It wasn’t that long ago — perhaps your mother’s or grandmother’s time — when women couldn’t get bank loans or credit cards, and employers could pay them less, explicitly for being women. While women have made considerable strides in attaining financial equity over the past 60 years, this history still plays a role in their current experiences and finances.
A January 2024 NerdWallet survey of more than 2,000 U.S. adults, conducted online by The Harris Poll, asked Americans about the gender financial divide and found remnants of that recent past.
“A lot has changed since the 1960s and 1970s, but these decades and what came before them still impact our financial lives,” says Kimberly Palmer, personal finance expert at NerdWallet. “Acknowledging how our financial experiences differ across gender, race and even age can help us understand what we can do in our personal lives and household budgets to improve our financial outlook as well as the role that governments, companies and institutions can play.”
Key findings
Men are seen as having an easier time finding well-paying jobs, but women are more optimistic about their current roles. More than 2 in 5 Americans (44%) say men have the easiest time finding a well-paying job, while just 11% think women do. However, employed women are more likely to feel optimistic about keeping their current job over the next 12 months, with 81% saying this versus 76% of employed men, according to the survey.
Men were more likely to receive a pay raise over the past year. More than 1 in 4 men (27%) say their salary or pay rate increased over the last year compared with 21% of women, according to the survey.
Both men and women are more likely to say the most financially successful person they know is a man. Just 16% of Americans say the most financially successful person they know is a woman, compared with 37% who say it’s a man, according to the survey. That includes 42% of men and 33% of women who say a man is the most successful person they know.
Women were cited as better money managers. Close to 3 in 10 Americans (28%) say women are better at managing money on a daily basis than men. Just 15% say men are better at it, according to the survey.
Financial Outlook
Overall, 72% of Americans say they’re optimistic that their financial situations will improve over the next 12 months — roughly equal shares of women (71%) and men (72%). But beneath the surface, there are some disparate perspectives. Here’s a look at several, along with advice for consumers on navigating personal finances.
Current job security and job-seeking
Women have become major players in the labor market over the past several decades. In 1953, about 34% of women participated in the labor force. That figure peaked at 60% in 1999, and had dropped to 57% in 2023, according to the Bureau of Labor Statistics.
But being more prominent in the workforce doesn’t mean getting the best jobs is easy. In the NerdWallet survey, more than 2 in 5 Americans (44%) say men have the easiest time finding a well-paying job (just 11% think women do).
The ability to maintain employment once you find it is key to financial security, and in this regard, women are feeling good. About 4 in 5 employed women (81%) are optimistic about continuing to work in their current job over the next 12 months, compared with 76% of employed men, according to the survey. That divide was larger among generations: just 59% of employed Generation Z (ages 18-27) expressed optimism about their current jobs, compared with 79% of employed millennials (ages 28-43), 84% of employed Generation X (ages 44-59) and 88% of employed baby boomers (ages 60-78).
Stay competitive in your field. Even the best employees aren’t guaranteed their job will be there forever. Keep your resume updated and look at open roles occasionally to stay abreast of what employers are seeking. Then, if the economy takes a turn and you lose your job, you can quickly pursue new opportunities.
Recent pay increases
The Equal Pay Act of 1963 barred employers from wage discrimination based on sex. While the gender pay gap has narrowed since that time, it hasn’t closed.
On average, women’s paychecks continue to fall short of those of their male counterparts. According to the BLS, women who are in the 25-34 age group earn about 90% of men of the same age, on a weekly basis. Looking at 35- to 44-year-olds, women earn even less (84%) than men. Lower earnings mean women generally have less of a buffer to rely on when times are tight.
More than 1 in 4 men (27%) say their salary or pay rate increased over the last year compared with 21% of women, according to the NerdWallet survey. That divide expands among Gen Xers, where 40% of men say they had a pay bump and 25% of women say the same.
“Given those pay disparities, it’s harder for women to funnel money into savings and investing accounts, since on average, they are starting with less. With the power of compound interest, those discrepancies can add up over time, creating even greater wealth gaps between men and women by the end of their lives,” Palmer says.
Ask for more from your employer. Only 8% of Americans — roughly equal shares of men and women — negotiated for a higher salary at their current job, according to the survey. Whether it’s time for your annual review or you’re considering a new job, be prepared to negotiate for more money and/or perks. A 2021 study by researchers at the University of Southern California found participants often avoided negotiating compensation, but those who did wound up getting larger pay packages.
Financial Security
Roughly equal shares of men (61%) and women (63%) say they’re optimistic that the financial companies they use care about their financial well-being, according to the survey. But it wasn’t always that way. There was a time when women in the U.S. couldn’t take out loans or have their own credit cards, particularly if they were unmarried. The Equal Credit Opportunity Act of 1974 changed that, barring discrimination by lenders based on gender or marital status.
Access to credit can be a lifeline when unexpected expenses arise. So can an emergency fund. The survey reveals that a smaller share of women believe they won’t have to tap such a fund in the coming year: 65% of men are optimistic they won’t have to dip into their emergency savings in the next 12 months, while 58% of women express the same optimism.
But millennial women are concerned: About 1 in 5 (17%) of this group say they’re “very pessimistic” about having to use those emergency funds over the next 12 months compared with 8% of millennial males, according to the survey.
The ability to build an emergency fund can feel like a luxury, one that may be afforded less to folks with less wealth. And while the gender pay gap is notable, the gender wealth gap — which takes debt and assets into account — is even more pronounced, according to the St. Louis Fed.
Indeed, just 16% of Americans say the most financially successful person they know is a woman, compared with 37% who say it’s a man, according to the survey. That includes 42% of men and 33% of women who say a man is the most financially successful person they know.
Bolster your emergency fund. A robust emergency fund is the bedrock of financial security. It can insulate you from a variety of financial shocks. If you’re starting from scratch, build your fund incrementally, beginning with a goal of $500, for instance. In the long term, aim to have several months of essential living expenses set aside in a high-yield savings account.
Money management and advice
Having money and knowing what to do with it don’t always go hand in hand. The survey finds nearly twice the share of Americans think women are better at managing money than are men.
Close to 3 in 10 Americans (28%) say women are better at managing money on a daily basis than men. Just 15% say men are better at it. Men are fairly evenly split in this assessment — 21% say women are better at the task and 22% say men are. Women are a bit more biased — 35% say that women are better at it and 9% say men are.
The perspective that women are better at daily money management doesn’t necessarily translate to people seeking out their guidance: 15% of Americans say the person they most often turn to for financial advice is a woman and 25% ask a man.
Gen Zers and millennials are slightly more polarized, with 35% of Gen Z women and 24% of millennial women saying they most often ask a woman for financial advice. Compare that with just 15% of Gen Z men and 10% of millennial men who say the same.
“Own” the financial factors within your control. You can’t control how society adapts to significant cultural shifts (such as allowing women access to financial equity). But you can find ways to take authority over the money you have, learn how to manage your money daily and give yourself the best possible chance to earn more and reach your long-term financial goals.
“Setting financial goals that are realistic and manageable can make it easier to stay on track with your spending and saving habits,” Palmer says. “Sharing those goals with friends and family who can offer support and their own tips also helps. We’re in it for the long run, so think about where you want to be in several decades, and begin taking steps to reach that destination today.”
Methodology
This survey was conducted online within the U.S. by The Harris Poll on behalf of NerdWallet on Jan. 18-22, 2024, among 2,085 adults ages 18 and older. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. For complete survey methodology, including weighting variables and subgroup sample sizes, contact [email protected].
Disclaimer
NerdWallet disclaims, expressly and impliedly, all warranties of any kind, including those of merchantability and fitness for a particular purpose or whether the article’s information is accurate, reliable or free of errors. Use or reliance on this information is at your own risk, and its completeness and accuracy are not guaranteed. The contents in this article should not be relied upon or associated with the future performance of NerdWallet or any of its affiliates or subsidiaries. Statements that are not historical facts are forward-looking statements that involve risks and uncertainties as indicated by words such as “believes,” “expects,” “estimates,” “may,” “will,” “should” or “anticipates” or similar expressions. These forward-looking statements may materially differ from NerdWallet’s presentation of information to analysts and its actual operational and financial results.
The median annual wage for speech pathologists in the U.S. is $84,140, according to the latest data from the U.S. Bureau of Labor Statistics (BLS). But salaries can vary significantly, ranging from less than $56,370 to more than $126,680.
How much money you can make as a speech-language pathologist may depend on several factors, including the industry in which you work, the level of education you attain, and where you live.
Here’s a look at what speech pathologists do and how they are paid.
What Is a Speech Pathologist?
Speech pathologists are health care providers who evaluate, diagnose, and treat children and adults who are experiencing communication difficulties because of speech, language, or voice problems. They also may treat clients who are struggling with developmental delays, memory issues, or who have trouble swallowing.
Speech pathologists typically work in a school, hospital, or rehabilitation/nursing home setting, or they may open their own practice. They often work as part of a multi-disciplinary team that also provides occupational therapy, physical therapy, and other types of care.
All speech pathologists must be licensed. While the qualifications can vary by state, a master’s degree from an accredited university is often required, along with several hours of supervised clinical experience, a Certificate of Clinical Competence in Speech-Language Pathology (CCC-SLP) from the American Speech-Language Hearing Association (ASHA), and a passing grade on a state exam.
Depending on the work you plan to do, other certifications may be required by your employer, including a teaching certificate if you practice in an educational setting. 💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.
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How Much Do Starting Speech Pathologists Make a Year?
Speech-language pathologists with one to three years of experience earned a median salary of $74,000 in 2023, according to the ASHA’s SLP Health Care Survey Salary Report. The job site ZipRecruiter lists Massachusetts, Washington, Colorado, Delaware, and Illinois as the states where speech pathologists currently earn the highest entry-level salaries.
Recommended: High-Paying Vocational Jobs for 2024
What Is the Average Salary for a Speech Pathologist?
So how much can you expect to make per year if you stay with a career as a speech pathologist?
The 2023 SLP Health Care Survey Salary Report found that several factors can have an impact on speech pathologists’ earnings, including job duties, the type of facility where they’re employed, if they work full- or part-time, if they’re paid a salary vs. hourly wage or on a per-visit basis, and whether they work in a region with a higher cost of living.
Here are the average annual salaries for speech pathologists by state.
Average Speech Pathologist Salary by State
State
Average Annual Salary
Alabama
$81,140
Alaska
$90,279
Arizona
$83,423
Arkansas
$68,644
California
$94,592
Colorado
$87,186
Connecticut
$80,836
Delaware
$82,742
Florida
$66,895
Georgia
$75,588
Hawaii
$87,406
Idaho
$90,774
Illinois
$80,442
Indiana
$85,185
Iowa
$80,542
Kansas
$75,362
Kentucky
$72,228
Louisiana
$73,799
Maine
$91,996
Maryland
$80,211
Massachusetts
$90,970
Michigan
$72,246
Minnesota
$84,527
Mississippi
$80,048
Missouri
$77,637
Montana
$82,167
Nebraska
$78,728
Nevada
$85,362
New Hampshire
$88,375
New Jersey
$89,146
New Mexico
$84,483
New York
$98,990
North Carolina
$75,258
North Dakota
$89,084
Ohio
$82,280
Oklahoma
$76,241
Oregon
$89,146
Pennsylvania
$90,666
Rhode Island
$82,571
South Carolina
$76,844
South Dakota
$84,193
Tennessee
$78,555
Texas
$90,424
Utah
$78,424
Vermont
$97,120
Virginia
$81,864
Washington
$110,930
West Virginia
$70,022
Wisconsin
$87,933
Wyoming
$86,602
Source: ZipRecruiter
Recommended: Cost of Living by State
Speech Pathologists Job Considerations for Pay and Benefits
If you decide speech pathology is the right fit for you, you may not need to worry about job security. The BLS is projecting that employment of speech pathologists will grow by 19% over the next decade, which is much faster than the average for all occupations combined.
Therapists are needed more than ever to assist aging baby boomers and others who’ve experienced a stroke, hearing loss, dementia, or other health-related issues. And there is an increasing need for those who wish to work with kids and adults on the autism spectrum. Therapists are also needed to help children overcome speech impediments and other communication issues.
A career as a speech pathologist also can offer a competitive paycheck. While the BLS reported the median weekly earnings for all full-time workers was $1,145 in the fourth quarter of 2023, the average weekly paycheck for a speech pathologist was $1,652, according to ZipRecruiter.
Of course, the pay and benefits you receive will likely be tied to the job you choose. If you’re employed by a public school district in a rural community, for example, you may not earn as much as a department head at a large health facility in a major city. Still, you can expect to receive benefits similar to other workers in the health-care field, including health insurance, a retirement plan, vacation pay, etc.
As you weigh your career decisions, consider using online tools to ensure you’re staying on track with your personal and financial goals. A money tracker app, for example, can help you create a budget and keep an eye on your spending and your credit score.
Pros and Cons of a Speech Pathologist’s Salary
Probably the biggest downside of choosing a career as a speech pathologist is the amount of time and money it can take just to get started. After getting your bachelor’s degree, it may take two or more years to complete your master’s degree and clinical training. Depending on the career path you choose, you also may need to earn certain certifications along with your state license to practice. And it may take some time to pay off your student debt.
On the plus side, you’ll be helping others in a career that can be extremely fulfilling, and you can earn a comfortable living while doing so.
Here are some more pros and cons to keep in mind.
Pros:
• As a speech pathologist, you will be helping others and, in many cases, changing lives.
• You’ll be working and networking with other professionals who will help you keep learning.
• You may be able to design a schedule that fits your needs (especially if you have your own practice).
Cons:
• You may have an overwhelming caseload, and the work could be frustrating and stressful at times.
• You may have to work nights and weekends (even with a job in education or in private practice).
• The paperwork can be daunting and may require working overtime or taking work home to keep up. 💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.
The Takeaway
Working as a speech pathologist can be professionally rewarding. Not only is the field growing, it tends to pay well, too. However, you can expect to make a substantial investment in time and money before you get the job you want. And how much you earn — especially when starting out — can depend on several factors, including the specialty you choose, who your employer is, and where you’re located.
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SoFi helps you stay on top of your finances.
FAQ
Can you make $100,000 a year as a speech pathologist?
Yes. While the median annual wage for speech-language pathologists in the U.S. is $84,140, the highest 10% of earners in this category make six-figure salaries.
Do most speech pathologists enjoy their work?
Speech-language pathologists came in at No. 3 on U.S. News & World Report’s ranking of “Best HealthCare Jobs” for 2024 and No. 10 on the news site’s list of “100 Best Jobs.” While the career was rated above average for stress, it received high ratings for both flexibility and opportunities for upward mobility.
Is it hard to get hired as a speech pathologist?
According to the U.S. Bureau of Labor Statistics, the job outlook for speech pathologists is good, and should be solid for the next decade. If you get the proper education and training, and you have a passion for helping others, it shouldn’t be too difficult to find work in this profession.
Photo credit: iStock/akinbostanci
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There is a difference between being rich and wealthy.
However, most people combine rich and wealthy into one bucket because they both seem so far off and unreachable.
It is important that you understand the distinction because what one person considers “rich” might actually be considered “wealthy.”
There is a huge difference between the two words, no matter how they are used.
Earning a lot of money does not automatically lead to happiness and success because when one achieves happiness when it can be reflected in the fulfillment of ambition.
Being rich usually means that you have an abundance of material things such as money and expensive items.
Being independently wealthy can be seen as someone who has a lot of money, but it also means that they have enough money that will last the test of time.
There is a difference between being rich and being wealthy, but they are both can be seen as positive things.
Let’s discuss the different types of wealth and how they are defined in order to help differentiate these two concepts.
The real key of Rich vs Wealthy is the discussion on which one you should be striving to be.
So, is it better to be rich or wealthy?
What is a Rich Person?
A rich person is someone who has a lot of money and assets. This may be a businessperson, an investor, or just someone who has been very successful in their field.
This rich person has probably created new money vs old money.
Rich people tend to barely save any money and spend excessively, meaning they run out of cash quickly. For example, a rich person might earn $10,000 in a month while spending $12,000 to wind up with a negative $2000 when the month is over.
The amount of debt for a rich person tends to be higher. They are willing to keep up the lifestyle rather than tell others about their debts.
To be rich you have to be able to take the risk of having money to invest and time to wait for the windfall.
What is a Wealthy Person?
A wealthy person is someone who has a lot of money for their lifestyle standards.
Since a wealthy person is consistently growing their money because they save and are wise with what they have. They tend to think of the future and put away some cash for it rather than spending everything.
Their goal is to take their large sum of money and grow that money even more through active or passive income.
A wealthy person does not have to be a number-crunching billionaire or someone who is living lavishly.
It is all about the decisions that you make and how those decisions can lead to wealth.
You can start to build wealth when you hit your first $100k in investments. When you have a salary of over $100k a year, this is much easier to do fast.
Wealthy people are those who have a lot more money than you do, but they work hard every day in order to keep it.
Rich vs Wealthy Money Habits
Rich people tend to spend more money than wealthy people.
The difference between rich people and wealthy people is that rich people have money habits that often lead to debt. Rich people are not usually frugal, and they tend to spend a lot of money.
Also, rich people have the ability to earn more if they choose something different in the future.
Rich people are usually defined as those with a net worth of over $10 million, but there is no set number for how much money someone has to be considered rich.
Wealthy people, on the other hand, have an annual income of $150,000 or more. Their wealth comes from hard work and saving money to slowly increase their net worth.
Broke People Habits:
Spend time watching TV and playing video games
Keep up with the Joneses’
Blame others for failures
The concept of change is too overwhelming
Too afraid of setting goals because they don’t want to be accountable
Deep in debt
Feel their situation will never change
Never save money
Willing to get a credit card just for a discount
Think bank fees and overdraft fees are a part of life
No emergency fund
Rich Habits:
Earns a lot of money
Spends a lot of money
Enjoys a flashy lifestyle
Okay being in debt
Focuses on the short term
Not big savers of their money
They frown upon being frugal
Prefer a challenge to make more money
Takes on bigger risks
Their inner circle is people exactly like them
Very impulse with decision making
Wealthy Habits:
Set long term goals
Creates an action plan to reach their goals
Take responsibility for their actions
Saves money consistently
Understands that passive income will grow their wealth
Constantly learning
Spend time reading
Enjoys the fact they have options
Lives below their means
Embraces frugal
Shy away from debt
Finds a mentor
How to Go from Rich to Wealthy
Many people feel the need to be rich because they have the idea that being rich is key to success.
However, many times, wealthy people are wealthier than their counterparts who are both richer and wealthier.
If you are rich, then it is important that you are not frugal because many times, being wealthy means having a lot of money and saving the rest. If you have a lot of money and are not frugal with it, then you could end up broke.
However, if your goal is to become wealthy meaning having a lot of money AND saving, then you are on the right path to financial freedom.
This is the difference between being rich and wealthy.
Rich vs Wealthy Mindset
First of all, the definitions of each of these are really close.
A rich mindset is a state of mind that knows that there are no limits to what you can achieve.
A wealthy mindset believes that success and wealth come from hard work and dedication.
Honestly, both money mindsets are needed to keep pushing yourself to reach financial freedom and enjoy time freedom.
You need a rich mindset to grow your money, but a wealthy mindset to keep that wealth.
The wealthy are more likely to have a growth mindset than the poor because they know that money is merely an instrument for achieving their goals.
Whereas, rich people often spend too much time worrying about what others think of them and why they aren’t as successful or wealthy as other people in society.
How to Become Wealthy
This is a question that has been asked many times, and finding the answer depends on how you define wealth.
In general, becoming wealthy means having enough money to support yourself without any outside help.
You have enough money to cover your expenses without the need for an additional influx of money. For many people, that means they need at least $1 million dollars, so they can live off the investments gains and dividends. If you are single, then $500k may be enough.
As such, becoming wealthy is one of the most difficult things to do.
If you are constantly struggling to make ends meet and never saving money, then becoming wealthy will be even harder for you to accomplish!
Here is what you need to do to move from well off vs rich vs wealthy.
Step #1 – Get out of debt
For people who are in debt, the solution is simple: get out of debt.
But for a lot of people, they need to make some changes before they can do that.
It’s important to get out of debt and that takes time. The more debt you have, the longer it will take.
However, I will tell you from personal experience. Until we paid off our debt, we didn’t make any progress financially. We were stuck on a hamster wheel. Since paying off our debt, we reach our financial goals so much easier.
Track your progress, set goals, and stay motivated while getting out of debt.
Step #2 – Stop comparing yourself
Although comparisons can be helpful and may indicate which side is doing better or worse, they are not always accurate. Sometimes comparing yourself to others will make you feel inferior and frustrated.
Keep in mind that you are not just the sum of your accomplishments.
Stop comparing yourself to other people and start focusing on the things that make you happy.
Conversely, spending time with people who inspire you will help cultivate a wealthy mindset. It can be anyone from your family members to celebrities, but it is important that these individuals are inspirational and not toxic for your mental health.
Step #3 – Become Your Own Boss
This doesn’t mean you can’t keep your 9-5 job. It means you are looking for ways to make money outside the traditional “job.”
An entrepreneur is a person who organizes and runs a business, typically with manageable risk and a small amount of capital, in order to turn it into a profitable venture.
Become creative with ways to bring in extra money. Some ideas include day trading, dropshipping, starting an Etsy shop, driving for Uber, or walking dogs.
Here are great ways to make money on the side:
It is possible to make more money on your business than you make more money in your current job or career.
Step #4 – Be Generous
Be generous to others.
Being wealthy means living a comfortable life and being able to help others.
Giving away money can be a way to build wealth, but it is not the only way. This helps you realize the impact you can have on the world.
Your small contribution can help shape and change the lives of so many.
Consequently, giving and helping others will motivate you to work harder and continue building your wealth.
Step #5 – Think Long Term & Set Goals
Life goals have exploded in recent years and many of us are now focused on growing our own wealth.
The truth of the matter is both wealth and richness are great.
Wealth enables a person to live life on his own terms and allows them to achieve the things they have dreamed of.
But, getting there does not just magically appear.
It takes a plan of action to reach those smart financial goals.
By consistently saving money, you will slowly build your net worth. Step by step you are building the foundation to become wealthy.
Baby steps to becoming wealthy.
Rich vs Wealthy Quotes
This rich vs wealthy quote from Stephen Swid is one of my favorite all-time quotes.
This quote quickly summarizes the difference between the wealthy vs rich definition.
“Being rich is having money; being wealthy is having time.”
As an American businessman and investor, Stephen Swid spent countless hours on various deal negotiations and build his own wealth. He understood the wealthy vs rich meaning.
This quote is something I focus on when making decisions of what next steps to take.
What does this quote mean to you?
What is considered being wealthy?
Being wealthy is a subjective term that can be interpreted in many ways. The definition of the term is different for everyone, so it’s hard to answer this question definitively.
Many people believe you need 7 figures or even 10 figures.
One could be considered to be wealthy or poor based on their country’s standards, their personal spending habits, and the types of investments they have.
The richest people are those who have made their wealth through investments and not necessarily the ones that have spent a lot of money.
The definition of wealthy is different for everyone, but it’s generally considered to be someone who has a lot of money and financial stability.
Being wealthy is measured by how much money you accumulate and save.
It is understanding your personal finances to budget, track savings, contribute to retirement, and grow liquid net worth.
A wealthy person is someone who has made wise decisions. Wealth does not have anything to do with how much money you have in your bank account.
Do you Fit the Definition of Wealthy vs Rich?
Now, we have covered the difference between the wealthy and the rich. If you’re wondering what is the difference between rich and wealthy, it’s not that complicated.
Rich people are those who have saved, invested, and built net worth through their income or assets. Wealthy people can follow these three simple steps to build your own wealth: save money in a savings account or investment account; invest in stocks, bonds, or other securities for growth; create an asset such as real estate by purchasing property with borrowed funds on low-interest rates
The key distinction between being rich or wealthy is the mindset.
Rich people might have more money in their bank accounts or assets, but they don’t think of themselves as rich because they are worried about their appearance and keeping up with their elite society. Wealthy individuals are those who see value in accumulating wealth primarily through investing and growing their financial portfolio with investments over time.
A rich person is someone who has more money than the average person but may not wealthy. They are always looking to make more money and spend more because they believe that there is not enough time or money in this world for them to enjoy.
Wealthy individuals are those who can afford to buy things and choose not to because it helps them increase their net worth and become more wealthy.
The only way to be wealthy is by being smart on your investments and having time for yourself in order to find happiness.
Being rich may or may not be something you should aspire to be. The more money you have, the more responsibilities you get.
There are many rich and wealthy people who are unhappy because they are so busy trying to keep up with society’s expectations.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Looking for jobs where you can bring your child with you? Yes, some jobs and companies let you bring your child to work. More and more companies are supporting parents by providing on-site childcare facilities. Plus, along with the rise of remote jobs, there are many jobs out there that let you bring your child…
Looking for jobs where you can bring your child with you? Yes, some jobs and companies let you bring your child to work.
More and more companies are supporting parents by providing on-site childcare facilities. Plus, along with the rise of remote jobs, there are many jobs out there that let you bring your child to work, eliminating the costs of paying for childcare.
In this post, we’ll explore different jobs that let you take your child to work, along with a list of remote jobs that give you the flexibility to work at home and take care of your children at the same time.
Whether you want to make extra income or if you are looking for a full-time career, many options may interest you.
Recommended reading: 25 Best Work From Home Jobs To Make $1,000+ Monthly
Best Ways To Bring Your Child To Work
Here’s a list of jobs where you can bring your child to work.
1. Nanny or babysitter
Working as a nanny or babysitter gives you the option of possibly bringing your child to work.
Before bringing your child to work, it’s important to come up with an agreement with the family you work for. Have clear communication and set expectations of what it will be like if you bring your child to work with you.
There are many ways to find nannying and babysitting jobs online, especially with websites like Care.com. I’ve found several nannying and babysitting positions with my free profile on Care.com.
You can also share your services on local Facebook groups, Indeed, and SitterCity. References from past childcare jobs are important, along with offering a background check.
2. Daycare (where you work for someone else)
You may also be able to bring your child to the daycare or preschool that you work for.
You need to consult with your employer about this first and check the daycare’s policies and employee handbook. Many daycares have it in writing whether or not you can bring your children to work with you. Some daycares allow it, while others are strictly against it.
To find a daycare job, search on websites like Indeed or call local daycares near you and see if they are hiring. Childcare work is in high demand and there are always jobs available in this field.
Your child may be in your classroom if they are in your age group, or they may be in another group of children. Typically, the cost is not free, but you may get a discounted rate to bring your kid to the same daycare that you work at if you are a childcare worker.
3. Own in-home daycare (where you run your own daycare)
If you can run your own daycare, this is going to allow more flexibility in bringing your child to work. Many daycare centers are run by parents looking for a more suitable job where they can bring their own kids with them to work.
However, there are still some things to keep in mind. You need to make sure that you are complying with local licensing regulations and requirements for running a daycare, along with maintaining professionalism at work while having your own child at the daycare.
Starting your own daycare from home requires careful planning. You need to think about things like local zoning laws to make sure you can run a daycare in your home and make sure your home is safe for children. You may need certifications and training like CPR and first aid certifications, along with early childhood education courses. Getting the proper insurance to protect your business in case of accidents on your property is important too.
You also need to think about how you’ll attract clients and what kind of marketing you’ll do. Word of mouth is huge, so make sure to always provide the best business and care (plus, these are children we are talking about – so high-quality care is always important!).
4. Drive a school bus
If your child’s school is hiring school bus drivers, this can be a great gig to not only take your child to and from school but also earn extra cash.
Bus drivers need to be 21 or older, have a valid driver’s license, and clean driving record. You may even need to obtain a CDL (Commercial Driver’s License).
The school will also require a background check, and provide school bus driver training, which is provided by the school district or a third-party organization.
The salary for a school bus driver depends on things like location, experience, and the district. The average salary for school bus drivers ranges from $30,000-$40,000, along with getting benefits like health insurance, retirement plans, and PTO.
5. Food delivery services
Working as a delivery driver may give you the option to bring your child to work with you.
Some food delivery platforms prohibit from having anyone else in the care of you on food delivery runs, so this is important to find out before bringing your child with you to work.
Getting a job as a food delivery driver is relatively easy as long as you meet the minimum age requirements and have a valid driver’s license. Each platform is going to have different benefits including pay, flexible work schedule, payout time, and sign-up process.
6. Photographer
One way to do photography and be able to bring your child with you is to take stock photos.
Stock image websites are among the most popular platforms for photographers to sell their pictures. These websites allow customers to buy royalty-free photos for personal or business use. Various entities, including websites, TV shows, books, and social media accounts, frequently use stock photos.
A significant advantage of stock photo sites is the potential for passive income. You can take pictures, upload them, and potentially earn money from an old photo for months or even years to come.
Recommended reading: 18 Ways You Can Get Paid To Take Pictures
7. House cleaner
Working as a house cleaner possibly allows you to bring your child to work depending on the policies of your employer, the nature of the job, and safety considerations. Some employers allow it, while others have strict rules against bringing a child to work.
As a house cleaner, you may be working with cleaning chemicals and heavy equipment, so you need to consider whether it’s suitable to have a child present in this kind of situation. It’s important to have a backup plan in place for times when you cannot bring your child to work.
8. Blogger
I started my blog back in college over 10 years ago and it’s still my full-time job. I’m my own boss, create my own schedule, and get to take vacations whenever I want.
As a blogger, you get to work from home and create your own schedule. This allows you to “bring your child to work” but also maintain a relatively flexible lifestyle when raising a child. This can be great for balancing work and family life.
Building a successful blog takes time and consistency, but when done right, can make income.
Bloggers make money through advertising, sponsorships, affiliate marketing, and product sales. You can even make money by offering coaching services on your blog or writing for other popular websites in your niche.
You can learn how to start a blog with the free How To Start a Blog Course (sign up by clicking here).
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In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
9. Proofreader
Another great remote job that lets you stay at home with your child while earning money is proofreading.
A proofreader is someone who is in charge of reviewing written content to identify and correct errors in spelling, grammar, punctuation, and formatting.
Proofreaders work for all kinds of companies, including advertising agencies, media outlets, government agencies, and even bloggers and other small business owners.
Proofreaders can earn between $15-$50 an hour depending on their experience, type of project, and industry demand.
Recommended reading: 20 Best Online Proofreading Jobs For Beginners (Earn $40,000+ A Year)
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This free 76-minute workshop answers all of the most common questions about how to become a proofreader, and even talks about the 5 signs that proofreading could be a perfect fit for you.
10. Freelance writer
I’ve been a freelance writer for almost a decade and it’s one of my favorite ways to make money. This is because freelance writing can be done on my own schedule. An agency (or whoever is paying me to write the article) will send me what they want the article to be about, how many words to write, and other important information that needs to be included.
Since this job is remote, this means you can work from home and “take your child to work” with you.
So, this can be a great job to look into for a stay-at-home mom or dad of young children.
How much you earn as a freelance writer depends on your skills and experience. If you’re just starting, you may earn between $50-$75 per 500-word article. As you gain experience and get better, you can charge a lot more. The larger and more impressive your portfolio becomes, the easier it gets to land jobs and get paid higher rates.
Recommended reading: 14 Places To Find Freelance Writing Jobs
11. Transcriptionist
A transcriptionist is someone who converts spoken audio files into written text (this is what transcription is). Your tasks include listening to audio recordings and accurately transcribing them into a written format. Transcriptionists work in fields like legal, medical, academic, and business-related industries.
Starting pay for a transcriptionist is in the $15 an hour range, with that number increasing once you’ve honed in your skills and experience, and have a wider database of clients who have worked with you in the past and want to hire you again.
Many transcriptionists are stay-at-home parents, and that is because you can get started relatively easily (it is easy to meet the qualifications to become a transcriptionist) and you can work on your own time and create a flexible schedule that works for you and your children’s schedules.
Recommended reading: How To Become A Transcriptionist From Home
12. Virtual assistant
I’ve been working as a virtual assistant for years and it’s one of my favorite jobs. I get to work from home and set my own schedule. Virtual assistants usually work for a person, company, or small business owner doing administrative tasks to help the business run smoothly.
As a virtual assistant, you’re working from home which means your child can stay at home with you while you’re working.
Tasks for virtual assistants include tasks like responding to emails, social media management, customer support, and more.
Recommended reading: Best Ways To Find Virtual Assistant Jobs
13. Customer service representative (at home)
Customer service representative jobs are often remote, therefore you may be able to leave your child at home with you while you’re working.
Customer service representative tasks include assisting and supporting customers with problem resolutions, inquiries on products, order processing, and even offering technical support in some cases.
Finding a job as a customer service representative is easy. Check out job boards like Indeed and type in “Customer Service Representative” and hundreds of jobs will come up. Make sure to look for jobs that are 100% remote, as some of these jobs may be in person.
Typically, to get started, you will just need a computer, phone, and internet access.
14. Mystery shopper
As a mystery shopper, you are grading restaurants, stores, and other businesses on how well they are doing.
My sister was a mystery shopper and often brought me with her on mystery shopping outings. She made around $150 to $200 a month in extra money doing this and she also earned free items as well, like food at restaurants, makeup, and more.
Bestmark is a popular mystery shopping company that connects mystery shoppers with jobs. Mystery shoppers get reimbursed for their time via check or cash and typically get paid out 2-4 weeks after the job is completed.
Recommended reading: How To Become A Mystery Shopper
15. Newspaper deliverer
As a newspaper deliverer, you may be able to bring your child to work with you when you’re delivering newspapers. Delivery times typically range from 4 AM-6 AM, and in some cases, there are late evening deliveries and weekend deliveries.
Before bringing your child to work, make sure the newspaper company permits you to bring your child with you as some companies may not be okay with this.
16. Gym worker (many jobs have on-site daycares)
Gyms all across the country are now offering free on-site daycares for customers. This is to entice people to come to their gym and also allows parents to workout without having to pay and arrange childcare to get to the gym.
Depending on the location, gyms that offer childcare include EOS Fitness, Life Time, LA Fitness, YMCA, and even local and county gyms.
I have a friend who works part-time hours at a local county gym. She works in the daycare room and gets to bring her toddler and baby with her. This can be a good option to look into if you don’t have school-aged kids, and need to bring your young children to work with you.
17. Find a company that has onsite daycare for their employees
There are many companies out there that provide on-site daycare for their employees.
My husband’s company provides 100% employer-sponsored on-site childcare at work, so anyone who works at the company can bring their children to work and save money on childcare costs. This is a growing benefit that more and more companies are offering to employees.
When searching for new jobs, read the benefits offered at the company and see if on-site childcare is listed.
Frequently Asked Questions
Below are answers to common questions about bringing your child to work jobs.
What are the best jobs where you can bring your child to work?
The best jobs that let you bring your child to work include jobs like nannying and daycares, and remote jobs like blogging, proofreading, or working as a customer service representative. All of these jobs typically let you bring your child to work or you get the benefit of working at home, saving money on childcare costs.
Can you bring your baby to work with you?
Whether or not you can bring your baby to work with you depends on many factors, including:
Company’s policies
Nature of your job
Local regulations
Many jobs have family-friendly policies in place that allow you to bring your kids to work for a certain period, especially during the infant stage. Some employers even have designated areas to support parents who bring their children to work, including on-site childcare facilities, flexible work hours, or remote work options.
Is it acceptable to bring your child to work? Can I take my child with me to work?
Whether or not it’s acceptable to bring your child to work depends on each company and the type of job. Some jobs fully support parents to bring their children to work and even have a 100% company-sponsored childcare facility. Other companies may not allow bringing children to work if such childcare facilities do not exist at the company. It may also be dangerous to bring kids to certain jobs if you work in a field like construction.
Can you work a remote job with a baby?
One of the best ways to work and save money on childcare costs is working remotely. This method of work is becoming increasingly common thanks to technology and shifting attitudes toward flexible work arrangements.
If you do land a remote job, here are some tips for successfully working with a baby:
Establish a schedule that accommodates your work responsibilities and baby’s needs.
Set up a dedicated workspace that is quiet and comfortable where you can focus on work.
Aim to get a job that has flexible work hours, so you can take care of your child when they need it, and perhaps work during naps.
That being said, it doesn’t mean that online or remote jobs are easy, or that working from home and watching a kid at the same time will be easy. It can be hard to manage both at the same time.
Do companies still have bring your kid to work day?
Some companies do still have bring your kid to work day. Keep in mind, this is usually only one day out of the whole year.
If you work at a daycare can you bring your child for free?
If you work at a daycare, you can usually get a discounted rate if you bring your child.
How to find jobs that would welcome children and don’t require a nanny or sitter?
Some workplaces are much more welcoming than others. Finding jobs that already cater to kids (such as daycares) or working from home are two options to start with.
Bring Your Child To Work Jobs – Summary
Being able to bring your children to work is becoming more accepting and even supportive, with companies providing on-site childcare facilities.
There are many child-focused businesses, such as private preschools or daycares, where you may be able to bring your child to work with you.
Along with the rise of remote jobs, you may be able to work at home and take care of your children at the same time. If you work from home, such as by being a proofreader or virtual assistant, you may be able to work a flexible schedule and work in your spare time, such as when your child is napping or sleeping. Working around your children’s schedules is one way to work from home for stay-at-home parents.
Running her own business and deciding on her own hours is how my sister works from home with a child. She is a full-time blogger (she owns the very site that you are reading – Making Sense of Cents).
What do you think are the best kid-friendly jobs for moms and dads?
Images by GettyImages; Illustration by Hunter Newton/Bankrate
More than half of aspiring homeowners say living costs are too high or their incomes are too low to squeeze a down payment and closing costs into their budgets, according to Bankrate’s new Down Payment Survey.
Reflecting the bout of inflation that swept through the economy in 2022 and 2023, fully 51 percent of would-be homeowners say the cost of living poses an obstacle to their home-buying plans. Meanwhile, 54 percent of Americans say their incomes haven’t kept pace with home prices that are flirting with record levels.
“With so many aspiring homeowners saying they’re not making enough money to afford a down payment, the job market has been more resilient, the economy more robust than many experts expected,” says Mark Hamrick, Bankrate’s chief economic analyst. “That strength can still be leveraged.”
Bankrate’s key takeaways
Myriad financial challenges vex would-be buyers. In addition to the high cost of living and low income, aspiring homeowners cited these barriers to homeownership: credit card debt (18 percent); friends or family not being able to provide financial assistance (15 percent); and student loan debt (10 percent).
Saving up could take a long time. Fully 20 percent of aspiring homeowners think they will never be able to save enough to purchase a home. Just 7 percent say they’ll be ready in less than a year.
Successful buyers were intentional about achieving their goal. More than four in 10 current homeowners (41 percent) saved specifically for the down payment and closing costs on their first homes, and 14 percent got down payment assistance or a first-time buyer grant.
Americans’ housing outlook is growing less gloomy. Overall, 42 percent believe now is a bad time to buy a home, a decrease from 49 percent in September 2023.
Many say high living costs, constrained incomes pose challenges
More than half of aspiring homeowners say the current cost of living is too high or their income is not high enough for them to afford a down payment and closing costs for a home (51 percent and 54 percent, respectively).
In addition to the high cost of living and low income, aspiring homeowners cited credit card debt (18 percent), friends or family not being able to provide financial assistance (15 percent) and student loan debt (10 percent) as barriers to homeownership, while 8 percent cited some other reason. Just 13 percent of aspiring homeowners said nothing is holding them back.
Younger aspiring homeowners are more likely to point to a lack of financial assistance from friends or family as obstacles to homeownership compared to older generations, while millennials are most likely to point to both credit card and student loan debt.
Aspiring homeowners not hopeful they’ll be able to afford to buy in near future
Fully 20 percent of aspiring homeowners think they will never be able to save enough to purchase a home. Older generations (36 percent of baby boomers and 28 percent of Gen Xers) are more likely to believe they will never be able to save enough to buy a home, compared to 18 percent of millennials and 10 percent of Gen Zers.
Nearly one-third of aspiring homeowners (30 percent) say it will take at least five years or longer to save enough money for a home, while 10 percent say it will take a decade or more.
Americans more optimistic about housing market
Overall, 42 percent believe now is a bad time to buy a home, a decrease from 49 percent in a September 2023 Bankrate survey.
Among other housing market headwinds, nearly two in five (39 percent) say they think mortgage rates will remain elevated for the foreseeable future, while 38 percent say a buyer needs excellent credit to get a mortgage and 17 percent say that renting is cheaper than buying a home.
Current homeowners got there through intentional savings
When asked how they came up with the cash for their first homes, 41 percent of current homeowners saved specifically for that purpose, 14 percent received a gift from family or friends and another 14 percent used a first-time homebuyers grant or loan assistance program. Nine percent received a loan from family or friends, while another 9 percent took money out of retirement savings. Fewer homeowners found additional income streams (8 percent) or sold some personal items such as jewelry, electronics or cars (7 percent).
3 ways to save for a down payment
Leverage a savings account. Although mortgage rates have increased, the rates on savings accounts have gone up, too. Look into high-yield or money market accounts, or even a certificate of deposit, to take advantage of these returns.
Don’t sweat 20 percent. While 20 percent is an ideal amount to put down, the reality is that the typical home price nationally is close to $400,000, and most first-time buyers don’t have $80,000 to devote to the down payment. The good news is that there are plenty of loans available for borrowers with as little as 3 percent to 3.5 percent for the down payment.
Tap into first-time buyer programs. Nearly every state in the country has a program to help first-time buyers become homeowners. These programs typically feature some sort of down payment assistance.
FAQ
Because of the combination of high home prices and still-high mortgage rates, fewer Americans than usual are buying homes. Don’t wait too long, though: If mortgage rates decline significantly in 2024, that shift would lure more buyers into the market, creating more competition and upward pressure on home prices.
No. While the best mortgage offers are available to borrowers with credit scores of 740 or higher, that’s not a requirement. Mortgages are available to borrowers with credit scores as low as 580, although those loans typically carry higher costs.
The current consensus is that mortgage rates will fall to 6 percent or below by the end of 2024. A lot can happen between now and then, however — much depends on the direction of the economy and when the Federal Reserve decides to cut interest rates.
Bankrate commissioned YouGov Plc to conduct the survey. All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 2,267 U.S. adults, of which 864 are aspiring/prospective homeowners. Fieldwork was undertaken between Jan. 24-26, 2024. The survey was carried out online and meets rigorous quality standards. It employed a non-probability-based sample using both quotas upfront during collection and then a weighting scheme on the back end designed and proven to provide nationally representative results. For this survey, Bankrate defined aspiring/prospective homeowners as those who have owned a home in the past but currently do not, and those who have never owned a home in the past but hope to someday.
The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Learn how to utilize a tax advantaged 529 plan to help your or a friend’s children save for future education expenses.
This Week in Your Money: What are the risks of purchasing a home without an inspection? How can you plan for major expenses when healthcare providers can’t tell you how much their services will cost? Hosts Sean Pyles and Sara Rathner share their hot takes on unexpected financial challenges, with tips and tricks on handling surprise expenses, understanding the importance of home inspections, and dealing with healthcare industry inefficiencies.
Today’s Money Question: What are the benefits of a 529 college savings plan? Can you contribute to a friend’s 529 plan to support their child’s future? NerdWallet writer Elizabeth Ayoola joins Sean and Sara to discuss the essentials of 529 college savings plans. They discuss the types of educational expenses covered, the tax benefits associated with 529 plans, and the flexibility of choosing different state plans. They also answer a listener’s question about how to approach the sensitive topic of financial gifts for education with parents, sharing methods for contributing to a loved one’s 529 plan without overstepping boundaries. Then, they discuss the implications of the Secure Act 2.0 on 529 plans, methods for estimating necessary savings for a child’s education, and tactful ways to discuss educational contributions with parents.
Check out this episode on your favorite podcast platform, including:
NerdWallet stories related to this episode:
Episode transcript
This transcript was generated from podcast audio by an AI tool.
Sara Rathner:
Hey Sean, has money ever made you mad?
Sean Pyles:
Yeah, it has, especially when I get a bill that I don’t expect to pay but have to anyway. So yeah, why?
Sara Rathner:
Yeah. Yeah, those surprise major expenses are a huge pain. I just had to replace my washing machine because the fun never stops in my house.
In this episode, we are going to let off a little steam about what makes us mad in the world of money.
Sean Pyles:
Welcome to NerdWallet’s Smart Money Podcast. Our job today is to help you be smarter with your money, one money question at a time. I’m Sean Pyles.
Sara Rathner:
And I’m Sara Rathner.
So listener, this show is all about you and your money questions. So, whatever financial decision you’re pondering, whatever’s making you mad about your money, let us know.
Sean Pyles:
Leave a voicemail or text the Nerd hotline at 901-730-6373. That’s 901-730-NERD. Or you can email your questions to podcast@nerdwallet com.
Sara Rathner:
In this episode, Sean and I answer a listener’s question about contributing to 529 accounts for your loved ones. But first, we’re going to yell into the void in our semi-regular Money Hot Takes segment.
Sean Pyles:
So here’s how this works. Sara and I just rail against whatever we feel like in the world of money. And let’s put, say, 100 seconds on the clock. That’s what? A second for every penny in a dollar. I don’t know, it’s just an arbitrary number really.
Sara Rathner:
That works for me. It’s a nice round number.
Sean Pyles:
All right, Sara, are you ready?
Sara Rathner:
Sean Pyles:
I’m starting my timer. Go.
Sara Rathner:
All right. I hate the trend where home buyers feel pressure to completely waive getting a home inspection before buying a property. That’s different from the type of waiver where you’ll still do the inspection, but then you’re assuming the cost of anything you find. It’s when you just do without the inspection entirely.
I live in a block of houses that are like 107 years old, and two houses on my block sold with waived inspections where the buyers had to put tens of thousands of dollars unexpectedly into problems in their house that they didn’t know about. I just had a neighbor text me asking for a roofer because the first time it rained since she moved in her house, it started raining on the inside of her house, which means that the seller just lived with that for however long before selling the house and passing the problem onto somebody else.
So especially if you’re a first-time home buyer, if you are going to drain your savings to buy your house, and then you’re not going to have much money left for repairs, be really careful about this. And as a society, can we just make inspections mandatory? That’s more consumer-friendly, honestly. People need to know what they’re getting into, and frankly, people should feel pressure to keep their houses well maintained before sale. There I said it.
Sean Pyles:
You’ve got 40 more seconds if you want to keep on railing.
Sara Rathner:
Oh man, I do? Well, if you haven’t bought a home yet, what’s nice about getting an inspector involved is they’ll look at all the major systems of the house, the appliances, the roof, all sorts of stuff, the electrical, the plumbing, and they will tell you the lifespan of some of those major things like a furnace or a boiler, your roof, your HVAC system. And even if something is going to go in the next year or two, at least you have this laundry list of things and when they’ll probably need to be replaced, and you can begin to budget for those replacements.
Sean Pyles:
Okay, that’s 100 seconds.
Sara Rathner:
Boom. All right, Sean, you got any reaction?
Sean Pyles:
Well, I totally feel that, because buying a house without knowing what’s wrong with it is very risky financially. Buying a house can be financially risky in and of itself, depending on how expensive the home is. But imagine getting into the house, it’s your first day, you’re super happy to be a homeowner, and then you realize, oh, it’s raining inside the house, or the crawl space is infested with termites. You don’t know what you’re getting into if you don’t have an inspection. And even if it may make you a more competitive buyer, it isn’t worth it, in my opinion, to get yourself into something like that because you just don’t understand the risks you could be taking on. And I’m all about mitigating risks as much as possible.
Sara Rathner:
All right, Sean, I have had my turn, and now it is your turn. I have set my timer for 100 seconds. And go.
Sean Pyles:
Okay. Today I am mad about industries that are designed to extract money from us while making our lives miserable or at least really frustrating. And I have one, maybe two, examples depending on how far 100 seconds takes me.
First step is healthcare. Americans spend far more on healthcare than other wealthy nations. Nearly 18% of our GDP in 2021 went to healthcare. And what are we getting for it? An incompetent extractive industry that exploits nearly everyone that engages with it. Among wealthy nations, the US has the highest rates of infant and maternal mortality and excess deaths, not to mention the daily indignities that come with trying to access healthcare.
I have a recent example that is a microcosm of these larger issues. I recently got a bill in the mail for some regular lab work, and the thing is, I have these labs done every few months, and they’re always covered by my insurance. But this time I got a surprise bill for nearly $200, and I’d already had an expensive month with some car repairs, and I was not excited about the prospect of an additional $200 to cover. So I called my doctor, and they said, “Oh yeah, the company that does the lab work just messed up. Oops, just disregard the bill.”
So if I hadn’t called my doctor, I would have been on the hook for this bill. This was a relatively small bill as far as medical bills go, and it was fairly easy for me to clear up. I’m obviously very fortunate in this case, but for so many people, especially those with chronic illnesses or complex medical conditions, the onslaught of navigating insurance, verifying that you’re being billed correctly and then somehow coming up with the money to cover bill after bill is just totally exhausting and can make achieving financial goals nearly impossible.
So why am I going on and on about things that we already know too much about?
Sara Rathner:
Just so you know, you’re over time.
Sean Pyles:
Oh, God. I’m going to keep going. I’m almost done.
Sara Rathner:
Keep going, Sean. Let’s do this.
Sean Pyles:
All right. I am going on and on about this because I think it’s important to remind people that it does not have to be this way. We are in an election year, people, so I don’t know, let’s try to do something about it.
Okay, Sara, how many seconds was that?
Sara Rathner:
Oh, well I stopped timing it the second it hit the clock, so that might’ve been just an extra 10 seconds, honestly.
Sean Pyles:
Okay. It’s hard to fit so much into such a small amount of time.
Sara Rathner:
You know what? Your rage is such that it cannot be fit into a tiny container and that is valid. It’s okay to let the rage out and give it some more space.
I agree with you. What’s annoying is, for example, this past year I had a baby, and that is expensive to the tune for me of $7,000 out of pocket after insurance. Hi. $7,000 is a lot of money, people.
And what was annoying about that, and this is something for anybody who maybe is facing a planned medical procedure like a surgery or childbirth or anything like that, or who takes medication for chronic illnesses, I tried to call the billing department at the hospital to talk to my insurance company to say, “Can you at least give me an idea of how much money I will be out?” I knew going into it that I would be having a C-section. So I could say, “I’m having a C-section, that means I have to work with an anesthesiologist, which is an extra expense. Can you tell me ballpark, even if you’re off by a grand, how much should I budget for this?” And everyone’s like, “We don’t know.” Shrug emoji.
Then the bills just fly in for months and you think you’re done. So you’re like, “Okay, we’re done paying for the hospital bill. Now we can put our money into other stuff.” And then you get another bill for like, $1,100.
Sean Pyles:
And you have to question, was this billed correctly? Was it coded correctly? You don’t know. And it just flies in the face of all the things that we try to talk about in the personal finance space, which is around anticipating big expenses, budgeting for it, saving up for it if you can. It’s impossible when you don’t know what you’re going to be paying.
Sara Rathner:
Right, and if you’re facing surgery, what, are you just going to not have anesthesia to save money? Do not recommend.
Sean Pyles:
That is not a money-saving tip that we would recommend. No.
Sara Rathner:
No, that’s a place where you should spend good money, get good and numb.
But really it is an extra expense. And that’s so, so frustrating because you are not only out a lot of money, but you’re feeling kind of vulnerable because you’ve just gone through some medical stuff, even if it’s just blood work or something, and you want to take good care of your health, and it’s sometimes financially impossible to do that.
Sean Pyles:
Yeah. Not to mention completely demoralizing.
Sara Rathner:
Yeah, and some people just don’t go to the doctor because of the cost, or the dentist. And then years later, they’re faced with really serious health issues because they’ve been neglecting their health because of the cost.
Sean Pyles:
Yeah. I don’t know, it’s really tough in this space to talk about medical expenses because at NerdWallet and in the personal finance realm, we try to give actionable advice, and a lot of the time the advice is reactive. If you get a medical bill, you do have to ensure that it’s coded correctly. Maybe try to work out a payment plan with your medical office if you can’t cover the bill in one go. But it’s so hard to be proactive like you were just describing and understand what you’re going to have to pay if you want a routine procedure like blood work or something more significant like having a baby, makes me want to yell into the void all day every day.
Sara Rathner:
Yeah. Well, we took more than 100 seconds about this. If you have a body, then this is something that affects you, and it is really hard to deal with those extra unexpected costs.
Sean Pyles:
All right, so that is what we are mad about this week, listener. I know there’s a lot to be mad about in the world of money, so do not keep it in. Let us hear what you’re mad about, and we might just share it on a future episode.
You can text your Money Hot Take to us or leave a voicemail on the Nerd hotline at 901-730-6373. That’s 901-730-NERD. Or you can email it to podcast@nerdwallet com.
Sara Rathner:
All right, I don’t know about you, but my heart rate is starting to come down from all of that. Ooh, deep breaths, everyone. This episode’s money question is up next. So calm down too and stay with us.
Sean Pyles:
This episode’s money question comes from Lauren, who wrote us an email. Here it is.
“Hi nerdy Nerds. I’m not a parent. I’m never going to be a parent. Because of that, I have made it part of my financial plan to contribute to the 529 plans of kids around me. Because I don’t have nieces and nephews, I’m contributing toward the savings of my friend’s three-year-old. How much needs to go into a 529 starting at age two or three to cover a four-year private college?”
“I got the details on this kid’s 529 plan from his dad and started contributing about $100 a month. We didn’t talk about it. I intend to keep chipping in until the kid is done getting formal education 20 to 25 years from now. How do I talk to the parents? I want to understand if I’m helping enough without becoming privy to their private financial details. I also don’t want to make it seem like I have any vote whatsoever in how the kid charts an educational path. How do I broach this with the parents?”
Sara Rathner:
To help us answer this listener’s question, on this episode of the podcast, we are joined by NerdWallet writer Elizabeth Ayoola. Welcome.
Elizabeth Ayoola:
Hello, and hi.
Sean Pyles:
Elizabeth, so good to have you on.
So let’s start by setting some groundwork. Can you please describe what a 529 college savings plan is, how they work, and why they’re such a big deal?
Elizabeth Ayoola:
A 529 plan is a huge deal indeed to me anyway. I wish I had one when I went to college because I was left with a huge bill. But anyways.
529s are tax advantaged college savings plans, and they allow people to save and invest money for education expenses. So, with that said, the money gets to grow, and it gets to compound, which can mean beneficiaries have a nice education pot to pull from when they need the money. And for those who don’t know what compounding is, it’s essentially when your interest earns interest.
Sara Rathner:
It’s the eighth wonder of the world.
Elizabeth Ayoola:
Sara Rathner:
So you mentioned education expenses and that’s what the purpose of this account is, but what kinds of education expenses can you use a 529 to fund?
Elizabeth Ayoola:
Funds in a 529 account can be used to cover a vast range of qualified expenses, and that can range from tuition to computers and education related equipment. The expenses can also be used to pay for education needs of your beneficiaries. And the good thing that I like is that the beneficiaries can be in anywhere from kindergarten through grade 12. So that said, it’s not only for college students.
Sean Pyles:
Right, that is a really good point because people hear about 529 accounts, and they think they may be specifically for people going through a traditional four-year education, but people can also use the funds in the 529 college savings plan to cover things like trade schools too. So it really isn’t only for that traditional four-year higher education route.
Sara Rathner:
So earlier you mentioned that 529s are tax advantaged accounts. Can you talk a little bit about the tax treatment of them, and what should people know when they’re considering opening a 529?
Elizabeth Ayoola:
Well, one thing that I personally like about these accounts that some people don’t know also is that some states offer a tax deduction if you contribute to their plan. And when I say their plan, I mean the state that you live in. But there is no federal tax deduction for a 529 contribution. So it’s only at a state level. The tax deduction is usually capped. So no, you can’t just deduct your entire contribution. The deduction amount varies from state to state. So it’s best that you check in your state what the amount may be, if they offer it.
And a little bit off-topic, but I also like that the IRS doesn’t set a cap on your contributions to a 529 account, although some states do set a limit.
Sean Pyles:
And I’ll call out two other tax benefits of 529 college savings plans. The first is that investment growth in this account is tax-free, and second, distribution for qualified expenses like tuition or books are also tax-free.
Elizabeth, another important thing to know about 529 college savings plans is that each state has their own, and you don’t have to choose the 529 plan from the state that you live in. And this can all get a little bit confusing because there are so many states to choose from. So, at a high level, can you outline the main differences between a 529 from one state to the next, and how would someone go about choosing which state’s 529 plan to use?
Elizabeth Ayoola:
One of the major differences that people should know and a reason that people may cheat on their state’s 529 plan is lower fees. I personally have a 529 from a different state than my current home state for that very reason. So people should consider shopping around and comparing fees before opening an account. Ultimately, the goal should be to do some math and see whether the deductions and the credits that you’re going to get in the state that you live in are worth more than the lower fees that you could get in another state in the long term.
Also, note that you can open multiple 529 accounts. I have multiple 529 accounts. I recently opened a second one in my home state, Florida, because my son was awarded a grant and it could be transferred to a 529 account, but the catch was it had to be a Florida 529 plan.
Sara Rathner:
So 529s have some flexibility, which we talked about before, not just for four-year educations, but also for trade schools and for K to 12 expenses as well. And interestingly enough, 529s were just made even more flexible. Can you talk about recent changes around the ability to roll 529 funds into a Roth IRA, and what that means for folks who maybe aren’t considering going to college?
Elizabeth Ayoola:
The Secure Act 2.0 was recently passed, and if I can be honest, that’s what motivated me to open up my first 529 account, and I just opened it last year. I was always on the fence and only saved money in a brokerage account because I was afraid of what would happen if my son decided not to go to college in 15 years. He’s six, by the way.
I decided to get off the fence when the Secure Act 2.0 made it possible for people to roll at least a portion of the unused funds into a Roth account. However, you do have to wait until 15 years after you’ve opened the 529 account before you can roll those funds over. And you can also only roll up to a certain limit starting in 2024. It may be ideal to read the IRS’s rules, they have a lot of fine print around the conversion or speak to a finance professional about it.
I think Roths are also awesome because they aren’t subject to required minimum distributions and withdrawals. They’re also tax-free when you meet certain requirements like waiting until 59-1/2, amongst other rules.
Sara Rathner:
All right, well thank you for that great summary of the tax rules surrounding this new change. We just want to let you all know that we are not investing or tax professionals, and if you have any specific questions to your own situation, definitely consult a professional who can give you guidance.
Now let’s turn to the fun stuff. The math, Sean. I know that you are in the midst of your certified financial planner coursework. I have slogged through that myself. It is a lot. It is a lot of math.
Sean Pyles:
Sara Rathner:
And now that you know how to do it, I’m sure you’re eager to show off your chops. So are there any insights you can share that will help our listener figure out how much they need to save every month or every year to help their friends reach their savings goals?
Sean Pyles:
As a matter of fact, yes. And you’re right, I have been waiting for an opportunity to show off what I’ve been learning about because often I’m just doing calculations in silence and this is a time for me to be loud and proud about hitting buttons on a calculator. So let’s do it.
I’ll spare you and our listeners the specifics of the calculation, but I plugged the listener’s situation into a time value of money calculation and got a rough estimate for how much they will need to save.
Sara Rathner:
All right, drum roll. What’s the number?
Sean Pyles:
For our listener to meet the savings goal that they outlined in their question, remember, they want to save for four years of education at a private college starting now-ish and saving until the kid finishes school. They would need to save around $8,000 per year. Obviously, that’s a lot of money to contribute to a 529 account, no less for a kid who isn’t your own. And this is why 529s are often just part of the picture when it comes to paying for college, which usually includes some combination of scholarships, grants and loans and generous gifts from family friends.
Sara Rathner:
That is definitely more than a hundy a month.
Sean Pyles:
Yeah, that’s for sure.
All right, so all of that math out of the way, I want to talk about the other part of our listener’s question. They seem to be concerned about how much they should contribute and also how to talk about this with their friends. I am not a parent, so I would love to hear from both of you who are parents, how you would approach the situation if you had such a generous friend. Would you welcome the money, or say get out of my business? Or if you are going to accept this money, if you want to have this conversation with your friend, how would you want them to communicate that with you?
Elizabeth Ayoola:
Honestly, I would welcome the money, especially because I’m a single mama. So as a matter of fact, my friends always contribute to my son’s savings account in London for his birthdays or holidays and I really, really appreciate it. It can be a better gift to me than toys that stab me in the foot within a few days.
Sean Pyles:
Elizabeth Ayoola:
I would also appreciate a friend asking me what my savings goals are, so they know how to support that goal. However, I do think, for the sake of boundaries, I would like my friend to ask me my comfort level with the topic before they dive in and start trying to give advice.
I think it’s also important to note that not everyone is comfortable discussing money or financial goals. But with that said, here’s an example of maybe how somebody could say it. So you may say, “Hey, I want to help you reach John’s college savings goal. Are you comfortable discussing that target number you have in mind, and can you tell me how I can support that?” Or another option could be you saying, “Hey, would you like to do the math yourself and then let me know how I can support that goal?” So those are just a couple of options.
Sara Rathner:
Yeah, I mean, I’m not going to look a gift horse in the mouth. College is expensive now, and it’s only going to become even more expensive in the future. Even in-state tuition, where I live in Virginia, is often over $20,000 a year. That used to be the economical way to get a four-year degree, and now it’s also very, very expensive. So what’s it going to be like by the time my kid’s in college? I don’t know. A lot.
Sean Pyles:
I think we can confidently say more money.
Sara Rathner:
Confidently, we can say a whole lot more money.
I would want my friends to decide for themselves what they feel comfortable giving, because I don’t feel comfortable telling another person how they should allot their money because they have other competing financial goals and obligations. And I never want to tell another person what they can do with their money unless they specifically ask me to tell them what to do with their money, which nobody ever asks me.
Sean Pyles:
And you also don’t want to give the impression that your friends can’t look after their own family’s finances, right? That’s a bit of the awkwardness underlying the question, is you want to help someone that you care about and this child that you’re seeing grow up in the world, but you don’t want to impose your will upon them. It seems like our listener is being very thoughtful about that. And you don’t want to make it seem like you think they aren’t doing enough.
Sara Rathner:
Right, or you think their kids should go to a four-year private university because that’s what you value, but maybe the parents have other values that they want to impart upon their child as the kid grows up, and then the kid will go off and do their own thing as a young adult.
In my case, we have a 529 for our son. We have family members who’ve contributed money. They’ve just written checks to us, and then we deposit it into our account that is tied to our 529 and then deposit the money into the 529.
Ultimately, when you contribute, you do go through the account owners, and that’s oftentimes parent or guardians. You are going to have to communicate with them because they’re ultimately the gatekeeper of that account. They are the owners, and then the child is the beneficiary.
Sean Pyles:
That actually brings up something that I wanted to talk about, which is who would own this account? The listener could in theory open up a 529 account on their own for this kid. But long-term, it’s probably going to be easier if the parents are the owners of the account, because that way when the kid is eventually ready to go to college or trade school or what have you, the parent can be the one managing those distributions.
Personally, I know as a friend, as much as I love my friends and my friends’ kids, I don’t want to have to manage that down the road. So that’s something else that they should think about when they’re talking about this with their friends.
Sara Rathner:
I definitely agree with talking to the parents and ultimately contributing to an account that the parents or guardians are in charge of.
Sean Pyles:
Well, Elizabeth, do you have any final thoughts around 529s and helping your friend’s kids afford college?
Elizabeth Ayoola:
I think we have given some very juicy tips here and only two more things come to mind, which is one, while it’s noble to contribute to your friend’s kids or loved one’s kids’ 529 account, please take advantage of any state income tax deductions that you might be eligible for. The rules around this can be muddy. And I know the original listener who asked this question lives in a different state than where he’s contributing, but sometimes you’re able to get a deduction depending on the state that you live in. So if you can get money back, I mean, why not?
My second thing that I’ll say is that if your loved one doesn’t have a number in mind, guide them to a college savings calculator or run the numbers together over coffee if they’re open to doing that.
Sean Pyles:
Great. Well, thank you so much for coming on and talking with us.
Elizabeth Ayoola:
I loved it. Thank you for having me.
Sean Pyles:
And that is all we have for this episode. If you have a money question of your own, turn to the Nerds and call or text us your question at 901-730-6373. That’s 901-730-NERD. You can also email us at [email protected].
Visit nerdwallet.com/podcast for more info on this episode. And remember to follow, rate, and review us wherever you’re getting this podcast.
Sara Rathner:
This episode was produced by Sean Pyles and myself. Kevin Berry and Tess Vigeland helped with editing. Sara Brink mixed our audio. And a big thank you to NerdWallet’s editors for all of their help.
And here’s our brief disclaimer:
We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
Sean Pyles:
And with that said, until next time, turn to the Nerds.
Are you all about saving, spending, or do you hide your head in the sand when it comes to personal finance matters? This money personality quiz helps you uncover your money style. That, in turn, can be a way to learn about your strengths and weaknesses and manage your cash that much better.
Each person handles their money in a unique way. Some people are laser-focused on saving and building their nest egg. Others believe that money is there to be spent on fun and satisfying purchases and experiences. And still others would prefer to look the other way when talk turns to 401(k)s and IRAs.
By knowing your money M.O., you can take steps to enhance your financial status. Ready? Read on for the details.
What’s Your Money Personality?
Steady Saver
Did the money personality quiz say you’re a steady saver? That likely means that you are well aware of your monthly budget and how much cash is coming in and going out. In addition, you are probably following the standard financial advice to save at least 10% or 20% of your take-home pay.
You may well be investing that in a 401(k) and getting a company match and putting funds into an IRA, too.
You are the kind who may have multiple bank accounts, with savings for various short- and long-term goals, such as the down payment on a home and your toddler’s future educational needs. Heck, you might even brag a little to friends and family about how much you have socked away.
Overall, you have some very impressive financial habits down pat. Keep up the good work. However, are you missing out on living your best life? There is the possibility that you may be overdoing it and being perhaps a tad too rigid. Does saving for Junior’s college fund mean the family can’t take a vacation for the next 17 years? Check in with yourself, and make sure you aren’t overly focused on your future goals.
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Super Spender
To cut to the chase, you love the things that money can buy. Nothing wrong with that! Omakase dinners at that new Japanese restaurant, the perfect new dining table, the latest mobile device, and baby’s first Disney vacay: There are plenty of things that your income can buy that make daily life delightful and memorable.
But when you see money as simply a conduit for experiencing the best here and now, you are likely risking a couple of very important things:
• You may be incurring debt.
• You may not be planning for your future.
• You may be succumbing to lifestyle creep vs. building wealth.
So here are some steps to take:
• Consider whether you are saving towards the important milestone goals that many people aspire to, such as the down payment on a home, a college fund for your kids, and a healthy retirement account.
Meeting with a financial advisor may be a wise move to get you on track for saving for these aspirations and perhaps learning more about the fine points of investing.
• Take a look at your budget, or make one if you don’t yet have one. Among the various budgeting methods is the popular 50/30/20 rule, which says to put 50% of your take-home towards needs, 30% to wants, and 20% towards savings and additional debt payments.
• Check in with your credit card debt. You don’t want your balances and credit utilization ratio to get too high. If you find you are facing challenges, consider a snagging balance transfer credit card offer, using a lower-interest personal loan to pay off credit card debt, or working with a nonprofit credit counseling agency to reduce your load.
The Money Shunner
If the money personality quiz indicates that you’re a money shunner, it may mean you are not comfortable with financial matters so you choose to look the other way. Many people feel stressed when thinking about money, whether because they don’t think they are good with numbers or they don’t have a solid base in personal finances (after all, you probably didn’t sit through a budgeting basics class in high school).
But if you tend to avoid money matters, you could be missing opportunities to reach your personal goals and gain a sense of security.
To gain financial literacy, you can dip into self-education. Your bank may have a library of content, or you can try well-respected books, magazines, newsletters, and podcasts. You might also take a class, whether in person or online.
In addition, meeting with a financial advisor could be helpful.
You may also want to pay more attention to your budget and understand your income and how much you’re spending and saving. These steps can help you make friends with your money and get it to work harder for you.
Recommended: Getting Back on Track After Going Over Budget
The Takeaway
A money personality quiz can reveal what your relationship with your finances is like. It can help identify whether you tend to be focused on saving (perhaps too much so), spend a bit too freely, or don’t pay enough attention to your cash. By tweaking your approach, you could build your financial literacy and wealth. Making sure you have the right advisors and banking partner are other important facets of this.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
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FAQ
What are some common money personality types?
There are different ways to categorize money personalities. You may see ones that use the terms spender, saver, and avoider, among others.
How do I know if my money style is too much about spending?
Typical signs that your money style involves too much spending can be having a large amount of credit card debt, living paycheck to paycheck, and not saving enough (or at all).
If my money style is a saver, isn’t that good?
Saver can be an excellent habit and can help you reach your financial goals and be prepared for whatever comes your way. However, you likely don’t want to go overboard and should enjoy your earnings as well.
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SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
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Looking for the best business ideas for kids? Finding business ideas for kids is a great way for them to learn about starting their own business, being responsible, and understanding money from a young age. They get to understand how to set goals, handle money, and feel the joy of earning their own extra income….
Looking for the best business ideas for kids?
Finding business ideas for kids is a great way for them to learn about starting their own business, being responsible, and understanding money from a young age. They get to understand how to set goals, handle money, and feel the joy of earning their own extra income.
Whether it’s in the summer, after school, or on weekends, having a small business can be a fun and educational thing to start.
I did many different things as a kid to make extra money, and they all taught me so much. There are many different ways for kids to make money, as you will learn below.
Best Small Business Ideas for Kids
Here are the best business ideas for kids to start.
1. Sell arts and crafts
If your kid enjoys being creative and making things with their hands, selling arts and crafts can be a great business idea for them. It’s not only fun but can also help them earn some money.
Here are some crafts kids can make and sell:
Bead jewelry – They can make necklaces and bracelets with colorful beads.
Homemade candles – Candles are simple to make and can be sold to people who like to add a cozy feel to their homes.
Paintings – If they like to paint or draw, they can create artwork to sell.
Slime – Slime is really popular and fun to play with. Kids can make and sell their own slime in different colors and maybe even add things like glitter to make it unique.
Pet toys – If they love animals, they could make toys for pets. Choose materials that are safe for animals and design toys that pets would enjoy.
Soap – Homemade soap is always nice to have, and people love to buy it. This can be a fun item to make on their own.
Stickers – Everyone loves stickers and this can be a fun way to make extra money on Etsy or in person.
Recommended reading: 16 Best Things To Sell On Etsy To Make Money
2. Tutoring
If your child is really good at a subject like math or science, they can start a tutoring business. They can help other kids who might find those subjects tough.
Tutoring is something they can do after school when they’re finished with their own homework. It’s a great way to use what they know to help others and even make some money.
Learn more at The Best Online Tutoring Jobs.
3. Babysitter
If your child loves being around kids, babysitting can be a great way to start their journey into the world of small businesses for kids. It’s not just about watching kids; it’s about creating a fun and safe environment while parents are away.
Your child’s reputation is important, and they can start with their neighbors or family friends who already know and trust them.
To decide what they should charge, you can look at what other babysitters charge in your area, but consider how much experience your kid has.
I recommend having your child learn about basic first aid and child care, and you can find classes through community centers or the Red Cross.
Babysitting is what I did the most of as a kid. It was my first full-time job, actually. Starting at the age of 14, I was working around 40 hours per week in the summer taking care of a baby in my neighborhood (I found the babysitting ad on a local bulletin board!). I earned $10 per hour. The mother was a nurse, so I was working about 13 hours per day for a few days each week.
4. Pet sitting and dog walking
If your kid loves animals, starting a pet care service or dog walking business could be perfect for them. It’s more than just a job; it’s a way to care for pets when their owners can’t.
In this job, you might look after pets either at your own home (called pet boarding) or take care of them at their home.
Depending on their age, your child may walk the dog for 15 to 30 minutes a day, or more.
I was recently looking at a local bulletin board, and a parent put up an ad for their 10-year-old to walk dogs. The parent would be there as well (to ensure the safety of both the child and pet, of course), but it was a small business idea that the kid wanted to start. If your child is a little older, they may be able to do this on their own as well.
5. Lemonade stand
Starting a lemonade stand is more than just a fun activity; it can be their first step for starting a business as a kid!
Your child will probably want to start with a simple recipe, as lemonade does not have to be hard. They can try different flavors, like strawberry, to make your stand unique.
They will need pitchers, cups, ice, and a table.
Work out how much each glass of lemonade costs to make, and then decide on a price that makes a little profit but is still affordable for customers.
6. Mow lawns
Mowing lawns is a great way to start a small business as a kid. It’s simple to get going, and kids can make money during spring and summer.
They’ll need a lawn mower, fuel, and basic gardening tools.
Next, it’s time to set rates. Figure out how much to charge for each yard. A good plan is to look at what others charge and then set a competitive price.
Your kid can talk to neighbors, family, and friends to find new lawn mowing jobs.
I know many, many families who have kids who mow lawns to make money. I also know several people who have older kids who have turned this into a full-time business that has grown with them as an adult.
7. Rake leaves
Raking leaves is a great business idea, especially during the fall. Trees drop their leaves and many homeowners need help gathering and disposing of them.
To get started, your kid will need to have a sturdy rake, bags for leaf collection, and a pair of gloves to keep their hands clean and protect them from blisters.
8. Shovel snow
If you live in a place where snow falls, a kid can make money by shoveling snow. This job is great if they enjoy being outdoors and don’t mind the cold. Start by asking family and neighbors if they need help clearing their driveways and walkways.
They will need a few things to start:
A shovel: This is the main tool, of course!
Warm clothes and gloves: Stay warm while they work.
Your kid can hand out flyers or tell friends to spread the word. Social media can be a big help too. A simple post can let everyone in your neighborhood know that your kid is ready to help clear the snow.
9. Birthday party assistant
If your kid likes being around kids and celebrations, becoming a birthday party assistant could be a fun way for them to earn money.
They will help set up decorations (balloons, banners, and table settings), organize games (such as being ready to lead a game of musical chairs or a treasure hunt), and make sure the party runs smoothly (they might help serve cake and snacks to the little guests.).
10. Start a YouTube channel
Starting a YouTube channel can be exciting. If your child is under 13, remember, they can’t have their own account. But with a parent’s help, they can still share videos.
Your child can pick something they love, whether it’s science experiments, video game walkthroughs, or crafting tutorials.
They will want to post videos regularly – maybe post once a week to start.
Remember, it’s all about doing something fun and sharing what they love. Starting a YouTube channel takes work, but if they stick with it, they could make something really cool.
11. Lifeguard
If your child is looking for a responsible way to earn some extra cash, becoming a lifeguard could be a way to make money.
Not only does this gig teach important life-saving skills but it also teaches them responsibility and discipline. Many local pools or community centers offer lifeguard certification courses, giving them an excellent opportunity for young entrepreneurs to get valuable training.
Running a small lifeguard business can be a win-win situation for kids and the community. They can sell their services to local events, pool parties, or even provide private swimming lessons.
Note: In most states, you need to be at least 15-years-old to become a lifeguard.
12. Start a greeting cards business
Starting a greeting card business is something your kid can have fun with and get their creative juices flowing! They can make cards for birthdays, holidays, thank you, congratulations, or just to say hello.
They will need:
Art supplies, like colored pencils and markers
Cardstock or heavy paper
A printer (if they’re printing designs)
Digital design software like Canva (this is optional)
They could start by selling to family and friends or at school events. As they grow, they could try selling them at local markets or even online.
13. Neighborhood helper
As a neighborhood helper, they can sell their services to people around your community. This is a great way to help others and earn some money.
Your child can sell services such as:
Car washing: Wash cars for people in the neighborhood for a shiny finish.
Grocery running: Offer to pick up groceries for those who can’t go themselves.
Gardening: Help maintain gardens by planting flowers or weeding.
Lawn care: Keep neighbors’ lawns neat by mowing them regularly.
Pet walking: Walk neighbors’ dogs when they’re busy or away.
To get started, your kid should make a list of what they’re good at and what they might enjoy doing. Then, let neighbors know about their services with flyers or tell them directly.
If you have many kids, they could even involve multiple family members so that each kid has their own specialty or niche as a neighborhood helper.
14. Reseller
Starting a small business as a reseller means buying products at a lower price and selling them for a profit. They don’t need to make their own things; instead, they can find good deals on items, then sell them to others for more than they paid.
They can get items from yard sales, thrift stores, or their own home.
They can sell online on places like Etsy or eBay, or at school events and local fairs.
Recommended reading: 16 Best Selling Apps For Selling Stuff Online And Locally
15. Voice artist
Becoming a voice artist can be an exciting way for kids to explore and share their talent. If they enjoy speaking and have a unique voice, this could be a fun business idea for them.
They can sell services for character voices for cartoons and animations, narration for audiobooks or educational videos, commercial voice-overs for ads and marketing materials, and more.
They will need to start with a good microphone and recording software on a computer. They can practice by reading out loud and recording their voice.
To find work, they can join online platforms like Fiverr, where people look for young voice talent.
Recommended reading: How To Become A Voice Over Actor
16. Actor
If your child is interested in acting, the first step is to take acting classes, which can help them learn the skills they need to act in plays, movies, or TV. These can be found online or at a business near you.
Once they have some skills, they can try out for local theater productions and school plays, and join their school’s drama club. Being part of a production gives them practical experience and shows them what it’s like to work with a director and other actors.
17. Sell candy
Starting a candy business can be both fun and rewarding. With a love for sweets and a little creativity, your child can turn their passion into profit.
Candy is something that I see children selling all the time, and it completely makes sense – everyone loves candy! So, it is an easy item to sell.
They can sell homemade treats like chocolate-covered pretzels or gummy bears. Or, if you prefer, you can buy popular brands in bulk and sell them individually.
Next, consider where they will sell the candy. They may be able to sell at school, neighborhood, or local community events, and you should always ask for permission when selling in public areas or on someone else’s property.
Pricing the candy is important. You’ll want to make sure your kid covers the cost of what was spent and adds a little extra for their profit. Selling candy for $2 or $3 can make it easy for customers to buy without thinking twice.
18. Start a blog
If your kid is interested in working online, then they may want to try starting a blog. It doesn’t take a lot of money to get started, and it can teach a kid a lot about how to run a website.
I have met many teens over the years who have started a blog, and I think it’s a great small business idea!
Whether they want to share their hobbies, interests, or personal experiences, a blog gives them a platform to be creative and communicate.
Other business ideas for kids related to this include starting accounts on social media platforms like Instagram and Twitter, and starting a podcast.
Recommended reading: How To Start A Blog Free Course
19. Deliver newspapers
Newspaper delivery is a classic way for children to earn some money. It’s a job that can fit well into their schedule before or after school. Plus, they can get good exercise at the same time!
It’s usually pretty simple: they take newspapers and deliver them to people’s homes.
When I was younger, I had a friend who had a delivery route. Once, I went along with her and helped her deliver some newspapers. It was hard work but she ran it smoothly!
If your kid is interested in this job, start by checking with local newspapers. Call them and ask if they’re looking for delivery helpers. Some things they might need:
A bicycle or a reliable way to get around the delivery area quickly
A bag or basket to hold the newspapers as they deliver them
An early morning start if the paper is a morning edition
To dress for the weather, since they will be outside
They will learn responsibility by making sure the newspapers are delivered on time.
Sometimes there may be age limits, so if your child is younger, they might need to get a work permit. But often, kids as young as 11 or 12 can start with a bit of paperwork.
20. Sell used toys
Recently, I was on Facebook, and a parent was helping their child host a garage sale. They were letting their child take control of most of the sale, but the parent was posting about it in the group to get more traffic to their yard sale.
They were selling the kid’s used toys to help them declutter and make some extra money. I thought this was a great idea!
Kids can learn the basics of entrepreneurship by organizing and pricing their toys for sale. This activity not only teaches them about value assessment but also introduces the concept of supply and demand as they observe which toys are more popular among buyers.
People pay good money for used toys all the time, so this can be a great side hustle to get into.
21. Face painting
Face painting can be a fun and profitable small business venture for kids who love art and painting. They can start by setting up a face painting booth at local events or birthday parties.
Running a face painting business encourages kids to develop their entrepreneurial skills, from marketing their services to managing customer interactions.
22. Recycling collector
Kids who care about the environment can turn it into a business by collecting recyclables. With a passion for keeping things green, they can offer to gather recyclables from neighbors, schools, or local businesses.
This not only helps the environment but also teaches kids about reducing waste and recycling.
23. Vending machines
I have been seeing more and more parents starting vending machine businesses for their children.
Getting kids into the entrepreneurial world by running vending machines can be an interesting and educational small business idea. Whether they decide to place machines in school common areas or local community spaces, managing a vending business can help teach children valuable lessons in supply and demand, handling inventory, and understanding customer preferences.
Running vending machines also gives kids a chance to learn about financial responsibility as they handle income, expenses, and profit calculations.
Recommended reading: How To Start A Vending Machine Business
Frequently Asked Questions
In this section, you’ll find answers to common questions about starting a business as a kid.
What is a good business to start as a kid?
Starting a business that fits into their hobbies and interests makes a good choice. For instance, if they like technology, they might try starting a blog or YouTube channel. If they love the outdoors, then a lawn mowing or gardening business might be a better fit.
How can a kid make $100 dollars fast?
A kid can make $100 fast by selling their old toys or clothing items that they already have. You, the parent, can help them organize a yard sale or gather their items to sell in a Facebook buy/sell group.
What can kids sell to make money?
Kids can sell a lot of different things to make money, such as jewelry, paintings, greeting cards, homemade cookies, lemonade, used toys, and more.
What kind of businesses can young students start at school?
They can start businesses at school like a pencil and eraser store, a book swap service, or a snack bar (if the school allows it). Just remember to check in with the school’s rules to make sure their business idea is allowed on the school campus.
What steps can a child take to start their own business?
Here are steps a child can take to start their own small business:
Identify interests and skills – This will help them find a business idea that they actually like.
Research business ideas – Research different small business ideas suitable for kids and think about factors like their age, skills, and the resources available.
Create a business plan – Develop a simple business plan outlining the business idea, target audience, products or services offered, and basic strategies for marketing and sales.
Learn basic business – Introduce the child to basic business concepts such as budgeting, pricing, and customer service, and this can be done through discussions, educational resources, and more.
Decide on pricing – Teach your child about pricing by thinking about the cost of materials, time, and possibly profit. This helps them understand the value of their products or services.
Market the business – Your child could create posters, use social media with parental supervision, or spread the word within the local community such as by placing an ad on a local bulletin board.
Provide good customer service – I highly recommend making sure that you teach your child the importance of treating customers with respect and giving great service as this can lead to repeat business and word-of-mouth referrals.
Track finances – Teach the child basic financial management, including tracking income and expenses.
Celebrate achievements – Celebrate small victories and milestones to keep the child motivated and proud of their entrepreneurial journey.
Throughout this process, parental involvement is so important. Parents can guide, supervise, and provide a supportive environment for the child’s business, making sure it is a positive and educational experience (and safe!).
Can a 9 year old make a small business?
At around 9 years old, they can start businesses that use creativity and simple skills. For example, making greeting cards or friendship bracelets.
What business can a 10 year old make?
There are many things that a 10-year-old can do to make extra money. A 10-year-old can start a lemonade stand, sell crafts, do yard work, and more.
How can an 11 year old make cash?
There are many things that an 11-year-old can do to make extra money. An 11-year-old can rake leaves, walk dogs, sell baked goods like cupcakes, and more.
What are some simple business ideas for children under 12?
Younger kids can think about businesses like lemonade stands, which are simple to set up and manage. They also might create and sell craft items or start a pet sitting service for neighbors if they enjoy spending time with animals.
How can a teenager make money online?
A teen can make money online by blogging, offering online tutoring services, selling printables on Etsy, reselling items online, and more. I recommend reading 17 Online Jobs For Teens To Make Money to learn more.
How can children stay safe when starting a business?
When starting a small business as a kid, it’s important to think about safety and the rules they need to follow. For safety, always make sure they have an adult they trust to help watch over their business. If they’re selling something like food or crafts, make sure everything they use is safe and won’t hurt anyone.
For legal aspects, different places have different rules for businesses. They might need to ask for permission from someone (like you, the parent) or maybe need a permit.
They also need to make sure they have supervision, which means having an adult around to help them out and make sure everything’s going right. Monitoring what they are doing online, if they are dealing with customers, can be very smart because you never know who they are selling to or talking with.
Small Business Ideas for Kids – Summary
I hope you enjoyed this blog post about small business ideas for kids.
From traditional ways to make extra money like running a lemonade stand or mowing lawns to more modern business ideas like making and selling crafts or starting a YouTube channel, the possibilities for kid-run businesses are plentiful.
Starting a business as a kid can teach children valuable problem-solving and life skills. With the proper guidance and help, there are many different good business ideas that a kid can start.
I have been earning my own money from a young age, and it has taught me so much. I highly recommend helping your kids do the same!
Whether you’re saving for retirement or for your children’s college education, reaching your monetary goals typically requires putting together a financial plan to help you get there. If that feels overwhelming, you may be wondering if you should consult a financial advisor.
More experienced investors may also reach a point when talking to a financial advisor might come in handy, such as when they’re contemplating making a major move with their money.
So how do you know if — and when — working with a financial advisor is right for you? Taking a “do I need a financial advisor?” quiz, like the one below, can help.
What Is a Financial Advisor?
A financial advisor helps individuals manage their money and create a financial plan for the future. A financial advisor can help you create a budget, plan for retirement, and pay off debt among other things.
An advisor can help you reach your financial goals. That kind of assistance can be useful if you’re not quite sure how to reach those milestones yourself.
Of course, working with a financial advisor means paying a fee for their services, which is typically around 1% of the assets they manage. So before you hire an advisor, consider whether the expense is worth it for you.
Financial Planning Quiz
If you’re still not sure whether you need financial planning help, taking the quiz below can help you decide if reaching out to a financial advisor makes sense for your situation.
You Need a Financial Advisor
If the quiz says you could benefit from some professional financial help, a financial advisor could help you plan for your future.
For instance, they can help you create a budget to keep on track with spending. By controlling what you spend, you may be able to begin saving for your financial goals.
If you’re going through or facing a life change, such as a new baby or a job loss, a financial advisor could help you navigate through and manage it financially. They can help you set up an emergency fund to help deal with unexpected expenses that come up.
For those dealing with debt, such as student loans or credit card debt, a financial advisor can also help come up with a strategy for paying down the debt owed so that it doesn’t keep piling up.
Finally, a financial advisor can help you save and invest for retirement as well as other important milestones, such as your kids’ college or a new home. These are all things to keep in mind when choosing a financial advisor.
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You Don’t Need a Financial Advisor Right Now
Your quiz answers indicate that you’re doing a good job of saving and investing for your future and that you have a solid plan in place. Congratulations!
That means you likely have an emergency fund with enough in it to cover at least six months of expenses if needed, and you’re probably saving the standard recommended amount of 10% to 20% of your take-home pay.
In addition, you likely have a 401(k) to which you’re contributing the maximum amount and also getting your company match (if applicable), and you possibly have other retirement accounts as well, such as an IRA.
Your answers also indicate that you feel pretty comfortable with investing, and you have a good handle on how much risk you can tolerate. At some point, if you decide to diversify your portfolio and branch out into investments you’re not familiar with, such as real estate, you may want to consult a financial advisor at that time. In the meantime, keep up the good work!
The Takeaway
A “Financial Advisor Quiz” can help you determine if you could benefit from some extra help with your financial strategy. It can also help you see what kind of shape you’re in financially and what you might need to do to help secure your future, including ways to save and invest.
Whether you need a financial advisor or not, having a plan in place to reach your financial goals is a very important step to take.
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Target has announced a limited-edition collaboration with the iconic fashion brand Diane von Furstenberg, heading to stores this spring.
The Diane von Furstenberg for Target collection is a collaboration between the fashion designer and her granddaughter, Talita von Furstenberg. It will be available beginning March 23 both in stores and on Target’s website, while supplies last.
Target is also offering customers a chance to shop the collection early at a public event March 15-16 at The Shed in New York City.
What items are in Target’s Diane von Furstenberg collection?
According to a release, the Diane von Furstenberg for Target collection includes over 200 items featuring archival Diane von Furstenberg prints, as well as new patterns and pieces exclusive to Target. In addition to the brand’s iconic wrap dresses, the collection will span women’s, girl’s, baby apparel and accessories, beauty and home decor, with most items priced under $50.
It will also feature made-to-order furniture starting at $300, including headboards, benches and room dividers that can be customized in one of seven exclusive fabrics made for the Target collection.
“Every collection we create is about making women feel confident so they can be the women they want to be,” Diane von Furstenberg said in a release. “Talita and I are proud to partner with Target to extend that invitation to even more women who want to experience timeless pieces that bring effortless glamour and empowerment to their everyday lives.”