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Many people are sidestepping cash lately. According to a March 2024 Forbes Advisor survey, a full 70% of U.S. adults use card payments most often, and only 21% always have some cash on hand.^[1]

But does that mean everyone should forego cash once and for all? Not necessarily. In fact, some financial experts say that a cash-only system may be a wise money move in certain situations.

An exclusively cash lifestyle may help you follow your budget, sidestep overspending, and avoid the high cost of overdraft, interest, and other fees that can be incurred when you pay by check, debit, and/or credit card.

But going all-cash has its downsides, too. It may not be convenient or as secure as other ways of paying.

To figure out what’s right for you, read on.

Pros of Cash-Only Living

Spending money the old-fashioned way — by regularly withdrawing cash from your checking account and keeping it in your wallet — can offer some significant perks. Here are some benefits that come with paying with cash for all your transactions.

Using Cash-Only Can Help You Budget — and Save

When spending is invisible, it can be all too easy for people to forget that real money is actually going out the door — and all too easy to get in over their heads.

Using a cash-only payment system, even if it’s just for a month or two, can be a great way to see exactly how much you’re spending each day and week, and help you learn how to live within your monthly budget. With cash accounting, you only take out the amount you’ve allotted to spend for a certain period of time. When you’re out of bills, you’re done.

And if you use the envelope system (more on that below), you’ll be able to set aside specific amounts for all of your spending categories, such as rent, food, and entertainment. You can then only use the cash you’ve withdrawn for those expenses, which can keep you from spending outside of those pre-set limits.

Cash-Only Living Can Help You Maintain Privacy and Security

Every debit or credit card transaction leaves a digital paper trail, and enables companies to know exactly what you buy, when you buy, and precisely how much you spend.

A more troubling concern can be the potential for data leaks of your personal and credit card information, which can result in identity theft. If someone steals your identity, they could potentially empty your accounts and obtain new credit cards and credit lines in your name.

Using a cash-only payment system reduces the odds of a breach.

Cash-Only Living Can Help You Save on Interest and Fees

Credit cards often come with annual, as well as late payment fees.

And some stores and service providers, especially small and local businesses, may charge an extra fee to take a credit card payment, since they have to pay for the transaction.

In addition, if you don’t pay your credit card balance in full, you’re likely to end up paying exponentially more, thanks to high credit card interest rates. As of May 2025, the average annual percentage rate (APR) for credit cards is 28.63%.

Cons of Using Only Cash

Using cash-only can also come with risks and disadvantages. Here are some of the drawbacks.

Cash Living Can Come With Costs

Some ATMs charge fees for withdrawing cash, which can be troublesome if you find yourself suddenly out of money and need to use an ATM outside of your own bank’s network.

By using credit cards instead of depending on ATMs, you may be able to avoid those costs.

Recommended: How to Avoid ATM Charges

Cash Living Can Have Security Concerns of Its Own

Keeping cash on your person or in your home comes with vulnerability. You could be a victim of theft, you could lose some money, or the cash stashed in your home could be destroyed by a flood or fire. While not highly likely, it can happen.

A lost or stolen credit card, on the other hand, can be reported and you can often successfully dispute any instances of fraudulent charges.

You Fail to Build Up a Credit History

There’s something ironic about the way lenders look at credit history: If you haven’t borrowed much in the past, lenders may be reluctant to lend to you now.

Opening a credit card account is one way you can build up a credit history (other forms of credit, such as student or car loans, count as well).

A strong credit score is based in part on the average age of your accounts (the older the better), as well as a history of paying your bills on time, and how much debt you have in relation to the amount of credit available to you.

Your credit score is an important factor if you’d like to take out a loan in the future, such as an auto loan or home mortgage. If you pay for everything exclusively in cash and never use credit (which is often hard to pull off), you may have trouble showing that you have the credit history to qualify.

Tips for Living a Cash-Only or a Cash-Mostly Life

If you decide to switch to an all, or largely, cash life, here are some strategies to help make the shift as seamless as possible.

Choosing Which Categories to Switch to Cash

Certain payments and bills, such as a mortgage or your student loan, need to be paid digitally or by check.

But you may want to switch groceries, entertainment, clothing, and eating out to cash-only to keep better tabs on the outflow.

Cutting Back on Debit/Credit Card and Check Use

For your cash-only categories, it may be a good idea to stop using your credit card (and even your debit card and checkbook) to pay for anything in those categories. That way, you can really track your cash.

Setting up a System for Tracking Cash Flow

To keep cash for different categories separate, you might consider using the envelope budget method.

With this system, you set a certain amount of cash to spend in each budget category. These pools of money are kept separate in different envelopes. To keep track of the flow, you can put receipts in the same envelopes as you spend.

The goal is to make the cash last all month. Once the envelope is empty, you’ll either be done for the month or will need to take cash out of a different envelope, potentially short-changing another category.

Recommended: 7 Different Budgeting Methods

Establishing a Time to Take Out Cash

Whether it’s a certain day each week or month, you’ll want to make sure that you go to the ATM on a regular basis to get the full amount of cash that you’ll need until the next ATM trip. Ideally, you want to take your cash out of your checking and not your savings account, especially if you’re earning competitive interest in a high-yield savings account.

Planning Shopping Trips in Advance

It’s generally better not to carry a load of cash around, so you may want to know ahead of time what errands you’ll be running, and how much you’ll need for each outing.

As a bonus, this can also curb impulse purchases.

The Takeaway

If you’re looking to fix or improve your everyday spending habits, nothing works quite like a cash-only lifestyle.

By forcing you to stick to pre-set spending limits (and actually see where your money is going), this approach can help you keep your monthly spending within your budget.

While cash-only living can take away from efforts to build credit and can have some security issues, this method of spending can also help you save on credit card fees and interest.

Whether you opt for an all-cash or partly-cash lifestyle, you’ll want to choose a bank that provides easy access to your funds, while also paying a competitive return on your balance.

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

Is using cash-only a good idea?

Using cash-only can be beneficial for budgeting and avoiding debt, as it provides a tangible sense of spending. However, it can be impractical, especially for large purchases or online transactions. Cash also doesn’t offer the same level of security as cards, since you generally can’t get cash back if it’s lost or stolen. Additionally, paying cash-only limits your ability to build a credit history, which is important for major financial activities like renting an apartment or getting a loan.

Is it illegal to have over $10,000 in cash?

It is not illegal to have over $10,000 in cash. However, if you deposit or make a payment of more than $10,000 in cash, financial institutions and businesses are required to report it to the government. And if you are traveling with an excess of $10,000, you must report it to a Customs and Border Protection officer when you enter or exit the U.S.
As long as the cash is legally obtained and reported when necessary, there are no legal issues with possessing it.

Can you live off only cash?

Living off only cash is possible but challenging. It can work for everyday expenses like groceries and dining out, but it’s impractical for larger transactions, such as rent, utilities, and online purchases. Cash also doesn’t build a credit history, which can affect your ability to secure loans or rent an apartment. Additionally, carrying large amounts of cash can be unsafe and inconvenient, especially for travel or emergencies.

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

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

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See additional details at https://www.sofi.com/legal/banking-rate-sheet.
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When you partner up, it’s not just about deciding how many throw pillows to have on the couch or who cooks dinner on which nights. Setting up a budget for two can be a critical move, whether you choose to combine some, all, or none of your funds. It can help you get on track for shared spending and saving, including hitting your short- and long-term goals as a duo.

Read on to learn more about your options and how to make the right decisions.

How to Budget as a Couple

Here are some steps to take when you budget as a couple.

Decide How Much You Want to Combine Your Money

Deciding how much you want to combine finances as a couple, such as in a joint account, is a key part of budgeting as a couple. Each of you will have your own money style and potentially money issues, so a frank discussion on how comfortable you are merging your money and sharing, say, your spending habits is a wise first step.

Calculate Your Combined Income

If you have decided on merging at least some of your funds, take a look at your shared income to know what amount you are working with. Consider if you are on salary, freelance, have side hustle income, or dividends or passive income to come up with the right number.

Determine Shared Expenses

Next, look at where that income will go. You likely have shared housing, food, utilities, transportation, insurance, and healthcare expenses in terms of necessities. You may have varying debt payments to make as well.

Perhaps one of you has more in the way of student loans or credit card debt than the other. Discuss what feels fair in terms of paying that down.

You will also probably want to take a look at your usual discretionary spending, such as what you pay towards dining out, travel, entertainment, yoga classes, clothing, and the like.

You may decide you are more comfortable keeping some of your money separate rather than have full transparency regarding every dollar spent. Not everyone wants their partner to see exactly how much is flowing out of their checking account. It’s your call.

Figure out Future Goals

Then, turn your attention towards saving. Perhaps you two want to buy a home in a couple of years, start a family, begin a business, or pad out your retirement account. Or all of the above. You’ll want to factor in those savings for tomorrow.

Make Your Budget

With this information in hand, you’re ready to create a budget. It can be wise to review a few different types together, such as the popular 50/30/20 budget rule, the envelope budget system, and the zero-dollar method.

Recommended: 50/30/20 Budget Calculator

Create Joint Accounts

At this point, if you have decided to merge some of your money, you may want to open shared accounts, such as a joint online bank account.

7 Reasons to Budget as a Couple

Budgeting as a couple vs. budgeting as two individuals can have its pros. Consider the following.

1. Controlling Your Spending as a Team

One of the basics of budgeting is to prioritize your spending. Once you, as a couple budgeting, have decided where your money must go every month — toward groceries, utility bills, car payments, rent, and other essential expenses — you’ll have a better idea of how much will be left for discretionary expenses.

And instead of being restrictive, your budget could give you some spending flexibility. You’ll know if you need to cut back and when you can loosen up a little, and you’ll be accountable to each other.

Sometimes, one person in a couple budgeting is better at finances or just enjoys it more. It might be a good fit for that person to be in charge of managing the bills. But it’s also a good plan to come together for regular budget reviews so both of you know where the money is going and there will be some balance in the financial decision making.

Leave room for some splurges, or the spender in the family probably won’t be too happy. And be proactive about big purchases: Identify a threshold for how much each of you can spend so there are no surprises. Or, of course, you can keep some discretionary spending separate if this feels too stressful for the two of you.

2. Being Honest About Money Problems

This can be the time to talk about any hidden debts, bad habits that cost money, or if you can’t trust yourself not to overspend when there’s a credit card in your wallet.

Then you can start tackling those issues by setting spending limits, cutting up some of those credit cards, perhaps getting financial therapy, and, of course, incorporating those looming debt payments into your budget.

3. Being Prepared for Emergencies

A common recommendation is to have three months’ worth of living expenses set aside in emergency savings in case you lose your job or are sick or injured and can’t work. An emergency fund can also be used for unexpected costs such as home or car repairs or a medical procedure.

Not only can a couple budgeting determine how much to set aside each month to build that emergency fund, you can also choose which expenses to put off or do without if you don’t have enough in your fund when a crisis strikes.

Some budget ideas for couples who need to cut back on spending are reducing the number of date nights you had planned or putting your tax refund toward a bill instead of taking a spring vacation.

Having a budget can help you replace panic with a plan, and using online tools, like a money app, can help you keep tabs on your cash flow and spending habits.

Recommended: How Much Should You Keep in an Emergency Fund?

4. Creating Goals

If there’s a “fun” part of working together as a couple budgeting, this is it: deciding your priorities for the future.

Whether it’s saving for a home, having children, taking a cruise, starting your own business, or all of the above and more, your budget will help you focus on the things that are most meaningful to you as a couple.

Your strategy can help you set aside the money to reach those goals, aka turning the dreaming into doing. And you’re more likely to stay on track if you’re checking in on your spending each month.

5. Deciding How Much to Combine Finances

You will likely want to tackle the question of whether to have joint bank accounts vs. separate bank accounts or even a little of both. Making the right call can strengthen your bond financially and holistically.

You may decide to completely merge your bills and bank accounts, or you might want to keep your own accounts and divvy up the bills. There are pros and cons to each approach in budgeting for married couples or cohabiting couples.

Combining accounts can simplify your finances and build trust. But if you feel strongly about financial independence — or you’ve been burned in the past — you may feel more secure if you have your own money. Negotiating an agreement that’s comfortable for both parties can be a real win-win.

6. Reducing Financial Stress

Here’s a solid upside to merging your money: Once you get the numbers down on paper instead of just swirling around in your head, you may feel more in control of your finances. Even if the situation is shaky, you can take steps to do something about it. What’s more, you are likely on a path to making your money work harder for you.

7. Having Something to Talk About

Here’s another benefit: Once you create your couples budget, you’re going to want to revisit it on a regular basis. You can discuss how your various budget categories are holding up and if you need to make adjustments. Or how to tweak your budget so you can afford that destination wedding, new furniture, or childcare. Or retiring early. You’ll be able to sync up as a team.

It’s a good idea to go over any upcoming expenses that aren’t in the budget or only come up occasionally. And you can talk about how you’re doing with your short-term financial goals as well as your long-term ones.

An example of longer-term money aspirations? You can take a closer look at how college expenses for your future kids are trending. Or what might be a good monthly retirement income for a couple.

Are There Any Downsides to Budgeting as a Couple?

Now that you know the positives, consider these potential negatives whether you are marking a married couple budget or budgeting as a couple living together:

•   A partner could feel as if they have less control over their money, which could be uncomfortable.

•   A person could feel as if their partner’s spending habits are challenging.

•   The full transparency of merging finances could be a problem for some people who don’t like sharing their financial life.

•   There could be more time and effort and potentially banking fees involved as you set up joint accounts and find a new way to operate as a team.

The Takeaway

Budgeting as a couple is an important concern. You can determine your spending and savings as a duo, and you may decide to share accounts, merge some accounts, or keep your finances separate. In addition, you likely will be setting short- and long-term goals to map out your future together. When aligning your financial lives, you’ll want to consider choosing the right banking partner, too.

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

What is the best way to budget as a couple?

A key decision will be how much of your money to merge, looking at shared income and expenses, determining goals, and then finding a budget that works for both of you. Regular check-ins to see how you are managing your money are important too.

How do you split finances as a couple?

This will vary from couple to couple. Some will want to pool all of their resources and pay everything 50-50. Others may have circumstances (such as one partner having considerable credit card debt) that indicate a different arrangement may be necessary.

How much should a couple save per month?

How much a couple should save per month will depend on a variety of factors such as income, cost of living, and debt. However, many financial experts suggest saving 20% of one’s income is a good guideline.

About the author

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

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It’s human nature to wonder how you compare to everyone else. And that goes for money, too. For instance, are you spending more or less on housing? Food? Transportation?

In total, the average single person spends about $4,641 per month, according to the most recent (2023) Consumer Expenditure Survey from the U.S. Bureau of Labor Statistics (BLS).^[1] The numbers may be slightly higher for 2024. According to 4th quarter 2024 U.S. Bureau of Economic Analysis, the average monthly spending for a single person was $4,948 per month, when seasonally adjusted.^[2]

Of course, monthly expenses will vary depending on where and how you live. Still, knowing where you stand can help you budget better and see how your spending stacks up against other people’s outflow of cash.

Here, you’ll get a sense of how much an average person might spend per month so you can consider how your own budget looks.

Average Monthly Expenses in 2025

Housing

Housing tends to consume the highest portion of monthly income. Using BLS statistics, the average spending on housing is $1,684 per month for one person.^[1] Typically, single people devote more of their monthly income to housing (around 36%) than those living as a married couple or family (around 31%).^[3]

Costs can also vary significantly depending on whether you live alone (more costly) or have one or more roommates (less costly). That’s important to consider when estimating expenses and making a monthly budget.

Where you live can also have a major impact on your monthly housing costs. A single person living in a studio will generally spend more on housing in New York City than they would in a more affordable metro area. According to RentHop, the average price for a studio (one-room) rental in New York City was $3,550 in April 2025,^[4] compared to $2,450 in Oklahoma City, Oklahoma.^[5]

Transportation

Transportation costs can vary depending on your mode of transport (i.e., car vs. bus vs train), as well as what region of the country you live in.

But one thing that holds true for many of us: Transportation often accounts for the second-largest budget item, after housing.

The average single person shells out around $756 per month on transportation, including car or public transportation, gas, insurance and other related expenses, according to BLS statistics.^[1] Of course, you can take steps to lower those costs as needed, like learning how to save money on gas.

Health Care

Health care expenses can vary depending on each individual’s circumstances, and can also rise and fall from one month to the next. For example, there may be some months where unexpected medical costs crop up (such as emergency care), and other months where you only need to cover insurance premiums.

What you’ll have to spend on health care will also depend on where you live and what type of insurance coverage you choose. According to the BLS survey, individuals spend an average of $367 each month on health care.^[1] That number could be higher, however, for those who aren’t covered by an employer plan.

According to the Economic Policy Institute, an individual living in Columbus, Ohio spends about $470 per month on health care, including insurance premiums and out-of-pocket costs, assuming they purchase the lowest cost bronze plan on the Affordable Care Act health insurance exchange. That number rises to $696 per month for a single person living in New York City.^[6]

Recommended: How to Save Money Daily

Food

Everyone’s gotta eat, and the average single person spends about $572 on food per month, including food eaten at home as well as away from home, according to BLS data.^[1] However, the monthly cost for food for one person can vary widely depending on age, income, location, and eating habits.

While some monthly costs, like rent, are fixed, food is an area where consumers can often find savings if they need to reduce monthly spending (such as getting serious about meal planning and choosing lower cost brands at the supermarket).

Cell Phone

The average monthly cost of a cell phone plan is $141 per month, according to J.D. Power’s 2024 U.S. Wireless Retail Experience Study.^[7]

The good news? If your budget is particularly tight, you could spend as little as $25 a month for basic service and a monthly cap on data.

Utility Bills

After you’ve saved up and carefully budgeted to buy a home, you probably don’t want to be surprised by a higher-than-expected utility bill. The average monthly electricity bill in the U.S. is $137 per month, while the average monthly bill for natural gas runs around $69, according to Move.org.

Your monthly utilities may also include water, which runs $47 per month on average. Other monthly utility costs you may need to cover (and their average monthly costs) include: sewer ($65), trash ($62.50), and internet ($77). Americans also cough up an average of $59 monthly for streaming services.^[8]

Clothing

The average single adult spends about $123 on clothing per month, according to BLS data. If your budget is tight, this is one category where you can often pare back spending, whether by shopping your closet, hitting the sales racks, or bringing older clothes that need repairs or fit adjustments to the tailor. A clothing swap with friends can be another option.

Gym Memberships

The average gym membership runs anywhere from $10 to $100 per month, depending on location and amenities. If you can find one on the lower end of that range, it could be a good deal if you use it regularly.

If, however, you aren’t really using that membership or it’s too pricey for your budget, you could try going outside and hitting the pavement, joining an exercise meetup group, watching YouTube videos, and/or picking up some dumbbells and exercise bands to workout at home.

Recommended: Cost of Living per State

Getting Your Monthly Expenses in Check

Knowing the average cost of living can be helpful when you’re trying to determine how much of your budget you may need to allocate to different spending categories. (If you’re thinking, “What budget?” it’s likely a wise move to get busy creating a budget.)

These average monthly expenses shared above, though, are just that — averages.

To fine-tune your budget, and make sure your spending is in line with both your income and your goals, it’s a good idea to track your own spending (which means every cash/debit card/credit card payment and every bill you pay) for a month or two.

There are a few options for tracking spending. One easy method is to make all purchases for the month on one debit card or credit card, then, at the end of the month, take note of all the purchases made.

Another option is to use an app (your bank may provide a good one) that can help you log and track your spending. At the end of the month, you can then see everything you spent, as well as allocate each expense into key categories, such as housing, transportation, food, health care, etc.

You can then see how your spending compares to national averages, as well as where you might want to tweak things. For instance, if you don’t have enough at the end of the month to put any money away into your retirement fund, you might want to pare back non-essential spending (such as restaurants, clothing, gym memberships).

The same holds true if you haven’t been able to put money towards an emergency fund, which is an important safety net if you were to endure an emergency such as a job loss.

Recommended: Emergency Fund Calculator: Calculate How Much to Save

The Takeaway

Whether you’re creating a new budget or refreshing an old one, you’ve probably noticed how important (and tricky) it is to get your monthly expenses right.

Knowing the average amount people spend to live can help you figure out how your spending stacks up and, if you’re just starting out, help to ensure you’re budgeting enough for each category.

To stay on top of your money, you may want to track your daily spending for a month (or more), and then set up certain spending limits to keep your purchases in line with your income, as well as your savings goals.

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 much should a single person spend a month?

There’s no one-size-fits-all answer, as spending varies based on location, lifestyle, and income. However, a general guideline is to allocate your income as follows: 50% on necessities (rent, utilities, groceries), 30% on discretionary spending (entertainment, dining out), and 20% on savings and debt repayment beyond the minimum. Adjust these percentages based on your specific needs and financial goals.

What is the average living expenses for a single person in the US?

The average living expenses for a single person in the U.S. can vary widely depending on location. According to the most recent data from the U.S. Bureau of Labor Statistics (2023), the average single person spends around $4,641 per month. This includes housing, food, transportation, health care, and other essentials.

Living in urban areas or coastal cities tends to be more expensive, while costs are lower in rural or Midwest regions. Personal choices, such as eating out frequently or owning a car, can also significantly affect monthly living expenses.

What is a good monthly personal budget?

A good monthly personal budget should prioritize essential expenses like housing, food, and utilities, while also allowing for saving and discretionary spending. A popular method is the 50/30/20 rule: 50% of your income goes to necessities, 30% to wants, and 20% to savings and debt repayment. This balanced approach helps ensure you can cover your expenses while also progressing toward long-term goals. You may need to adjust the percentages based on your specific financial situation and priorities.

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.

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

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
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We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
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SOBNK-Q225-043

Heading off to college is hands down one of the most thrilling times in a young person’s life. It’s the chance to get to know yourself and your passions, close the childhood chapter of your life, and prepare for the future ahead.

But, before you can do all that, you’re going to need to pack.

Not quite sure what to bring and what to leave behind? Don’t worry, we’re here to help with a college packing list that covers all the essentials from dorm room needs to toiletries and beyond.

What to Pack for Campus Life

Hang on — before we dive into this list, we need to discuss the all-important first step every student should take in their college essential checklist planning, and that’s to reach out to your new roommate.

Once you know who that is going to be, it’s a good idea to reach out and get a feel for their likes and dislikes, how you can work together on a decor theme for the room, and if you can split the cost for shared goods, like microwaves, mini-fridges, or any other items you may share along the way.

Once you know what your roommate is responsible for you can get on your way to make your own checklist.

Shower and Toiletry Needs

Packing up for college means compartmentalizing everything in your daily life. And, for most people, their days begin with a shower. Here are a few of the items needed to set students up for a hygienic semester ahead.

Shower caddy: This is a very important base. Because students will likely be sharing communal showers, they will need to cart their goods back and forth to the bathroom, so a sturdy caddy is key.

Bathrobe: On a related note, you’ll be traversing back and from the bathroom for showers. A bathrobe makes it easy to cover up.

Washcloths and towels: This isn’t an item students will want to share. Purchase a few matching sets in a unique color so students always know which color is theirs.

Flip-flops: Again, students will likely be sharing communal showers with many other students. Avoid any potential foot fungus with a simple pair of flip-flops.

Toiletries (Shampoo, Soap etc): Keep it clean from head to toe with shampoo and conditioner. For an added bonus, try a shampoo bar, which will dissipate when it’s done, leaving no plastic bottle pollution behind. Pick up your favorite scent before heading off to college so every time you open the bottle you are reminded of the sweet smell of home.

Toothbrush and toothpaste: It’s easy to pick up a simple toothbrush at any pharmacy, but students could also level-up with an electric brush, or even go for a subscription-based brush so they never have to remember when to replace the brush heads.

Deodorant: Students will be living in close proximity to one another, making it important to stay on top of hygiene and smelling nice. Look for a signature deodorant scent before leaving home.


💡 Quick Tip: SoFi offers low fixed- or variable-interest rates, so you can get a private student loan that fits your budget.

School and Office Supplies

While decorating a dorm room is fun, remember that the whole reason you’re there is to study. That being said, don’t forget these necessary school supplies to make your study life easier.

Headphones: Yes, headphones can be used for entertainment, but they can also be a valuable tool in a student’s office supply area too. That’s because, again, you will be sharing a small space with another person, so finding peace and quiet may be difficult for study and work time. But, it’s nothing a good pair of noise-canceling headphones can’t fix.

Memory cards or USB flash drives: Students will likely need to transport data files from home to printer, to class, or delivered straight to a professor. Have a few of these handy just in case.

Laptop: Though a typically expensive item, a laptop is critical for a college or university education. It’s how students can get their work done in the dorms, in class, or anywhere in between without having to head to the library for free computer use every time they need the internet. Some schools may have recommendations for laptops based on programs and the requirements for processing power or software.

School Supplies: Sure, the high-tech stuff above is great, but make sure to kick it old school too and purchase a few pens, pencils, highlighters, index cards, and notebooks so you can jot down notes, ideas, and more whenever you need to or if your computer runs out of battery.

Thinking about your current study habits can be a good place to start when evaluating what school supplies you’ll need as you head off to university. Don’t forget textbooks!

Surge protector and extension cords: Because there will likely be multiple students using up all the plugs in a dorm room, it’s a good idea to purchase a surge protector and a few extension cords to protect the electricity from overload.

Recommended: College Freshman Checklist for the Upcoming School Year

Kitchen Supplies

While you may have a meal plan or eat most of your meals out, having a few kitchen supplies can come in handy for when you don’t feel like cafeteria food or don’t have time to run out and grab something.

Microwave: A microwave can be a college student’s culinary best friend. Find a sturdy one that can handle reheating food and drinks, or even cook up entire meals.

Mini-fridge: Another college kitchen staple is the mini-fridge. Make sure it’s big enough for two roommates and all their in-room dining needs.

Dishes: College students need something to eat off of. Pack up a small collection of plates, cups, bowls, and cutlery before move-in day.

Food containers: Save any leftover goodies with some plastic food storage containers. Keep it simple with a few stackable options.

Coffee maker: College kids deserve to have coffee on tap, but the next best thing is remembering to pack a good coffee maker. Prefer tea? An electric kettle may be your new best friend. Review school policies on having electric appliances in a dorm room.

Room Needs

When packing for college, you’ll want to remember the dorm room essentials to make sure you’re comfortable and cozy while away at school.

Under-bed storage: College dorms can be tight. The average dorm room clocks in at just 180-square feet. With under-bed storage, you’ll be able to bring more items from home without taking up additional space.

Pillows: Take a few pillows to college — a few functional pillows for sleep and another couple of throw pillows for added flare.

Linens: Students should check with their college or university for their dorm room bed sizing, but odds are it’s a twin or twin XL. Get two sheet sets so students have one to wash and one to make the bed at all times.

Mattress pad: Dorm room beds aren’t exactly known for being the most comfortable things on earth. But, an easy way to upgrade student bedding is to purchase a mattress pad or feather bed.

Recommended: College Planning for High School Students

Cleaning Supplies

Going to college means students will now have to fend for themselves, and that goes for household chores too. Here are a few items all students need to get the job done right.

Laundry detergent: Find a favorite scent and stick with it. A good idea may be to find a detergent that works for both colors and whites to eliminate the need for multiple detergents.

Vacuum: Keeping a dorm room tidy is easy with a small vacuum. Even a dust buster will do.

Paper towels: Stock up on paper towels to clean up any accidents or to double as napkins when needed.

Wipes: Keep cleaning simple by purchasing a few canisters of wet wipes and use them regularly to disinfect surfaces.

Recommended: Using Student Loans for Living Expenses and Housing

Preparing to Pay for It All

Looking at this list, it’s clear that getting everything on your college packing list can get expensive. But, rather than stress about if you can afford cleaning supplies, linens, and office supplies, students can financially plan for what’s ahead by looking into all their college funding options, which may include savings, grants, scholarships, work-study, and federal subsidized and unsubsidized loans.

If you still have funding gaps, you may also want to consider applying for a private student loan. These are available from banks, credit unions, and online lenders. Students who have good credit (or cosigners who do) typically qualify for the best rates and terms. Just keep in mind that private student loans don’t offer the same protections, such as government-sponsored forgiveness programs, that come with federal loans.


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

The Takeaway

Getting ready for college requires a lot of planning, packing, and organizing. To create your ultimate packing essentials list, think about your current day to day routine — what items do you use the most frequently?

It can be helpful to break the items on your packing list up into categories like school supplies, bedroom, kitchen, and bathroom so that you can compartmentalize and review smaller pieces at a time. With all your essentials in hand, you can shift your focus to choosing the right major or finding ways to pay 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

What should you bring to a college visit?

For a college visit, bring a notebook and pen, comfortable walking shoes, a camera or smartphone for photos, a list of questions, and a map of the campus. Dress appropriately for the weather and wear something you feel confident in.

What should I get for a college dorm?

For a college dorm, get a comfortable pillow, a set of sheets, a desk lamp, a power strip, a mini fridge, a microwave, a laundry basket, a shower caddy, and some storage bins. Add a few personal items to make it feel like home.

What are the essentials to bring to college?

Essentials for college include a laptop, textbooks, comfortable bedding, a mini fridge, a microwave, toiletries, a first-aid kit, a planner, and comfortable clothing. Don’t forget a few sentimental items for a touch of home.

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

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOISL-Q325-003

An income share agreement (ISA) is a type of college financing in which you repay the funds you receive using a fixed percentage of your future income. While ISAs can be useful for some students who lack other funding options, it’s important to fully understand how these agreements work, since you can potentially end up owing significantly more than you borrow.

Read on for a closer look at income share agreements, including their pros and cons, who might consider them, and how they compare to other types of college financing.

What Is an Income Share Agreement?

With an income share agreement (ISA), you receive money to pay for college and contractually agree to pay it back using a fixed percentage of your post-graduation income for a set period of time. ISAs are offered by some colleges and through several private lenders.

The income percentage and terms of an ISA will vary depending on the lender. Typically, the repayment percentage will range between 2% and 10% of the student’s future salary, and terms can be anywhere from two to 10 years.

Unlike other types of student loans, ISAs do not accrue interest. However, students commonly end up paying back more than the original amount that they borrowed.

How Income Share Agreements Work

Typically, you start repaying an ISA after you leave school and pass a specific income threshold, often $30,000 to $40,000 per year. If you earn less than the threshold in any month, you can waive your requirement payment that month. Some ISAs will count months in which you earn less than the minimum salary toward your repayment term, while others will extend the length of your loan.

You can typically exit your ISA at any time, provided you’re willing to pay the maximum repayment cap for your plan upfront.

With an ISA, your payment rises when your salary rises. However, the repayment term and total repayment amount are usually capped. The cap is the most you’ll have to repay under your ISA. With many plans, though, the cap can be as high as two (or more) times what you borrowed.

Income Share Agreement Example

To illustrate how an income share agreement might work, let’s say you sign an ISA agreement for $10,000 with the maximum number of monthly payments of 88, an income percentage of 4%, an income threshold of $30,000 (or $2,500 per month), and a payment cap of $23,000.

In this case, you would pay 4% of your income for any month you earn at least $2,500 and continue to do so until you make 88 payments or pay a total of $23,000 — whichever comes first. If you only earn the minimum, you will end up paying back $100 a month for 88 months for a total repayment of $8,800 (which is less than what you borrowed). However, if you make $55,000, you’ll pay $183 per month for 88 months, for a total repayment of $16,133, which is $6,000 more than you borrowed.

Keep in mind that the income percentages, terms, and repayment caps can vary considerably from one ISA provider to the next.

Recommended: How to Pay for College With No Money Saved

The Advantages of Income Share Agreements

Some of the pros of income share agreements include:

•   ISAs typically do not require a cosigner or good credit, so they can be easier to qualify for than other types of financing.

•   Payments won’t exceed a certain percentage of your monthly income.

•   Your ISA contract could expire years earlier than a traditional student loan.

•   Schools that offer ISA programs are incentivized to help you earn the highest paying jobs.

•   Depending on your future income, you may end up paying less than you would pay with a traditional student loan.

Potential Pitfalls of Income Share Agreements

There are also some significant cons to ISA loans that you’ll want to keep in mind:

•   In some cases, the ISA provider will cap payment more than twice the amount you receive.

•   Unlike other types of student loans, there’s uncertainty regarding how much your loan will cost.

•   In many cases, an ISA could cost more over the long run when compared to federal or private student loans.

•   Income-driven repayment plans are already an option with federal student loans, and federal loans also offer the potential for student loan forgiveness.

•   ISAs are not widely available and may be restricted to certain majors or programs.

Who Should Consider An ISA?

Income share agreements can end up being costly, especially if you enter a high-earning field and the ISA has a high payment cap. However, you might consider looking at ISA if:

•   You’ve maxed out federal loan options but are unable to qualify for private student loans.

•   You have a poor credit score and would receive high rates on private student loans.

•   Your school offers an ISA with reasonable terms and a low payment cap.

•   You’re planning to earn a degree in a field that doesn’t have steep salary growth potential.

If these scenarios don’t apply to you, you’re likely better off using federal student loans to pay for higher education, or even private student loans if you have good credit. Before signing up, you’ll want to compare your options side by side and run the numbers to see which is the better deal.

Recommended: Private Student Loans vs Federal Student Loans

Considering Private Loans

You generally want to exhaust all your federal financial aid options before considering other types of debt, but if you’re looking to fill gaps in your educational funding, it may be worth considering private student loans before signing an ISA.

Private student loans are only offered through private lenders, and come with either fixed or variable rates. For borrowers with excellent credit, rates may be relatively low. Unlike federal loans, however, undergraduate private student loans often require a cosigner. The cosigner is an adult who agrees to take full responsibility for your student loans if you default. Cosigners are almost always required by private lenders since undergraduates have not had much time to develop a credit history.

If you expect to have a high salary after graduation and/or can qualify for a low rate on a private student loan, you could end up paying less than you would for an ISA.

Recommended: A Complete Guide to Private Student Loans

The Takeaway

An income share agreement, or ISA, is an agreement between the borrower and the school or a lender that states the borrower will receive funds to pay for college and then repay those funds based on a certain percentage of their future salary for a set amount of time.

While ISAs may sound like a different type of college funding, they are, essentially, loans. And in many cases, you will end up paying back significantly more than what you borrow.

Generally, you would only want to consider ISAs after exhausting any undergraduate federal student loans and aid available to you. It’s also a good idea to compare ISA offers with traditional private student loans before deciding on the best funding option for your situation.

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

What is an income share agreement?

An income share agreement (ISA) is a financial contract where a student receives funding for education in exchange for a percentage of their future income for a set period. It’s an alternative to traditional student loans, offering flexible repayment based on earnings.

Are income share agreements worth it?

Income share agreements (ISAs) can be worth it for students who need funding and prefer flexible repayment terms based on future income. However, they may be more costly in the long run compared to traditional loans, so it’s important to compare options and understand the terms.

Are income share agreements tax deductible?

Income share agreements (ISAs) are generally not tax deductible. Unlike student loans, payments made under an ISA are considered a share of income rather than debt repayment, so they do not qualify for the same tax benefits. Always consult a tax professional for personalized advice.

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

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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