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From hiring a video arcade on wheels to treating 10 little princesses to a spa day, today’s birthday parties have gone next level. You could easily drop $500-plus on your kid’s next shindig.

Fortunately, you don’t have to. It’s possible to host a fun and memorable birthday celebration for friends and family without breaking the bank.

Here are some inexpensive party ideas to consider when planning your next birthday bash.

1. Being Selective with the Guest List

As tempting as it might be to invite everyone in your child’s class or the whole soccer team, limiting the guest count is a simple way to save money on a birthday party.

Less people means less food, less party supplies, and fewer favors — but not necessarily less fun. It’s possible to have a close knit vibe at a birthday party that gets people talking to each other and enjoying themselves even more than they would have at a big event.

If your child is willing to invite only one or two friends, you might consider skipping a party altogether and opting for an experience. Going bowling or spending a couple of hours at a play space, zoo, or museum can suddenly become an affordable option.

2. Sharing the Party with a Friend

If your child’s birthday falls around the same time as one of their close friends, you might want to consider teaming up and having a dual birthday party.

This enables you to share the costs and responsibilities with another family and, if the kids have a similar friend group, it would not necessarily have to be a much larger party. It can be a good idea, however, to make sure each child gets their own cake and presents.

Recommended: 27 Cheap Date Night Ideas

3. Choosing a Cheap (or Free) Venue

While hosting a party at a local climbing gym or other entertainment venue can be appealing, you can end up dropping as much as $450 just for the space.

One way to throw a birthday party on a tight budget is to have the party at home. That said, the wear and tear on your floors and furnishings might not be worth the savings. In good weather, however, a backyard party can be a great, low-cost option. Or, you might consider having the party in a local park or garden.

If your child’s birthday lands in a cold weather season, you can save money on a venue by limiting the guest list and going with the most basic package (such as just food and drinks for each child), and providing your own cake and goody bags. You can also check deal websites for discounts and promotions or ask the venue about a discount for having the party at an off-peak time or day.

4. Sending Digital Invites

Skipping the paper and going with digital invitations can be kinder to the environment and also cut down on birthday party costs, since you won’t have to buy premade invites or stamps.

You can design your own digital invitation and send them via email or text, or you may want to take advantage of one of the many online (and free) e-invitation sites.

Recommended: 15 Creative Ways to Save Money

5. Getting Creative With Decorations

One of the best things about the internet is that somebody’s probably already created precisely what you need. Rather than drop a chunk of money at the party store on themed decor, you may want to check out Pinterest for free printables.

You can also find ideas for DIY decorations on Pinterest (along with many other sites) using low cost supplies, possibly even things you already have on hand. Dollar stores can also be great places to shop for decorations and supplies.

If you do hit the party store, you may want to consider going with just one or two premium themed items and keeping the rest of the decor colorful and fun.

Recommended: How to Have a Baby Shower on a Budget

6. Making a Semi-Homemade Birthday Cake

A custom bakery cake that serves 20 to 22 people can run as much as $90, while a cake large enough for 30-plus guests can easily run more than $100.

A cheaper option is to buy a cake mix, then make it look and taste homemade with a few simple baking hacks, such as swapping butter for oil and milk for water, adding an extra egg, and making your own buttercream frosting.

To make cupcakes that look like they came from a bakery, you can pipe icing on top using a ziplock bag with a tiny hole snipped in the corner.

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7. Timing the Party Right

If the party takes place during lunch or dinner time, there’s a good chance people will expect to be fed a meal.

Choosing an off-time to celebrate — such as 10:30am or 2:30pm — means you can steer the party away from heartier, and costly, fare (like freshly delivered pizzas or a sandwich platter) and stick to serving finger foods and snacks instead.

8. Buying in Bulk for Gift Bags

If you’ll be giving each guest a swag bag, consider buying toys and trinkets in bulk sets and then dividing them up. This can be a real cost-saver when compared to purchasing items individually (even at the dollar store).

Fun items like paper airplanes, wooden yoyos, squishy toys, stampers, fidget spinners and Slinkys can often be purchased in packs at stores as well as online.

9. Playing Some Free Games

You don’t necessarily have to rent a bouncy house or hire live entertainment to keep a birthday party lively and fun. There are a number of inexpensive ways to make sure there is plenty of action, activity, and laughter. Here are a few fun, free games you might consider:

•   Duck Duck Goose

•   Charades

•   Musical Chairs

•   Red Rover

•   Rock Paper Scissor Tournaments

•   Three Legged Races

•   Marco Polo (you can even play on land)

•   Hot Potato

•   Simon Says

The Takeaway

It can be tempting — and easy — to spend a lot creating a memorable birthday party. But with just a few cost-cutting strategies, such as trimming your guestlist, shifting the time of the party, choosing an inexpensive venue, and organizing some free games, you can throw a festive birthday bash without breaking the bank.

You can also make birthday celebrations more affordable by setting a budget and saving up in advance.

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FAQ

How can I celebrate my birthday on a low budget?

You can celebrate your birthday on a low budget by keeping it simple and meaningful. You might host a potluck-style gathering at home or a local park, where guests each contribute food or drinks. Or you might plan a free or low-cost group activity, like a game night, movie marathon, or hike. If you’re celebrating at your or someone else’s home, consider going with DIY decorations and a home-made cake to cut costs. The key is to enjoy the company and create memorable moments without breaking the bank.

How do you throw a low-budget party?

To throw a low-budget party, start by choosing a free or low-cost venue, like your home or a public park. Make a guest list that fits your space and budget, and opt for homemade food and snacks instead of catering. Other cost-cutting tips include: using DIY decorations or items you already have, playing music through a phone or speaker, and planning simple games or activities. Focus on fun, not extravagance—it’s totally possible to host a great party without overspending.

What is a good budget for a kids’ birthday party?

A good budget for a kids’ birthday party can vary, but a reasonable range is $100 to $300. This can cover essentials like invitations, decorations, snacks, and a simple activity or game. Consider hosting the party at home or a local park to save on venue costs. DIY decorations and homemade treats can add a personal touch without breaking the bank. The key is to create a fun and memorable experience for the kids while staying within your financial limits.

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SOBNK-Q225-048

Coupons have been around for a while and for good reason: They can help you save significant cash on groceries, household items, clothing, and many other products. These days, you can find coupons in the newspaper, inside stores, online, and via retailer and coupon apps. Staying organized and regularly checking these sources can help ensure a steady supply of coupons, and enable consistent savings on purchases.

If you’re ready to save some dough, here are simple tips on finding, using, and maximizing your money with coupons.

Where to Find Coupons

A great way to begin couponing is to scan your kitchen pantry and bathroom cabinet and make a list of the products and brands that you purchase regularly. You can then start looking specifically for coupons for as many of those items as you can. Here are some key places to look.

Newspapers

Even in today’s digital world, it’s still worthwhile to go old-school and check out the Sunday newspaper coupon inserts.

What makes Sunday newspapers such a rich source of savings is the fact that they offer a wide variety of different types of coupons, including store coupons (which are issued by the store and can only be used at that particular retailer) and manufacturers’ coupons (which are issued by the company that makes the product, and can be used at any retailer that carries the product and accepts coupons).

If this week’s paper has a lot of good coupons, consider buying extra copies. Dollar stores often sell papers at a discount and can be a good place to stock up. But even if you have to pay full price, it could still be worth it.

Also keep in mind that some towns and cities publish free local newspapers that carry coupon inserts. Often, these publications get delivered or mailed right to your home.

Magazines

Magazines are still around, and can be a great source of coupons, particularly manufacturer coupons. You may want to flip through some of the magazines stocked at the checkout aisle next time you’re waiting in line at the supermarket.

Some women’s magazines even put together an index of all the coupons that each issue includes.

To up the odds of finding coupons for products you enjoy, consider browsing magazines that reflect your lifestyle.

Based on what you find, you might decide that getting a subscription (which is usually low cost, and a better deal than buying single issues) could be worthwhile.

Websites

If clipping isn’t your cup of tea, you can print coupons from websites that aggregate coupons, such as coupons.com , retailmenot , and valpak. These sites make it easy to search for and find deals.

Another online resource is P&G Everyday . This site offers printable coupons exclusively for Procter & Gamble brands (e.g., Crest, Pampers, Tide). You will need to create an account before you can print coupons.

You may also want to look at the list of items you typically stock in your home and head to the manufacturers’ websites.

Many companies have coupons you can print from their site. Some also reward you with coupons if you sign up for their e-newsletter.

Store sites are also worth checking out. Many grocery and drug store websites offer both manufacturer and store-specific coupons.

You may even be able to download these coupons directly to your store loyalty card, and redeem them simply by presenting your store card at checkout or possibly when ordering online.

Some department store sites also offer printable coupons and savings passes you can use that same day in store, and you may also be able to sign up to have coupons emailed to you directly.

Inside Stores

Many grocery stores, drug stores and supercenters provide coupons in circulars and flyers available inside the store. These can be a great place to find coupons that you’ll actually use.

You can also often find printable coupons in kiosks situated inside stores, often near the entrance. In some cases, after you’ve paid for your items, you may receive coupons (printed separately or at the bottom of your receipt) for items that you purchased that you can use for a future visit.

Recommended: Savings Calculator

Coupon Apps

Some stores, such as Target, have their own app that you can download to your phone and then show at checkout for discounts on items you are buying that day. These offers can often be combined with manufacturer and store coupons to create really good deals.

There are also cashback apps, such as Ibotta and Checkout51, which allow you to earn cash back on many of the products you buy. All you have to do is link your loyalty card to the app or snap a picture of your receipts. Once you earn a certain amount (such as $20), you can redeem your cash back.

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Keeping Coupons Organized

Coupons aren’t worth anything if you don’t have them on you or you can’t find them when you need them.

If you use paper coupons, a good first step is to find a way to contain the chaos, such as using zip-lock bags, a binder, a coupon wallet, a recipe box, or any other storage container. The idea is to have a single landing spot for all coupons. If possible, it’s wise to file them away as you get them, so you don’t have a big mess to deal with all at once.

You may also want to come up with a filing system, such as grouping coupons by grocery category (e..g, dairy, produce, frozen foods), aisle, or expiration date.

It’s also a good idea to go through and edit your collection periodically. Stores typically don’t take expired coupons, so it’s best not to let them eat up space in your filing system. Consider setting a certain day each week or month to go through and purge.

If you use coupons via an app or other electronic means, it’s wise to have the app downloaded and open when you are ready to shop to make the experience as smooth as possible.

Recommended: How to Make Money From Home

Maximizing Your Coupon Savings

Shaving off just a little here and a little there can be nice, but may not make a major change in your spending habits. The real savings that comes with couponing is when you combine coupons with other coupons, as well as other sales offers.

Here are some tricks:

Matching Coupons to Sales

In order to really save money with coupons, you ideally only want to use them on sale items that you typically buy won’t blow your budget.

You can hold onto a coupon until the item goes on sale, or if you see that a store is having a sale on something you buy regularly, you can then check the store circular, manufacturer’s websites, or your app to see if you can find a manufacturer’s coupon for it.


💡 Quick Tip: When you feel the urge to buy something that isn’t in your budget, try the 30-day rule. Make a note of the item in your calendar for 30 days into the future. When the date rolls around, there’s a good chance the “gotta have it” feeling will have subsided.

Stacking Coupons

This means using more than one coupon for the same item. For example, you can significantly increase your savings by combining a manufacturer coupon with a store coupon for the same item. You might be able to then amp up savings even more by using a cashback app.

Keep in mind that not all stores allow coupon stacking. You may want to review each store’s coupon policy to see where you can employ this trick.

Using Competitor’s Coupons

Lots of stores accept competitor coupons. It’s a good idea to find out which ones in your area do, and then work those coupons and sales to your advantage. When in doubt, it never hurts to ask.

The Takeaway

Using coupons can be a great way to save money on the products you love, and help keep your everyday spending in line with your budget. You can often find useful coupons in Sunday newspaper circulars, coupon websites, retailer apps, as well as store and manufacturers’ websites. Coupon apps can also help you find coupons for your favorite products quickly.

To really rack up savings with couponing, it pays to go beyond just using a coupon here and there. Consider combining a manufacturer’s coupon with a store coupon, a sale, and a cashback or coupon app.

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 Beginners Start Couponing?

It’s relatively easy to start couponing. The first step is to gather coupons from Sunday newspaper inserts, store flyers, and online sources like retail and couponing sites. It’s also a good idea to download store apps, where you can often find digital coupons.

Next, choose a few stores with good coupon policies and start small by matching coupons to sale items. As you get more comfortable, you can expand your sources and strategies. You might even consider joining a couponing community for more tips and support.

What Is the Trick to Extreme Couponing?

Extreme couponing involves maximizing savings through planning and resourcefulness. The key is to combine multiple coupons with sales, rebates, and store promotions — a practice known as “stacking” — to maximize discounts. Extreme couponers also tend to stockpile essentials when they are at their lowest prices. Being flexible and patient is crucial, as the best deals generally don’t come every week.

How Do Couponers Get So Many Coupons?

Couponers accumulate a large number of coupons through various sources. They often subscribe to Sunday newspapers for inserts, sign up for store loyalty programs, and follow brands on social media for exclusive offers. Many also join couponing websites and apps that provide printable and digital coupons. In addition, some couponers participate in coupon swaps and trade with others to diversify their collection. Consistency and dedication are key to building a substantial coupon stash.

About the author

Kylie Ora Lobell

Kylie Ora Lobell is a personal finance writer who covers topics such as credit cards, loans, investing, and budgeting. She has worked for major brands such as Mastercard and Visa, and her work has been featured by MoneyGeek, Slickdeals, TaxAct, and LegalZoom. Read full bio.

SOBNK-Q225-045

People often use the terms “pending offer” and “contingent offer” interchangeably, but there is actually a difference when you are talking about real estate.

When a property is said to be contingent, that means the seller accepted an offer that is contingent on particular conditions requested by the buyer. These conditions could involve anything from an inspection to financing.

If, however, you see a house on the market switch to pending, there’s a different status involved. The seller has accepted an offer, and all contingencies have either been waived or addressed.

Yes, the distinction may be subtle. However, the bottom line is that neither status actually means a property is sold. If you have found your dream home and it says “contingent” or “pending,” there is still a chance you could snag it.

Contingent Offers vs. Pending Offers

Here’s a closer look at the difference between contingent and pending offers.

What is a Contingent Offer?

When a home’s status switches to contingent, it means contingencies stand in the way before the deal is done. If closing on a home is a race, then buyers still have miles ahead of them when they enter the contingency process.

There are many types of contingencies buyers can include in their offer that make it easier for them to back out of a real estate deal, but these are some of the most common:

•   Financing contingency. The buyers put some money or the promise of a mortgage behind their offer, right? This condition ensures that if the buyers aren’t approved for a mortgage, they’re not on the hook for finding cash to buy the property.

Some buyers choose to have a preapproval letter in hand to make the financing contingency move faster.

•   Inspection contingency. A home inspector is paid to search the property top to bottom to uncover any issues. With a home inspection report in hand, buyers can ask the sellers to solve the issues or give them a credit against the purchase price of the home.

With this contingency, buyers can also walk away from a deal based on the findings of the inspection. Alternatively, if both parties don’t come to an agreement on repairs or credits, they can terminate the deal.

•   Appraisal contingency. In order for a buyer to secure financing for a home, it must be professionally appraised for the value of the offer or more. If the home appraises for less than the offer, the buyer can either make up the difference in cash, negotiate with the seller for a lower offer, or walk away from the deal.

Recommended: What Is a Mortgage Contingency?

•   Home sale contingency. If buyers need to sell their existing home to help finance the purchase of a new home, they may include a home sale contingency in the offer. That means if an offer on their home falls through, they’re no longer on the hook to buy the home they made an offer on.

Contingencies are in place to protect buyers and sellers in the event of snags throughout the negotiation process.

Prospective buyers can include as many contingencies as they like in an offer, and if the sellers agree, the buyers will need to work through each one before they make it to closing.

For people salivating over a hot property that looks taken, contingencies may signal opportunities for a deal to fall through. If you have your heart set on a home that’s contingent, you can hold out hope. Thanks to contingencies, there’s a chance the existing offer will fall through.

💡 Quick Tip: Don’t overpay for your mortgage. Get a great rate by shopping around for a home loan.

What is a Pending Offer?

Just because a home is pending doesn’t mean the deal is done. A home often enters pending status once buyer contingencies are cleared, but it can also enter pending status immediately if a buyer makes an offer without contingencies.

A pending home sale may still fall through, but the buyer and seller have worked through most of the contingencies. For a pending sale to fall through, there likely has been an unexpected issue with the inspection or financing.

In fact, a pending home is still on the market. The listing agent and seller can choose to continue showing the home and even accept other offers while its status is pending. However, this is largely up to the sellers and their agents.

Recommended: First-Time Homebuyer Guide

Can Pending and Contingent Homes Take Other Offers?

If a home is contingent and the buyers are still working through the inspection, financing, or selling their current home, a competing buyer can make a backup offer on the property. If the initial offer falls through for any reason, the seller can take the other buyer up on their offer.

It’s up to the sellers whether they will accept a backup offer or not, but if the buyer loves the property, it can’t hurt to ask.

In many markets, a home with pending status means it’s not open to additional offers, but the deal isn’t sealed. It’s not over till it’s over, and the buyers could still back out based on their contingencies, as outlined above.

A home could be marked “pending, taking backups,” indicating that the seller is still showing the house and accepting backup offers.

When a home is pending or contingent, it’s not against the law for another buyer to ask for a tour, express interest in the home, or even make a competing offer. But compared with a home that is not under contract, a contingent or pending property is less likely to end up going to a competing buyer.

While you may make offers on these properties, don’t get your hopes up. Depending on how close the buyer and seller are to closing, it may not be legally possible for the seller to accept another offer.

Additionally, the closer a home gets to closing, the more complicated competing offers can be. This is when a seasoned real estate agent may come in handy. They will understand the market, process, and legalities better than most first-time buyers do as well as how to navigate a hot housing market.

Recommended: Guide to Buying, Selling, and Updating Your Home

The Takeaway

Contingent vs. pending: Though some use the words interchangeably, the two statuses are different. A contingent deal may have a long way to go, as buyers firm up financing, await an appraisal, or sell their current home. A pending property is nearer to closing, but the deal still isn’t final.

Buyers eyeing a dream property may hold out hope that contingent or pending deals fall through. In that case, having everything set up for a backup offer could pay off.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

For a home deal, how long does it take from pending to closed?

How long it takes for a house to move from pending status to sold depends in large part on what issues are still being resolved. Generally, it can take anywhere between a week to two months. For cash deals, it tends to be on the lower side of that range; for financed deals, more likely the middle to the high end.

Can you still make an offer on a home that is contingent?

You may be able to make an offer on a house that’s already in contingent status, meaning that the sale will go forward if certain conditions are met. The catch is that most likely, if those conditions are successfully met, the sale will go forward with the original buyer. Your offer will be most likely to succeed if the contingencies are not met and the sale falls through. Then you could potentially be next in line as a buyer.

Can a home seller accept another offer while pending?

Generally, no, if the home is pending, the seller has probably accepted the first offer and can’t accept two offers on their home simultaneously. However, they may be open to backup offers, especially if there are obstacles to the sale going through. If you are interested in buying a pending property, just realize that even if the seller is accepting backup offers, it’s a long shot.

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SOHL-Q225-061

Despite progress, women, especially mothers, are still fighting hard to achieve equality in the workforce. According to a 2024 Bankrate analysis of Census Bureau data, mothers earn (on average) 31% less than fathers. Based on Bankrate’s calculations, this wage loss can add up to roughly half a million dollars over a woman’s 30-year career.

The financial and career impacts of motherhood are even more pronounced for women who choose not to come back to work after having a baby — or return only to later drop out. In Motherly’s 2024 State of Motherhood report (which surveyed nearly 6,000 mothers), a full 66% of moms said they were considering leaving the workforce due to the stress and cost of childcare.

Though women’s employment has recovered from the great “she-cession” of the pandemic, the gender gap in labor force participation remains significant, with 73.7 percent of mothers in the labor force compared to 94.9 percent of fathers, according to the Institute for Women’s Policy Research.

One way employers can help women gain ground — and help solve hiring and retention issues — is to tailor benefits to better fit their needs, priorities, and concerns. Companies that offer benefits packages that help address the gender gaps in financial wellness not only help women stay and advance in the workplace, but also promote a more equitable and productive workforce.

What Employers Can Do

HR pros have been working on evening gender disparity for decades, and much progress has been made. But the pandemic shed new light on the stubborn underlying inequities that continue to burden employers and female employees alike.

Employers may find that making adjustments and additions to their benefits packages can help promote more gender equity at work while also allowing them to attract and retain top female talent. Here are some strategies you may want to consider.

Recommended: Measuring the Financial Well-Being of Your Workforce

Rethink Maternity Leave

The more paid parental leave your firm can offer, generally the better. Some companies are expanding leave for birthing parents beyond 12 weeks, offering as much as 26 weeks. Others are providing additional weeks of paid leave to parents of newborns who spend time in the neonatal intensive care unit.

A generous paid parental leave program not only helps attract female workers but also increases the likelihood that your existing women employees will return to their jobs after having or adopting a child, as opposed to dropping out of the workforce —- and leaving you with a new opening to fill.

Another question to consider is whether your parental leave policies apply to all types of families and parents, such as non-birth mothers, foster parents, and parents who use surrogates. Parental benefits provide an opportunity for building your inclusive benefits strategy.

Create Real Opportunities for Advancement

For every 100 entry-level men promoted to management, only 81 women are promoted, according to McKinsey & Company’s Women in the Workforce 2024 report. With limited room for advancement and often undervalued work, many women are leaving their employers for better opportunities elsewhere.

One way to counter this trend is to offer female employees a path to advancement through education and up-skilling/re-skilling opportunities. You might do this by offering tuition assistance programs and/or access to free (or discounted) training and certification programs. This can help female employees get ahead in their careers, earn more and, in turn, achieve greater financial stability. It can also propel women into the roles of the future where they are currently underrepresented, like data science, software development, and engineering.

Other initiatives that can improve female career mobility include: formal mentorships, sponsorships, women’s employee resource groups (ERGs), leadership circles, and career coaching workshops. If your company offers these programs, you’ll want to make sure women employees know about and have easy access to them.

Address the Childcare Crisis

The pandemic brought childcare issues to the forefront as a significant workplace challenge. However, the high costs and limited availability of childcare existed before the pandemic and continue to create an impediment for women to fully participate in the workforce.

Employers can help address childcare challenges in several ways. On-site childcare is the most accommodating benefit. But on-site care is a big investment of infrastructure and resources that realistically only a small group of major employers can provide.

One alternative is to offer some type of emergency or backup child care support. Some companies do this by partnering with local daycare facilities and providing access to free or discounted childcare when a regular provider falls through. Other firms are offering employees stipends for online services, such as Care.com and SeekingSitters.com, that provide access to sitters at short notice.

Being open to and evaluating childcare support can be particularly important if you are mandating, or simply encouraging, employees to work onsite.

Consider Returnships

Many employers are dealing with labor shortages. At the same time, there is a large pool of untapped talent among women who have fully or partially left the workforce. Many of those women want to return to work but find the gaps in their resumes and lack of current skills are holding them back.

To address both problems at once, some companies are offering “returnships.” Pioneered by finance leaders Goldman Sachs and Morgan Stanley, these are internship programs that give returning caregivers the opportunity to brush up their skills or learn new ones. Returnships typically run for a few months, offering training, experience, and networking opportunities to workers — often mothers — who’ve been out of the workforce for an extended period of time.

Returnship programs not only give women who dropped out of the workforce a viable onramp, they also give employers a way to vet talent before making an official hire.

Address Student Debt

Student loan debt impacts nearly 43 million Americans and a disproportionate number are female. According to EducationData.org, women hold 64% of all outstanding student debt and, despite making higher payments than men, take an average of two years longer to pay off their student loans. Women also owe more in graduate student loan debt than men, except in professional doctorate degrees.

Student debt can have a negative impact on any employee’s financial (and overall) well-being. And right now, borrowers are feeling particularly uneasy, thanks to unknowns surrounding potential changes to federal student loan repayment plans and forgiveness programs. What is certain, though, is that student loan repayment benefits continue to grow in popularity and effectiveness. And, they may be particularly beneficial to female employees.

HR leaders will also want to keep in mind that employers can offer up to $5,250 in tax-exempt student loan repayment benefits through 2025, thanks to the CARES Act of 2020. What’s more, the recent passage of the SECURE Act 2.0 allows companies to provide employees with a match on their retirement plans for making student loan payments starting in 2024. This can be a stand-alone offering, or part of a broader employee benefits program.

Offer Flexible, Women-Friendly Financial Wellness Benefits

In Bank of America’s 2024 Workplace Benefits Report, more than half (53%) of men reported good financial wellness, compared to just 36% of women. The study also found that women aren’t feeling as secure as men about the future: 58% of women said they were confident they will be able to build sufficient retirement savings, compared to 70% of men.

High levels of student debt, trouble making ends meet, and worries about saving enough (particularly with gaps in employment) all add a disproportionate amount of stress on women. Financial stress can impact every aspect of women’s lives, including productivity and happiness at work.

HR pros can make a huge impact on women employees by offering personalized, adaptive wellness benefits, such as debt management, emergency savings, tuition savings, retirement planning programs, and financial education. These benefits can help female employees plan and save for the future, feel less stressed about their finances, increase their focus and productivity on the job, and, importantly, change their financial lives for the better.

Recommended: The Future of Financial Well-Being in the Workplace

The Takeaway

Women are a vital part of any employer’s workforce. Benefits packages designed to address women’s specific needs can help employers attract and retain talented female employees. They can also help guarantee women, especially moms, have access to an equal playing field and a secure financial future.

SoFi at Work offers employers the benefits platform, education resources, and financial counseling that can help you assemble packages that help you increase employee productivity, loyalty, and overall well-being.

Photo credit: iStock/jacoblund

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SOAW-Q225-001

When you fill out the Free Application for Federal Student Aid (FAFSA®) form, one of the first things you’ll need to determine is whether you’re a dependent or independent student. Your dependency status not only impacts the information you need to report on the form, but also the type and amount of aid you may be awarded.

Dependent students must include both their own and their parent’s financial information on the FAFSA. Independent students, on the other hand, only need to report their own finances (and their spouse’s, if married).

Below, we break down what it means to be independent vs. dependent for FAFSA purposes.

The Difference Between Independent and Dependent Students

Your FAFSA dependency status determines whose financial information is considered when calculating your aid eligibility.

What Is an Independent Student?

An independent student is generally defined as someone who is not reliant on their parents for financial support and can therefore file their FAFSA without including their parents’ information.

You’re considered an independent student if you meet at least one of the following criteria:

•  Age 24 or older

•  Married

•  Enrolled in a graduate or professional program

•  A veteran

•  A member of the U.S. armed forces

•  An orphan

•  A ward of the court

•  A current or former foster youth

•  In a legal guardianship (current or past)

•  Have legal dependents other than a spouse

•  An emancipated minor

•  Unaccompanied and homeless or at risk of becoming homeless

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

What Is a Dependent Student?

If none of the independent criteria apply, you’re classified as a dependent student. Generally, dependent students are under 24 years old, unmarried, without dependents, and not veterans or active duty members of the U.S. armed forces.

If you are considered a dependent student, your parents’ information will be assessed along with your information to get a full picture of your family’s financial situation. Even if your parents do not intend to contribute to your education costs, their information will be used to determine what aid, if any, you receive. A dependent student is assumed to have the support of their parents.

How FAFSA Determines Your Status

Each year, the FAFSA asks a series of key questions to help students determine their official status. These questions change slightly each year, so be sure to read them carefully.

Here’s a look at the dependency status question on the 2025–26 FAFSA Form:

•  Were you born before Jan. 1, 2002?

•  As of today, are you married? (Answer “No” if you are separated but not divorced.)

•  At the beginning of the 2025–26 school year, will you be working on a master’s or doctorate program (such as an M.A., MBA, M.D., J.D., Ph.D., Ed.D., graduate certificate, etc.)?

•  Are you currently serving on active duty in the U.S. Armed Forces for purposes other than training? (If you are a National Guard or Reserves enlistee, are you on active duty for other than state or training purposes?)

•  Are you a veteran of the U.S. Armed Forces?

•  Do you have children or other people (excluding your spouse) who live with you and who receive more than half of their support from you now and between July 1, 2025, and June 30, 2026?

•  At any time since you turned age 13, were you an orphan (no living biological or adoptive parent)?

•  At any time since you turned age 13, were you a ward of the court?

•  At any time since you turned age 13, were you in foster care?

•  Are you or were you a legally emancipated minor, as determined by a court in your state of residence?

•  Are you or were you in a legal guardianship with someone other than your parent or stepparent, as determined by a court in your state of residence?

•  At any time on or after July 1, 2024, were you unaccompanied and either (1) homeless or (2) self-supporting and at risk of being homeless?

Recommended: Penn State Out-of-State Tuition

Dependent Students

If you answered “No” to all of the questions above, you are considered to be a dependent student. This means that your Student Aid Index (SAI) will be based on both your income and your parents’ financial profile. While this may reduce your eligibility for need-based aid, your parents can access Federal Parent PLUS Loans and may qualify for education tax credits when they fill out their federal tax return.

If you are considered a dependent student by the FAFSA but are not in contact with your parents or have left home due to an abusive situation, you may qualify for a dependency override. In this case, you’ll want to fill out the FAFSA and select “Yes” to the “Do unusual circumstances prevent the student from contacting their parents or would contacting their parents pose a risk to the student?” question on the form. You’ll be considered provisionally independent. To complete your application, you’ll need to contact the financial aid office at the college you plan to attend to find out what supporting documentation you’ll need to submit directly to the school.

Independent Students

If you answered “Yes” to one or more of the questions listed above, you are considered to be an independent student. This means you only need to report your own finances (and your spouse’s, if applicable) on the FAFSA form. Being independent could increase your potential for financial aid, as your parents’ income and assets are not considered in the aid calculation.

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

When Federal Student Aid Falls Short

FAFSA-based aid is a great starting point, but it’s often not enough to cover the full cost of going to college. Here are some other funding options to explore:

•   Scholarships: There are numerous scholarships available through individuals, businesses, nonprofits, community groups, and professional associations. They may be awarded based on merit, financial need, athletics, field of study, religion, ethnicity, or other criteria, and do not need to be repaid. You can find out about scholarships through your high school guidance counselor, your chosen college’s financial aid office, and by using an online scholarship finder. “Start researching scholarships early,”advises Brian Walsh, CFP® and Head of Advice & Planning at SoFi. “Gathering the required documents and information to apply takes time, and early deadlines are common for large awards.”

•   Part-time jobs: Even if you weren’t awarded Federal Work-Study, you can still look for a part-time job on or off campus to help cover costs. Working can provide valuable experience and help reduce the amount you need to borrow. Your school’s career services office may be able to help you find a position. Summer jobs can also help you rack up extra cash to help pay for college.

•   Federal student loans: If you need to borrow money, it’s a good idea to exhaust all federal student loan options before turning to private loans. Federal loans often have lower fixed interest rates and offer benefits (like income-driven repayment and borrower protections) that may not be available with private loans. You’ll need to complete the FAFSA to be eligible for federal student loans.

•   Private student loans: If you still have a funding gap after exploring federal loans, private student loans can help cover the difference. These loans are offered by banks, credit unions, and other financial institutions. They are credit-based, so you may need a cosigner, especially if you have limited credit history. It’s a good idea to compare offers from different lenders, considering interest rates, fees, and repayment terms.

Recommended: Ohio State University Cost

The Takeaway

Understanding whether you’re considered a dependent or independent student for FAFSA purposes is critical because it directly affects how much financial aid you may qualify for. Dependent students will need to include their parents’ financial information, while independent students report only their own (and their spouse’s, if applicable).

If federal aid alone isn’t enough, you can also look into scholarships, part-time work, and responsible borrowing options to help cover the cost of your education. The more you understand your status and options, the better prepared you’ll be to create a solid financial plan for college.

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.

FAQ

Is it better for a college student to file independent or dependent?

For the FAFSA®, you’re generally better off being classified as independent. As an independent student, you do not need to report your parents’ income and assets on the form, which could lead to more aid. However, you need to meet specific criteria, such as being over age 24, being in graduate school, being married, having dependents, or being a veteran. If you don’t meet any of these criteria, you’ll be considered a dependent student and must provide your parents’ financial information on the FAFSA.

Who qualifies as a dependent student?

For FAFSA® purposes, a student is typically considered a dependent if they are under age 24, unmarried, without dependents, and not veterans or currently serving in the U.S. military.

At what age are you considered an independent student?

In terms of financial aid, a student automatically becomes independent at age 24. Before then, students can qualify as independent only under certain circumstances, such as being married, having dependents of their own, serving in the military, being a veteran, or being an emancipated minor. If none of these special circumstances apply, a student is considered dependent until their 24th birthday, even if they live on their own and cover their own expenses.

About the author

Jacqueline DeMarco

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