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Some people may believe that money is everything, but is that truly the case? There’s no denying that money plays a central role in our lives. It provides access to healthcare, education, and the freedom to pursue passions. It offers security, stability, and, at a basic level, ensures our survival.

However, money isn’t without its downsides. Research suggests that an increase in wealth can sometimes lead to higher levels of stress. Constant comparisons with others can breed dissatisfaction and financial disagreements remain a leading cause of divorce, regardless of wealth.

This raises an important question: Is money really everything in life? To answer that, it’s worth exploring what money can and cannot do for us — and whether its value is as absolute as it often seems.

Needing Money to Survive

Money has the ability to improve one’s life, but the question of whether more money always leads to more happiness has long been up for debate.

Amid all the misconceptions about money, however, there is a fundamental truth: We need money to survive.

According to the American Academy of Family Physicians (AAFP), poverty and low-income status can lead to shorter life expectancy, higher death rates for the 14 leading causes of death, and higher infant mortality rates.

From food and shelter to health care and education, money provides the things needed to survive.

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

What Money Can Do For Us

Is money everything? Probably not: Things like love, friendship, time, and passion are all important aspects of life (though money can help in those areas —for example, money can enable you to pursue passions and afford experiences with family and friends).

But even if money isn’t everything, it can do a lot of important things, such as:

Meeting Basic Needs

Money allows us to meet our most basic needs, like food, shelter, and health care. Without those things, we would die.

On Maslow’s hierarchy of needs — a well-known model for understanding the motivations behind human behavior — humans must satisfy such basic needs before they can focus on more complex needs like love and belonging, esteem, and self-actualization.

Paying Down Debts

Multiple studies indicate that carrying debt is bad for your mental and physical health. Adverse effects include high blood pressure, anxiety, depression, and even a weakened immune system.

On top of that, debt can lead to money fights with a significant other. It can also impact your ability to secure credit in the future — whether for a car, house, or even a credit card.

Thus, having enough money to pay down your debts can help avoid a lot of figurative and literal headaches.

Recommended: How to Manage Your Money

Improving Our Quality of Life

Beyond meeting basic needs, money can help improve one’s quality of life. Having more money makes it easier to see expensive doctors, join a gym, and buy healthier foods. It also enables the pursuit of higher education without needing to get a student loan.

Money also allows you to afford experiences with friends and family — whether it’s going to a concert, traveling with your family, or just having lunch out with a coworker. Beyond that, money allows a person to pursue passions and hobbies, such as gardening, woodworking, painting, playing in sports leagues, or fixing up cars.

Feeling Secure and Free

Having enough money to pay the bills and provide for your family can create a sense of security. With a well-padded emergency fund, you may not worry about the cost of emergencies like unexpected vet bills or car trouble like those living paycheck to paycheck might. “An integral part of financial wellness is having a cash reserve,” says Brian Walsh, CFP® and Head of Advice & Planning at SoFi. “Research shows that having cash to cover the unexpected has a big impact on financial stress, anxiety, and satisfaction.”

Not only can money provide you with a sense of security, but it can also give you more freedom to pursue passions and buy material goods you enjoy without worrying about the price tag.

💡 Quick Tip: If you’re saving for a short-term goal — whether it’s a vacation, a wedding, or the down payment on a house — consider opening a high-yield savings account. The higher APY that you’ll earn will help your money grow faster, but the funds stay liquid, so they are easy to access when you reach your goal.

Making a Difference

Parents with more money may be able to provide things for their children that others cannot — like paying for a child’s college education, which can help pave the way to a promising future. Beyond your own family, money can allow you to make a difference in the world through charitable donations to causes you care about.

What Money Can’t Do For Us

After reading the list above, you may wonder: Is everything about money? While money can purchase material possessions and enable certain experiences, there are some things money simply cannot do.

Buying More Time

No matter how much money you have, no one can buy more time. If you spend a large chunk of your life working at a job you don’t like — and miss out on experiences and memories with people you love — you can’t buy that time back. And while deep pockets can perhaps enhance one’s health and healthcare, it won’t necessarily extend your life.

Creating Real Relationships

You cannot buy deep connections with friends and family. You may gain new friends with more money, but real relationships are typically based on love and respect for one another. In fact, the more time you spend trying to make money, the less time you’ll likely have to focus on building relationships with people you care about.

Recommended: How to Change Your Money Mindset

Fulfilling Passions

Some people may have high-paying jobs and love what they do. But others may take high-paying jobs just for the paycheck, even if there’s something else they’d rather be doing.

While it’s important to earn money to care for yourself and family, remember that it’s also valuable to allow yourself to do things that make you happy.

Can Money Buy You Happiness?

Science says yes, to a certain extent. In 2010, Daniel Kahneman and Angus Deaton released their now-famous research that indicates money does buy you happiness, but only up to a certain point. They found that the effect plateaus around $75,000 ($108,000 in today’s dollars) annually. Beyond that threshold, additional income doesn’t significantly boost emotional well-being and happiness.

A more recent study, however, throws that into question. The 2021 paper by Matthew Killingsworth demonstrates a continued, linear correlation between money and happiness. That is, a person who makes $150,000 is likely to be significantly happier than one who makes $100,000.

But there is also data to suggest that more money can lead to unhappiness. For example, per capita income in the United States increased by 150% from 1946 to 1990, yet the percentage of people who considered themselves happy dropped during that time.

Research also indicates that more income can lead to more stress, that materialism can contribute to unhappiness, and that comparing one’s finances with one’s peers can contribute to dissatisfaction.

So can money buy you happiness? The answer: yes and no.

What’s More Important Than Money?

Science can only go so far to prove fundamental truths about the human experience. How can a person truly measure the value of love, family, and friendship to each individual? And how can you separate money from things you deem important, like your mental and physical health?

Understanding that it’s a nuanced subject, here are some things that you may find are more important than wealth; things that refute the the idea that money is everything:

•   Love: For many people, sharing love and companionship with friends, family, partners, and children is paramount. It can be the most valuable thing in the world.

•   Health: Having a sound body and sound mind are important. Many rely on jobs for health insurance and the money they need to afford everything from prescriptions to gym memberships to emergency room visits. However, one can overdo it at work. It can be important to remember to also focus on your mental health, especially if you’re working too much and too hard to make money.

•   Passion: While some people would prefer to work a high-pressure job for more money, the Great Resignation (in which people left their jobs in droves as the COVID-19 pandemic progressed) showed us that many people would rather pursue their passions and accept a lower paycheck for it. To them, a passion-filled life is more important than money.

•   Time: Each person has a finite amount of time in life. If you spend too much of it focused on making money, you may miss out on life-changing experiences and wonderful memories with friends and family.

The Takeaway

Money can allow you to satisfy basic needs like food and shelter. It may also enable you to pursue higher education, access higher-quality health care, and fund experiences and hobbies that you are passionate about. That said, money can never buy you more time or true relationships, and having more money could even make you unhappy. So while money may matter, it’s not necessarily everything when one thinks about happiness at a basic, human level.

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.

FAQ

Where did the phrase “money isn’t everything” come from?

The origin of the phrase “money isn’t everything” isn’t clear, but it’s a common expression in the English language. The intent of the expression is that you shouldn’t focus solely on money because other things — love, friendship, time, passion, etc. — are also important and can bring you happiness.

What happens if we are too dependent on money?

Money is important for affording the basic things we need to survive, but research shows that focusing too much on money can lead to more stress, isolate us from people we care about, and even cause depression.

Is too much money a bad thing to have?

We need money to survive and to improve our quality of life. Having more money allows us to care for ourselves and the people we love. However, if you’re earning that money at the expense of your mental and physical health — and missing out on core life experiences because you’re busy with work — having more money could be a bad thing. Some research indicates that well-off people can experience stress factors that relate specifically to being wealthy, such as feeling pressured to live up to certain expectations, needing to support family members, and feeling obligated to maintain their social status.

Photo credit: iStock/Irina Kashaeva

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SOBNK-Q325-015

If you’ve lost your job, you may be able to defer your student loan payments. The unemployment deferment and repayment options available can depend on the type of loans you have.

For instance, if you have federal student loans, one option is the unemployment deferment program offered by the Department of Education. The program allows eligible federal loan borrowers who are out of work or cannot find full-time employment to postpone payments on existing educational debts.

Read on to learn how unemployment deferment works, plus other alternatives, including deferment opportunities for private student loans.

What Is Unemployment Deferment?

For anyone who has federal student loans, student loan deferment allows eligible borrowers to put student loan payments on hold for a predetermined period.

Unemployment deferment is awarded to eligible federal student loan borrowers who are seeking unemployment benefits or who are unable to find full-time work.

Those who qualify can temporarily pause putting money toward student loans for up to three years for federal loans, assuming that they continue to meet all the requirements.

It’s important to note that if you have unsubsidized loans or Direct PLUS Loans, interest will continue accruing during any deferment period. This means the balance owed on outstanding loans would keep growing. So, over the life of the loan, a short-term savings from deferring repayment could mean owing more in the end.

In general, interest won’t accrue on federal subsidized loans.

What Types of Student Loans Are Eligible for Unemployment Deferment?

If you’re unemployed with student loans, federal student loan unemployment deferment is available for Direct Loans, FFEL Program Loans, and Perkins Loans. Here are a few specific examples of loans that may qualify.

•   Direct Loans

•   Federal Family Education Loans (FFEL Loans)

•   Stafford Loans

•   Perkins Loans

•   PLUS Loans

•   Direct Consolidation Loans

In addition, if a borrower received federal student loans before July 1, 1993, they may qualify for other deferments.

Private loans from private lenders are not eligible for the federal unemployment deferment program. However, some lenders may provide economic hardship programs for borrowers.

Borrowers can contact their loan servicer for details on any hardship repayment or deferment programs they may offer.

Who Is Eligible for Unemployment Deferment?

Deferring payments on federal student loans isn’t automatic. Borrowers first need to apply with supporting documentation to determine if they’ll be eligible for a student loan unemployment deferral.

Borrowers first need to apply with supporting documentation to determine if they’ll be eligible for a student loan unemployment deferral.

Generally, an applicant can qualify either by providing proof of eligibility to receive employment benefits or by demonstrating that a diligent search for full-time employment is underway.

In the second case, certifying that you’re registered with an employment agency (whether privately owned or state run) can help show that an active search for work is being carried out.

Applicants seeking unemployment deferment under the searching full-time employment category may receive a deferment period for only six months.

If you need to extend the deferment past that time, you’ll have to submit a new application certifying that you’ve made at least six attempts to find full-time employment. The deferment period cannot exceed three years.

To pursue unemployment deferral, you must first fill out the unemployment deferment form at StudentAid.gov — answering questions about your job search, current unemployment benefits, and understanding of what loan deferment entails.

What About Private Student Loan Deferment?

Although private lenders aren’t legally required to offer unemployment deferment options, some do.

It’s worth keeping in mind, though, that private loans typically still accrue interest during the approved deferment period (even refinanced student loans with lenders who honor grace periods).

In other words, the total student loan balance would continue to grow even while payments are suspended. This is one of the basics of student loans.

Over the life of the loan, this could add to what the borrower owes overall. Some private lenders allow borrowers to make interest-only payments during a forbearance to help avoid interest capitalization.

Even with the accrual of interest and limited options, deferment is preferable to defaulting on student loans.

Borrowers with private student loans can contact their lender to learn if special deferment is available for those who are unemployed.

Advantages and Disadvantages of Unemployment Deferment

So, what are the potential pros and cons of pursuing an unemployment deferment on student loans? These are some of the advantages and disadvantages you may want to think over:

These are some of the advantages and disadvantages you may want to think over:

Advantages

Whether a borrower has been laid off due to an economic downturn or they have recently graduated and are struggling to find employment, unemployed deferment is one way to help ease the financial pressure of repaying student debt in the short term.

For borrowers in need of financial relief, student loan unemployment deferment can help temporarily lower monthly expenses. This can be especially helpful if an unemployed borrower would otherwise run the risk of student loan default.

Defaulting on loans can have a negative impact on your credit history, complicating your ability to pursue mortgage or other loans in the future.

And, with student loans, simply not paying them does not erase the amount owed or the interest that can keep accruing.

If a borrower has only subsidized student loans, the unemployment deferment program comes at no additional cost because interest does not accrue.

And, while it’s completely fine to apply for a deferral, borrowers are typically expected to use the approved deferment period to find a new job; some unemployment protection programs from private lenders even have stipulations to that effect.

Disadvantages

In the case of unsubsidized federal student loans, taking a deferment will increase the total amount owed on the loan. And even if a borrower decides to make interest-only payments, they’re not not chipping away at the principal amount.

Unemployed student loan borrowers may want to weigh whether the short-term savings tied to reduced or suspended loan payments are worth owing more money on those loans later on.

When a borrower does eventually find employment and the deferment ends, the future payments on their student loan payments may be higher each month — to cover the additional accrued interest.

For someone who is just adjusting to a new job, higher loan payments may come as a shock and could be hard to budget for.

Understanding the long-term implications of applying for student loan unemployment deferment can help borrowers to decide whether this sort of program is the right for the current and future financial situations.

Alternatives to Unemployment Deferment

For federal student loan borrowers who don’t qualify for unemployment deferment, there may be other ways to handle student loans during a job loss.

Forbearance and income-driven repayment plans are two potential options:

Forbearance

Similar to deferment, federal or private loan forbearance temporarily suspends or reduces loan payments.

However, while principal payments are postponed, interest will continue to accrue, no matter what type of loans you have. To see if you qualify, contact your loan servicer.

Because forbearance does not suspend the accrual of interest on a student loan, it can make sense to consider other options, such as income-driven repayment.

Income-Driven Repayment

Income-driven repayment plans calculate loan payments based on a borrower’s current income and family size. They also, typically, stretch the loan repayments over 20 or more years.

Although this type of plan may trim monthly loan payments, it could cost borrowers more in interest over the life of the loan. Once your financial or employment situation improves, you may want to switch to an alternative repayment plan.

Public Service Loan Forgiveness (PSLF) Program

Having been previously employed in certain public sector jobs may also qualify some borrowers for student loan forgiveness if unemployed.

By definition, loan forgiveness means that the remaining amount owed is forgiven — the borrower is no longer bound to pay it back.

Eligible federal student loan borrowers who’ve completed 10 years of employment with a qualifying job — such as a public school teacher, some non-profit employees, Americorps recipient, or government worker — might be eligible for the Public Service Loan Forgiveness (PSLF) Program.

If you think you may qualify for the federal forgiveness program and your goal is to lower your monthly payments, you may still want to switch to an income-driven repayment plan while the PSLF application is being reviewed in order to lower your monthly payments.

Student Loan Refinancing

After exhausting federal program options, or if none are quite the right fit, borrowers with federal or private student loans may want to look into refinancing student loans.

When you refinance student loans, you replace your loan or loans with one new private loan. Qualified borrowers may either get a lower monthly payment or help reduce the total interest paid over the life of the loan. Note: You may pay more interest over the life of the loan if you refinance with an extended term.

It’s important to be aware that by refinancing federal student loans with a private lender, borrowers give up benefits and protections such as federal unemployment deferment, PSLF, and income-driven repayment.

Lenders that offer refinancing options usually look at applicants’ qualifying financial attributes — including employment status, credit history, and income. So, refinancing student loans is not necessarily available to all who apply.

The Takeaway

There are numerous possible student loan repayment options for unemployed borrowers who qualify, including deferment, income-driven repayment, federal student loan forgiveness programs, and student loan refinancing. One good place to start is by calling your loan provider to review all options you may qualify for.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

FAQ

What if I am unemployed and can’t pay my student loans?

If you’re unemployed and can’t pay your student loans, contact your loan servicer immediately to discuss options like deferment, forbearance, or income-driven repayment plans. These can temporarily reduce or pause payments, helping you manage your debt until you regain employment.

What qualifies for deferment on student loans?

Deferment on student loans is available if you are enrolled at least half-time in an eligible school, unemployed, facing economic hardship, or serving in the military during a war or national emergency. Check with your loan servicer for specific eligibility criteria and application processes.

Can you get unemployment if you owe student loans?

Yes, you can receive unemployment benefits even if you owe student loans. Student loan debt does not disqualify you from unemployment assistance. However, it’s important to manage both by contacting your loan servicer to explore options like deferment or forbearance.

About the author

Ashley Kilroy

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