6 Tips on Splitting the Dinner Bill With Friends

If you, like many people, cringe when it’s time to pay the check after dinner out with friends, there are solutions. It can get tedious and frustrating to try to figure out who had how many drinks, but dividing it evenly may not be fair to the person who just had an appetizer. Or you might find that there’s often one person (or more) who doesn’t have cash, making payment tricky. 

To avoid ending a fun evening by doing a lot of math or risking hurt feelings, try these strategies. Splitting the check can be easily wrangled with just a little advance planning.

Key Points

•   At a restaurant, requesting separate checks before ordering can simplify splitting the bill. 

•   Bill-splitting apps and certain payment apps can allow a group to divide the bill evenly or assign customized amounts.

•   To avoid splitting a check altogether, choose a restaurant or food hall where each individual orders separately at a counter.

•   When splitting a bill evenly, be mindful of how much you’re ordering compared to others.

•   Consider having one person pay the bill and others reimburse them to streamline payment.

6 Tips for Splitting the Bill With Friends

These tactics can help you split the bill and keep everyone happy. The next time you go out to dinner as a group, try one.

1. Pick a Place Where You Order at a Counter

You could go to a fast-casual restaurant that allows you to order at the counter on separate tabs and then enjoy your meal together at the table. If you’re on a tight budget and are trying to save money or you’ve had difficulty splitting checks with friends in the past, this allows you to avoid a sticky situation. Or you might have a local food hall where each guest can grab their own meal from a multitude of stalls and then dine together. 

As these styles of dining continue to grow in popularity, you and your friends can have your choice of cuisines — without blowing your budget or haggling over the bill.

2. Ask for Separate Checks — Before You Order

Having everyone in your party get their own separate check is another simple solution. The key is to ask your server for separate checks before you start ordering. That way, your server can track everyone’s order separately from the get-go. This can help you avoid the confusing chore of splitting the bill (“Who had the cappuccino?” etc.) after the meal has ended.

Still, be mindful of the extra work you’re asking your server to do. Some experts recommend limiting the number of separate checks you request to no more than four. Some restaurants may honor a request for more or less; you might ask and see.

Recommended: How to Manage Your Money: Tips to Do It Right

3. Have One Person Put the Bill on Credit

Another strategy for splitting the bill is to agree that one person will pay the bill with their credit card, and the rest of the group will reimburse them. This makes things easier for the server. Be sure to include the tax and tip in your calculations so that everyone pays their fair share.

Instead of cash, since most people don’t carry as much money around as they used to, you could use an app to transfer money from one friend to another. Or you can likely move funds from your checking account to the bill payer’s using tools your bank offers.

There can actually be perks to being the person who pays the bill. You might earn rewards when you charge the amount or you might qualify for other bonus offers

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4. Use an App to Track Your Outings

There are a few apps, like Splitwise and Tab, that allow you to track and split purchases with friends. These bill-splitting apps divide the cost of the bill and assign each person what they owe. 

A number of these apps connect to payment platforms so that everyone can pay their share or transfer money to others in the group. If not, you might then designate one person to pay the bill, as described above, and then others pay them back.

In addition, many payment apps, including PayPal and Venmo, have bill splitting features that can help a group split a bill evenly or with custom amounts. And some apps allow a group to split a bill and pay their share from their bank account

Recommended: Guide to Mobile Wallets: What They Are and How They Work

5. Use Different Credit Cards to Pay

If you forgot to request separate checks at the start of the meal, you still have options for dividing the check. Confirm that the restaurant will take the number of credit cards you wish to pay with, then have everyone go through and tally up what they ordered.  Then ask for those amounts to be charged to the appropriate card card.

For instance, one person might say, “Can you please put $38 on this card?” and another would say, “Can you put the remaining $50 on mine?” Then you would each pay your bill, adding any tip you wish to leave.

Just be forewarned: Many restaurants will only want to split a bill two or three ways with this method. If there are eight of you out for the night, this is unlikely to be a good option. 

6. Split the Bill Evenly

Say there are three of you dining out and the bill comes to $120. You might not get into the details of which person had the two pricey mocktails vs. the others each having a single glass of wine. If each person just puts in $40 (plus tip), you’ve split the bill evenly and politely.

This concept works especially well when you’re ordering small plates, which are designed to be shared. After all, when you’re sharing all the food, even bill-splitting makes sense.

If there are certain dishes you’re not going to eat, you might want to speak up at the beginning of the meal and ask if it’s possible for you to get a separate check.

Recommended: 10 Personal Finance Basics

Splitting the Bill Etiquette

Here are a few tips to ensure that things stay polite when you split the bill.

Ask for a Separate Check ASAP

As noted above, if you’re watching your spending, mention upfront your interest in a separate check. You might tell your group that’s your plan or simply request a separate check from your server when they start taking the order. However you approach it, it can spare you bad feelings later or having your bank account take a major hit by getting stuck splitting a big bill evenly.

Don’t Splash Out if You’re Splitting the Bill Evenly

Be mindful of what you order if you are splitting the bill evenly. If everyone else is ordering $15 hamburgers and you order the $32 steak special, that’s not fair to others when the tab is divvied up. If you’ve got to have that steak, ask for separate checks, or else perhaps volunteer to pay the tip on the entire tab to compensate.

Share the Meal Appropriately

If you are splitting the bill evenly, keep an eye out to make sure everyone gets their share of the meal. For instance, just because the guacamole and chips were placed on the table next to one person, that doesn’t mean you can’t politely say, “Please pass that to our end of the table once you’ve had some.”

Try Not to Worry About Every Last Penny

Recognize that splitting bills can be less than precise. There’s a chance you may pay a couple of dollars more or less than the exact amount you owe. Sometimes, simplicity is the best path rather than getting into advanced math calculations which might yield a couple more dollars in your savings account but trigger bad feelings. It may be best not to contest amounts down to the last penny for the sake of preserving the good vibes.

The Takeaway

There are several ways to split a bill when dining out with friends. Some methods are to request separate checks, to eat at a restaurant where you order at a counter, or to have one person pay and then the others reimburse their share. These tactics can allow you to keep everything polite among your group while enjoying good food and good company. 

Consider opening a bank account that makes it easy to send money and split a bill. 

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 4.00% APY on SoFi Checking and Savings.

FAQ

How do you politely split a bill?

How to split a bill politely can be accomplished in a variety of ways. You might request separate checks if your group is on the small side, or you might divide the bill evenly. Another option is for one person to pay the bill, and others pay them back. Or you could dine at a restaurant where you order at a counter or at a food hall. In these settings, each person can pay their own way and then eat with their group.

Is there a polite way to ask to split a bill?

A polite way to split the bill is to bring it up before you and the other diners begin ordering. That can simplify matters. You might say something like, “Before we order, does anyone have any ideas for splitting the bill?” or “I am just going to have an appetizer tonight, so I will ask for a separate check.”

How do you divide a bill?

There are usually two methods for dividing a bill. You can divide the bill evenly among all guests, so that each person pays the same amount, regardless of what they ordered. Or you can divide the bill so that each person only pays for their share, whether they ordered three courses or just had dessert. The latter, as you might guess, involves more math. As you decide on a method of splitting the bill, don’t forget to account for tax and tip.


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Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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

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Disability Loans: Everything You Need to Know

Disability Loans: Everything You Need To Know

Not only can you get a loan while on disability, sometimes this kind of funding becomes crucial for a borrower’s financial wellbeing. Such personal loans, often coined “disability loans,” can be useful for bridging the gap before benefits kick in or for financing medically important purchases, like a wheelchair.

However, you may wonder whether a personal loan could impact your disability benefits and what requirements you might need to meet to access cash this way. This disability loan guide answers these personal loan questions and more.

Can You Get a Loan While on Disability?

You can get a loan on disability as long as you have the credit score and income to qualify. The exact requirements vary from lender to lender.

Lenders cannot use your disability as a reason to deny you a loan. The Equal Credit Opportunity Act (ECOA) expressly prohibits lenders from denying loans or charging higher fees because you receive help from a public assistance program.

The ECOA protection extends to all loan types, including mortgages, car loans, credit cards, student loans, small business loans, and personal loans.

What Is a Disability Loan?

While “disability loan” is a common term used throughout the industry, there is technically no such thing. Instead, applicants and lenders use the term to refer to a type of personal loan for which a person applies while waiting for or actively receiving disability benefits from the government.

Often, a disability loan more specifically refers to loans that people take out to:

1.    Cover living expenses while waiting for disability benefits to kick in.

2.    Pay for medical equipment, like wheelchairs or medication, related to the disability.

In other words, you would put what is known as a personal loan toward expenses that are tied to the disability.

Recommended: Personal Loan Calculator

Who Qualifies for a Disability Loan?

The ECOA protects consumers from being discriminated against by lenders on the basis of race, sex, disability status, and public assistance, such as Social Security Disability Insurance (SSDI). That means lenders cannot deny your personal loan application just because you’re on disability.

A number to note: If you believe a lender is violating the ECOA guidance, you can contact the Consumer Finance Protection Bureau at (855) 411-2372.

As with any loan, you can improve your chances of approval for a personal loan with a good credit score and steady source of income. That said, even borrowers with bad credit or no credit history may be able to get approved for a loan, though it will likely have less favorable terms.

Recommended: What Is a Share Secured Personal Loan?

SSI vs SSDI

As a person with a disability, you may be receiving Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) from the Social Security Administration (SSA) — or maybe both. Knowing which type of disability benefit you receive is important, as loans can impact those benefits differently.

Supplemental Security Income

SSI eligibility is solely based on age, blindness, or disability. Recipients do not need to have contributed to Social Security via taxes on past income. Both adults and children with a qualifying disability and limited income and resources may receive SSI.

SSI benefits typically kick in quickly — the first full month after your disability claim has been accepted. Maximum monthly benefits vary based on factors like marital status and income, but they are generally lower than SSDI.

Social Security Disability Insurance

To be eligible for SSDI, you must meet the SSA’s definition of disability — and you must also have paid Social Security taxes on past earnings. 

Recipients may be more likely to need a disability loan when anticipating SSDI benefits because they likely don’t kick in until the sixth full month of disability. (There are exceptions for those with certain conditions, such as ALS, or amyotrophic lateral sclerosis.) 

However, the SSDI benefit can be worth the wait because it has a higher potential monthly payout. As of January 2024, the average monthly SSDI payment was $1,537 vs. $698 for SSI.

How Personal Loans Affect Disability Benefits

Knowing whether you receive SSI or SSDI benefits is important if you are considering applying for a personal loan.

•   SSI: Your loan doesn’t count as income. That said, if you don’t spend your personal loan in the same month that you receive it, the SSA will count the remaining funds toward your SSI resource limit for the month. The limits are currently $2,000 for an individual and $3,000 for a couple. This could therefore reduce your overall benefit for the next month.

•   SSDI: These restrictions do not apply to nor impact your SSDI benefits.

Recommended: Guide to Unsecured Personal Loans

The SSA Process: What Is a Disability?

To earn either disability benefit from the Social Security Administration, you’ll have to meet its strict definition of “disability.” Here it is in a nutshell:

Your medically determinable physical or mental disability must prevent you from being able to work and must be expected to result in death or last continuously for at least 12 months. Children have separate criteria that they must meet to qualify.

To earn SSDI specifically, the SSA will also determine whether you have enough work credits (i.e., if you’ve made enough tax contributions from past income) to be eligible. The number of work credits can vary depending on your age when the disability began.

If you have enough credits, the SSA will then utilize five questions to determine if you qualify:

•   Are you working?

•   Is your condition “severe”?

•   Is your condition found in the list of disabling conditions?

•   Can you do the work you did previously?

•   Can you do any other type of work?

Head to the SSA website to learn more about qualifying for disability benefits.

Pros and Cons of Getting a Loan on Disability Benefits

Wondering if taking out a personal loan while waiting for or receiving disability benefits is the right option for you? It can be helpful to weigh the pros and cons before applying:

thumb_upPros of Getting a Loan

•   You can get financial assistance to help with bills while waiting for benefits to start paying out.

•   Responsibly managing a personal loan can help build your credit score.

thumb_downCons of Getting a Loan

•   Receiving a personal loan and not spending all the money within a specific timeframe can impact your SSI benefits.

•   Personal loans carry the potential for high interest rates and unfavorable terms, especially if you have a low credit score.

How to Apply for a Disability Loan

On disability and need a loan? Applying for a personal loan on disability benefits should follow the same process as applying for a personal loan under any other circumstances. Typical steps include:

•   Check your credit score: Knowing your score before you start looking for lenders can help you know the interest rate and other terms you can expect. It might also guide you to narrow the field of possible lenders.

•   Find a lender: Your bank or credit union may offer personal loans, but you can also search online to find personal loans that offer good terms for your specific credit score.

•   Compile your info: The application process will typically require some basic info. Having identification, income verification (paystubs or a W-2 form), and proof of address handy can be helpful.

If you’re approved, the lender will work with you to ensure you receive funds as quickly as possible. Some personal loan lenders advertise same-day approval and funding in just a few days.

Disability Loan Alternatives

A disability loan isn’t your only option as you wait for disability benefits to kick in. If you need money while waiting for your SSDI, consider these alternatives:

•   Disability insurance: Some employers offer short- and long-term disability insurance as part of their benefit packages. Employees without such benefits or self-employed small business owners can also purchase individual policies through a broker. Either way, this insurance can be extremely helpful should you become disabled.

•   Worker’s compensation: If your disability originated from a workplace injury, you may be eligible for compensation through this government program. Benefits vary by state.

•     Other government assistance: Disability benefits are just one way the government is set up to help you out in your time of need. You may also be eligible for unemployment benefits, the Supplemental Nutrition Assistance Program (SNAP), or similar benefits that can offer financial assistance for the disabled.

•     Family and friends: Family and friends may be willing to offer monetary assistance — or even temporary housing — as you learn to manage a disability.

•     Credit cards: It may be tempting to put purchases on credit when a disability occurs or get a cash advance. Keep in mind that credit card debt is high-interest debt, and cash advances typically charge a still higher interest rate than your usual annual percentage rate, or APR. Proceed with caution.

•     Payday loans: If you need cash fast, personal payday loans may sound like the answer. But they can have annual interest rates of more than 400%. Protect yourself by staying away from these potentially predatory short-term loans.

The Takeaway

Disability loans are personal loans that can help someone with a disability get by until benefits kick in. The Equal Credit Opportunity Act protects people receiving public assistance from discrimination by lenders. Before applying for a disability loan, it’s important to determine how it might impact your disability benefit eligibility — and to shop around until you find a personal loan with favorable terms.

Are you ready to take out this kind of personal loan? See what SoFi offers.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.


SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

FAQ

What kind of loan can I get on disability?

People who receive disability benefits are eligible for the same kinds of loans as anyone else, including home loans, auto loans, personal loans, and credit cards. Legal protections are in place to help prevent discrimination in this situation. In fact, some people take out personal loans to cover expenses until their Social Security Disability Insurance (SSDI) benefits kick in. Just be sure you understand the impact that a loan could have on Supplemental Security Income, or SSI, benefits.

Can you get loans on disability?

Getting a loan while on disability is possible. The Equality Credit Opportunity Act ensures that people on disability cannot be rejected for any type of loan, including a mortgage, auto loan, credit card, or personal loan based on their disability status.

Can I get a personal loan if I’m on disability?

You can still get a personal loan while receiving disability benefits. Like any other applicant, your approval will depend on your credit score or income. A lender cannot deny a loan based on your disability status. Be aware, however, that a loan could impact your SSI benefits.


Photo credit: iStock/monstArrr_

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Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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

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

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.

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.

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7 Places to Put Your Cash

7 Places to Put Your Cash

If you’ve racked up a nice sum of cash or recently came into a windfall (such as a work bonus or tax refund), you may wonder where to put that money. Should you just keep it in checking? Open a high-yield savings account? Invest it all in the stock market?

The answer will depend on how soon you think you’ll need the money and how much risk you’re willing to take. Here’s a look at seven places you might consider storing your extra cash.

Key Points

•   Checking accounts are designed for spending, and offer easy access to funds through checks, ATMs, debit cards, and unlimited withdrawals.

•   Savings accounts are designed for saving toward shorter-term goals; they offer higher interest rates than checking, but typically limit accessibility as well.

•   Money market accounts combine features of checking and savings accounts, offering higher interest rates as well as checks and debit cards, but typically limit the number of transactions permitted.

•   High-yield savings accounts offer higher interest rates than standard savings accounts, often with low or no fees.

•   Stocks, bonds, ETFs, and mutual funds are higher-risk options often suited for long-term investments — they may provide higher returns over time than other accounts.

Low-Risk Places to Put Cash

What follows are four types of bank accounts that provide safety, convenience, and (in some cases) a competitive interest rate.

Checking Account

If you want easy and regular access to your cash, you might consider keeping it in a checking account at a bank or credit union. These accounts keep your money safe, since they are typically federally insured up to $250,000 per depositor, per institution. They’re also highly liquid — they provide check-writing privileges, ATM access, and debit cards, and there’s no limit on how many withdrawals you can make per month. These accounts are popular: According to SoFi’s April 2024 Banking Survey of 500 U.S. adults, 88% of people with a bank account have a checking account.

Since checking accounts are designed for spending (not saving), however, they generally pay little to no interest. As a result, these accounts aren’t ideal for storing extra money you plan to use later — say a few months or years from now. Some checking accounts also charge monthly fees.

Savings Account

A savings account is an interest-bearing bank account that is designed for saving (and growing) your money rather than spending it. You can open a savings account at the same bank or credit union as your checking account, or explore many of the online-only banks now available. Seventy-one percent of the people with a bank account in SoFi’s survey have a savings account.

Interest on a savings account is expressed as an annual percentage yield (APY). This is the rate you can earn on an account over a year and it includes compound interest (which is the interest you earn on interest added to your account throughout the year).

Like a checking account, the funds in a savings account are liquid. However, they are generally less accessible than the money in a checking account. You can’t write checks or use a debit card to draw money from your savings account. And, often, you are limited to six withdrawals per month. While the federal rule that limited savings account withdrawals to six per month was lifted in April 2020, many institutions still enforce this limit for electronic and online transactions and will charge you a fee if you exceed the cap.

A traditional savings account may provide a little more interest than a checking account. However, rates are generally low.

Money Market Account

A money market account is a type of savings account that comes with some of the features of a checking account, such as check-writing privileges and debit cards. You can find money market accounts at credit unions and traditional and online banks.

These hybrid accounts typically pay a higher APY than you can get with a checking account or traditional savings account. However, they often come with higher initial deposit requirements, along with higher ongoing balance requirements to avoid fees. Like other savings accounts, your money is typically insured and you may be limited to six withdrawals per month.

High-Yield Savings Account

High-yield savings accounts, typically offered by credit unions and online banks, are accounts that typically pay a substantially higher APY than the national average of traditional savings accounts. They generally also have low or no fees.

Other than that, these accounts function like regular savings accounts. They are typically federally insured up to $250,000 per depositor, per institution, should the bank or credit union fail. They also allow you to make withdrawals and transfers as needed, though your bank may limit you to six withdrawals per month.

While 59% of people in SoFi’s survey know about high-yield savings accounts, only 23% have one.

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Higher-Risk Places to Put Cash

First, make sure you have a solid emergency fund — 45% of the SoFi survey respondents said they have less than $500 in emergency savings, which is far below the recommended three to six months worth of savings. Once you have enough emergency savings and you’ve paid down any high-interest debt and are contributing to your 401(k) at work (at least up to any employer match), you may want to consider longer-term, higher-risk investment options with your extra cash.

Stocks

Stocks are a type of security that gives you a share of ownership in a specific company. When you buy stock, you have the potential to grow your money in two different ways. One is through appreciation of the stock’s price (or value). In addition, you may be able to earn dividends if the company distributes a portion of its earnings to stockholders.

While stocks offer a great potential for growth, they also come with significant risk. Stock prices can drop significantly in a short time, so it’s possible to lose money by investing in stocks.

Bonds

Bonds are generally considered a lower-risk investment than stocks. With bonds, the company (or government agency or organization) issuing the bond acts as a borrower and you act as a lender, providing the issuer with money to fund projects or expansion efforts. In exchange, the issuer promises to pay you a rate of interest on top of the bond’s principal (your initial investment).

There are several kinds of bonds:

•   Corporate. These are issued by private and public companies.

•   Municipal. These are issued by states, cities, and counties.

•   Treasury. These are issued by the U.S. Department of the Treasury on behalf of the federal government.

When you invest in bonds, you generally get a predictable stream of income through interest payments. If you hold onto the bond until it matures, you also get back the entire principal, so there’s minimal risk involved. However, typical returns for bonds tend to be much lower than typical returns for stocks. Many investors will use bonds to balance out higher-risk investment options, such as individual stocks.

Exchange-Traded Funds and Mutual Funds

Exchange-traded funds (ETFs) and mutual funds offer a pool of securities, such as stocks and bonds, in one investment. You can pick and choose a few mutual funds and/or EFTs to create your own portfolio, or you can choose to go with a target date fund.

Target date funds offer an all-in-one solution by investing in a mix of stocks, bonds, and other investments that suit your goals and risk tolerance. Typically, these funds automatically become more conservative as the fund approaches its target date (such as your retirement age) and beyond. Keep in mind, however, that the principal you invest in an EFT or mutual fund is not guaranteed.

The Takeaway

Where to put a stash of cash? A lot depends on how soon you’ll need the money and your tolerance for risk.

If you plan to use the money right away, you may want to go with a checking account. If you’re saving for a goal that is a few months or years away, you might consider putting the money in a high-yield savings account or a money market account. For longer-term savings goals (at least five years off), investing in the market could make sense.

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 4.00% APY on SoFi Checking and Savings.


SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
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.


SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. 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 (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found 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.

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How Much Money Should I Save a Month?

You likely already know it can be wise to save money every month. Whatever your income or age, putting money aside for the future can help you maintain financial stability and achieve your goals.

But how much of your paycheck should you save each month? Financial professionals often recommend putting at least 20% of your monthly take-home income into savings for future financial goals, such as buying a home and funding your retirement.

Exactly how much you should save each month, however, will depend on your income, current living expenses and financial obligations, as well as your goals.

Here are some guidelines to help you figure out how much of your income you may want to set aside each month, plus some simple ways to jump start (or build) your savings.

Key Points

•   Financial advisors often suggest saving at least 20% of your monthly take-home income for future goals.

•   A common budgeting technique is using the 50/30/20 rule: putting 50% of income toward essentials, 30% toward non-essentials, and 20% toward savings.

•   One easy way to increase savings is to automate recurring transfers from checking to savings accounts.

•   Funneling windfalls into savings and using roundups – a tool that autosaves the difference between a purchase price and the nearest dollar — can also boost savings.

•   One of the most effective ways to save money is to determine your near-term and long-term financial goals and to track spending and progress in a budget.

Knowing What You’re Saving For

It can be difficult to know how much money you should save each month without having a sense of what you are saving for. Setting a few financial goals can also help motivate you to save, rather than spend all of your income.

There are some savings goals that can make sense for everyone. If you don’t already have at least three to six-months worth of living expenses stashed in an emergency fund, for example, that can be a good place to start. By this measure, many Americans don’t have enough emergency savings, according to SoFi’s April 2024 Banking survey of 500 U.S. adults.

Amount in emergency savings

People who have saved that amount

Less than $500 45%
$500 to $1,000 16%
$1,000 to $5,000 19%
$5,000 to $10,000 9%
More $10,000 10%

Source: SoFi’s April 2024 Banking Survey of 500 U.S. adults

Without a solid contingency fund, any financial set-back -– such as a job layoff, large medical bill, or costly home or car repair — can throw you off balance and cause you to rely on high interest credit cards.

Many people will also want to save for retirement. At the very least, savers may want to take advantage of company matches offered in their workplace retirement plan by contributing the maximum amount the company matches.

After emergency savings and retirement, goals may start to look different from person to person. One person may want to save up for a down payment on a home, another may want to save up to start a business, and yet another may be interested in college savings. Fifty-two percent of the respondents to SoFi’s survey said they are using their savings accounts to save for a specific goal.

Goals People Save For in a Savings Account

Short-term and long-term goals 40%
Short-term goals like a vacation or holiday spending 35%
Long-term goals like a child’s college education or a house 26%

Source: SoFi’s April 2024 Banking Survey of 500 U.S. adults

How Much to Save Each Month

A rule of thumb that is sometimes used in personal financial planning is a spending/saving breakdown of 50/30/20. Using this guideline, you would spend 50% of your take-home income on essentials (including minimum payments towards debts), 30% on nonessential (or “fun”) spending, and 20% on savings goals, including debt payments beyond the minimum.

To use the 50/30/20 method to determine how much you should save, you can simply calculate 20% of your monthly after-tax pay. For example, if you earn $3,000 each month after taxes, $600 would go towards savings or other short term financial goals.

You may want to keep in mind that your 20% savings goal can include the money you’re saving for retirement. You can determine how much you’re putting toward retirement each month by looking at your pay stub or electronic payment record. If your employer is automatically depositing money into your 401(k), you may be able to put less into savings each month.

While the 50/30/20 can be a helpful guideline, how much you should — and can afford — to save each month will ultimately depend on your individual circumstances, such as your current income, monthly expenses, and future goals.
If the cost of living is high in your area, for example, you may not be able to swing 20% savings each month.

On the other hand, if you make a significant amount more than you need to live on each month, you may want to put away more than 20%, especially if you’re working towards a large short-term savings goal, such as buying a home in the next couple of years.

Recommended: Cost of Living by State Comparison

Where Should You Put Your Savings?

The best account for building savings will depend on what you are saving for.

If you are saving up for retirement, for example, you’ll likely want to use a designated retirement account, like a 401(k) or IRA, since they allow you to contribute pre-tax dollars (which can help lower your annual tax bill).

You may want to keep in mind, however, that there are annual contribution limits to retirement funds.

For an emergency fund or other short-term savings goals (within three to five years), you may want to open a separate savings account, such as a high-yield savings account, money market account, or a checking and savings account. These savings vehicles typically offer more interest than a traditional savings account, yet allow you to easily access your money when you need it.

Easy Ways to Boost Savings

Below are some strategies that can help make it easier to start — and build — your monthly savings.

Automating Savings

One great way to make sure you stick to a money-saving plan is to automate the process. You may want to set up a recurring transfer from your checking into your savings account on the same day each month, perhaps the day after your paycheck clears. Even setting aside just a small amount of money each month now can, little by little, add up to a significant sum in the future.

Putting Spare Change to Work

There are apps that will automatically round-up any amount paid on a credit or debit card and then put that little bit of extra money into savings accounts or even invest it. This “pocket change” can add up over time.

Using Windfalls Wisely

If a lump sum of cash, such as a bonus or monetary gift, comes your way, you may want to consider funneling all or part of it right into savings.

Or, if you get a percentage raise on your salary, you might want to boost your automatic monthly transfer from your checking account to your savings account by the same percentage.

Reviewing Your Budget

If you feel like your budget is too tight to save anything at the end of the month, you may want to review your monthly and habitual expenses. You can do this by combing through your checking and credit card statements and receipts for the past few months. Or, you may want to actually track your spending for a month or two.

You can then come up with a list of spending categories and determine how much you are spending on average for each.

There are online tools that can help make this process easier — in fact, 23% of people use budgeting tools offered by their bank, SoFi’s survey found. And of the 20% of respondents who have used AI to help manage their finances, 31% have used automated budgeting suggestions.

Once you can see exactly where your money is going each month, you may find places where you can fairly easily cut back, such as getting rid of streaming subscriptions you rarely watch, quitting the gym and working out at home, or cooking more and getting take-out less often.

The Takeaway

The right amount to save each month will be unique to you and includes factors such as your financial goals, how much you earn, and how much you spend each month on essential expenses.

One of the most important keys to saving is consistency. No matter how much of your income you choose to set aside each month, depositing small amounts regularly can build to a large sum over time to achieve your goals.

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 4.00% APY on SoFi Checking and Savings.



SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
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.


SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. 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 (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found 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.

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.

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What Is the Hardest Year of High School?

High school is a pivotal time for students, filled with academic and personal growth. Among the four years, one is often considered the most challenging: junior year.

Many students find junior year particularly tough due to increased academic demands, the pressure to score high on standardized tests, and the time needed to spend researching and applying to college.

Keep reading to learn more on why junior year is often considered the hardest year in high school.

Key Points

•   Each year of high school presents unique challenges and opportunities for students to grow academically and personally.

•   Junior year is often considered the most challenging due to a heavy course load and the pressure of preparing for college.

•   Advanced Placement courses and exams are common in junior year, offering college-level academic preparation.

•   Standardized tests like the SAT and ACT are typically taken during junior year, adding to the academic demands.

•   College preparation activities intensify in junior year, including campus tours and extensive research on potential schools.

Why Every Year Matters

While many say junior year is the hardest year of high school, that’s not an excuse to cruise through the other three years.

Freshman and sophomore year are building opportunities. In these two years, many students will take prerequisite courses and join extracurriculars they’ll carry out the rest of their high school career.

As a freshman, students will have to adjust to high school and its academic rigor. Getting good grades and getting involved in activities during the first two years of high school can help set the pattern for the next two years.

And, many students may claim that senior year is the time to sit back and take it easy. But, letting grades slide in senior year can spell trouble for plans post graduation. Admission to college, even if already granted, could be rescinded if a senior underperforms in their final year.

Recommended: 11 Ways to Prepare for High School Graduation

Why Junior Year Can Be the Most Challenging

A student’s junior year has its own set of unique challenges and hardships. Here’s what can make junior year tougher than the rest:

Course Load

Junior year is the time to shine before students apply to college. It’s the last full academic year of grades a university will receive before deciding to accept or reject a student. Students may elect to take their most challenging course load during their junior year to show colleges that they’re capable of academic rigor.

Some students may be enrolled in advanced placement (AP) courses. AP classes give high school students the chance to prepare for college by tackling college-level material while still in high school. At the end of an AP course, students can choose to take the AP exams. Scores from those tests may grant students college credits so they can skip out of basic courses in their first years on campus.

Junior year can be an academic step-up for high school students if they decide to take advanced classes. In addition to harder classes, there’s a pressure to get good grades in them because it can be an indicator of performance for colleges.

Tests

On top of AP tests, juniors have more key tests to prepare for. Each test comes with its own strategies and approaches, meaning specialized study and prep. A junior might prepare for and take these tests during the year:

AP Tests: As mentioned above, if a student decides to take an AP course, they can choose to take the corresponding AP test, as well.

PSAT/NMSQT: Students can take the Preliminary SAT or National Merit Scholarship Qualifying Test as early as their sophomore year of school, but many take it their junior year. The PSAT/NMSQT has two sections; math, and reading/writing. Scores for each section fall between 160 and 760.

Offered in October each year, the PSAT doesn’t impact college admissions like the SAT, but it can help students qualify for National Merit Scholarships if they receive a certain score. Students are not required to take the PSAT test, but it can be one way to prepare for the SATs and potentially qualify for scholarships.

SAT/ACT: Scores from either the SAT or ACT test are required by many colleges for admission. But, even if they’re not required by a college, a strong SAT or ACT score can help give a student a leg up in the application process.

Most high school students choose to take the SAT or ACT tests in the spring of their junior year or the fall of senior year. Both tests have certain quirks and strategies associated with them, so the key to getting a great score may mean months of preparation.

College prep

Juniors not only have more academic pressure on them and tests to prepare for, but many will add college prep to their extracurriculars. Whether that means spending weekends touring campuses or researching schools at night, finding a school that’s the right fit can take up a considerable amount of time.

There’s no one way to ensure the right fit for all students. Some may choose a campus based on their desired degree, whereas others choose a campus for proximity to home or budget. No matter the motivator, finding the right school can take time.

Recommended: Ca$h Course: A Student’s Guide to Money

Named a Best Private Student Loans
Company by U.S. News & World Report.


The Takeaway

Junior year challenges students to juggle their extracurricular activities, rigorous academic classes, and standardized testing on top of applying for college. Figuring out a way to pay for college shouldn’t be another challenge. As early as junior year, students can start considering the cost of college and the ways to pay for it.

Taking time to learn about student loans during college prep can help give juniors a better sense of what lies ahead of them. After applying for federal loans and aid, they might need to evaluate additional options to pay for their tuition. That could mean saving for college by picking up a part-time or summer job or researching scholarships or grants that can help pay tuition. It’s important a student knows their full menu of options to pay for school before committing to any single strategy.

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

What is the most crucial year in high school?

Junior year (11th grade) is often considered the most crucial year in high school. It’s when students take standardized tests, maintain grades for college applications, and start researching and visiting colleges. Strong academic performance during this year significantly impacts college admissions decisions.

Why is junior year the hardest year in high school?

Junior year is often the hardest in high school due to increased academic demands, including advanced courses and standardized testing like the SAT or ACT. Students face pressure to maintain high grades for college applications while balancing extracurricular activities, leadership roles, and planning for their future.

What is the easiest year in high school?

Freshman year is generally considered the easiest year in high school because students are adjusting to the new environment and typically take introductory-level courses. The academic and extracurricular pressures are usually lighter compared to later years, allowing students to gradually acclimate to the increased expectations of high school life.


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

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

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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.


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

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

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