personal Loan vs Credit Card 

The Takeaway

Many lenders offer $5,000 personal loans with competitive interest rates and flexible terms. However, you are still charged interest and often additional fees, so you’ll want to shop around for the best deal you qualify for.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

What credit score do I need for a $5,000 personal loan?

In most cases, the credit score needed for a personal loan is at least 580, considered a Fair credit score. If your score is lower than that, your borrowing opportunities will be limited. Lenders may also look at other factors, such as your income and your debt-to-income ratio (DTI), during the application process.

How much is the monthly payment for a $5,000 personal loan?

The amount you will pay per month on a $5,000 personal loan will depend on the loan’s interest rate and term (length of the loan). As an example, the monthly payment on a $5,000 personal loan with a 13% interest rate and a three-year term will be $168.

How can you get a $5,000 personal loan?

Getting a personal loan generally involves checking your credit, comparing lenders (including banks, credit unions, and online lenders), getting prequalified, and then submitting your application. 

Photo credit: iStock/SDI Productions

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.

SOPL0222012

You’re likely familiar with the term “pay it forward.” It describes an act of kindness and giving, from passing along soccer cleats to the younger player next-door to volunteering in a soup kitchen, as a way of giving back. It’s all about putting generosity into action and participating in a cycle of giving that empowers both you and others.

By paying your good fortune (financial, healthwise, or otherwise) forward, you both help others and may inspire people to also give what they can to assist others and lift spirits.

As part of their ActNow campaign, the United Nations lists 17 Sustainable Development Goals, along with small things individuals can do in their daily lives that can improve life for all of us. They note that “a lot” can happen “when millions of people act together for our common future.”

Interested in joining this movement towards positive change? Read on to learn 23 ways to pay it forward, including:

•   Gestures that lift spirits, from running errands to letting people take your place in line

•   Giving back to your community

•   Passing on meaningful possessions instead of tossing them.

Is Paying It Forward the Same as Karma?

The concepts of paying it forward and karma are similar yet different.

Paying it forward involves helping others without expecting anything in return, except the hope, perhaps, that the recipient might keep the cycle going, thus making the world a better place. You may also have heard of this concept called “random acts of kindness.”

The word karma, on the other hand, comes from the Hindu and Buddhist religious concept that a person’s actions in this and previous states of existence decide their future fate when reincarnated.

In everyday usage, the idea is that if we send the universe positive energy, also known as good karma, it will come back to us. On the flip side, bad karma is often believed to bring more bad events or bad luck.

Simple Ways to Pay It Forward

If you’d like to test-drive some pay-it-forward ideas, there are plenty of options. Here, you’ll find 23; notice how doing one can make you want to try another.

1. Letting Someone Go in Front of You in Line

This is a present to a harried parent with a sick child at the pharmacy or a driver merging into a crowded highway toll lane. Kindness is connection in a busy world and is applicable anywhere, from an airport restroom to Home Depot aisles.

2. Paying for a Stranger’s Coffee or Meal

At Starbucks, numerous customers have kept drive-through pay-it-forward chains going, each covering the tab of the customer in the car behind them. But you could also buy someone a java at any coffee shop or drive-through, or be kind and give the cashier money to pay for a full meal of another patron, just to make their day.

3. Sharing Your Green Thumb

Tend the flowers in a public patch to give beauty to your town. Donate homegrown veggies to a food pantry, or leave extra zucchini, beans, rhubarb, and more by your mailbox for others to take for free. It could really help someone who is struggling to pay for groceries in a given month.

4. Donating Blankets, Pajamas, Socks, and Toiletries to Shelters

Unhoused families might move from shelter to shelter for available beds. Consider donating new blankets, PJs, socks, and unopened mini shampoos, lotions, and soaps from hotel stays for the gift of personal care.

Recommended: How to Make End-of-Year Donations

5. Leaving a Big Tip for a Server or Waiter

Servers and waitstaff are on their feet, catering to our whims (dressing on the side, hold the onions), and their base salary is generally low. Tips help even the score. Yes, there are guidelines of how much you should tip, but occasionally, it can be nice to go a bit overboard. For a server that goes above and beyond, consider slipping them a generous cash bonus before you leave.

6. Returning Another Person’s Shopping Cart

Here’s an easy way to pay it forward with a random act of kindness: Grab another customer’s card after they are done with it. This saves them the extra steps and, if you’re on your way on, you won’t have to hunt for a cart.

7. Sending an Email of Gratitude

Amid spam, advertising, and billing statements, a note of gratitude is a grace. Maybe it’s time to thank unheralded people like the school reading teacher or your family doctor for all they do every day.

8. Sharing Your Food With Someone

If you enjoy getting bargain prices but Costco multipacks are just too big to store, consider sharing a few with a friend or neighbor free of charge.

Recommended: 31 Tips for Cutting Your Grocery Bill

9. Learning the Names of People You See Every Day

Get to know the crossing guard, train conductor, and neighbor who walks her poodle by your house every morning. (Learn the poodle’s name, too.) This is a sign of respect and appreciation that says “I see you and notice you. You are not anonymous.”

10. Leaving Extra Quarters at the Laundromat

These shiny silver timesavers can be a real boon for the next person lugging in dirty wash and detergent.

11. Asking for Charitable Donations Instead of Gifts for Your Birthday

More and more kids and adults share this kind of gift request on Facebook and in party invitations. Money goes to good causes, from the Breast Cancer Research Foundation to the World Wildlife Fund, rather than material gifts. Need inspiration? Spend a bit of time researching the best charities to support.

12. Helping Someone With a Task

Give a neighbor a hand raking leaves, shoveling snow, or with a work-related task, such as proofreading a resume or printing a document. Offering to help without any payment expected can deepen your bonds.

13. Writing a Recommendation for a Coworker

Leave a golden review on LinkedIn or write a glowing letter someone can take along when leaving a job. This can help them move ahead in their professional pursuits.

Recommended: 22 Money Moves To Make This Month

14. Writing a Message to Someone Who Made a Difference in Your Life

Did your fifth-grade teacher see in you skills other people missed? Did your first boss train you in a way that’s made your work life so much easier? A handwritten note or card sent by snail mail is one of the best pay-it-forward examples. You’ll probably make their day and then some.

15. Giving Away Items Online

Your daughter’s riding boots from all those lessons at the horse barn deserve a good home. So does the dollhouse your brother built her. Instead of tossing them in haste, consider posting them on sites like Freecycle, Nextdoor, or a local Facebook group, so someone else can nab them. Reduce/reuse/recycle helps the planet, too.

16. Encouraging Someone Who Needs It With a Few Words

We all need some positive encouragement now and then. You can offer it by saying “You got this” to a parent who is job-hunting or “Good for you, walking” when you pass someone on a steep hill.

Recommended: 5 Ways to Achieve Financial Security

17. Leaving Coupons Next to Corresponding Products in the Grocery Store

That diaper coupon you can’t use because your baby is too big now? Leave the coupon on a package for another shopper. Same with any other coupons that could brighten someone else’s day.

18. Purchasing Extra Food to Leave at Shelters

When you go grocery shopping, you might add some shelf-stable products, like pasta, sauce, rice, nuts, boxed milk, nut butters, wholesome cereals, and canned fruit, to your cart for others in need. You can then drop them off at a local shelter or other nonprofit.

Recommended reading: Things to Do with Your Tax Refund

19. Cleaning Up Your Local Beach or Public Area

Bring trash bags, gloves, and perhaps family members to help collect garbage that clogs our natural areas. You can also help keep plastic out of our bodies of water this way.

20. Running an Errand for a Busy Loved One

Is your sister a full-time nurse raising two kids? Once a week, drop off a heat-and-eat dinner or shuttle kids home from activities.

21. Volunteering Your Time

Whether you make it a regular or a once-in-a-while activity, an easy and rewarding way to pay it forward is to give a couple of hours of your time. Help at a religious institution, the school library, or the local soup kitchen, or pitch in at a town park or garden cleanup. Volunteering can prove to be a fun, free way to spend your leisure time.

22. Donating Blood

Sign up to donate blood or give platelets (the latter takes longer but meets critical needs.) You leave on a high, knowing hospitals, patients, and their families are waiting for your vital gift.

23. Giving up Your Seat to Someone

Do it on the subway, bus, or train. If you’re hailing a taxi and other people are waiting, too, why not let them get the first one? It’s an easy way to be charitable.

Banking With SoFi

Paying it forward can help improve our world, little by little. You might give money, time, skills, or all of the above. A random act of kindness in your apartment or office building, or even with courteous driving, can turn someone’s bad day around. Looking out for another person, not just for yourself, makes everyone feel better.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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.

FAQ

How do I pay it forward at work?

In the office, you might treat co-workers to coffee and fruit as an act of friendship and gratitude. If everyone on your team is now remote, consider making a donation in their names to a nonprofit near company headquarters.

Where did the concept of “pay it forward” begin?

The phrase can be traced back to the 1916 book In the Garden of Delight by Lily Hardy Hammond. In it, she wrote: “You don’t pay love back; you pay it forward.” There was a movie with the title “Pay It Forward” in 2000. Then in 2007, a Pay It Forward Day was launched in Australia. The idea has since been adopted by many counties as an opportunity to do acts of kindness.

How often should you pay for kindness?

The term “pay for kindness” is a misnomer. We do not pay for kindness. Rather, we can pay forward to others the thoughtful gestures and generosity we received by keeping the cycle going. And if we receive an act of kindness, we can repay it by doing one too.

Photo credit: iStock/Vladimir Vladimirov

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

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

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 every 31 calendar days.

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 the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, 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 the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit 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, Wise, 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 Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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.

SOBNK-Q324-041

These days, there’s no shortage of people spouting financial advice. The problem is, not all of it is good. Following unsound financial advice, without doing your due diligence, can lead to poor decisions and serious financial mistakes.

When it comes to money guidance, it’s important to realize most people aren’t experts and learn to decipher the difference between solid and terrible advice. By doing so, you can prevent a future financial fiasco.

Money Advice That May Be Bad (for Your Situation)

Financial advice isn’t one-size-fits-all. Some people may think they know what’s best for you, but chances are, their pointers don’t pertain to your personal circumstances.

When they offer advice, what they suggest may have worked great for them but won’t for you. Staying savvy whenever you get unsolicited counsel is key to protecting your financial health.

Here’s 11 examples of money tips you should take with a grain of salt at and quite possibly avoid at all costs.

1. Renting is A Waste of Time

While it may be the American dream to own a home for many people, not everyone can or even wants to take on the expense and burden that comes with it. When you own a home, you’re in charge of paying for property taxes, homeowners insurance, maintenance costs, and more. All of these expenses can add up to cost more than monthly rent.

Owning also means if anything breaks or gets damaged, paying for home repairs will come out of your pocket. When something goes wrong with a rental, it’s your landlord’s responsibility. Renters also typically have lower utility bill payments because things like heat, water, and electricity are often included in your rent. Depending on where you live, you may also have access to amenities such as a gym, pool, or parking garage.

Renting could, in fact, help you have more money in your bank account and use that to, say, pay down student loans or credit card debt.

2. Follow Your Passions

Although it sounds nice, following your passions professionally rarely pays the bills. And it can also put you into a very competitive and crowded field, if your passion is one of the common ones; say, acting, singing, cooking, or creating art.

Passion might fuel you for a while, but unless you’re lucky enough to turn it into a profitable full-time career, you’re probably juggling a day job, various side hustles, or living with roommates. There’s nothing wrong with having a passion, but if it’s not your main source of income, it might be more sensible to switch to a plan B. Then you can focus on your strengths, build on your skills, and maximize your potential. Doing so raises the likelihood, you’ll be better able to financially support yourself.

3. Your Credit Score Does Not Matter

This bit of advice should sound the alarm bells. A subpar credit score can hold you back from achieving important goals and even gaining employment. Having positive credit helps lenders to recognize your creditworthiness and overall trustworthiness.

Your three-digit score impacts whether you’ll get approved for credit cards, mortgages, and other types of loans. A high credit score also can help you snag the best terms and interest rate for a loan once you are approved. Landlords, insurance companies, and employers may also do a credit check when you’re applying for an apartment, car insurance, and even a job.

4. You Cannot Be Financially Successful with a 9-5 Job

There’s a lot of advice out there to say avoid being “chained to a desk” and pursue more entrepreneurial ways to be successful. People can certainly achieve financial success without a 9-to-5, but the majority of individuals need a steady paycheck, medical coverage, and paid sick days.

Working 9-to-5 also offers you the chance to build a nest egg if your job offers a 401(k) plan. If there’s a company match offered by your employer, that’s akin to free money and well worth nabbing, too.

5. Never Use a Credit Card

Be wary of someone who tells you to avoid getting or using a credit card. Their bad advice may stem from their own experience as an irresponsible card holder. Despite the warnings and horror stories you hear, credit cards don’t always lead to trouble or financial ruin.

Rather, credit cards can offer you one of the best ways to establish credit and show you’re fiscally responsible, especially if you pay your balance in full every month. Having credit cards help in times of an emergency and when your cash reserves are low. Other benefits include valuable perks that card companies offer such as points, cash-back rewards, and airline miles.

6. You Don’t Have to Worry About Retirement Until Later

When you’re in your 20s or 30s, retirement may seem too far off to make it a priority. Friends, family, and acquaintances may tell you to enjoy your youth and not to worry about your old age until later.

However, the sooner you start to save, the more money you’ll have later on thanks to compounding interest, which builds earnings on your investment and on that investment’s interest. Putting off saving until midlife can put you behind the eightball, causing you stress and anxiety as you try to make up for lost time. Start early by taking advantage of your employer-sponsored 401(k) or contributing to a Roth IRA. Imagine how much better off you’ll be if you’re 65 with 40 years of savings versus only 15 or 20 years.

Recommended: 10 Personal Finance Basics

7. The Best Way to Save Is Through a Savings Account

Back in the day, putting money in a savings account was often considered the gold standard for safely socking away your money. Talk to an older relative and you’ll hear about how 40 years ago or so, they managed to live off their savings account interest, when rates around 10% weren’t uncommon.

Today, on the other hand, you might get 3.00% APY or more back on your savings, if you get the top interest rate (typically found at online banks vs. traditional banks). While a savings account is a solid place to put your money for near-term goals (like an emergency fund), it can be wise to look further afield as well. You might want to meet with a financial advisor to discuss your long-term goals and hear what options might help you achieve them. You might consider, say, how investing might help you build wealth or ways to pump up a child’s college fund more quickly.

If you’re not sure where to start, talk to a certified financial planner or financial advisor who can help set you up with an investment portfolio. Financial advisors and planners do charge for their services, so shop around. If you’re concerned about the cost of a financial advisor, you might want to try getting investment recommendations from a less costly automated robo advisor.

Recommended: Robo Advisor vs. Financial Advisor: Which Should You Choose?

8. YOLO (You Only Live Once)

YOLO, or “you only live once,” can be the rallying cry to spend freely; say, to lease a pricey convertible or take that trip to Cancun. While it’s true you only have one life to live, engaging in irresponsible, unmoderated spending can lead to consequences down the road.

Going overboard with the YOLO mantra now can catch up with you when you’re older, leaving you without any financial cash cushion or safety net or perhaps saddled with high-interest debt. It’s not a pretty picture.

Bottom line: Your YOLO-inspired shortsightedness and poor money management habits could leave you wishing you’d reined in spending and had focused on managing your money better.

Recommended: Tips for Creating a Financial Plan

9. College Is a Waste of Time

Gaining knowledge and education is currency, literally. Research has found having a college degree significantly increases a person’s job prospects and earning potential. For instance, a landmark Georgetown University study found that bachelor’s degree holders earn a median of $2.8 million during their career, 75% more than if they had only a high school diploma. Workers with more education may also benefit from greater economic stability throughout their careers.

College not only gives you the knowledge you need for a chosen profession, but it can also help develop important soft skills (character traits and interpersonal attributes) as well. For example, communication, teamwork, problem solving, and decision making are all soft skills that college students develop and employers pay close attention to when hiring.

10. You Only Have to Pay the Minimum Every Month

Some of the worst financial advice you can get is to only make minimum credit card payments. It’s better to pay your balance off in full when the statement comes. Why? Otherwise, you’ll end up paying interest that will keep your bill increasing and making it all the harder to whittle down your debt.

Credit card interest rates are notoriously high (currently, typically over 20%), and paying only the minimum can keep you in debt for years. There are helpful credit card payoff calculators online that can help you find the best schedule to get rid of your debt.

11. File for Bankruptcy

It may be tempting to follow the “Why not just file for bankruptcy?” suggestion if your financial problems seem insurmountable. Some people will tell you bankruptcy is the best way to get out of financial difficulty and make a fresh start.

Although the starting over idea may have some appeal, declaring bankruptcy involves many drawbacks. For example, filing for bankruptcy results in long-term damage to your credit, which will stay on your report for seven to 10 years, becomes part of the public domain, and makes it much harder to qualify for a mortgage, among other loans. Bankruptcy also doesn’t cover certain debts, such as student loans, child support, or government-owed taxes. So declaring bankruptcy may relieve some but not all financial hardship.

Before seriously contemplating bankruptcy, try seeking other alternatives including consulting a credit counseling agency, consolidating your debt, and negotiating with creditors. These steps can help address the issues you’re having without taking that more drastic step that should be considered a last resort.

Recommended: Understanding Bankruptcy: Is it Ever the Right Option?

How Bad Advice Leads to Bad Decision-Making

Taking someone’s money advice as gospel without careful thought and research is one reason why people may make poor financial decisions. Emotions are another. Debt can bring on feelings of helplessness, low self-esteem, and loss of hope. It’s also linked to depression and anxiety. When these emotions overwhelm you, you might feel desperate enough to follow bad financial advice, just to know you are doing something.

Tips for Avoiding Bad Advice

There are ways you can protect yourself from the traps of bad financial advice. Consider these suggestions:

•   Carefully assess whether the advice someone gives you makes sense for your lifestyle and money goals. If you have any doubts about what they’re touting, trust your gut and don’t follow it.

•   Educate yourself on the basics of personal finance by listening to podcasts or reading books written by credible money experts. You can also find accurate information and finance articles online on sites such as consumerfinance.gov .

•   Avoid taking money advice from random people on social media. Many of the social influencers who tell you how to get rich aren’t always legitimate and often make claims that are too good to be true.

•   When in doubt, seek out a qualified professional. Make sure you’re seeing a certified financial advisor or certified financial planner. Although they’re not licensed to give you the same type of financial advice that a planner or advisor does, a financial coach can help you understand the fundamentals of finance, attain goals, and develop better money management skills.

The Takeaway

There’s no shortage of bad financial advice out there, and some of it might even sound good. It can encourage reckless financial behavior, whether that means overspending on YOLO moments or not worrying about saving for retirement until it’s too late. It’s wise to remember that solid money advice will come from trusted sources and be tailored to your specific situation, needs, and goals. Do due diligence before letting someone else’s advice sway your money management plans. You could dodge some serious financial risks.

One bit of financial advice that most experts will agree on is that earning high interest on your money and paying low fees is a win-win combination.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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.

FAQ

How do I know if my financial advisor is bad?

A good financial advisor takes into account your individual circumstances and doesn’t offer non-personalized, cookie-cutter advice. First and foremost, a good advisor should spend time getting to know you, your needs, and your goals. Signs of a bad financial advisor include pressuring you to make decisions; not letting you know how they’re paid; not being able to explain things in a way you can understand; encouraging you to put all your money into one investment, and not returning your calls or emails.

Who should I listen to for financial advice?

As mentioned above, a certified financial professional can be a good bet, but there are other places to go for financial information. Bank or credit union officers, your employer’s human resources department, and credit counseling agencies may be able to answer questions or make referrals. There are also government websites.

Can I sue my financial advisor if they give bad advice?

Yes. If you’ve lost money because your advisor misled you, gave you bad counsel, mismanaged your investments, or took other unlawful or unethical actions, you can sue for damages. Keep in mind though that it’s not a slam dunk. The merits of your case need to be strong and your claims provable. An experienced investment fraud attorney can help to recoup your losses.

Photo credit: iStock/MicroStockHub

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

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

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 every 31 calendar days.

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 the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, 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 the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit 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, Wise, 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 Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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

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

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

This article is not intended to be legal advice. Please consult an attorney for advice.

SOBNK-Q324-048