Adopting a rescue or shelter dog doesn’t just give a needy animal a home. It can provide a playmate for your kids, a jogging buddy for you and a loyal companion for everyone to cuddle with on the couch. But a new pet can also come with unexpected vet bills, which is why you might want to consider pet insurance.
Pet insurance policies can help pay for treatment if your furry friend gets sick or hurt. In some cases, they may also cover vaccinations and other routine care. Here’s how to decide whether pet insurance is right for your rescue dog.
Estimate the cost of vet care
It’s impossible to know which medical problems a given pet may have in the future. However, researching the breeds you’re interested in can help you get a sense of which health conditions are most likely to crop up, says Dr. Antonio DeMarco, chief medical officer at GoodVets, a chain of animal hospitals with locations across the U.S. Some of these conditions can be both serious and expensive to treat, he says.
For example, large-breed dogs like golden and Labrador retrievers are prone to hip dysplasia, a deformity of the hip joint. Some dogs may need surgery to treat it, costing thousands of dollars.
A local vet can advise you on potential health concerns and how much it might cost to manage them. They can also help you estimate the price of routine care.
Understand pet insurance
Pet insurance likely won’t reimburse every dollar you spend at the vet. For example, most plans won’t cover pre-existing conditions that your dog had before you bought the policy. So if you adopt a senior dog with diabetes, you’ll need to pay for the treatment yourself.
For the same reason, you can’t simply wait to get a policy until your vet diagnoses an injury or illness. DeMarco has had pet owners ask him if they can buy insurance after their dog tears an ACL. “[You] sure can, but this isn’t covered,” he tells them.
Most pet insurance plans pay to treat illnesses and injuries but won’t help with routine care unless you buy extra coverage. That coverage may be worth adding for certain dogs, says Maureen Sosa, director of pet support at the Humane Rescue Alliance in Washington, D.C. Smaller dogs are more prone to dental disease and benefit from regular cleanings, which wellness plans can help pay for.
When shopping for pet insurance, check for deductibles and copays. Say your plan will pay 80% of your expenses after you’ve met the $500 annual deductible. That means you’d have to spend $500 on your pet’s treatment in a given year before your plan would start reimbursing you.
Your policy may also have a maximum payout limit, such as $5,000 or $10,000 per year.
Get pet insurance quotes
The average cost of accident and illness coverage for a dog is about $640 per year, according to the North American Pet Health Insurance Association. However, you might pay more or less depending on where you live, the coverage options you choose and the breed and age of your dog.
You can get online quotes from most pet insurance providers. Check rates from at least three companies to make sure you’re getting the best price for the coverage you want.
Pet insurance isn’t worth the cost for every rescue dog. Policies may be prohibitively expensive for older dogs, especially if they already have chronic conditions that the policy won’t cover. In these cases, you may be better off skipping insurance and setting up an emergency fund for vet expenses.
Consider your peace of mind
One of the biggest benefits of pet insurance is avoiding heart-breaking financial decisions. Sosa has seen owners forced to surrender pets because they couldn’t afford to treat their medical conditions. “The economy is in a really bad place,” she says. “That’s trickling down and affecting what people are able to afford.”
Even worse, some owners may have to euthanize their dogs if the treatment for a serious condition is simply too expensive, DeMarco says. “As veterinarians, that is the worst-case scenario for us.”
You may go years without having to use your pet insurance. But in a crisis, having the policy can give you peace of mind, DeMarco says. You’ll know that “if those situations arise, you’re going to be able to handle them financially and not have to make decisions based on finances rather than what’s best for your animal.”
This article was written by NerdWallet and was originally published by The Associated Press.
If you’re worried that your loved ones would struggle to cover your end-of-life expenses, funeral insurance may be an option. Funeral insurance is a small life insurance policy that’s intended to pay for your funeral, cremation or burial, plus other outstanding expenses such as medical bills.
What is funeral insurance?
Funeral insurance policies are typically capped at low amounts, often between $5,000 and $25,000. The reason the payout — or death benefit — is small is because it’s meant to take care of a specific set of expenses.
Technically, your life insurance beneficiaries can spend the money however they choose. But it’s common to use the death benefit to pay for funeral-related expenses, including:
Funeral service, including viewing.
Burial or cremation.
Medical bills and other debt.
Probate costs.
Most insurers don’t require a medical exam for funeral insurance. Instead, approval is based on your answers to a health questionnaire. Some burial insurance policies are guaranteed issue policies that will cover any applicant, even if they have major health problems. However, these policies usually come with a two-year waiting period. That means if you die during the first two years that the policy is in force, your beneficiary will only receive a refund of your premiums plus interest instead of the full death benefit.
How much does funeral insurance cost?
As with any life insurance policy, your premiums will vary based on factors like your age, gender, health and tobacco use. For a 50-year-old, a $10,000 burial insurance policy with Lincoln Heritage may cost as little as $25 or $30 a month. But someone who’s 80 could pay monthly premiums as high as $150 to $190 for $10,000 of coverage.
Funeral insurance vs. preneed insurance
Both funeral insurance and preneed insurance are designed to cover final expenses. The key difference is that funeral insurance is a type of life insurance policy, while preneed insurance is a prepaid funeral plan.
You can buy funeral insurance through a life insurance company, while you would purchase a preneed plan directly from a funeral home. Unlike a funeral expense policy, a preneed plan doesn’t pay out to your loved ones when you die. Instead, the money goes to the funeral home — so you’re essentially prepaying for your funeral costs.
The terms of preneed plans vary by funeral home. Some services are guaranteed, which means that even if the costs go up after you purchase the plan, they’ll be covered by the funeral home. However, some services may not be guaranteed, meaning your family could have to pay extra if costs increase.
Zillow released the second edition of its new Zillow Negative Equity Report today, revealing some interesting statistics about age and underwater borrowers.
The company noted that the youngest underwater borrowers, those aged between 20-24, were the least likely to be delinquent on their mortgages.
Just 5.9% of underwater borrowers in this age bracket were 90 days or more behind on the mortgage, versus 9.2% of all other underwater homeowners.
Of course, Zillow didn’t have an explanation as to why younger homeowners are better at staying current.
If I had to take a stab at it, I would think it has to do partially with the fact that these younger homeowners have only been in their properties for a few years at best, so they just haven’t had the time to give up.
And maybe they’re just more optimistic than the older generations, who have watched much of their home equity get zapped in recent years. They’ve also got more time on their hands to ride things out.
They may also not be as savvy about strategic default, or in exploding option arms and other high-risk loan programs that would make payments unmanageable after a few years.
Or it could just be that young people are more responsible than we give them credit for…either way, they’ll pave the way for the future of the housing market, so it’s important to keep an eye on what they’re up to.
Younger Homeowners More Likely to be Underwater
Delinquency rates aside, younger homeowners are the most likely to be upside down on their mortgages.
Nearly half (48%) of all borrowers under the age of 40 were underwater in the second quarter, which is certainly a startling statistic.
Those suffering the most are aged between 30-34, most of which were probably first-time homebuyers who scooped up houses near the top of the housing bubble right before they eventually nosedived.
Sadly, many of these 30-something borrowers are trapped in their homes thanks to a lack of home equity, preventing other young buyers from finding suitable properties for themselves.
This explains the inventory issues seen at the moment, with very few viable options for those looking to buy in popular regions of the country.
As the homeowner ages, the negative equity rate drops pretty steadily because many of these older borrowers probably paid their mortgages down considerably over the past couple decades.
[Should I pay my mortgage down early?]
The older ones that got “burned” likely pulled cash out of their homes as prices marched higher and higher.
Negative Equity Keeps Dropping
The good news is negative equity levels continue to fall as home prices stabilize and even rise in some areas.
A total of 15.3 million homeowners were underwater in the second quarter, down from 15.7 million a quarter earlier.
That amounts of 30.9% of U.S. homeowners, down from 31.4%. In dollars, the total amount of negative equity fell $42 billion to $1.15 trillion.
So there’s definitely more work to be done, but at least it’s moving in the right direction.
Negative equity fell the most in the Phoenix metro, from 55.5% to 51.6%, thanks to a major reversal in home prices in the desert.
The hard-hit Miami-Ft. Lauderdale metro also saw a nice improvement, with negative equity dipping to 43.7% from 46.4%.
Las Vegas is still the hardest hit, with 68.5% of homeowners underwater, though it was a staggering 71% in the first quarter.
Every single metro tracked by Zillow saw their negative equity levels drop except for Philadelphia, where it increased from 25% to 25.4%.
This further supports the fact that the recovery won’t be the same across the nation.
Yes, the trend is improving overall, but you really need to focus on your own region if you want to know which way things are going.
For the record, Zillow’s report only looks at owner-occupied homes – investment properties probably exhibit even higher levels of negative equity thanks to the many speculators present before and during the housing bubble.
Whether you’re selling your home to begin a new adventure or refinancing your existing home, getting an appraisal with the value you want is an important hurdle to clear. You may feel that the appraisal process is out of your control, but there are many easy and inexpensive ways to get both yourself and your home ready.
We put together a checklist of our top tips below. But first, let’s quickly cover the basics of home appraisals.
What Is a Home Appraisal and Why Is It Important?
A home appraisal is an unbiased report on the value of your home performed by a trained and state-licensed individual. Appraisals are an essential part of the home financing process, ensuring the homebuyer, seller and mortgage lender each have an impartial, consistent and accurate assessment of the value of the property under consideration.
The lender is responsible for ensuring that your home provides adequate collateral for the mortgage. For most loans, the lender obtains a signed and completed appraisal report that accurately reflects the market value, condition and marketability of the property.
It’s the appraiser’s job to provide a factual, unbiased and detailed description of the property and the neighborhood. They must take into account all factors that influence a home’s value when developing the market value opinion in the appraisal report.
Home Appraisal Cost
While home appraisal costs can vary by state and property size, the fee can range between $300 and $1,200. Most fall somewhere around $600-$1,000, with costs based primarily on the geographical area of the home.
How Long Does a Home Appraisal Take?
From start to finish, the home appraisal process usually takes approximately 7-10 days to complete.
The required in-person visit by a home appraiser can take over an hour, depending on the size of your home. However, several other steps are involved in making an unbiased and professional assessment of your home’s value. Your appraiser will research trends, local county records and recently closed comparable homes in your area, known in the industry as “comps.”
Once your appraiser compiles and analyzes all the information and data, they will present a final report of your home’s value.
What Do Home Appraisers Look For?
A home appraiser uses several sources of information to determine a property’s value. As part of the assessment, the appraiser will visit the property in person and review recently completed sales of comparable homes. Common factors examined during home appraisals include:
Property size. In real estate appraisals, size significantly affects the final number. In general, the higher the square footage of a home, the higher its value. An appraiser will also look at the kitchen, number of bedrooms, bathrooms and closets.
Exterior condition. When assigning a value to your property, the appraiser will consider not only the exterior appearance of your home but also its condition. They will check the following:
The condition of the roof, foundation, siding, gutters, chimney and walls, looking for signs of leaks, mold and other safety hazards
Lot size, including front and backyard square footage
Pool, outdoor kitchen, deck, porch and other amenities
Interior condition. Again, this refers not only to the appearance of the interior but also to the working condition of standard household assets such as:
Plumbing
Electrical and HVAC systems
Doors and windows
Light fixtures
Any kitchen appliances to be included in the sale
Attic, basement and foundation. A finished basement or attic may impact a home’s value, but these areas must meet specific requirements to be considered part of the Gross Living Area (GLA). An appraiser will also evaluate your home’s foundation and its condition.
Home improvements and renovations. Tell your appraiser about any work or upgrades you have done to spruce up your home. This can include anything from the central air system you installed 10 years ago to the kitchen flooring and countertops you just renovated (along with the new oven and fridge to match, of course).
What Hurts a Home Appraisal?
If an appraisal is in your future, it’s essential to understand the factors that could negatively impact it, such as the following:
Low-value comps and decreasing neighborhood property values
Poorly maintained interior or exterior
Age of the home
Location, such as a flood zone or busy road
Signs of mold, insect infestation, leaks or other safety concerns
Issues with the home’s systems, such as plumbing, electric or HVAC
Lack of parking
Hazardous construction materials like lead paint or asbestos tile
Outdated or faulty plumbing, electrical and heating systems
Some issues are in your control and some may not be. Whether you choose to address the correctable concerns or not, being aware of crucial appraisal criteria can help you avoid the potential unwelcome surprise of a lower-than-expected home value.
Top 7 Tips Home Appraisal Checklist
How does one best prepare for a home appraisal? We put together a checklist of common (and not-so-common) tips to help you get a high valuation from your appraiser.
1. Do Your Own Appraisal
Imagine that you are the appraiser. Walk around your home’s interior and exterior and really scrutinize it as if you were going to complete the appraisal report yourself. Take note of any obvious damage or deferred maintenance that needs your attention. Leaks, broken systems and damaged surfaces should all go on your list of things to repair.
Thoroughly inspect safety equipment like smoke alarms, carbon monoxide alarms and home security systems. Are they all functioning, or do parts or entire systems need to be replaced? Make a plan to repair these issues and clean up any cosmetic issues that may have occurred as a result.
2. Investigate Comps
Check out recent home sales in your neighborhood. What has the price range been for homes with features and updates similar to yours? The values of these comparable homes should be similar to what your home will appraise for. This information can help you know where to focus your time, efforts and funds.
If you know a neighbor (or real estate agent) who recently sold a home in your area, contact them to find out if there were any appraisal issues or insights that they can share.
If you’re working with a real estate agent, you can request that they collect some comps for you and your appraiser to review. Particularly if your home has unique or uncommon features, your agent may need to get creative while staying within the guidelines for selecting comps.
A quick way to get a rough idea of how much your home is worth is to use a home value estimator calculator. Add some basic information to gauge your home’s current value and view recent home sales in your area.
3. Get Superficial
Clean your house from top to bottom and remove extra clutter. Once you’ve scrubbed and straightened up everything possible, consider making some easy, low-cost cosmetic updates that can have a big impact, like the following:
Paint or touch up existing paint
Hang updated window treatments
Replace worn faucets, doorknobs and cabinet hardware
If you’ve been planning to update your decor after you move, consider bringing in a few of the newer pieces to make the old house look fresh and modern. Downsizing or packing for a long-distance move? Ask your real estate agent if they have staging furnishings you can borrow or recommendations for a service you can use.
4. Make Your Outdoor Areas Truly Great
Now that your home’s interior looks fantastic, it’s time to pay attention to the exterior. Make sure that your landscaping is looking its best by doing the following:
Mow your lawn, trim your trees and bushes
Remove weeds and dead vegetation
Add color with inexpensive, seasonal flowers in the spring, summer or fall, and ensure that snow removal is neat and tidy in the winter
You’ll also want to:
Remove outdoor clutter, like yard tools and stray toys, from everywhere on the property
Consider staging any outdoor living spaces with new furniture or accessories
Power wash your home’s exterior, as well as your driveway and any deck or patio surfaces
Ensure your pool is well-maintained and in safe operating condition
Most of this can be accomplished in a weekend, and the increased curb appeal will be worth it.
Check out expert tips for outdoor home renovations — you may find just the right improvement to increase your value!
5. Be Sure To Share Your Upgrades
Tell your home appraiser about the improvements you’ve made to your home. Inform them of upgrades like the following that will positively impact your appraisal value:
New features that you have added, like a security system
Updated HVAC units
Exterior improvements like siding, gutters or a new roof
High-value room remodels like kitchens and bathrooms
An easy way to make sure that your appraiser remembers all of these improvements is to create and share a short, one-page list detailing each. You should have this list ready in advance and include any applicable permit information.
6. Know Your Neighborhood
Make your appraiser aware of any recent improvements in your overall neighborhood. It’s worth mentioning things like:
New or highly rated schools
Parks
Transportation enhancements
Shopping
Other beneficial amenities
These kinds of changes can add significant value to your home, and if your appraiser is not a local resident, they may not be aware of them. Appraisers are often familiar with the general area, but you probably know your specific neighborhood better than they do.
7. Stay Focused
While you are working your way through the tasks and updates listed above, it’s important to remember not to go overboard and take on too many projects. Invest your time, money and effort only on issues that clearly need attention. If you’re getting an appraisal for a home you’re selling, you most likely already have a buyer who liked your home enough in its current state to make an offer on it. Making unnecessary major changes could end up being a waste of your time and resources.
Your home’s selling price is affected by much more than just the appraisal! Find out how the time of year can increase your sale price.
Although it’s not possible to change your bungalow into a country estate overnight, taking the time to tackle a few strategic projects before your appraisal can help put you in a better position to get the outcome you want. If you’re ready to move or refinance the home you love living in, get a custom mortgage rate quote from Pennymac today. Our Loan Experts can answer your questions and help guide you through the mortgage loan process.
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Inside: Do you want to know the legit ways on how to make 200 dollars fast? This guide will show you how to start working on fast money ideas. With tips on side hustles, online trading, and more, you’ll be able to build up a healthy bank account in no time.
Do you want to know the different ways to make 200 dollars in your leisure time? I bet you do! We all would like extra money in our pockets.
In an era of digitization, earning an extra $200 in your spare time has become more accessible.
Various online platforms offer numerous possibilities to gain this amount swiftly without any major investments or specialized skills. Utilizing these platforms can not only help you reach your financial goal but also provide you with an enjoyable experience.
Let’s delve into the uncomplicated and quick ways to make 200 dollars fast.
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.
Best Ways to Make Money 200 Dollars Fast
Discover the best ways to earn 200 dollars quickly by enlisting and acquiring the necessary skills.
You don’t even need to start a business or learn new skills virtually if you need the following legit ways to make $200 fast.
Just to note, you will find many of these ideas to be similar to how to make 300 dollars fast.
1. Sell Things You No Longer Need
Want to declutter and make some quick cash, to the tune of 200 dollars?
Start selling your no-longer-needed items and hit your goal. This method perfectly fits for minimalists looking to clear out space, or parents whose kids frequently outgrow their clothes and toys.
For instance, selling gently used toys or clothes could net you $200 in no time. Who knew making money could be as easy as cleaning up?
Even better turn this into a money-making business by flipping items for a living.
2. Sell gift cards
Struggling to add cash to your wallet? Turn those neglected gift cards lounging in your drawers into quick money.
Convert idle (Gift Cards) money to tangible cash by listing and selling on sites like CardCash at a discounted rate.
Another option is to trade your gift cards (you won’t use them) into something you want (like Apple or Amazon). So, weigh your options wisely.
In fact, you can read my CardCash review on my personal experience trading in gift cards.
3. Take on freelance jobs
Let’s start harnessing our skills and take on freelancing jobs online. Freelancing offers a flexible and income-generating platform, perfect for anyone looking to make a quick buck.
It is an effective income hustle, proven by data-driven facts. Best yet, it’s not exclusive to professionals alone. As a beginner, freelance gigs can offer an excellent starting point.
To get started, build a solid profile on a freelance platform that best suits your skills. Offer your virtual skills by getting jobs done in freelancing and experience good compensation for your comfort zone through this job.
4. Get Paid to Travel by Housesitting
Immerse yourself in a world of four-legged friends, greenery, and cozy, well-furnished homes while your wallet gets a welcomed cash addition.
Housesitting is not just about watching homes; it includes pet sitting and dog walking. All you need to do is join such platforms at no cost, set your rates and hours, and voila, you’re earning money while sleeping.
Essentially make money in your leisure time while enjoying the companionship of adorable pets. Who knew earning extra money could indeed entail wagging tails and furry hugs by signing up with Trusted Housesitters?
5. Rent Out Your Spare Space
Do you have spare space gathering dust? Turn it into a $200 goldmine!
Rent your unused closet, driveway, or extra room and have a quick injection of cash. Websites like Neighbor and VRBO are ideal platforms where you can list and rent out these spaces.
Start by exploring the listings in your area, identify the market range, and list your space accordingly. The extra income is just a few clicks away.
Best suited for property owners with underutilized spaces, this idea can serve as a consistent source of income and isn’t just a one-time fix.
6. Participate in Focus Groups
Get ready to voice your opinion and earn 200 dollars instantly!
Focus groups can be your golden ticket to making a quick $200. From my personal experience, they are organized discussions run by companies eager to pay for consumer insights.
Follow these steps and you could be cashing in:
Start by signing up and participating in a focus group that typically involves finding a suitable event in your area.
Involve yourself with popular websites like Bestmark.
Once you start searching for focus groups, you are likely to be targeted with sponsored ads on Facebook that match up to your opportunities.
By participating in discussions, I have earned a range from $50 to over $200.
7. Babysitting is Great Money
Looking for a quick way to pad your wallet? Babysitting is the golden ticket.
This gig is ideal for teenagers, college students, or anyone with some free evenings or weekends who enjoys hanging out with kids and can tolerate the occasional tantrum.
Start marketing your talent by creating a profile on care portals like Sittercity. Having a certificate in CPR can increase your profile and give assurance to the parent looking for a babysitter.
Remember to start with your personal network. Friends, family, and neighbors are a great way to kickstart your babysitting journey. With a bit of effort, you could be earning in less than 24 hours.
8. Make Videos
Are you passionate about making your own video or editing someone’s video to earn an incredible 200-dollar quickly? Jumpstart your day by hitting each click on your computer and adding sound effects on various kinds of videos on any social media.
You can also monetize your own videos by becoming a YouTube vlogger content creator and signing up for the YouTube Partner Program.
With an incredible shift to a remote life, you can now instantly earn from making your own videos through ad sponsorship, brand affiliation, and paid subscription on any application.
9. Get a Side Hustle
Engage yourself in a side gig, a savvy way to rake in cash promptly. Side hustles harmonize best with go-getters seeking financial flexibility or pursuing dreams outside the 9-to-5 grind.
Kickstart your hustle journey with free webinars or training. These platforms provide insights into key strategies and the nitty-gritty of the field.
Get cracking now to transform your monetizing dreams into reality!
Very popular are these side hustles for men. Or especially these side hustles for college students!
10. Online trading with Stocks and Options
Trading stocks and options emerge as a financial adrenaline rush, providing a swift track to earning money. You can convert spare moments into potential cash gains with just a few clicks.
Expert tips include starting with research, practicing with a simulation trading account, and diversifying your portfolio to mitigate risks.
The journey to online trading success begins with educating yourself. You must participate in a free investing webinar to undergo training to grasp trading basics, understand market trends, and form your strategy.
Check out how I learned to trade stocks and options with this Trade and Travel review.
Trade & Travel
Learn to trade stocks with confidence.
Whether you want to:
Retire in peace without financial anxiety
Pay your bills without taking on a side hustle
Quit your 9-5 and do what you love
Or just make more than your current income….
Making $1,000 every.single.day is NOT a pie-in-the-sky goal.
It’s been done over and over again, and the 30,000 students that Teri has helped to be financially independent and fulfill their financial dreams are my witnesses…
11. Take Up a Part-Time Job
Eager to fill your pockets a bit more, huh? Part-time jobs are your key to fast cash without compromising your ‘me-time’.
A part-time job supplements your primary income, leaving your piggy bank a bit heavier. Where you get to choose the timing that fits around your primary commitments.
Honestly, some of the best part-time jobs are actually low-stress jobs after retirement. You don’t need to wait for extra money. So, go get that financial freedom and earn more than just the minimum.
12. Yard Sale
Hosting a yard sale is a nonchalant trick to amass cash swiftly. It’s your winning lottery ticket staring at you from your cluttered garage floor.
Kick-off by hosting it on Friday or Saturday, when shopping spirits fly high! If your neighborhood or city has a date set for a community garage sale or jackpot, you’ll be swimming in extra traffic.
Don’t hesitate to unleash your inner salesperson, but remember, no rule binds you to wait for an event to rake in cash.
Remember, yard sales are your fast lane to quick money, and with these tips, you’re ready to speed!
13. Make Money with Your Collectibles
Turn your old favorite collection of Pokemon cards or Beanie Babies into a treasure chest waiting to be unlocked.
This money-making method is perfect for those who have carefully amassed certain collectibles over time. Sign up for eBay now and enlist your collectibles, antiques, and merch items to earn from it.
Want to kickstart your financial journey with collectibles? Find the most popular items to flip as well as insights on what to look for.
14. Collect and sell items from the trash
It’s time to transform your everyday trash into a hefty stash of cash! Collecting recyclable trash can be turned into a worthwhile moneymaker.
Start by saving cans, bottles, or scrap metal that you’d usually throw away. Then, locate a local recycling center that’s willing to pay for these items – the prices may surprise you!
This method is great for anyone willing to invest a little time and energy, particularly those who are environmentally conscious and eager to declutter. Perfect job for those who are frugal green.
Think about it, that old toaster might just be your next treasure trove! You may even find some highly valuable items in the trash to flip!
15. Sell Used Clothing
Selling used clothing is a clever and straightforward way to turn spare time into real cash.
Remember, a vibrant description for your clothes will attract buyers, so play up any unique or high-quality aspects of your garments.
Fashion enthusiasts want to earn a quick buck on the side. Begin by taking a charming picture of your clothes and posting it to Facebook Marketplace and ThredUp.
16. Do Social Media Marketing
Welcome to the era of making money by simply being social media savvy. Transform your digital skills into quick cash through Social Media Marketing.
Explore the digital world that awaits with all of the social media platforms. You can create engaging content while responding to the readers.
Take your skills to the next level, consider enriching your knowledge via a free webinar or online training.
This is an easy job that pays more than $25 an hour.
17. Sell Printables on Etsy
Do you love making creative paintings and printable designs? Imagine, your beautifully designed chore chart or a fascinating word puzzle bringing joy to scores of customers.
You can dive into this free training to jumpstart your side hustle. This method is a sure-shot hit for you.
Find out which digital products to sell on Etsy.
18. Invest in Cryptocurrencies
Do you have extra money in savings in your account and don’t know where to invest it?
Since 2008, cryptocurrency has taken the world by storm. Known for its decentralizing nature and secured by cryptography, it’s no regular dough.
Turn the tides in your favor and download an investment app to make your $200 grow faster. Consider taking a free webinar or training for a crash course.
You see, investing in cryptocurrencies is not a heavy-duty task. With the right smarts and patience, you can ride the next crypto wave!
19. Get Paid to Click
Among the numerous ways to earn an extra $200, getting paid to click is a simple and fun method.
Websites provide users with the opportunity to earn money through ‘pay to click’ surveys or rewarding viewers for ad consumption. Additionally, apps such as Survey Junkie and Swagbucks allow you to earn money by taking surveys, participating in focus groups, or simply navigating the web.
Each user generally earns from a few cents to a dollar per click. With patience and consistent effort, you can gradually accumulate your earnings to reach your $200 target.
Here are the top legit survey platforms:
20. Check Out Cashback Apps
Earn a cashback every time you shop at your favorite retail store or online.
Start off by signing up for apps like Dosh, Fetch, Rakuten, and Ibotta which offer bonuses just for signing up.
Lastly, apps like Acorns or CoinOut provide cash back on everyday shopping, even rounding up your purchases to add a bit more to your savings.
21. Do Odd Jobs as a TaskRabbit
Wanna earn cash quickly? Sign up and do freelance labor with TaskRabbit.
This user-friendly job marketplace connects people in need of task assistance with capable individuals willing to complete the tasks for a fee. It offers a diverse array of tasks, from assembling furniture and helping with moves to painting, yard work, and minor home repairs.
Just by performing various tasks, such as events staffing, running errands, or crafting. With the average TaskRabbit making double the minimum wage, this might be the gig for you.
TaskRabbit
Find local jobs that fit your skills and schedule.
With TaskRabbit, you have the freedom and support to be your own boss.
Plus set your own rates!
Get Started
22. Earn Money with Your Knowledge
Using your personal set of skills is a major advantage in freelancing platforms such as Fiverr, Upwork, and Freelancer.com.
Be it graphic design, content creation, SEO mastery, or even web development, you can monetize these proficiencies directly from your home. Data shows a significant growth in the gig economy over the past decade, suggesting a flourishing potential for remote work and online income generation.
Remember, your vast knowledge pool is your strength here. So, focus on what you’re best at, and let the money flow in.
Indeed, by effectively marketing your skills, pulling in a sum over $200 within a few hours is achievable. Remember to value your work appropriately and not devalue your aptitude just to land a job.
23. Tutoring
Online tutoring provides plenty of diverse opportunities in various subjects beyond just English. You can choose to specialize in specific topics and decide to tutor students of different age groups – from young children to college students.
Platforms like VIPKID and Magic Ears allow qualified tutors to offer virtual classes, specifically in the English curriculum for kids aged 4-12 years.
Tutors are usually compensated with payments ranging from $7 – $9 per class or up to $25 or more per hour. Also, you can increase your rate once you gain experience and build a reputation as a tutor. With in-person tutoring, you can expect to earn $20 an hour or more.
24. Petsitting
Looking for a quick way to make $200 fast? If you’re an animal lover, offering pet-sitting services isn’t just enjoyable, but also quite profitable.
Simply sign up with platforms like Rover, you can possibly get paid two days after service completion and you can always set your own rates. Just by walking the dog from house sitting.
Fun fact: Dog sitters often earn up to $50 a day. This is flexible and enjoyable work that could definitely help you reach your $200 target quicker than you’d imagine!
Rover
Get paid to play with pets!
Rover makes it easy and promotes you to the nation’s largest network of pet owners.
Earn money doing something you love.
Become a Sitter
25. Collect Scrap Metals and Junk
One man’s trash is indeed another man’s treasure.
Thinking of ways to earn quick cash? Consider collecting scrap metals and junk. This simple but profitable task can be done by anyone, with no particular set of skills necessary. All you need are keen eyes, a truck, and, admittedly, a little bit of strength to do the following:
Identify Metals: Start by identifying the most valuable metals – brass, copper, and aluminum.
Collect: Gather your metals, either from your home or by browsing local dumps. Remember, one man’s trash can be another man’s treasure.
Sell: Locate a local scrapyard and sell your haul at a fair price.
Keep in mind that patience is key; you might start with just $100 a day, but with experience, this can increase to a lucrative $500 a day!
26. Cash Out Your Coins
Are you sitting on a pile of coins? Maybe it’s time to cash them out. Here’s how:
Gather all your change together. Check under the sofa cushions, in car cup holders, and even in the bottom of your bag.
Take your coins to a coin-counting machine. These can be found at many grocery and department stores as well as your local bank.
Deposit these coins in a savings bank.
Expert Tip: Many banks provide free coin-counting services to their customers. Save on the counting machine charges by using these instead.
27. Run A Dropshipping Business
Dropshipping is a retail fulfillment method where you sell products without ever handling the inventory. This side hustle could potentially make you a quick $200 if executed strategically. Ready to dive in?
To level up, consider enrolling in free webinars on sites like Skillshare or free dropshipping training programs like Oberlo 101. This method is most suitable for those game to learn the ins and outs of online retail business and are ready to deal with customer interactions.
Remember, selling high-demand items will turn a quicker profit!
28. Do Micro Tasks
Looking to make cash fast? Turn your spare time into cash by capitalizing on microtask websites and get paid for completing simple jobs!
This method is particularly effective for those with meticulous attention to detail and those who can afford to spend some time on basic tasks such as data entry, data verification, information sorting, and transcription.
Microtasking might not be a golden goose, but it sure can help you accrue $200 surprisingly fast. The beauty of this hustle is in its simplicity, making easy money with minimal to no investment.
29. Find Sign-Up Bonuses
Did you know that many banks and credit companies offer sign-up bonuses as a strategy for attracting new clients?
For instance, some banking promotions in the United States can offer bonuses of up to $300 in total value when you sign up for a new account or credit card. Also, there are several credit cards that provide bonuses ranging from $500 to $800 or more, simply for registering and spending a defined amount within a specific timeframe.
Some cards, such as Chase Sapphire Preferred, offer lucrative rewards like a $1,000 bonus after a spend of $4,000 in the first 3 months.
It’s definitely rewarding to explore these possibilities to supplement your income, but it’s crucial to maintain a good credit score and commit to paying off your balance monthly to avoid any interest charges.
30. Cash Advances
Cash advances offer a rapid solution, but it’s essential to use them wisely.
Basically, a Cash advance is an advance on your next paycheck, and yes, it’s a viable way to get your hands on some quick cash. Also, some budget apps like Chime offer this service automatically.
Keep in mind, though, it’s an advance and not additional income. So, plan your expenses wisely and make it count!
FAQ
If you’re on a quest to make $200 as fast as possible, we’ve got your back. From selling items you own to completing quick gigs online, there is a plethora of opportunities out there for everyone.
For example, suppose you’re handy at a skill – be it haircuts, car repairs, pet sitting, or painting. You can start by offering your services to people in your neighborhood.
Or, if you’re the digital savvy type, consider selling items you no longer need on online platforms such as Facebook Marketplace or Craigslist. You’d be surprised at how quickly you can make money from items collecting dust in your home.
Ultimately, make sure you choose a fast money-making plan that aligns with your skills, interests, and resources. Go forth and rake in that cash.
If you need to make $200 today, you have a range of options at your disposal.
You can try different online strategies, including participating in online surveys, offering your skills on freelance platforms, or even reselling items online. While many people will sell the idea of a blog to make money, that is not a way to make money today.
Remember, the key is to zone in on tasks that require minimal effort but offer swift returns; these could include grandma sitting, dog walking, or even participating in online offers and promotions.
To kick-start your financial venture, locate valuable items in your home that you no longer need. Your dusty old guitar or that once-loved designer handbag could do the trick. Sell these items on widely used platforms such as Craigslist or Facebook Marketplace for instant cash.
Also, in the digital age, skills are an asset. Offering your skills on platforms like Fiverrcan turn your talents into quick cash. Don’t underestimate the power of quick gigs!
Tapping into the world of free sign-up bonuses can also fill your wallet quickly. Or even participating in a paid focus group!
If you need to make $200 quickly, there are several tried and tested methods. You could start by driving for Uber or Lyft for the evening during a concert.
My preferred method is trading options in the stock market. While this one is a skill, I developed over time. It has proved to be a tried and true method for me to make $200 in a few hours.
Time to Get 200 Dollars Instantly
By reading this article, you have learned and discovered the most effective ways to earn $200 quickly.
In order to have quick success, here are tips to help you out:
Sign up for a complimentary training or webinar that focuses on effective and proven methods of earning money swiftly.
Learning from other’s experiences can certainly save you some trial and error.
Ensure these training modules offer you practical skills and insights rather than just theory. Real-world applications of these strategies are what will help you rake in some quick cash.
Remember, your motivation and dedication are as important as the information and tools you acquire.
If you are looking to make a little bit more, check out how to make 500 dollars fast. Or even how to make 2000 fast!
Know someone else that needs this, too? Then, please share!!
As anyone savvy in personal finance knows, it’s never too early or too late to start thinking about retirement. An individual retirement account, or IRA, is a retirement account that allows you to save money for your golden years in a tax-advantaged way.
There are several types of IRAs—Traditional, Roth, SEP, and SIMPLE—with varying rules and benefits. With the right account, you can grow your savings, manage your tax burden, and prepare for a comfortable retirement.
6 Best IRA Accounts
Check out our top 6 picks for 2023‘s best IRA accounts. Let’s examine each one so you can decide quickly and easily which is best for you.
Charles Schwab
Charles Schwab offers one of the best IRA accounts available thanks to its superior customer service. The company offers 24/7 customer support as well as extensive resources about retirement planning.
Charles Schwab recently eliminated its commissions on stocks, EFT, and options trades. Standard trades are $4.95. So, you can begin investing commission-free, and there’s no account minimum to get started.
The company also offers a robo-advisor called Schwab Intelligent Portfolios. The company will invest your money in up to 20 different asset classes at no annual charge.
This feature alone makes Charles Schwab one of the best options for new investors and anyone who is looking for a low-cost investing option.
Merrill Edge
Merrill Edge is one of the best brokerages for hands-on investors. The company is owned by Bank of America, so it’s a great option for anyone who is already a customer of the bank.
And this means Merrill Edge customers also have the option to receive in-person customer service. If you live near any of the bank’s locations, you can receive in-person assistance at the bank.
Merrill Edge offers unlimited $0 online stock and ETF trades with no trade or balance minimums. The company also offers mutual funds for $19.95 per purchase, though some mutual funds are available for free.
And the online broker doesn’t have a minimum deposit requirement to open an account. So, it’s an excellent option for new investors and anyone who is looking for in-person customer support.
Betterment
Betterment works to automate and simplify the investment process and offers traditional, SEP, rollover, and Roth IRAs. This robo-advisor makes managing your IRA extremely hands-off while helping you save money on excessive fees.
What’s the pricing structure like?
You have two levels of service to choose from. The first is the Digital level, which comes with a 0.25% annual fee and no minimum balance. So if your first year’s balance is $5,000 your fee would be $12.50.
Because Betterment is a robo-advisor, it offers automatic rebalancing so that you’re always hitting your target allocations, even with a shifting market.
Their portfolios are globally diversified, and you can adjust your risk tolerance based on your preferences. Plus, Betterment implements automatic tax-loss harvesting to boost your after-tax returns.
Need to talk to a certified financial planner?
No problem, you can chat online with a licensed expert with no limit on the number of questions you ask. If you want even more advice and support, you can upgrade to the Premium level. The annual fee jumps to 0.40%, and you’ll need at least $100,000 to start your retirement account.
But you get holistic advice on all of your financial questions, not just those related to your Betterment investments. So in addition to chatting about retirement, you can also talk to your advisor about joint financial goals with your spouse.
You can also discuss college savings plans for your children, and new and existing investments.
If you’re interested in a “set it and forget it” mentality for your IRA, Betterment certainly provides that option.
Ally Invest
Ally Invest is a great option if you’re just starting to build out your IRA rather than rolling over existing funds. It’s also directed to individuals who want to manage their own investments.
There’s no account minimum to get started, and you can choose from multiple types, including Roth, traditional, rollover, SIMPLE, and SEP IRAs.
Account fees are fairly limited as well. You don’t have to pay anything to set up the account, and there’s no minimum account opening, so it’s easy for anyone to start saving. Ally also doesn’t charge an annual fee or an inactivity fee.
There’s a $50 fee if you decide to terminate your IRA account with Ally Invest. If you transfer your funds, you’ll have to pay an additional $50 as a transfer fee — plus the first $50 termination fee. There’s also a $50 conversion fee if you want to change from a traditional IRA to a Roth IRA or the other way around.
If you’re an active trader even with your IRA, then you’ll appreciate Ally’s low trading fees.
Stocks and exchange-traded funds (ETFs) are $4.95 per trade, but you can get that lowered to $3.95 if you trade at least 30 times each quarter or have a balance of $100,000 or more. Options fees start at $4.95 each plus $0.65 per contract, and that price also lowers with heavy quarterly trading activity.
If you don’t want the burden of actively trading your IRA portfolio, then look elsewhere for an IRA account. But if you like handling your investments regularly, then Ally Invest could be a strong contender for your IRA account.
Wealthfront
Wealthfront is a robo-advisor that’s growing quickly. Your first $10,000 is managed for free. Thereafter, you’re charged an annual management fee of 0.25%, regardless of how much you have in your account.
You do have to open an IRA with at least $500. The more friends you refer to Wealthfront, the more you access free services, like getting an additional $5,000 managed for free. You can choose from a few different IRA types, including traditional, Roth, SEP, and rollovers.
Where does Wealthfront shine?
The answer is in retirement analytics. Wealthfront has a retirement planning tool called Path. It lets you integrate your various retirement accounts across financial institutions so you can see an accurate and comprehensive picture of your overall retirement plan.
Wealthfront economists use projects for things like inflation and Social Security to help plan for a realistic future.
Considering a major life event or financial change?
Wealthfront’s Path program lets you see potential impacts of these types of scenarios, so you’re not surprised at how your retirement savings are affected. Plus, like other online robo-advisors, all Wealthfront investments provide tax-loss harvesting and portfolio rebalancing.
You don’t have to worry about tracking individual stocks and funds. Instead, you get to invest passively while Wealthfront’s analytics keeps track of your portfolio. With IRA options and other tools at your disposal, Wealthfront is a solid choice for hands-off retirement investing.
E*TRADE
E*TRADE offers a ton of financial products, and their IRA offerings are straightforward with low fees.
There’s a great balance of getting access to in-depth research and resources, while also having the option to let E*TRADE take on your account management.
You can choose from a traditional IRA, Roth IRA, rollover IRA, or one-stop rollover IRA. That last one lets you transfer existing IRA funds in a diversified ETF that is managed by professionals.
This adaptive portfolio takes advantage of the automation processes. It requires a $5,000 minimum deposit to get started and comes with an annual advisory fee of 0.30%.
If you’re an avid ETF trader, you can trade for free on more than 100 funds; otherwise, it’s $6.95. Like Ally, that number drops if you make 30 or more quarterly trades, costing just $4.95 per trade at that point.
Stock trades also cost $6.95 each, with the same discount available as ETFs. Fees vary on mutual funds, but E*TRADE offers more than 4,400 no-transaction-fee mutual funds.
If you’re happy working with certain restrictions on the funds you choose, you can get away with a lot of fee-free trading via E*TRADE. Plus, you don’t have to worry about a minimum opening balance for most IRA accounts.
The company has been around for decades and consistently gets strong ratings from external sources, so they have a strong reputation in the industry, which can be comforting for beginning investors.
Understanding Different Types of IRAs
Now that we’ve explored the best IRA accounts of 2023, it’s crucial to understand the differences between the various types of IRAs. Each one comes with distinct advantages and rules tailored to unique financial circumstances and retirement goals.
Whether you’re just starting your retirement journey or you’re well on your way, familiarizing yourself with these options can help you make informed decisions about your future. Here, we delve into Traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs.
Traditional IRAs
Traditional IRAs provide a way to save for retirement with tax-deductible contributions. The contributions you make to a traditional IRA may lower your taxable income, meaning you’ll pay less income tax in the year you make the contribution.
You’ll pay taxes on your withdrawals in retirement. This type of IRA might be beneficial if you anticipate being in a lower tax bracket during retirement than you are now.
Roth IRAs
With Roth IRAs, you make contributions with after-tax dollars. This means you pay income taxes on contributions upfront, but qualified withdrawals in retirement are tax-free. Roth IRAs are attractive if you expect to be in the same or higher tax bracket in retirement.
Additionally, Roth IRAs don’t have required minimum distributions (RMDs) during the owner’s lifetime, a feature that can provide significant tax advantages.
SEP IRAs
SEP (Simplified Employee Pension) IRAs are for self-employed individuals and small-business owners. They work like a traditional IRA, allowing you to contribute pre-tax money, which grows tax-deferred until you withdraw it in retirement.
SIMPLE IRAs
SIMPLE (Savings Incentive Match Plan for Employees) IRAs are also for small businesses and self-employed individuals. They offer higher contribution limits than traditional and Roth IRAs but come with mandatory employer contributions.
Criteria for Selecting the Best IRA Accounts
As you embark on IRA investing, there are a few key factors you should consider when selecting the best IRA accounts.
Fees: Look for IRA providers with low or no annual account fees, low expense ratios on mutual funds or exchange-traded funds (ETFs), and no transaction fees. Even small fees can add up over time, eroding your investment returns.
Investment options: The best IRA accounts offer a broad array of investment options, including mutual funds, index funds, ETFs, bonds, and individual stocks. More options mean more opportunities to create a diversified portfolio.
Minimum balance requirement: Some providers require a minimum deposit to open an account, while others don’t have account minimums. This can be a barrier for new investors who want to start small.
Customer support: Excellent customer support can be invaluable, particularly if you’re new to investing. Look for providers that offer easy-to-use platforms, comprehensive educational resources, and responsive support.
Additional services: Some IRA providers also offer services like automated investing, financial planning, and wealth management, which can help you craft and stick to a retirement savings strategy.
Taxation: Understanding how different IRAs are taxed can help you optimize your retirement savings. For instance, traditional IRAs provide a tax deduction on contributions, but you’ll pay taxes upon withdrawal. Roth IRAs, on the other hand, don’t offer a tax deduction on contributions, but the growth and withdrawals are tax-free.
How to Open an IRA Account
Opening an IRA account is a fairly straightforward process, similar to opening a regular savings or brokerage account.
Choose an IRA provider: Decide whether you prefer an online bank, an investment firm, a robo advisor, or a traditional bank for your IRA. Each of these financial institutions offers unique benefits, so choose the one that fits your needs best.
Decide the type of IRA: Choose between a Roth IRA and a Traditional IRA based on your current income, future income predictions, and tax considerations. If you’re self-employed or a small business owner, you might consider a SEP or SIMPLE IRA.
Open an account: Visit your chosen provider’s website and select ‘open an account.’ You’ll need to provide some personal information, including your Social Security number, date of birth, mailing address, and employment information.
Fund your account: Decide how much you want to contribute to your account. Be mindful of the annual IRA contribution limits set by the IRS. You can fund your account through a transfer from a bank account or rollover from another retirement account.
Select your investments: Choose how your money is invested. Depending on the provider, you might be able to choose individual stocks and bonds, or you might select from a list of mutual funds or ETF trades. Some providers also offer target-date funds, which automatically adjust your asset allocation based on your age and retirement timeline.
Set up automatic contributions: If possible, set up automatic contributions to your account. Regular, consistent contributions can help your retirement savings grow over time.
Remember, it’s essential to regularly review your IRA to ensure it aligns with your retirement goals. Over time, you may need to adjust your contributions or rebalance your investment portfolio.
Common Mistakes to Avoid When Investing in an IRA
Procrastinating on opening an account: The sooner you open an IRA and start contributing, the more time your money has to grow. With the power of compounding, even small contributions can grow significantly over time.
Not contributing enough: Try to contribute the maximum amount to your IRA each year to take full advantage of the tax benefits and growth potential. If you can’t afford the max, aim to increase your contributions over time.
Investing in high-fee funds: Fees can eat into your retirement savings. Be sure to understand the expense ratios, management fees, and any transaction fees associated with your investments.
Not considering your tax situation: The tax benefits of Traditional and Roth IRAs are different, so consider your current and future tax situation when choosing an account. If you anticipate being in a higher tax bracket when you retire, a Roth IRA may be a better choice since withdrawals are tax-free.
Ignoring the income limits: Roth IRAs have income limits that can affect your ability to contribute. If you earn too much, you may be unable to contribute directly to a Roth IRA, though you might still be able to contribute to a Traditional IRA or execute a backdoor Roth IRA conversion.
Failing to update your beneficiary designations: Life changes, and so should your beneficiary designations. Make sure to review them regularly, especially after major life events like marriage, divorce, or the birth of a child.
Bottom Line
When it comes down to picking your IRA account, two of the most important factors are cost and your preferred management style. The two generally go hand in hand.
Do you want a DIY IRA that lets you do your own trading? You’ll need to compare online brokers and robo-advisors that offer free trades or lower-cost trade fees based on your trading activity.
Prefer a hands-off style? Think about how much money you’re likely to invest in the near term. Then, pick an IRA account that lets you go on autopilot while charging a flat annual fee.
For these types of IRA accounts, you’ll definitely want to dig deeper into how the financial advisors’ portfolios are chosen and whether their investment styles agree with your own.
Having any type of IRA can help you prepare for retirement. You can always transfer or roll over your funds into another IRA. However, choosing the best account in the first place can help prevent unnecessary fees.
And once you’re ready to retire, you’ll have a healthy nest egg helping you to finance your daily expenses.
Frequently Asked Questions
What is the maximum contribution limit for IRAs in 2023?
The maximum contribution limit for IRAs in 2023 stands at $6,500 for individuals who are under 50 years of age, and it’s $7,500 for those who are 50 or older. This represents a $500 increase from the 2022 limits for all age groups. It’s important to remember that these contribution limits apply collectively to your contributions to both traditional and Roth IRAs.
Can I have both a traditional IRA and a Roth IRA?
Yes, you can have both a traditional IRA and a Roth IRA. However, the total amount you can contribute to both accounts combined cannot exceed the annual contribution limit.
What is a backdoor Roth IRA?
A backdoor Roth IRA is a strategy for people whose income exceeds the Roth IRA income limits to still contribute to a Roth IRA. It involves contributing to a traditional IRA and then converting that contribution to a Roth IRA. There may be tax implications with this strategy, so it’s recommended to consult a certified financial planner or tax advisor.
Is the money I contribute to an IRA protected from loss?
No, the money you contribute to an IRA is not protected from loss. The value of your IRA is subject to market fluctuations and the performance of the investments within the account. It’s important to diversify your investments and align them with your risk tolerance and retirement goals.
Can I withdraw money from my IRA before retirement age?
Yes, you can withdraw money from your IRA before reaching retirement age. However, early withdrawals are subject to income tax and potentially a 10% early withdrawal penalty. There are some exceptions to the penalty, such as using the funds for qualified education expenses or a first-time home purchase. Be sure to understand the rules and potential tax implications before making an early withdrawal.
Are there any penalties for not taking distributions from my IRA?
Yes, there are penalties for not taking required minimum distributions (RMDs) from your traditional IRA. The penalty is 50% of the amount you should have withdrawn but didn’t. Roth IRAs, on the other hand, do not require minimum distributions during the owner’s lifetime.
From 2022 to 2023, the size of the average personal loan taken out in the previous 12 months by those who got one from a financial institution rose 25%, from $5,046 to $6,299, according to a new NerdWallet survey. The increase was driven by a jump in average loan size among millennials, ages 27-42, (up 78%, from $3,305 to $5,891) and Gen Xers, ages 43-58, (up 45%, from $5,276 to $7,668).
Younger generations were more likely to have borrowed using a personal loan, with millennials topping the list at almost 1 in 2 (48%) taking out a loan in the previous 12 months, followed by Gen Zers, ages 18-26, (39%), Gen Xers (38%) and baby boomers, ages 59-77, (13%).
The 2023 survey, conducted online by The Harris Poll over the period Sept. 7-11, 2023, among over 2,000 U.S. adults ages 18 and older, also found divisions in how generational cohorts view borrowing for nonessentials as well as how they perceive the role of personal loans in their financial plans.
Key takeaways
Many borrowers take out a personal loan just to make ends meet. A third (33%) of recent borrowers (i.e., those who took out a personal loan in the past 12 months) say they took out a loan to cover basic expenses, like food and utilities.
Younger Americans have a more favorable view of “buy now, pay later” (BNPL) loans. More than half of both Gen Zers (56%) and millennials (59%) agree that BNPL loans are, in general, a smart way to make purchases. Agreement drops to 40% of Gen Xers and 24% of boomers.
Americans are divided on borrowing for nonessential purchases. Two-thirds (67%) of Americans say borrowing for nonessentials (things other than food, shelter, etc.) is irresponsible. Revealing an age gap, just 55% of Gen Zers agree, though 74% of boomers do.
Personal loans used for survival — and splurging
Borrowers took out personal loans for a variety of reasons, but covering basic expenses topped the list. Around 1 in 3 Americans (33%) who took a loan out in the last 12 months say they did so in part to cover things like utilities, food and clothing.
Vehicle repairs (27%), home repairs or improvements (25%) and debt consolidation (20%) rounded out the top four reasons for taking out a loan. Debt consolidation was the second most popular option for older cohorts, with Gen Xers (27%) and boomers (21%) both ranking it just behind everyday expenses.
On the other end of the spectrum, younger borrowers were more likely to say they’ve borrowed for nonessential purchases like vacations and items they wanted but couldn’t afford. They are also more likely to borrow to pay for nonmedical emergencies and for purchases related to their work.
Rounding things out, about 1 in 5 borrowers (18%) say they took out their loan to pay for medical costs not covered by their insurance. Around 1 in 6 (16%) took out the loan to pay for health and wellness services (like gym memberships or therapy) and 15% took out the loan to finance the purchase of a vehicle.
Making smart borrowing decisions
Choosing the right way to borrow can make a huge impact on how much you ultimately pay and whether you’re able to keep up with your debt. Companies that offer buy now, pay later for smaller purchases often don’t charge interest, which can help keep payments lower than if using a credit card. Consolidating high-interest credit cards into a lower-rate personal loan can save hundreds of dollars over the life of the loan.
“The key with a debt consolidation loan is to get a lower rate than you’re currently paying,” says NerdWallet personal loans writer Annie Millerbernd. “By doing that, you’re reducing the total interest cost on your debt.”
You can also make sure your budget accounts for repaying any borrowing you’ve already done. That can help you balance your monthly spending and make more informed choices when you’re shopping for those nonessentials.
Americans’ borrowing beliefs vary by age group
We found generational divides to be fairly common in attitudes toward borrowing. Generally, younger generations are more open to the use of loans for nonessential purchases and see loans as an important part of their financial plans.
Asked if they agree with the statement, “Personal loans are an important part of my financial planning,” 45% of Gen Zers and 51% of millennials agree. Around 3 in 10 Gen Xers (29%) and just about 1 in 7 boomers (14%) agree.
There was a similar divide surrounding buy now, pay later loans. Just over half of Gen Zers (56%) and a similar portion (59%) of millennials say BNPL loans are, in general, a smart way to make purchases. Agreement falls to 2 in 5 Gen Xers (40%) and just 24% of boomers.
When we asked Americans how they feel about borrowing for nonessentials, two-thirds (67%) say borrowing for nonessentials is irresponsible. That’s a sentiment most common among boomers, with around three-quarters (74%) agreeing. Boomers were also the least likely (1%) to say they took out a loan to make a purchase they wanted but couldn’t afford (Gen Z, 23%; millennials, 25%; and Gen X, 8%).
That division in attitude was mirrored when we asked specifically about using loans to pay for vacations or health and wellness services. Around 2 in 5 Gen Zers (38%) and millennials (44%) agree that loans are a good way to pay for vacations. A quarter (27%) of Gen Xers felt the same way, along with just 16% of boomers.
Paying for health and wellness services (like gyms and spirituality classes) with a loan seems worth it to around 3 in 5 Gen Zers (60%) and millennials (58%). That falls to around 2 in 5 Gen Xers (38%) and just 29% of boomers.
How to be a responsible borrower
Responsibility and familiarity with financial products can affect what options are the right fit for a borrower. A loan presented to a 24-year-old with a part-time job and little borrowing experience may be a poor fit, but that same offer may be just right for a 22-year-old working full time.
When considering a loan, a good first step is to assess your existing budget and whether there’s room for monthly loan payments. It can also pay to check your credit and do what you can to elevate your score. Borrowers with strong credit receive the lowest rates on personal loans.
Compare multiple options for borrowing, whether it’s a personal loan from an online lender or a shorter-term buy now, pay later loan.
Finally, it’s important to understand how much you’ll ultimately be repaying and over what period that payment will need to be made. By comparing types of loans and their costs, borrowers can be sure they’re selecting the best possible loan for their financial situations.
“Research is your best friend when you’re about to borrow money,” Millerbernd says. “Ask yourself whether you’ll have enough money when the payment comes due to make it on time and whether you can get a more affordable loan elsewhere.”
Loans spur a mix of emotions, from high to low
Borrowing comes with a range of emotions, from the elation of getting a mortgage to buy a first home to the fear of paying off a large hospital bill on credit.
About 2 in 5 borrowers (41%) say they’re planning to repay their loan earlier than they’re required to. Conversely, 14% of borrowers say they’re not sure how they’ll be able to repay their loans. That’s a worry more common with Gen Z borrowers. Close to a quarter (23%) say they’re not sure how they’ll be able to pay back their loan.
Around 1 in 4 borrowers (28%) say taking out their loan was a last resort. That’s a sentiment common across generations (27% of Gen Zers, 26% of millennials and 29% of Gen Xers).
Shame showed up more for younger borrowers. Around 1 in 4 Gen Z borrowers (26%) say they felt ashamed to have to take out their loan, compared to 19% of millennials and 12% of Gen X borrowers.
Younger consumers were also more likely to say they felt their lender charged them a higher interest rate for their loan because they were desperate borrowers. About 1 in 5 Gen Z borrowers (21%) and millennial borrowers (22%) expressed that feeling, while just 1 in 10 Gen X borrowers (9%) say the same thing.
Around 1 in 4 borrowers (23%) say their loan allowed them to buy something that made them happy, which they wouldn’t have been able to purchase without a loan. Younger generations were more likely to agree with that sentiment (Gen Z, 28%; and millennials, 27%).
Where to find help
Financial advisors (55%) topped the list of sources when we asked who Americans would trust to give them advice on personal loans. Friends and family came next (46%), and Gen Z Americans put it at the top of their list with 3 in 5 (60%) saying they trusted those in that group.
About 2 in 5 Americans (39%) say bank representatives were a trustworthy source, though just about a quarter (26%) trusted bank websites and personal finance websites/apps (25%). Business partners (12%), media personalities who hand out financial advice (8%) and coworkers (8%) filled in most of the back half.
The very bottom of the trust barrel belongs to social media influencers (7%), though there’s a generational divide. Gen Zers (17%) and millennials (14%) were more likely than either Gen Xers (3%) or boomers (1%) to trust such influencers.
Finding trusted help
Personal loans are just that — personal. Depending on your comfort with borrowing and the amount you need, there are many different options available to you. Just because you may have taken out your last loan from your primary bank doesn’t mean it’ll be the best spot for your next loan.
Consumers with low credit scores may need to do additional digging to find reputable lending sources and avoid predatory lending that takes advantage of those in tight spots.
“Many lenders let you pre-qualify to check your rate with no hard credit check, which is a huge advantage for borrowers, because if you don’t like one lender’s offer, there are plenty more to try out before you apply,” Millerbernd says.
Methodology
This survey was conducted online within the United States by The Harris Poll on behalf of NerdWallet from Sept. 7-11, 2023, among 2,049 U.S. adults ages 18 and older, among whom 588 have taken out a personal loan in the past 12 months. The sampling precision of Harris online polls is measured using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.7 percentage points using a 95% confidence level. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].
DUBLIN–(BUSINESS WIRE)–The “United States Home Loan Market Competition Forecast & Opportunities, 2028” report has been added to ResearchAndMarkets.com’s offering.
The United States home loan market is expected to experience significant growth to 2028
The United States home loan market is undergoing a transformation, driven by several key factors that are reshaping the lending landscape. These factors include a growing pool of potential homebuyers, the automation of loan processes, and the pervasive trend of digitalization.
Home loans, typically extended by financial institutions, serve as the financial backbone for individuals aspiring to acquire residential properties. These properties can range from completed, move-in-ready homes to those still in construction phases. Banks and non-banking financial companies (NBFCs) both offer home loans, often determining interest rates based on the borrower’s creditworthiness. These loans commonly come with lengthy repayment periods of up to 30 years, structured through equated monthly installments (EMIs).
In recent years, the demand for mortgages in the United States has experienced a notable upswing, primarily catalyzed by heightened home purchasing activities during the COVID-19 pandemic. Consequently, this surge has generated substantial demand within the purchase market, attracting banks, nonbank lenders, and investors operating in the mortgage sector.
Furthermore, despite the economic repercussions of the pandemic, the desire for homeownership in the United States remains unwavering. The broader economic expansion and the growth in the number of households have contributed to the increasing rate of homeownership.
Notably, 2020 witnessed a 2.6% annual uptick in homeownership, welcoming over 2.1 million new homeowners into the fold. Geographically, the Midwest and South regions of the United States exhibit higher homeownership rates compared to the Northeast and West. With this surge in homeownership, a concurrent rise in the demand for home loans is anticipated.
Automation has emerged as a pivotal force in streamlining the home loan process, substantially elevating the overall customer experience. The mortgage industry has eagerly embraced technology to expedite and simplify mortgage applications, thereby widening access to home financing and home-buying services.
A cornerstone of this technological revolution is digitalization, with the U.S. digital payments sector expanding at a commendable rate of 23%. These technological strides are designed to expedite mortgage applications, curtail expenses, and enhance the overall client journey. Consequently, the escalating wave of digitalization is poised to further propel the United States home loan market.
The ascendancy of nonbank lenders has introduced a seismic shift in the market landscape. Nonbank lenders have emerged as a credible alternative, especially for borrowers seeking refinancing options. Over the past decade, nonbank mortgage lenders have not only gained market share but have also eclipsed traditional banks in prominence.
In 2020, seven out of the top ten mortgage lenders in the United States hailed from the nonbank sector. These lenders have strategically invested in diverse technologies to fortify their operations, spanning from platform modernization to automated compliance solutions. Consequently, the continued ascent of nonbank lenders is set to stoke the growth engine of the home loan market.
In summation, the United States home loan market stands at the cusp of substantial growth, underpinned by a confluence of factors, including surging demand, automation enhancements, and the burgeoning influence of nonbank lenders.
Market Dynamics
Market Trends & Developments
Increasing number of fintech companies
Rising focus towards loan sector by Bank and NBFCs
Increasing construction activities
Rapid urbanization
Attractive marketing strategies
Drivers
Increasing home ownership
Automation in loan process
Growth of nonbank lenders
Challenges
Security concerns
Surging competition
Competitive Landscape
Bank of America Corporation
JPMorgan Chase & Co.
Citigroup, Inc.
Wells Fargo & Co.
U.S. Bancorp
PNC Financial Services Group, Inc.
American Express Company
Ally Financial Inc.
Truist Financial Corporation
Goldman Sachs & Co. LLC.
Voice of Customer Analysis
Sample Size Determination
Respondent Demographics
By Gender
By Age
By Occupation
Brand Awareness
Factors Influencing Loan Availing Decision
Sources of Information
Challenges Faced
Impact of COVID-19 on United States Home Loan Market
Impact Assessment Model
Key Segments Impacted
Key Regions Impacted
Report Scope
United States Home Loan Market, by Type:
Home Purchase
Refinance
Home Improvement
Construction
Others
United States Home Loan Market, by End User:
Employed Individuals
Professionals
Students
Entrepreneurs
Others
United States Home Loan Market, by Tenure Period:
Less than 5 years
6-10 years
11-24 years
25-30 years
United States Home Loan Market, by Region:
South
Midwest
Northeast
West
For more information about this report visit https://www.researchandmarkets.com/r/culceq
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Often referred to as the heartland of America, Kansas presents a rich collection of experiences, landscapes and communities. As the Sunflower State unfolds across the vast plains, a series of stellar towns and cities are revealed, each boasting its own unique charm and allure.
From bustling urban centers to serene suburban havens, choosing the best places to live in Kansas can be both exciting and daunting. This article ventures into the distinctive nooks and crannies of Kansas to spotlight the crème de la crème of living destinations in this diverse state.
Population: 197,106
Average age: 38.5
Median household income: $92,769
Average commute time: 20.4 minutes
Walk score: 35
One-bedroom average rent: $1,102
Two-bedroom average rent: $1,330
When it comes to finding the best places to live in Kansas, Overland Park often tops the list, and it’s easy to see why. This Kansas City suburb boasts a harmonious blend of modern amenities and scenic beauty, making it a hotspot for families and professionals alike. Its well-planned streets are lined with top-tier schools, meticulously maintained parks and trendy shopping areas. Plus, with its strong sense of community, low crime rate and flourishing job market, residents here get to enjoy a quality of life that’s hard to find elsewhere.
But Overland Park is not just about statistics and accolades. It’s where the aroma of freshly brewed coffee wafts from Homer’s Coffee House, kids pedal their bikes under the shade of mature trees and on weekends families flock to the Overland Park Farmers’ Market for the freshest produce. It’s a place where life unfolds at a manageable pace, and that’s just the way locals like it.
Population: 95,256
Average age: 28.2
Median household income: $56,536
Average commute time: 20.4 minutes
Walk score: 41
One-bedroom average rent: $832
Two-bedroom average rent: $980
Lawrence is one of those standout spots that consistently ranks among the best places to live in Kansas. Home to the prestigious University of Kansas and Haskell Indian Nations University, this town doesn’t just thrive on academic prowess; it’s a haven for art lovers, foodies and outdoorsy types. The historic Massachusetts Street, often referred to as “Mass Street”, is a bustling boulevard peppered with quirky boutiques, artisanal eateries and cozy bookshops, making it a popular hangout spot for students and families alike.
But what truly sets Lawrence apart is its strong sense of community. Streets echo with the sounds of cheering (“Let’s go, Jayhawks!”) during basketball season, and local parks are abuzz with picnics next to the Kansas River. Its eco-friendly initiatives, combined with a dedication to preserving local history, mean that while the town looks toward the future, it always keeps one foot in its rich past.
Population: 33,743
Average age: 48.5
Median household income: $156,538
Average commute time: 21.9 minutes
Walk score: 22
One-bedroom average rent: $1,864
Two-bedroom average rent: $2,253
Those fortunate enough to call Leawood home revel in the town’s commitment to maintaining an environment that’s equal parts luxury and family-friendly. Excellent schools, safe neighborhoods and a responsive local government ensure that residents enjoy a top-notch quality of life year-round.
Leawood’s charm lies in the details: the well-attended community events, the impeccably manicured lawns and the artisanal bakeries where every pastry tells a story. The town center is a hub of activity, where locals can be seen sipping wine or grabbing gourmet bites from Paros Estiatorio, all while forming lifetime connections.
Population: 54,763
Average age: 24.6
Median household income: $50,957
Average commute time: 17.4 minutes
Walk score: 39
One-bedroom average rent: $855
Two-bedroom average rent: $932
Manhattan stands out with a dynamic blend of youthful energy and timeless appeal. Affectionately known as “The Little Apple,” this town is home to Kansas State University, a powerhouse of learning and innovation. With students from all corners of the globe, the university injects a college-town flair into the heartland, making Manhattan an unexpected melting pot of ideas and traditions.
But there’s more to Manhattan than just academia. The city pulses with life, from the inviting restaurants of Aggieville to the picturesque trails of Tuttle Creek State Park. Families appreciate the top-tier schools and low crime rates, while adventurers relish the outdoor activities available right at their doorstep.
Population: 58,388
Average age: 38.2
Median household income: $90,487
Average commute time: 20.1 minutes
Walk score: 33
One-bedroom average rent: $1,678
Two-bedroom average rent: $1,970
When scouting for the best places to live in Kansas, Lenexa often emerges as a top contender. This lively suburb is known as a community where innovation meets recreation. Lenexa is renowned for its annual Great Lenexa BBQ Battle, where smoky aromas fill the air and talented grill masters showcase their culinary prowess. Yet, beyond its flavorful festivities, the city offers a ton of experiences that cater to residents of all ages.
Families in Lenexa enjoy the peace of mind that comes with top-rated schools and safe neighborhoods. Fitness enthusiasts and nature lovers alike gravitate towards the extensive trail system, while the bustling public market draws in those with a penchant for fresh produce and handmade goods.
Population: 395,699
Average age: 35.3
Median household income: $56,374
Average commute time: 18.7 minutes
Walk score: 35
One-bedroom average rent: $842
Two-bedroom average rent: $997
As the largest city in the state, Wichita firmly cements its place among the best places to live in Kansas. With its unique blend of urban sophistication and old-school charm, this city provides everything from cutting-edge theaters to historical museums, showcasing the city’s unique past.
But Wichita’s allure isn’t solely based on its landmarks or history. It’s a city of progress, where a thriving economy offers ample job opportunities in a range of industries. Residents appreciate the affordable cost of living, complemented by a wide selection of housing options to suit every preference. Families flock to local parks like the gorgeous Sedgwick County Park for weekend picnics. Meanwhile, foodies revel in the eclectic dining scene and shoppers find solace in local boutiques and sprawling malls. To put it simply, it’s a place where everyone can find and enjoy their niche.
Population: 143,014
Average age: 35.2
Median household income: $96,548
Average commute time: 21.9 minutes
Walk score: 30
One-bedroom average rent: $1,025
Two-bedroom average rent: $1,250
Olathe seamlessly combines the conveniences of city living with the allure of suburban life. It’s no wonder that families, young professionals and retirees are drawn to Olathe’s well-paved streets, dotted with both historical landmarks and contemporary marvels. The city’s commitment to excellence is evident in its quality schools, innovative small businesses and pristine parks, most notably Prairie Center Park.
Olathe doesn’t just rest on its laurels as a Kansas City suburb; it continuously strives to enhance the lives of its residents. The local farmers market is a weekly spectacle, offering the freshest of produce and artisanal goods, ensuring families have access to the best. Recreation takes center stage, with countless trails, lakes and sports facilities catering to fitness freaks and leisure junkies alike.
Population: 20,795
Average age: 31.6
Median household income: $57,053
Average commute time: 12.1 minutes
Walk score: 39
One-bedroom average rent: $667
Two-bedroom average rent: $755
Hays undoubtedly stands out as one of the best places to live in Kansas. Known as the gateway to the High Plains, Hays boasts a legacy rooted in the Old West, with landmarks like the Sternberg Museum of Natural History offering glimpses into a time long past. With a growing arts scene, innovative educational institutions and a strong economy driven by local businesses and global enterprises, Hays has a bright future ahead of it and longtime locals know this to be true.
Life in Hays is an appealing mix of relaxation and excitement. The local restaurants serve up delicious dishes that tell stories of the varied influences that have shaped the town, while numerous festivals and events throughout the year always ensure there’s something to look forward to.
Population: 39,712
Average age: 39.5
Median household income: $52,277
Average commute time: 15.9 minutes
Walk score: 35
One-bedroom average rent: $619
Two-bedroom average rent: $849
As one of the top spots to live in Kansas, Hutchinson has a unique blend of cosmic exploration and earthly delights. The acclaimed Cosmosphere Museum is a space enthusiast’s dream, housing the largest collection of Russian space artifacts outside of Moscow.
Back on land, Hutchinson doesn’t disappoint. The downtown area buzzes with activity, from boutique shopping experiences to cafes brewing the perfect cup of joe. The city’s commitment to the environment is evident in its lush parks and dedicated biking paths, providing ample opportunities for outdoor relaxation and neighborly connections.
Population: 125,963
Average age: 38.1
Median household income: $50,870
Average commute time: 20.5 minutes
Walk score: 37
One-bedroom average rent: $831
Two-bedroom average rent: $910
A city with a storied past, Topeka played a pivotal role in the nation’s civil rights journey, and its streets and art galleries bear witness to milestones that shaped America. Today, the city is a hub of governmental affairs, where decisions made within the elegant walls of the State Capitol reverberate far and wide.
Yet, Topeka is more than just its political pulse. The city is alive with parks, eateries tantalizing taste buds with local flavors and events fostering a close-knit community bond. With a thriving arts scene, exemplary schools and a strong commitment to economic growth, Topeka is not just a place to live, it’s a place to build the life you want.
It’s about time you call Kansas home
Kansas is more than just sweeping plains and golden sunsets; it’s a state where every city and town holds a unique story, waiting to be discovered. While each has its merits, certain towns stand out, presenting an unmatched blend of community, opportunity and quality of life.
As we’ve journeyed through the best places to live in Kansas, it’s evident that the state offers a haven for everyone, whether you’re seeking urban excitement or suburban tranquility. In the vast expanse of Kansas, the perfect apartment awaits every discerning hunter. You just have to know which town to look in to find it.
Editor’s Note: Due to major changes coming to the FAFSA, the form for the 2024-2025 academic year is delayed until December 2023. This article reflects the most recent information, but final details will not be available until the new FAFSA form is released.
Students who are enrolled at least half-time at an eligible school, are a U.S. citizen or eligible non-citizen, and meet other requirements can receive financial aid through the Free Application for Federal Student Aid (FAFSA®).
According to Education Data Initiative, the average cost for undergraduate students attending a four-year private nonprofit institution is $38,768 in tuition and fees per year. For students attending in-state public four year institutions, the average is $9,678 in tuition alone. Living on campus bumps these numbers up to $55,840 and $26,027 per year, respectively.
If you can’t afford to pay for this cost out-of pocket, understanding the FAFSA requirements can help you possibly fund this worthwhile expense.
What Is FAFSA?
The FAFSA is the official application form to request financial aid for higher education from the U.S. government. It determines whether undergraduate and graduate students are eligible to receive federal grants, work-study, and federal student loans. Federal aid can only be used toward qualifying college expenses.
It’s also often used by states and schools to see if you’re eligible for its student aid programs. Some private entities might also use it to determine your eligibility for their own financial aid programs.
Recommended: What Costs Does a Student Loan Cover?
How FAFSA Works
Students must complete the FAFSA before each college year. Applications must be received by the June 30 deadline. However, you can begin submitting your FAFSA for the following school year starting on October 1 (for the 2024-25 FAFSA, the FAFSA will be available in December 2023), and states and colleges often have earlier deadlines for state- and school-sponsored aid.
Some federal aid is granted on a first-come, first-served basis. Many of the aid programs are based on need, though some — like Direct Unsubsidized Student Loans and Direct PLUS Loans — are not.
To start, you’ll have to create a Federal Student Aid (FSA) ID online. If you’re a dependent student, one of your parents also needs to create their own FSA ID. While filling out the FAFSA, you may need to reference or submit supporting documentation, such as your Social Security number, bank account statements and tax return details, and possibly a parent’s financial paperwork, too.
After submitting the FAFSA, you’ll receive a Student Aid Report (SAR), which is an overview of the information you included on your FAFSA. Once your FAFSA is processed, you’ll receive a financial aid offer from your school. It will outline the types of federal student aid you’re eligible for, the amounts, and instructions on how to accept the award offer.
After you’ve selected the financial aid options you want to accept, the funds will be sent directly to your school. Then, your school will apply the funds to your unpaid account balance.
The FAFSA may also be used to apply for financial aid for summer classes.
Recommended: 2024-2025 FAFSA Changes, Explained
FAFSA Requirements
FAFSA qualifications include academic and financial criteria. Although some federal aid programs, like the federal Pell Grant, require you to demonstrate financial need, you might still qualify for other federal aid options if you meet the remaining FAFSA eligibility requirements.
Education Requirements
The level of education you’ve completed must meet the minimum requirements to qualify for a college or career school program. This includes a high school diploma or General Education Development certificate from a state-approved school or setting.
Citizenship or Residency and Social Security Number
Another of the FAFSA eligibility requirements is that students must be a U.S. citizen or U.S. National with an active Social Security number.
Eligible non-citizen students might still be eligible for federal aid if they have:
• A permanent resident Green Card (Form 1-551, I-151, or I-551C)
• An arrival-departure record (I-94)
• A T-VISA
• Battered Immigrant Status
Be Enrolled or Accepted
Students must also be enrolled as a regular student at a degree- or certificate-granting school. To meet FAFSA qualifications for a Direct student loan, you must be enrolled at least half-time.
Maintain Satisfactory Academic Performance
Returning students who are applying for federal financial aid must maintain Satisfactory Academic Progress (SAP).
Each school determines its own SAP criteria, which includes minimum GPA, minimum passing grades for courses, number of required course credits or hours, and the timeline it deems necessary to advance toward a degree or certificate.
Age and Dependency Status
Your dependency status determines whose information you’ll need to include on your FAFSA. Dependent students are required to provide their parents’ financial information on their FAFSA while independent students might not need to.
Generally, you’re considered an independent student if at least one of the following applies to you:
• For the school year you’re applying for aid, you’ll be 24 years old by January 1.
• You’re married or separated (but not divorced).
• You’re a graduate-level student.
• You have children and provide more than half of their support.
• You have other dependents in your household whom you provide more than half of their support.
• You’re in the U.S. armed forces and on active duty (non-training).
• You’re a U.S. armed forces veteran.
• Since turning age 13, your parents were deceased, you were in foster care or a ward or dependent of the court.
• You’re an emancipated minor or are in a legal guardianship.
• You’re an unaccompanied homeless or self-supporting youth at risk of homelessness.
Income Limits
A common misconception is that students or their parents must earn below a certain income to meet FAFSA eligibility requirements. However, there is not a FAFSA income limit for student applicants and their families.
Required Documents to Submit FAFSA
Although you won’t need to submit copies of additional documents with your FAFSA, you’ll need to refer to certain documents to complete your application. It may also be helpful to keep these documents on file in case your school requests to see them.
Social Security Number
You’ll need your Social Security number to include on your FAFSA form. If you’re a dependent, the form also asks for your parents’ Social Security number. If they don’t have one, enter all zeros without dashes.
W-2s and Untaxed Income Records
A main FAFSA requirement to successfully complete the application is reporting your income, and your parents’ income, if applicable. Make sure to reference all W-2s and untaxed income documentation, like interest income, child support, or other noneducation benefits.
If you are a dependent student, you’ll need to provide information from both yours and your parent’s W-2.
Tax Returns
You’ll need to reference your most current tax return information as well as your parents’ tax returns if you’re a dependent student. If you’ve already filed your tax return for the year, you might be eligible to use the IRS Data Retrieval Tool to transfer your tax information into the FAFSA.
Asset Records
You’ll also need to include your and your parents’ deposit account balances, like checking and savings, on your FAFSA. Similarly, investments, like stocks, bonds, and real estate that isn’t your primary home, must be included on your FAFSA form.
Alternatives to Federal Aid
Outside of the FAFSA application, there are other avenues to secure funds to pay for your higher education.
Savings
Consider tapping into existing savings, if your financial aid award comes up short. Doing so might help you avoid taking on more student loan debt.
There are certain accounts such as 529 savings plans that are designed to help parents and families save for their child’s education.
Grants
Research non-federal grants from your state, school, nonprofit, or other private organization. These funds don’t need to be repaid.
Scholarships
Scholarships are another aid source that doesn’t need to be repaid after leaving school. Find state-, school-, or private-sponsored scholarships to find more cash. There are online databases such as Scholarships.com that aggregate information on available scholarships. Take a look to review eligibility criteria and application requirements.
Part-Time Work
If you can manage balancing schoolwork with a part-time job, earning an income while enrolled in school can help you pay your way through your education.
Private Student Loans
Private student loans are available through private lenders, like banks, credit unions, and online institutions. These loans come with varying terms and interest rates, and can help cover the gap between your cost of attendance and existing financial aid.
When comparing private student loans and federal student loans, know that private lenders aren’t required to offer the same benefits or protections as federal student loans. As a result, private student loans are generally considered an option only after other sources of financing have been exhausted.
The Takeaway
Regardless of your or your family’s income, it’s generally worth submitting an application if you meet the FAFSA requirements. Since it’s a free application, there’s nothing to lose and much to gain if you’re eligible for aid, including scholarships and grants that don’t need to be repaid.
If you still need financial aid after submitting your FAFSA and searching for scholarships, consider a SoFi private student loan. It’s a zero fee loan option that offers competitive rates for qualifying borrowers.
Get pre-qualified in just a few minutes.
FAQ
How much or little income do you need to qualify for aid through FAFSA?
There are no income requirements for FAFSA applicants. Instead, a variety of factors determine whether a student is eligible for federal aid, including the school’s cost of attendance, the student’s year in school, their dependency status, family size, and more.
What is the maximum amount of money FAFSA gives?
The maximum amount of aid you can receive through the FAFSA depends on which federal aid programs you qualify for. Different programs have varying limits.
For example, the maximum Pell Grant award changes annually; for the 2022-23 award year the limit is $6,895. Direct Loans also have their own annual and aggregate borrowing limits.
How does parent income affect FAFSA aid?
Parent income that’s reported on a student’s FAFSA is used to calculate the applicant’s Expected Family Contribution (EFC). The EFC is a number on an index that helps schools determine your financial need if you attend its school. It also identifies your eligibility for certain financial aid programs like the Pell Grant or Direct Subsidized Loans.
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