Funds intended to benefit rehabilitation, home ownership through down payment assistance and affordable housing development in Kentucky, Ohio and Tennessee
CINCINNATI , May 9, 2023 /PRNewswire/ — The Federal Home Loan Bank of Cincinnati’s Board of Directors has approved a $12.8 million contribution to support the Bank’s housing and community investment programs. These funds will increase amounts available in 2023 for the Carol M. Peterson Housing Fund (CMPHF), Welcome Home Program (WHP) and, if available, competitive Affordable Housing Program (AHP) offering.
The CMPHF will open June 1 with funding of at least $5.0 million, an increase of $3.5 million from previously announced levels. The CMPHF offers grants to fund accessibility rehabilitation and emergency repairs for low-income homeowners with special needs or persons over 60.
The WHP will open July 6 and will offer at least $7.0 million in grants, an increase of $4.0 million from previously announced levels. The WHP offers $10,000 in down payment and closing costs assistance to low- to moderate-income homebuyers and $15,000 to honorably discharged veterans, surviving spouses of military personnel, and active duty military.
Any remaining funds not used under the CMPHF and WHP will be allocated to the 2023 competitive AHP offering.
“The FHLB Board of Directors’ clear commitment to affordable housing is evident through this additional $12.8 million contribution. These funds will help supplement two of our most popular programs that address the specific housing needs of the areas we serve—access to home ownership and quality of housing stock. By getting more homebuyers into homes through our Welcome Home Program and keeping them there as they age through our Carol M. Peterson Housing Fund, these funds will make a difference in communities throughout Ohio, Kentucky and Tennessee,” said Andrew S. Howell, President and CEO, FHLB Cincinnati.
This allocation is in addition to the FHLB’s required 10 percent of net earnings set-aside to fund the organization’s AHP. Since the inception of the AHP in 1990, the FHLB has awarded over $849 million in subsidies towards the creation of more than 105,000 units of affordable housing. Details and program guides for all housing programs, including eligibility information, are available at www.fhlbcin.com.
About the FHLB
The FHLB is a AA+ rated wholesale cooperative bank owned by 614 member financial institutions, including commercial banks, thrifts, credit unions, insurance companies and community development financial institutions in Kentucky, Ohio and Tennessee. The FHLB provides members access to products and services (primarily Advances, which are a readily available, low-cost source of funds, purchases of certain mortgage loans from members, and issuance of Letters of Credit to members) and a competitive return through quarterly dividends on their capital investment in the FHLB. The FHLB funds these products and services by raising private-sector capital from member-stockholders and, with the other Federal Home Loan Banks (FHLBanks) in the FHLBank System, issuing high-quality debt in the global capital markets. The FHLB also funds community investment programs that help its members create affordable housing and promote community economic development.
Whether you’re deciding on a new career path or wondering whether you’re being paid enough, it can help to know what the typical American worker earns per year.
Based on the latest data available from the Social Security Administration (SSA), the average annual pay in the U.S. in 2021 was $60,575 — an 8.89% jump from the previous year. The U.S. Bureau of Labor Statistics (BLS) estimates the average worker made closer to $67,610 that same year. The amount you make may depend on a number of factors, including your occupation, where you live, your gender, and your level of education.
Check your score with SoFi Insights
Track your credit score for free. Sign up and get $10.*
Key Findings
Let’s take a closer look at how the average annual pay in the U.S. has changed over a three-year period based on data from both the SSA and BLS.
Year
Average Annual Salary per SSA
Average Annual Salary per BLS
2019
$54,099.99
$59,209
2020
$55,628.60
$64,021
2021
$60,575.07
$67,610
It can also be helpful to look at median earnings, which represent the midpoint of salaries in the U.S. In other words, half of the salaries fall below the median, and half are higher than the median.
The following table shows the median annual salary for a three-year period.
Year
Median Annual Salary
2022
$54,132
2021
$51,896
2020
$51,168
Source: BLS
As you can see, average and median incomes have risen each year. However, average salaries can be affected by various factors such as your occupation, age, and gender. Note that the numbers above also don’t include unearned income.
Examples of High-Salary Jobs in the US
Some industries tend to pay more than others, which means the career you choose may affect how much you earn. Here’s a sampling of high-paying jobs and their average annual salary, according to the BLS:
• Cardiologist, $353,970 per year
• Dentist, $177,770
• Aircraft pilots and flight engineer, $169,540
• Lawyer and judicial law clerk, $146,220
• Public relations manager, $138,000
• Air traffic controller, $127,920
Recommended: How to Reduce Taxable Income for High Earners
Average American Income by Occupation
While salaries tend to vary based on geography, seeing how much certain types of jobs pay can be informative. Let’s take a look at different occupations and how much they typically pay.
Occupation (Type)
Average annual salary
Management
$123,370
Legal
$113,100
Computer and Mathematical Operations
$99,860
Architecture and Engineering
$91,740
Healthcare Practitioners and Technical
$91,100
Business and Financial Operations
$82,610
Life, Physical, and Social Science
$80,730
Arts, Design, Entertainment, Sports, and Media
$66,100
Educational Instruction and Library
$62,140
Construction and Extraction
$55,900
Community and Social Service
$53,960
Protective Service
$53,420
Installation, Maintenance, and Repair
$53,380
Sales (and Related)
$46,080
Office and Administrative Support
$43,430
Transportation and Material Moving
$41,340
Farming, Fishing, and Forestry
$34,730
Building and Grounds Cleaning and Maintenance
$33,750
Personal Care and Service
$33,620
Healthcare support
$33,330
Food Preparation and Serving Related
$29,450
Source: BLS, May 2022 data
Keep in mind that average salaries may differ depending on the specific occupation you have. For example, although claims adjusters fall under the business and financial operations category, their average salary is around $70,960.
US Income by Gender
Demographics, specifically gender, are another factor to consider. By and large, men tend to outearn women throughout their career. The median annual salary for a 16- to 24-year-old man is $33,800; a woman of the same age earns $31,460, per the latest data available from the BLS. Likewise, the median annual salary for a man aged 25 and older is $60,320; a woman of the same age earns $49,608.
Median Income by State
Wages often vary based on where you live. In many cases, states with higher costs of living also have higher wages. For example, the median annual income in Hawaii is $100,532 — much higher than Mississippi’s median annual income of $61,205.
Below is the median income by state for a household of three people, according to data compiled by the Census Bureau between April 1 and May 14, 2022.
State
Median annual income
Alabama
$70,250
Alaska
$108,072
Arizona
$79,110
Arkansas
$70,169
California
$97,092
Colorado
$100,744
Connecticut
$108,409
Delaware
$96,841
District of Columbia
$138,342
Florida
$75,057
Georgia
$79,980
Hawaii
$100,532
Idaho
$76,635
Illinois
$97,067
Indiana
$81,783
Iowa
$85,758
Kansas
$88,369
Kentucky
$71,501
Louisiana
$71,371
Maine
$87,051
Maryland
$113,994
Massachusetts
$117,415
Michigan
$84,245
Minnesota
$106,445
Mississippi
$61,205
Missouri
$80,022
Montana
$79,652
Nebraska
$91,076
New Hampshire
$113,013
Nevada
$91,076
New Jersey
$117,697
New Mexico
$66,183
New York
$96,854
North Carolina
$76,386
North Dakota
$94,950
Ohio
$82,734
Oklahoma
$71,397
Oregon
$93,773
Pennsylvania
$92,441
Rhode Island
$101,104
South Carolina
$75,128
South Dakota
$87,475
Tennessee
$75,394
Texas
$80,733
Utah
$90,629
Vermont
$92,628
Virginia
$102,869
Washington
$104,644
West Virginia
$71,757
Wisconsin
$92,586
Wyoming
$88,902
US Income by Race
As the BLS data below shows, there is often a pay disparity among workers of different races and ethnicities.
• Asian, $69,056 per year
• White, $52,936
• Black or African American, $41,652
• Hispanic or Latino, $40,404
How Does Your Income Stack Up?
Now that you’ve seen some of the average and median annual salaries by occupation, location, gender, and race or ethnicity, how does yours compare? If you’re not making as much as you’d like, you may want to research wages in your industry and region, and use that information to help you negotiate a higher salary. If you’re ready to make a bigger change, you can use this data as you consider whether to switch to a more lucrative field or relocate to a higher-paying region.
Recommended: How to Negotiate Your Signing Bonus
How to Stretch Your Income
Here are some different strategies to help you make the most of the money you make:
Track Your Spending
Understanding exactly where your money is going can help you keep tabs on where your money is going and identify areas where you can cut back. Consider using a spending app to track your spending and saving.
Negotiate Bills
Want to lower monthly expenses, such as your cell phone or internet services? Consider calling up various providers to see if you’re able to get a better deal or if there are promotions you can take advantage of.
Cut Back on Large Expenses
Housing, food, and transportation tend to be the largest line budget items. Explore ways to trim your biggest costs. Examples include refinancing your mortgage, negotiating your rent, shopping at discount grocery stores, and taking public transportation when possible.
Sharpen Your Marketable Skills
Accepting networking opportunities and taking professional development courses could help you become more marketable as an employee. This in turn could set you up to earn more in the long run. If you’re on a tight budget, look into no- or low-cost ways to cultivate high-income skills, and ask your employer if there are any free resources are available.
Pros and Cons of a High Salary
A high income can be great, but it does come with some downsides.
Pros:
• Improved quality of life: With more money, you can afford a higher standard of living and be able to afford different amenities such as better access to healthcare and food.
• Financial security: The more you earn, the more you can feel secure you have enough money to afford the things you want and need.
• Ability to achieve financial goals faster: Having more disposable income could mean you can set more money aside for long- and short-term savings goals, like retirement or going on a family vacation.
Cons:
• Higher taxes: Earning more can put you in a higher tax bracket. However, there are ways to reduce your taxable income.
• Pressure to maintain income: If you’re accustomed to a certain living standard, you may feel like you need to keep earning the same amount or more to maintain it.
• More work stress: In many cases, higher-paying jobs come with more responsibilities and at times, longer hours.
The Takeaway
Understanding what the average American worker makes in a year can come in handy, especially if you’re considering a new career path, negotiating a higher salary, or looking for a new place to live. According to the latest data from the Social Security Administration, the average annual pay in the U.S. is $60,575. But the amount you earn may depend on a wide range of factors, such as the industry you work in, where you live, your gender, and your race or ethnicity.
If you’re looking to make the most out of the money you earn, consider using amoney tracker app. The SoFi Insights app connects all of your accounts in one convenient dashboard. From there, you can see all of your balances, spending breakdowns, and credit score monitoring, plus you can get other valuable financial insights.
Stay up to date on your finances by seeing exactly how your money comes and goes.
FAQ
What is a good salary in the USA?
There’s no one set amount that would be considered a good salary in the U.S. However, the average salary is around $60,575, according to the Social Security Administration.
What is the real average wage in the US?
The average wage in the U.S. is $67,610 according to the most recent data available from the U.S. Bureau of Labor Statistics.
What is the top 10 percent income in the US?
According to the Economic Policy Institute, the top 10% of workers in the U.S. earn $133,482.
How much should you be making at 30?
While there is no definitive amount you should earn by the time you’re 30, the average salary for U.S. workers aged 25 to 34 is $52,832, according to statistics from the U.S. Bureau of Labor Statistics.
Photo credit: iStock/VAKSMANV
SoFi’s Insights tool offers users the ability to connect both in-house accounts and external accounts using Plaid, Inc’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score provided to you is a Vantage Score® based on TransUnion™ (the “Processing Agent”) data. *Terms and conditions apply. (Must click on the link to be eligible.) This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the Rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed into SoFi accounts such as cash in SoFi Checking and Savings or loan balances, Stock Bits, fractional shares and cryptocurrency subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. SORL0423006
VA home loans remove many barriers to homeownership and allow eligible servicemembers and veterans to buy a home more easily. VA mortgage rates are lower than those of most other loan types. The VA loan is simply the best way to buy a home. Why? Because with a VA mortgage:
No down payment is required.
No mortgage insurance is required.
You get a great interest rate.
More lenient credit guidelines are available to you.
The VA home loan is an amazing benefit available only to current and former US armed forces service members who meet eligibility requirements. In 2023, the VA home loan will continue to be one of the most popular VA benefits.
Use your VA loan benefit and get a quote here.
Because VA home loans are backed by the federal government, VA-approved lenders can lend with greater flexibility. Your status as an eligible service member or Veteran lets you take advantage of this home buying benefit that is not available to just anyone
You’ve earned it, so complete this short one-minute form to use your VA home loan for your home purchase.
VA Home Loans Require No Down Payment, No Mortgage Insurance
VA home loans require zero down payment which significantly reduces out-of-pocket expenses. Qualified buyers can purchase a home costing up to $453,100 – or even higher with a VA jumbo loan – without a down payment.
Also, VA loans do not require mortgage insurance. Most other loan types require you to pay a significant amount each month to a private mortgage insurance company if you make a down payment of less than 20% of the purchase price. A VA loan eliminates that cost, freeing up that money for other expenses.
Use your VA loan and get a rate quote here.
Current VA Home Loan Rates
VA mortgage rates are some of the lowest we’ve seen in years. It’s a great time to buy a home and take advantage of these low VA rates.
A low rate on your mortgage means you qualify for more house. Today’s lower home prices combined with low rates means you might qualify for the home you’ve always dreamed of.
Use your VA Loan and start your home buying journey by completing this short online form.
VA Eligibility Service Requirements
There are several ways you may be eligible. General guidelines are that you have the following service history:
90 days in wartime while in active duty
181 days in peacetime while in active duty
2 years or the full time called if enlisted after 9/7/1980
You were separated from service due to a service-connected disability
You are an unmarried surviving spouse of a service member who was KIA/POW/MIA.
Check rates and get your Certificate of Eligibility here.
Additionally, eligibility may be established for those who have served in the Selected Reserves or National Guard, Public Health Service officers, cadets of the United States Military, Air Force, Coast Guard Academy, and others.
Apply for and use your VA home loan here.
How Do I Know if I am Eligible?
The only way to be 100% sure that you are eligible to purchase a home with a VA loan is to receive a Certificate of Eligibility (COE) from the VA. There are two ways to obtain your COE:
Have your lender obtain your COE through VA’s eligibility website. Typically a loan officer can obtain your COE in just minutes, often without a DD-214 (if separated from service) and your Request for COE Form 26-1880, although sometimes these forms are needed. Calling a VA-approved lender is the quickest and easiest way to obtain your COE. Complete a short contact request form.
You can order your COE by visiting VA’s eBenefits website. This process may take longer.
If you are an unmarried spouse of a veteran who was killed in action, you may be eligible for VA financing. You will need to complete Form 26-1817.
What Do I Need before I Contact a VA Lender?
For your initial call or contact request to a VA lender, you don’t need any documentation. Most of the initial information the lender will ask about, you already know.
The lender will request your COE, so they will need your service history information. To get pre-approved, the VA loan officer will need information on your monthly income, the approximate amount in your checking and savings accounts, and a few other personal details. This is all part of the VA home loan qualification process. Our lenders are pre-screened and reputable, so your information is safe and secure.
Check rates and get started on your pre-approval here.
What Types of Properties can I buy?
The VA home loan allows you to buy many types of properties:
Single-family homes (non-connected)
Two- to Four-unit homes
Attached townhouses (VA approved projects only)
Condominiums (VA approved projects only)
Mobile Homes/Manufactured Homes (provided the home comes with land, is permanently affixed, and the structure is at least 20 feet wide and 700 square feet if a double-wide.)
In some cases, you can buy land or a home in need of repairs, with the intent of constructing or repairing the home.
Get a personalized VA rate quote here.
VA loans are only valid on a home that you plan to keep as your primary residence. They cannot be used to obtain a rental home, investment property, or second home. They can, however, be used to purchase a 2- to 4-unit property even if you live in one unit but rent out the rest.
Homes must also meet Minimum Property Requirements (MPRs), which are standards for the condition of the home. For an in-depth look at MPRs, see our blog post or contact one of our VA loan professionals.
I’m Ready to Take Advantage of my VA Home Loan Benefit
As an eligible veteran, you’ve earned the privilege of using a VA home loan, one of the best mortgage products available today. As a VA buyer, you have an advantage over most home buyers: you don’t need a down payment.
If you’re ready to proceed with buying your home with a VA home loan, call (866) 240-3742 to speak with a licensed lender who can answer any questions that you might have and who can help you find the lowest rate on a loan. The home of your dreams is made better with a great loan.
Swedish death cleaning is the process of paring down your personal possessions in a thoughtful, intentional manner before your death, so your loved ones don’t have to. The term was popularized by the 2018 book “The Gentle Art of Swedish Death Cleaning,” written by Margareta Magnusson, and later by a reality TV show based on the book.
As Magnusson writes, “It does not necessarily have to do with your age or death, but often does.”
The idea behind Swedish death cleaning
Maybe you spring clean every year. Perhaps you’ve recently decluttered your basement before a garage sale.
This cleaning is different.
It’s a thorough accounting of every possession you own, one by one. Yes, this even means facing that one bin filled to the brim with family photos and the filing cabinet stuffed with paperwork dating back to 1992.
The goal stretches beyond tidying up. It requires challenging yourself to let go of many possessions, including those with strong emotional connections. This doesn’t always mean throwing them away or donating them — it could mean finding them new homes with family and friends.
Swedish death cleaning can have a transformative quality and often serves as a transition to a new chapter of life. It might accompany downsizing homes or the death of a spouse. It’s also unavoidable. Death cleaning is a fate that awaits everyone’s belongings, according to Magnusson.
So, the choice you face is not whether death cleaning makes sense for you — it’s whether you’ll choose to face this inevitable task when you’re in a position of control, under a timeline and conditions of your choosing, or whether the job will be foisted upon your loved ones after you die. Either way, it’s coming.
If you delay, you might be forced into rushing through it. You may not have the energy to go through your things in the manner you’d prefer. And, if you delay too long, you risk having others making decisions about your things for you.
Best for: Ease of use. Cost: One-time fee of $159 per individual or $259 for couples. $19 annual membership fee thereafter.
Best for: Users who want an all-inclusive experience. Cost: $99 per year for Starter plan. $139 per year for Plus plan. $209 per year for All Access plan.
Best for: State-specific legal advice. Cost: $89 for Basic will plan. $99 for Comprehensive will plan. $249 for Estate Plan Bundle.
Benefits of Swedish death cleaning
Swedish death cleaning is likely to be difficult. It will probably take a lot of time. Encountering a lifetime of memories, good and bad, can be emotionally draining. Saying goodbye to some long-held objects that embody these memories is hard.
So why do it? Magnusson cites many reasons:
It can be liberating. Simplifying your life can bring a feeling of freedom to focus on something new.
You can avoid burdening others with the task. Death cleaning can be even more burdensome if you wait until the end of your life. And if you outright refuse to do it, you are essentially forcing your family and friends into eventually doing the same job for you. If you don’t want to organize your own things, why do you think they would want to?
It’s an opportunity to reflect. Though difficult, you’ll likely rediscover memories you have long forgotten. This can be a positive experience.
It can spark important end-of-life conversations with friends and family. These are conversations that they or you might otherwise avoid.
You can pass along helpful or important items. Giving a beloved object to a friend or family member can be a chance to recognize the importance of a relationship or pass on a family story or tradition. Something practical, like furniture or kitchenware, might have outgrown its use to you, but could be extremely helpful to someone just starting out.
Cleaning and estate planning
In practical terms, letting survivors sort through your belongings after you die can also make it more time-consuming to settle your estate. Even if you trim down your possessions now, you’ll still have things that require sorting through after your death. That’s where estate planning comes in. While the book doesn’t discuss the details of formal estate planning, it’s a logical extension of the philosophy behind Swedish death cleaning.
Suppose you have a will and appoint an executor, who is responsible for settling your estate. That person is generally tasked with selling your property, if you have any, which would likely require getting your house cleaned and belongings appraised. That could take months or even years if your home is filled with decades’ worth of items, and the cost of doing so would generally come out of your estate. Aside from being emotionally burdensome for survivors, the effort could also be a drain on your estate, and your heirs could be left with fewer assets, which might take them years to access.
Slimming down your possessions now and making your wishes clear for what remains can streamline this process.
How to start
Begin with the typical storage areas — basements and attics, for example. There’s a good chance you’ll find hastily stashed things that will be easy to part with. Culling clothes and furniture are other ways to make quick, visible progress.
Ask friends and family to assist. In addition to helping you go through boxes, they might discover things they’d gladly take off your hands.
Attach notes to objects or make piles as you go. This way, you can easily remember where it goes — to someone else, to a donation center, to a yard sale, etc.
Save the most emotional things for last. Be patient with yourself.
Cleaning and your finances
Swedish death cleaning is an all-encompassing endeavor, which means at some point you’ll need to review your finances. Magnusson says this can include tasks like writing a will or making a plan for usernames and passwords to your important digital accounts.
Organizing finances can be the most challenging part of the cleaning process — but it might be the part that will aid your executor and heirs the most. Here’s how to get started.
If you have people that you care about, then it is likely that you need life insurance. The payout from a life insurance policy can be used for paying off massive debts – such as a mortgage – or for replacing the lost income of a breadwinner so that a spouse and children can continue to pay their everyday living expenses.
Equally important in preparing for the case of loss is making sure your company or business has key man insurance. A key person life insurance policy can make all the difference in keeping a business or firm successful in the face of losing an owner, or important team member.
When you shop for life insurance, there are several key factors to keep in mind. These include choosing the right type and amount and ensuring that the insurance provider you decide to purchase through is secure and stable financially.
Today, given the vast reach of the Internet, many life insurance companies can help to “do the shopping for you” when it comes to buying coverage. While this can be convenient, it is still essential that you end up with a policy that will best fit your needs and your budget. One such entity that has a good, positive reputation for assisting people with purchasing the proper life insurance plan is Accuquote.
The History of Accuquote Insurance Company
Accuquote was founded by Byron Udell, one of America’s most well-known experts in life insurance, in 1994. Udell’s vision was to make the process of purchasing life insurance simpler for consumers. The Accuquote website uses powerful software to compare hundreds of insurance products quickly and conveniently. This allows shopping for the best rates much easier than having to go from one insurance carrier to another.
The company – as well as its founder – have been recognized by news and media outlets such as Money, Forbes, BusinessWeek, the Wall Street Journal, the New York Times, CNN, Kiplinger’s, and Bloomberg.
When it comes to insurance coverage, there is a myriad of information on the Accuquote website. This includes information on the types of insurance that are available, how each works, and why – or why not – a particular kind of insurance coverage could be a viable option for an individual.
Accuquote Insurance Company Review
Accuquote only works with highly rated insurance companies – which are likely to be brand names that consumers trust.
These include:
AIG
American National
Banner / William Penn
Fidelity Life
Genworth
Gerber Life Insurance Company
Globe Life
Guardian
Lincoln Financial Group
MetLife
Mutual of Omaha
Pacific Life
Protective Life Insurance Company
Prudential
Sagicor Life
Transamerica
In doing so, because Accuquote sells in “bulk,” customers can still save money, yet without having to sacrifice quality and strength.
The Accuquote website is available to consumers 24 / 7, so it is very convenient to find the information that is needed. For additional questions that require speaking with a customer service rep, the toll-free Accuquote phone line is open from 7:30 a.m. to 7:00 p.m, central time Monday through Friday, and from 8:00 a.m. to 1:00 p.m. on Saturday.
Life Insurance Products Offered
Accuquote offers term life and permanent life insurance policy options. Because of the broad range of policies that consumers can purchase, it can make it easier to cover a policy holder’s needs more accurately.
With term life coverage, there is death benefit only protection, with no cash value or savings build up. Because of this, a term life insurance policy can be much more affordable than a permanent policy – with all other factors being equal.
As its name implies, term life insurance is sold for certain time lengths, or terms, such as ten years, 20 years, 25 years, or even for 30 years. In many cases, the premium will remain level during the term of the policy. There are also many term life policies that can be converted over to a permanent form of life insurance – and in some instances, there is no medical exam required to do so.
Permanent life insurance includes a death benefit, as well as a cash value component. The cash value is allowed to grow on a tax-deferred basis, which means that there is no tax due on the growth of these funds unless or until they are withdrawn. These funds can be either borrowed or removed for by the policyholder – including to pay off debts, supplement retirement income, or anything else you might need or want.
There are several different types of permanent life insurance, including whole life and universal life. With a whole life insurance policy, the cash value will grow at a set rate that is determined by the insurance company. Once an individual is approved for a whole life insurance policy, the death benefit cannot go down, nor can the premium go up – even as the insured ages, and even if their health worsens. And, as long as the premium remains paid, the policy will stay in force. These policies are intended, then, remain with an individual for the “whole” of his or her life.
Universal life is another type of permanent life insurance coverage. With a universal life insurance policy, there is also a death benefit and a cash value component. These plans, however, are considered to be more flexible than whole life insurance policies. One of the biggest reasons for this is because the policyholder may – within certain parameters – select how much of the premium will go towards the death benefit coverage, and how much will go into the cash-value component of the policy. Often, the policyholder may also be able to change the due date of the premium, based on his or her changing needs.
There are also other types of life insurance that can be purchased, and that may be used in unique situations. For example, because funeral and other final expenses can be in the range of $7,000 to $10,000 today, many people purchase final expense life insurance. This type of coverage will usually have a death benefit of between $5,000 and $25,000 (although some insurance companies will allow more). By having this kind of coverage in force, an individual’s loved ones won’t have to dip into savings to pay for the funeral, nor will they have to endure additional financial hardship at an already difficult time in their lives.
Accidental death is another type of coverage that is offered via Accuquote. Unexpected accidents happen every day – and if someone is seriously injured, or dies, in an accident, it can have some serious financial ramifications. This type of coverage can be purchased as a stand-alone policy, or it can often be added to an existing life insurance policy. It is also relatively inexpensive and easy to understand – and, as long as the premium is paid, the coverage will remain in force. Typically, there is no physical exam required for underwriting, and no waiting period for the coverage to start. When purchasing accidental death coverage through Accuquote, an individual may be able to get up to $500,000 in coverage.
For those who wish to obtain life insurance quickly – and who do not want to (or do not have the time to) go through a medical examination as a part of the underwriting process – there is no health exam life insurance. As the name infers, a no medical exam life insurance policy will often require that an applicant only answer a few medical related questions. And, because there are no medical test results to wait for, these policies can often be approved in just days – or possibly even hours.
There are also many families who obtain life insurance on their children. While nobody ever wants to think about a tragic incident taking the life of a child, accidents and illnesses can and do occur. If that is the case, the family can be protected financially with life insurance. In addition to providing a death benefit, many child’s life insurance policy options will provide cash value, so that the child can begin to build up a tax-deferred savings account.
The funds that are within the policy can then be accessed in the future for college expenses, to purchase a vehicle, to put a down payment on a home, or any other need that the child sees fit. There can be other benefits to buying permanent life insurance on a child as well. For instance, doing so will lock in the child’s future insurability. This can be especially advantageous is the child becomes ill in the future. These policies will also usually have a premium that remains level, meaning that the rates will be quite affordable – even as the child becomes an adult.
Other Products and Services Offered
In addition to the long list of life insurance coverage options that are available through Accuquote, there are also other products and services that can also be purchased. These include the following:
Disability Insurance
Long Term Care Insurance
Retirement Annuities
Critical Illness Insurance
Medicare Supplement Insurance
Property and Casualty Insurance (including auto and homeowners insurance coverage)
A package of new laws in New York will help veterans with employment, business ownership and home-buying.
One bill creates a task force to explore veteran employment opportunities. The second will protect veterans who are eligible for VA home loans from scammers. The third will make it easier for disabled veterans who own businesses to access capital.
“This is very important bipartisan legislation that really now seeks to make impact on one of the biggest challenges that our veteran population faces not just here locally in Suffolk County but throughout the state,” said Assemblyman Steve Stern (D-Dix Hills), who worked to pass the bills.
Stern, a member of the Veterans’ Affairs Committee, said the trio of laws will boost veterans economically and protect them financially.
“Imagine a situation where a veteran who has served all of us comes home and is seeking home ownership, only to become the victim of a scam when utilizing his or her much earned benefit,” Stern said at a news conference in Hauppauge announcing the laws. “That should be unacceptable to all of us.”
The law provides education and counseling for veteran home-buyers to protect them against fraud when they apply for a VA home loan.
Suffolk County is home to one of the largest veteran populations in New York.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
46k salary is a solid hourly wage when you think about it.
When you get your first job and you are making just above minimum wage making over $46000 a year seems like it would provide amazing opportunities for you. Right?
The median household income is $67,521 in 2020 which decreased by 2.9% from the previous year (source). Think of it as a bell curve with $68K at the top; the median means half of the population makes less than that and half makes more money.
The average income in the U.S. is $48,672 for a 40-hour workweek; that is an increase of 4% from the previous year (source). That means if you take everyone’s income and divided the money evenly between all of the people.
But, the question remains can you truly live off 46,000 per year in today’s society since it is below both the average and median household incomes? The question you want to ask all of your friends is $46000 per year a good salary.
In this post, we are going to dive into everything that you need to know about a $46000 salary including hourly pay and a sample budget on how to spend and save your money.
These key facts will help you with money management and learn how much per hour $46k is as well as what you make per month, weekly, and biweekly.
Just like with any paycheck, it seems like money quickly goes out of your account to cover all of your bills and expenses, and you are left with a very small amount remaining. You may be disappointed that you were not able to reach your financial goals and you are left wondering…
Can I make a living on this salary?
$46000 a year is How Much an Hour?
When jumping from an hourly job to a salary for the first time, it is helpful to know how much is 46k a year hourly. That way you can decide whether or not the job is worthwhile for you.
$46000 a year is $22.12 per hour
Breakdown Of How Much Is 46k A Year Hourly
Let’s break down how that 46000 salary to hourly number is calculated.
For our calculations to figure out how much is 46K salary hourly, we used the average five working days of 40 hours a week.
Typically, the average workweek is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, divide the yearly salary of $46000 by 2,080 working hours and the result is $22.12 per hour.
46000 salary / 2080 hours = $22.12 per hour
Just above $22 an hour.
Key Points….
That number is the gross hourly income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
You must check with your employer on how they plan to pay you. For those on salary, typically companies pay on a monthly, semi-monthly, biweekly, or weekly basis.
Just an interesting note… if you were to increase your annual salary by $5K to $51000 a year, it would increase your hourly wage to almost $25 an hour – a difference of $2.40 per hour.
To break it down – 51000 salary / 2080 hours = $24.52 per hour
That difference will help you fund your savings account; just remember every dollar adds up.
How Much is $46K salary Per Month?
On average, the monthly amount would be $3,833.
Annual Salary of $46000 ÷ 12 months = $3833 per month
This is how much you make a month if you get paid 46000 a year.
$46k a year is how much a week?
This is a great number to know! How much do I make each week? When I roll out of bed and do my job of $46k salary a year, how much can I expect to make at the end of the week for my effort?
Once again, the assumption is 40 hours worked.
Annual Salary of$46000/52 weeks = $884 per week.
$46000 a year is how much biweekly?
For this calculation, take the average weekly pay of $884 and double it.
This depends on how many hours you work in a day. For this example, we are going to use an eight-hour workday.
8 hours x 52 weeks = 260 working days
Annual Salary of$46000 / 260 working days = $177 per day
If you work a 10 hour day on 208 days throughout the year, you make $221 per day.
$46000 Salary is…
$46000 – Full Time
Total Income
Yearly Salary (52 weeks)
$46,000
Monthly Wage
$3833
Weekly Pay (40 Hours)
$884
Bi-Weekly Pay (80 Hours)
$1769
Daily Wage (8 Hours)
$177
Daily Wage (10 Hours)
$221
Hourly Wage
$22.12
Net Estimated Monthly Income
$2,926
Net Estimated Hourly Income
$16.89
**These are assumptions based on simple scenarios.
46k a year is how much an hour after taxes
Income taxes is one of the biggest culprits of reducing your take-home pay as well as FICA and Social Security. This is a true fact across the board with an all-salary range up to $142,800.
When you make below the average household income, the amount of taxes taken out hurts your hourly wage.
Every single tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
So, how much an hour is 46000 a year after taxes?
Gross Annual Salary: $46,000
Federal Taxes of 12%: $5,520
State Taxes of 4%: $1,840
Social Security and Medicare of 7.65%: $3,519
$46k Per Year After Taxes is $35,121
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$35121 ÷ 2,080 hours = $16.89 per hour
After estimated taxes and FICA, you are netting $35,121 per year, which is $10,879 per year less than what you expect.
***This is a very high-level example and can vary greatly depending on your personal situation and potential deductions. Therefore, here is a great tool to help you figure out how much your net paycheck would be.***
In addition, if you live in a heavily taxed state like California or New York, then you have to pay way more money than somebody that lives in a no tax state like Texas or Florida. This is the debate of HCOL vs LCOL.
Thus, your yearly gross $46000 income can range from $31441 to $36961 depending on your state income taxes.
That is why it is important to realize the impact income taxes can have on your take home pay. It is one of those things that you should acknowledge and obviously you need to pay taxes. But, it can also put a huge dent in your ability to live the lifestyle you want on a $46,000 income.
46k salary lifestyle
Every person reading this post has a different upbringing and a different belief system about money. Therefore, what would be a lavish lifestyle to one person, maybe a frugal lifestyle to another person. And there’s no wrong or right, it is what works best for you.
One of the biggest factors to consider is your cost of living.
In another post, we detailed the differences between living in an HCOL vs LCOL vs MCOL area. When you live in big cities, trying to maintain your lifestyle of $46,000 a year is going to be much more difficult because your basic expenses, housing, transportation, food, and clothing are going to be much more expensive than you would find in a lower cost area.
To stretch your dollar further in the high cost of living area, you would have to probably live cheap and prioritize where you want to spend money and where you do not. Whereas, if you live in a low-cost of living area, you can live a much more lavish lifestyle because the cost of living is less. Thus, you have more fun spending left in your account each month.
As we noted earlier in the post, $46,000 a year is below the average income that you would find in the United States. Thus, you have to be wise in how you spend your money.
What a $46,000 lifestyle will buy you:
If you are debt free and utilize smart money management skills, then you are able to enjoy the lifestyle you want.
Have some fun money in your budget.
Know being frugal green is helpful to stretch your budget.
You are able to rent in a decent neighborhood in LCOL and maybe a MCOL city.
You should be able to meet your expenses each and every month.
Participate in the 200 envelope challenge.
Ability to make sure that saving money is a priority, and very possibly save $3000 in 52 weeks.
When A $46,000 Salary Will Hold you Back:
However, if you are riddled with debt or unable to break the paycheck to paycheck cycle, then living off of 46k a year is going to be pretty darn difficult.
There are two factors that will keep holding you back:
You must pay off debt and cut all fun spending and extra expenses.
Break the paycheck-to-paycheck cycle.
It is possible to get ahead with money!
It just comes with proper money management skills and a desire to have less stress around money. That is a winning combination regardless of your income level.
$46k Salary to Hourly
We calculated how much $46,000 a year is how much an hour with 40 hours a week. But, more than likely, you work more or fewer hours per week.
So, here is a handy calculator to figure out your exact hourly salary wage.
$46K a year Budget – Example
As always, here at Money Bliss, we focus on covering our basic expenses plus saving and giving first, and then our goal is to eliminate debt. The rest of the money leftover is left for fun spending.
If you want to know how to manage a 46k salary the best, then this is a prime example for you to compare your spending.
You can compare your budget to the ideal household budget percentages.
recommended budget percentages based on $46000 a year salary:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$268
Savings
15-25%
$690
Housing
20-30%
$1052
Utilities
4-7%
$134
Groceries
5-12%
$288
Clothing
1-4%
$23
Transportation
4-10%
$153
Medical
5-12%
$192
Life Insurance
1%
$10
Education
1-4%
$10
Personal
2-7%
$31
Recreation / Entertainment
3-8%
$77
Debts
0% – Goal
$0
Government Tax (including Income Tatumx, Social Security & Medicare)
15-25%
$907
Total Gross Monthly Income
$3833
**In this budget, prioritization was given to basic expenses and no debt.
Is $46000 a year a Good Salary?
As we stated earlier if you are able to make $46,000 a year, that is a decent salary. You are making more money than the minimum wage and close to double in many cities.
While 46000 is a good salary starting out in your working years. It is a salary that you want to increase before your expenses go up or the people you provide for increase.
However, too many times people get stuck in the lifestyle trap of trying to keep up with the Joneses, and their lifestyle desires get out of hand compared to their salary. It is okay to be driving around a beater car while you work on increasing your salary.
This $46k salary would be considered a lower middle class salary. This salary is something that you can live on if you are wise with money.
Check: Are you in the middle class?
In fact, this income level in the United States has enough buying power to put you in the top 95 percentile globally for per-person income (source).
The question you need to ask yourself with your 46k salary is:
Am I maxed at the top of my career?
Is there more income potential?
What obstacles do I face if I want to try to increase my income?
In the future years and with possible inflation, in many modest cities 46k a year will not be a good salary because the cost of living is so high, whereas these are some of the cities where you can make a comfortable living at 46000 per year.
If you are looking for a career change, you want to find jobs paying at least $52000 a year.
Is 46k a good salary for a Single Person?
Simply put, yes.
You can stretch your salary much further because you are only worried about your own expenses. A single person will spend much less than if you need to provide for someone else.
Learn exactly what is a good salary for a single person today.
Your living expenses and ideal budget are much less. Thus, you can live extremely comfortably at $46000 per year.
And… most of us probably regret how much money wasted when we were single. Oh well, lesson learned.
Is 46k a good salary for a family?
Many of the same principles apply above on whether $46000 is a good salary. The main difference with a family, you have more people to provide for than when you are single or have just one other person in your household.
The costs of raising children are high and will steeply cut into your income. As you can tell this is a huge dent in your income, specifically $12,980 annually per child.
That means that amount of money is coming out of the income that you earned.
So, the question really remains can you provide a good life for your family making $46000 a year? This is the hardest part because each family has different choices, priorities, and values.
More or less, it comes down to two things:
The location where you live in.
Your lifestyle choices.
You can live comfortably as a family on this salary, but you will not be able to afford everything.
Many times when raising a family, it is helpful to have a dual-income household. That way you are able to provide the necessary expenses if both parties were making 46000 per year, then the combined income for the household would be $92,000. Thus making your combined salary a very good income.
Learn how much money a family of 4 needs in each state.
Can you Live on $46000 Per Year?
As we outlined earlier in the post, $46000 a year:
$22.12 Per Hour
$177-221 Per Day (depending on length of day worked)
$884 Per Week
$1769 Per Biweekly
$3833 Per Month
Next up is making $50000 a year.
Like anything else in life, you get to decide how to spend, save and give your money.
That is the difference for each person on whether or not you can live a middle-class lifestyle depends on many potential factors. If you live in California or New Jersey you are gonna have a tougher time than in Oklahoma or even Texas.
In addition, if you are early in your career, starting out around 38,000 a year, that is a great place to be getting your career. However, if you have been in your career for over 20 years and still making $46k, then you probably need to look at asking for pay increases, picking up a second job, or finding a different career path.
Regardless of the wage that you make, if you are not able to live the lifestyle that you want, then you have to find ways to make it work for you. Everybody has choices to make.
But one of the things that can help you the most is to create a biweekly budget to make sure you stay on track.
Learn exactly how much do I make per year…
One of the best ways to improve your personal finance situation is to increase your income. Here are a variety of side hustles that are very lucrative. With time and effort, you can start enjoying the lifestyle you want.
As an Amazon Associate and member of other affiliate programs, I earn from qualifying purchases.
Learn how to supplement your daily, weekly, or monthly income with trading so that you can live your best life! This is a lifestyle trading style you need to learn.
Honestly, this course is a must for anyone who invests. You will lose more in the market than you will spend this quality education – guaranteed.
Read my Invest with Teri Review.
If you’ve ever wanted to make a full-time income while working from home, you’re in the right place!
This intensive training combines thousands of hours of research, years of experience in growing a virtual assistant business, and the power of a coach who has helped thousands of students launch and grow their own business from scratch.
Learn how to buy and resell items from flea markets, thrift stores and yard sales. They will teach you how to create a profitable reselling business quickly
…no matter how much or how little experience you have.
Our friends Cody & Julie of Gold City Ventures are experts at creating five figures of passive income selling printables. Learn how to create your online printables business from scratch with our programs and templates.
Are you passionate about words and reading? If so, proofreading could be a perfect fit for you, just like it’s been for me! I’m excited to share how you can create a freelance business as a proofreader, just like I did.
The ultimate discounted bundle of my 4 best-selling courses and WordPress theme on how to build and grow a profitable blog.
Learn the best SEO practices and how to monetize your blog quickly!
Designed as a 101-level course on freight brokerage, you’ll learn the basics of freight brokering in this online course.
This course is designed for freight brokers in any setting, regardless of their employment status.
If you want to start your brokerage, we’ll show you exactly how to do it. If you are an agent or employee of a brokerage, we’ll take you through sales and operations modules designed to help you source more leads and move more freight.
You can make money as a freelance writer. Learn techniques to find those jobs and earn the kind of money you deserve! Plus get tips to land your first freelance writing gig!
This is the perfect side hustle if you don’t have much time, experience, or money.
Many earn over $10,000 in a year selling printables on Etsy. Learn how to get started by watching this free workshop.
The Empowered Business Lab teaches you how to sell your digital products naturally with strategies that just make sense.
Monica helped me find my momentum and my want to pursue my business again.
After taking a second job as a driver for Amazon to make ends meet, this former teacher pivoted to be a successful stock trader.
Leaving behind the stress of teaching, now he sets his own schedule and makes more money than he ever imagined. He grew his account from $500 to $38000 in 8 months.
Check out this interview.
Know someone else that needs this, too? Then, please share!!
A pension plan is a retirement plan offered by employers that guarantees income to workers after retirement. Pension plans are also known as defined-benefit plans because the monthly benefits the worker will receive during retirement is defined.
When defining those benefits, a pension may offer an exact dollar amount to be paid in retirement, such as $100 per month. But more often, the benefit involves calculating a number of factors, including how much the worker earned while working, how long they served the company, and how senior they were when they retired.
How to Get a Pension Plan
Unlike other different types of retirement plans, such as IRAs and Roth IRAs, an investor who wants to save for retirement can’t just go out and invest in a pension. Like 401(k)s, pensions need to be offered by an employer.
While pension plans were once a mainstay of how companies took care of their workers, they’ve become increasingly rare in recent decades. Only a small relative percentage of private sector employers offered some form of pension to their employees as of 2023.
The biggest reason why companies no longer offer pensions is that it’s cheaper for them to offer defined contribution plans, such as 401(k) or 403(b) plans. But if an American works for the federal, state or local government, there’s a good chance that they may qualify for a pension. Among state and local government workers who participate in a retirement savings plan, a majority are in a pension plan.
How Pension Plans Differ from Other Retirement Plans
The key difference between pension plans and other retirement plans comes down to the difference between a “defined benefit” plan like a pension, and a “defined contribution” plan.
In a defined benefit plan, such as a pension, it’s clear how much workers will receive. In a defined contribution plan, it’s conversely clear to employees how much they put into it. Unlike a pension, a defined contribution plan doesn’t promise a given amount of benefits once the employee retires.
There are some plans, such as a 401(k) plan or 403(b) plans, in which an employer has the option to contribute. They are not, however, required to. In these plans, the employee and possibly the employer will invest in the employee’s tax-advantaged retirement account. At the time of the employee’s eventual retirement, the amount in the fund can depend heavily on how well the investments in the account performed.
There are still other retirement plans, like IRAs and Roth IRAs, which a worker can also fund. Like 401(k) plans, the ultimate payout often depends largely on the performance of the investments in the plan. But unlike 401(k)s, an employer isn’t involved or required to sponsor an IRA.
One big advantage that pensions have over defined contribution plans is that pensions are guaranteed by the federal government through the Pension Benefit Guaranty Corporation. It effectively guarantees the benefits of pension-plan participants. But the PBGC does not cover people with defined contribution plans.
Recommended: What Is a Money Purchase Pension Plan (MPPP)?
What to Do If You Have a Pension Plan
Workers with pension plans should talk to a representative in their human resources department and find out what the plan entitles them to. Every pension plan is unique. An employee may benefit from looking into the specifics, especially in terms of how much the plan might pay, whether it includes health and medical benefits, and what kind of benefits it will offer a spouse or family members if the worker dies first.
For someone just starting in their career, they may also want to ask when their pension benefits vest. In many plans, the benefits vest immediately, while others vest in stages, over the course of as many as seven years, which could affect their plans to move on to a new job or company.
One way to get a better handle on what a pension may pay over time is to inquire about the unit benefit formula. Utilizing that formula is how an employer tallies up its eventual contribution to a pension plan based on years of service.
Most often, the formula will use a percentage of the worker’s average annual earnings, and multiply it by their years of service to determine how much the employee will receive. But an employee can use it themselves to see how much they might expect to receive after 20 or 30 years of service.
Pros of a Pension Plan
Perhaps the biggest pro of a defined-benefit plan is the guarantee of predictable income from the day a worker retires until the day they die. That’s the core promise that the PBGC protects.
Many pension plans also include related medical and other benefits for the employee, as well as related benefits for surviving spouses. Those benefits vary widely from plan to plan and are worth investigating for workers with a pension. Employees who are considering a new role in an organization that offers a pension should also research such features.
A defined contribution plan can also motivate the worker to regularly calculate the amount they’ll have to live on after they retire, and when they can retire. That can open up questions about what they’ll do if they get sick or need at-home care. And by asking those questions, they can look into things like supplemental medical insurance or long-term care insurance, in order to better protect themselves down the road.
Cons of a Pension Plan
But the greatest strength of a pension plan — its reliability and its guarantee — can also be its biggest weakness from a planning standpoint. That’s because a pension can give would-be retirees a false sense of security.
A pension, with its well-insured promise of income, can lead people to ignore important questions and avoid strict budgeting for basic living expenses. That flat monthly income can also lead people to believe that their expenses will be the same each month.
And that can lead retirees to avoid planning for increased overall living expenses due to the effects of inflation or sudden, unexpected expenses that inevitably crop up. There’s also the likelihood that their expenses later in life could be significantly higher, as they’re able to accomplish fewer daily necessities themselves.
That’s why, regardless of how thorough a pension plan is, it can pay to save for retirement in other ways, including through a 401(k), IRA or Roth IRA. Just because a worker has a pension, that doesn’t mean that it’s the only retirement plan that’s right for them. And employees will benefit from preparing for retirement early.
The Takeaway
Pension plans are a type of savings plan that are offered by employers, potentially guaranteeing income to workers after they retire. Pension plans are defined-benefit plans, and differ in some key ways from IRAs or 401(k)s. Pensions have become less common in recent decades, and they have their pros and cons, like any other financial product or service.
Workers could get started investing today by opening an account with SoFi Invest®. SoFi Invest offers an active investing platform that allows users to choose their stocks and ETFs without paying commissions, but other fees apply.
SoFi Invest also offers an automated investing solution that invests users’ money based on their goals and risk tolerance without charging a advisory fee.
For a limited time, opening and funding an account gives you the opportunity to win up to $1,000 in the stock of your choice.
SoFi Invest® The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results. Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. 1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Claw Promotion: Customer must fund their Active Invest account with at least $10 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions. SOIN0523026
The best student credit cards are a lot like the best credit cards for nonstudents.
They generally have low fees, reasonable APRs, and perks that specifically appeal to college students. A few even have cash back programs that reward spending on gas, groceries, dining out, and other routine purchases.
So it should come as no surprise that finding them is pretty easy. Read on to learn our top picks.
Best Credit Cards for College Students of 2023
These are the best student credit cards on the market this year. Each one does at least one thing really well, whether that’s delivering outsize rewards on everyday spending or setting unusually high credit limits for the category.
Our top pick offers the best overall value of any card in the space, in our humble opinion.
[+] See Details
[-] Hide Details
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card is not your typical student credit card, not least because it’s not specifically marketed to students. But it has a slew of features that make it a fantastic choice for college students and recent graduates:
Petal has relaxed underwriting standards. If you have a FICO score, you can qualify with a score as low as 600.
You can apply for this card with no credit score. Petal evaluates applicants without FICO scores on non-credit factors, such as income.
Petal reports to all three major consumer credit bureaus, helping you build credit.
You can earn up to 10% cash back on purchases with select merchants.
Petal 2 has no annual or foreign transaction fees.
Credit limits start from $300 to $10,000, depending on your income and creditworthiness. You may qualify for a credit limit increase after six months of timely payments.
Petal credit cards are issued by WebBank, Member FDIC.
Learn MoreRead the Review
Best for Value-Added Perks: Deserve EDU Student Credit Card
Our Rating
Qualify with no U.S. credit history, then earn 1% cash back on all eligible purchases. Plus, get a free year of Amazon Prime Student with qualifying early spending.
Rewards Rate
1% cash back
Annual Fee
Credit Needed
No credit history required
Read the Review
[+] See Details
[-] Hide Details
The Deserve EDU Student Credit Card is a no-annual-fee student credit card that earns unlimited 1% cash back on all eligible purchases.
Its biggest value-added perk is a one-year complimentary subscription to Amazon Prime for new cardholders who spend at least $500 in purchases in the first three billing cycles. That’s a $69 value for free.
Deserve EDU also stands out for a relaxed underwriting process that doesn’t require any credit history at all. Instead, you qualify based on income, profession, and other noncredit factors. This makes Deserve EDU an excellent choice for international students.
Read the Review
[+] See Details
[-] Hide Details
The Capital One SavorOne Student Cash Rewards Credit Card is the best cash-back credit card for students in our book. Eligible purchases earn up to 8% back, and a much wider array of purchases earn unlimited 3% back.
Despite its super-generous rewards program, SavorOne Student Cash Rewards costs nothing to keep in your wallet. It has no annual fee or foreign transaction fee, which is excellent if you’re an international student or planning to study abroad.
Plus, you could qualify for a credit limit increase after as few as six timely payments. The biggest downside: You need a FICO score to qualify.
Learn MoreRead the Review
[+] See Details
[-] Hide Details
Like its stablemate, the SavorOne Student Cash Rewards Credit Card, Capital One Quicksilver Student Cash Rewards Credit Card can earn you a credit line increase in as little as six months with responsible use. However, you do need a FICO score (and thus some credit history) to qualify.
Along with this card’s flat, unlimited 1.5% cash-back rate on most purchases, that’s good enough to nab a spot on this list. Additional perks like no annual fee, no foreign transaction fee, and a complimentary UberOne membership (which includes free delivery on eligible UberEats purchases) further add to Quicksilver Student’s appeal.
Learn MoreRead the Review
Bank of America® Travel Rewards Credit Card for Students
Our Rating
Earn unlimited 1.5x points on all eligible purchases — a 1.5% return when you redeem for statement credits against travel and dining purchases. Plus, get a category-leading sign-up bonus with qualifying early spending.
Rewards Rate
1.5x points (1.5% back)
Annual Fee
Credit Needed
Good or better
Learn More
[+] See Details
[-] Hide Details
With a sign-up bonus better than many adult credit cards and a very long 0% intro APR promotion on purchases and balance transfers, the Bank of America Travel Rewards Credit Card for Students is the most generous card on this list.
It’s not without its drawbacks though. You need good credit (and a lengthy credit history) to qualify, and there’s no way to earn above the 1.5x rewards baseline other than the one-time sign-up bonus.
On the bright side, you never pay an annual fee with this card. And if you travel or study abroad, you don’t have to worry about foreign transaction fees either.
Learn More
Chase Freedom® Student Credit Card
Our Rating
Earn unlimited 1% cash back on all eligible purchases. Plus, get a $20 good standing bonus every year your account is open (up to five years) and get a cash bonus after your first purchase.
Rewards Rate
1% cash back
Annual Fee
Credit Needed
Good or better
Read the Review
[+] See Details
[-] Hide Details
The Chase Freedom Student Credit Card is a no-annual-fee card with a straightforward cash-back program and lots of value-added perks. One standout: a $20 good standing bonus each year for the first five years your account is open.
Freedom Student does have some downsides, including an unusually picky credit qualification requirement, a low baseline cash-back rate, and foreign transaction fees that may penalize students studying abroad. But if you can qualify and get past the drawbacks, it’s worth a closer look.
The information related to the Chase Freedom Student Credit Card has been collected by Money Crashers and has not been reviewed or provided by the issuer of this card.
Read the Review
Methodology: How We Choose the Best Student Credit Cards
We use several key factors to assess student credit cards and build this list. Most relate in some way to these cards’ overall value — how well they reward cardholders while helping them build credit and make the leap to post-college life.
Eligibility and Qualification
Some student credit cards are very easy to qualify for. If you’re a student at a U.S. university and you have a U.S. bank account, you’re in.
Others are stricter. They’re more like traditional credit cards in the sense that you need a good credit score and decent income to pass underwriting.
And some fall in the middle. Most of the cards on this list fit that bill. But we do our best to uncover products that aren’t overly strict.
Spending Limits
Your credit card’s spending limit is a function of your income, your credit score, and your perceived ability to repay. Accordingly, most student credit cards have low spending limits — students just aren’t a wealthy, well-qualified bunch.
That said, some next-generation cards have impressively high spending limits, at least by the category’s standards. We prefer cards that let you charge up to $5,000 (or more) without going overlimit. Because let’s face it, school is expensive.
Rewards
Many student credit cards don’t have rewards programs. Those are for grown-up credit cards, they say.
But some do reward users for everyday purchases. Those are the ones we like — though not offering a return on spending is not necessarily a dealbreaker for us.
Secured Status
Most of the student credit cards on this list are unsecured, meaning they don’t require a security deposit as a condition of approval. That ensures student users don’t have to tie up cash for months or years at a time.
That said, we do include a couple of secured cards on this list because they excel in other ways and because they’re easier to qualify for than some pickier unsecured cards. We just urge students to understand what they’re getting into.
Fees
The fewer fees, the better. Most of the cards on this list don’t charge annual fees, which is good news for frugal students. Where possible, we look for cards that cut students breaks on other fees — particularly foreign transaction fees, which put students studying abroad at a disadvantage.
Student Credit Card FAQs
Choosing a student credit card isn’t as simple as it might seem. These are some of the most common questions that come up during the process.
How Do You Qualify for a Student Credit Card?
You’ve heard all the clichés about starving students. While you’re hopefully not actually going without regular meals as you work and study your way through school, you probably don’t have as much disposable income as you’d like.
But don’t worry — you don’t need much income to qualify for a student credit card. Many student credit cards don’t even require you to have a credit score. As long as you’re a U.S.-based student on track to earn your degree, you can probably find a card that’ll accept you.
And if not, consider asking a parent or older sibling to cosign your application. That way, the credit card issuer can fall back on their financial firepower if you stop making payments.
Why Do You Need a Student Credit Card?
Most college students have limited experience with credit cards and other forms of credit. Accordingly, their credit histories are often thin or nonexistent. Therefore, the single most important reason for students to apply for credit cards is to build a positive credit history.
If you’re keen on building credit quickly, you need to look for cards that report timely payments to one or more (ideally all three) consumer credit reporting bureaus. Then, you need to keep up your end of the bargain by making in-full, on-time payments.
What’s the Spending Limit on a Student Credit Card?
Credit card issuers know that, on average, college students have less money than older people with full-time jobs. Accordingly, they tend to tightly restrict how much their student customers can spend on their cards.
So don’t expect your first student credit card to come with an exceedingly high credit limit, particularly if your only source of income is a stipend or work-study job.The good news is that if you make regular payments, build a positive credit history, and look for ways to earn extra income on the side, your credit limit — and spending power — is likely to increase over time. Years from now, when you think back to your time as a student, you might just identify your first-ever student credit card approval as a decisive milestone on your personal finance journey.
Final Word: How to Select the Best Student Credit Card
To choose the best student credit card, you need to look inward.
Don’t laugh. Understanding which cards you’re likely to qualify for is an important first step in your credit journey — and helps protect your valuable time, which you have far too little of as a full-time student.
If you’ve never had a credit card before and don’t have any student loans in your name, you might not have sufficient credit history to qualify for a traditional student card. In that case, you’ll need to look for cards that use nontraditional factors in their underwriting process.
If you do have a credit score, you’ll have more choice. If your credit is good and you have some income, you’ll likely have your pick of any card on this list. If your credit isn’t so good, you may need to settle for a secured card, at least at first.
From there, look for cards that suit your spending habits. That might mean choosing a rewards program that offers higher returns on the types of spending you do most often, or finding a slate of perks that aligns with your lifestyle.
Chances are, you’ll find the card that works best for you. It just might take some time.
@media (max-width: 1200px)
body .ns-buttons.ns-inline .ns-button-icon width: 100%; .ns-inline .ns-button –ns-button-color: #000000;
Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
Save more, spend smarter, and make your money go further
Teenagers tend to have few financial obligations. They may need to work a part-time job to earn spending money, but generally, no one is expecting them to put food on the table or manage important assets. It’s usually understood that high schoolers don’t yet have the life experience or maturity for those kinds of responsibilities.
And yet, we allow them to take out tens and even hundreds of thousands in student loan debt before they turn 18. That’s a financial obligation on par with buying a home, entrusted to kids who can’t even rent a car. Unfortunately, it’s a reality for most young people looking to get a degree.
That’s why every student needs to be prepared for the harsh reality of borrowing so much money. The more prepared you are to pay back those loans as soon as possible, the less likely you’ll be struggling financially in your adult years. A strong repayment approach can mean the difference between a debt-free life in your 20s and a lingering debt burden in your 30s – and thousands in owed interest. Using a loan calculator with amortization schedule will show you how much your payments need to be in order to pay down the loan in a given time frame.
If you’re about to take out student loans or already have them, here’s what you need to know.
Know What Kind of Loans You Have
Student loans often get lumped into one group, but they can vary widely. The two main types are private loans and federal loans. Like their namesake, federal loans are offered by the federal government. A private loan is a loan offered by a private bank or credit union. Most students have federal loans or a mix of both federal and private.
Federal loans are considered a better option than private loans because they have more repayment and forgiveness options. They also tend to have lower interest rates.
Private loans often require a cosigner, someone who will take on the responsibility of paying off the loan if you default or can’t make payments. Most students have their parents act as the cosigner.
Write down what kind of loan you have, the account number, the interest rate and the amount you originally borrowed.
Know How Much You’re Borrowing
Many students sign up for student loans assuming they’ll be able to pay them off easily after graduation. Most don’t realize how much they’re borrowing until they’ve graduated and the loan comes due.
The best thing you can do for your future self is to look at how much you’ve borrowed so far, how much you’re taking out currently and how much you’ll need for the duration of your time in school.
In 2012, Indiana University started sending out letters to current students explaining how much they owed and how much they would have to pay each month after graduating. Those letters proved to be very effective, reducing how much students borrowed by more than 10%. Three years later, the Indiana General Assembly passed a bill mandating that all state schools release similar letters to their students.
Knowing how much you’ve borrowed will make you more aware of your financial reality, and motivate you to find alternate ways of paying for school. You may try to take more classes per semester and graduate early or apply for more scholarships and grants. Even working a few hours a week in the student library or behind the front desk at your dorm can make a significant difference.
Most students borrow the maximum amount they’re allowed, but that’s not always necessary. Do a projection of how much your expenses will be this semester, including rent, groceries, transportation, utilities, parking, books and other fees. If you end up needing less than you anticipated, tell your loan provider that you’d like to take out less. If you need the same, then stick with that amount.
Looking at your loans on a semester-by-semester basis can help you borrow more or less depending on your circumstances. Create a budget each semester and stick to it, so you can be confident in the amount you’ve chosen to borrow.
Know Your Interest Rate
Every loan has its own interest rate which depends on the kind of loan, when you borrowed and other factors. Interest rates for federal student loans are determined by the government, but private lenders are allowed to charge as much as they want. Currently, federal interest rates for undergraduate loans are 5.05% and graduate degree loans are 6.6%. In 2017, the average variable interest rate for a private student loan was 7.81% and the fixed-rate average was 9.66%.
Know You Can Pay Back Your Loans Early
If you have federal loans, you can start repaying them while still in college. If you borrow too much or find a lucrative part-time job, you can use some of your income to pay back your loans. Doing that now will mean lower payments after you graduate.
If you have private student loans that don’t allow early payments, you can still save money in a savings account and put that toward your loans once they become eligible for repayment.
Know If Your Parents Took Out Student Loans for You
It’s not uncommon for parents to take out loans either from the federal government or a private lender. Some parents do so without telling their kids, because they want to help fund their education. Even if your parents don’t expect repayment, it’s always good to have an idea of how much they’ve sacrificed to get you there.
Other parents take out student loans and expect their children to repay them, as well as any individual bonds they borrowed. As a student you won’t have access to your parents’ loan information, so you have to ask them for the specifics. If you know you’ll eventually be on the hook for any debt your parents took out, you need as much information about the loans as possible.
Ask Your Parents if Any of Their Financial Information Will Change
How much grant and scholarship money you’re eligible for is often dependent on your financial need. Your parents’ income is the single most important factor in determining that eligibility.
If your parents’ income doesn’t fluctuate, you’ll generally receive the same amount every year. If your parents get divorced or your single parent remarries, then your FAFSA could look quite different for the coming year. When my friend’s dad lost his job, she immediately qualified for more need-based grants the following semester.
Know When Your Loans are Due
Even if you’re a freshman in college, it’s important to know when your student loans will come due. Federal loans give you a six-month grace period after graduation, so you don’t have to start repayment until the fall if you graduate in the spring. Private loans have their own system determining when the first payment is due, which varies from lender to lender.
If you’re a senior in college and plan to graduate this year, it’s not a bad idea to look up when your first bill is due. You don’t want to graduate May 15 and find out you owe $500 on June 1. Knowing when that first payment will hit can save you months of worry, and help you create a repayment plan in anticipation.
Know That Student Loan Debt is Real Money
When you first take out student loans, it’s easy to feel like the amount you borrow is just a number. You won’t be forced to deal with it for years, so that $50,000 total doesn’t actually feel like $50,000 dollars. For a teen used to making minimum wage at a coffee shop, that amount is hard to wrap your head around.
But make no mistake, that money is very real – and you will have to pay it back eventually. Acknowledging the reality of your situation can help inform the decisions you make about applying for grants and scholarships, working a side job and managing expenses throughout the year.
Talk to a friend or family member who graduated college with student debt and ask them about their experience. They may be able to shed some light on the reality of living with debt after graduation.
Where to Find Help
The financial aid office at your university can help you suss out where your loans are coming from, how much you’ve borrowed and how to contact your lenders. Once you know who your lenders are, you can reach out to them for more specific information.
You can find a list of the loans you’ve taken out by checking your credit report, which you can do via AnnualCreditReport.com. There are three credit bureaus that publish credit histories, so you’ll want to check all three if it’s your first time looking at your report.
Some lenders may fail to report student loans on your credit, so don’t rely on that exclusively. However, if your credit report shows student loans or other loans that don’t look familiar, contact that lender. It’s possible for lenders to report student loans to the wrong person if you have a similar name or social security number.
If you know you’ve taken out student loans and don’t see them on your credit report, that doesn’t absolve you of the debt. Mistakes made by the lender will still affect you, so be vigilant.
The views and opinions expressed in this content are those of the author and do not necessarily reflect the opinion or view of Intuit Inc, Mint or any affiliated organization. This blog post does not constitute, and should not be considered a substitute for legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.
Save more, spend smarter, and make your money go further
Previous Post
Should You Get A Part-Time Student Job?
Next Post
WTFinance: What Are All These Student Loan Terms?
Zina Kumok is a freelance writer specializing in personal finance. A former reporter, she has covered murder trials, the Final Four and everything in between. She has been featured in Lifehacker, DailyWorth and Time. Read about how she paid off $28,000 worth of student loans in three years at Conscious Coins. More from Zina Kumok