Bungalow, a new residential real estate platform, recently launched, announcing it has secured $64M in funding: a $14M Series A led by Khosla Ventures, Atomic VC, Founders Fund, Cherubic Ventures, and Wing Ventures, alongside a $50M debt facility.
Over the past several decades the price of rent has dramatically decoupled from income while student loan balances have reached record highs, putting new strains on early career professionals. Not only is housing this group’s largest expense, but the rental experience remains outdated. Though many early career professionals aren’t looking to live alone, finding roommates on traditional ad platforms is fraught with financial and personal risks. Plus, the existing housing stock is dominated by studios and one bedrooms built when most early career professionals lived with spouses.
“My co-founder and I felt the pain of renting in a new city. It was hard to find a great home and even harder to build a supportive community away from friends and family,” said Andrew Collins, co-founder and CEO of Bungalow. “We founded Bungalow to give early career professionals the ability to live in a beautiful and affordable home, in the neighborhood they want, and with a great community surrounding them.”
Bungalow utilizes existing housing supply by signing long-term leases with homeowners, and offers beautiful, multi-bedroom homes in some of the most desirable neighborhoods in cities throughout the U.S. Bungalow expertly matches potential roommates, provides furnished common areas, and takes care of utilities including WiFi and monthly cleaning services. The company also hosts monthly events for its residents, creating an instant community for those new to a city or who are looking to expand their social circle. This two-sided platform significantly reduces the friction of the rental process for both residents searching for a home and homeowners looking for a source of income without taking on the responsibilities of a landlord.
“One major challenge of today’s residential real estate market is the lack of desirable and accessible rental options for young people in urban areas, a problem that will become more pervasive in years to come,” said Keith Rabois, managing director at Khosla Ventures. “Bungalow is taking a full-stack approach that uniquely addresses the rapidly evolving needs of both renters and homeowners, while creating economic value by more effectively utilizing housing inventory.”
Bungalow has been quietly operating for the last year and a half after its founding in early 2017. Since beginning operations, the company has quickly scaled to hundreds of properties and over 750 residents across five urban areas including: the Bay Area, Los Angeles, New York, San Diego, and Seattle. Today, the company is announcing two new markets to its platform: Portland and Washington, D.C. Bungalow is currently on track to be in 12 major U.S. metro markets by the end of 2018 with plans for global expansion in 2019.
“Bungalow is taking on the $650 billion rental market for early career professionals and it may prove to be a bigger total market size than travel and taxis,” said Jack Abraham, founder and managing partner at Atomic. “By leveraging the existing housing stock and connecting demand with compelling long-term leases, Bungalow is poised to continue its growth to the rest of the country and around the globe.”
Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected].
Inside: Are you moving into your first apartment? Planning a move can be daunting, but with this checklist, everything will be ready for your bed and bathroom you arrive. From a mattress, pots and towels to cleaning supplies and furniture, this list has it all. This is a huge deal!
Moving into your first apartment is an exciting time!
You’re finally out on your own, and you get to decorate and furnish your space however you want.
But before you can start shopping for all the cute home décor, there’s one very important task that needs to be taken care of first: creating a First Apartment Checklist.
This comprehensive checklist will ensure that you don’t forget any essential items when furnishing your new place. From kitchen supplies to bathroom necessities, we’ve got you covered.
So what are you waiting for? Let’s get started!
My First Apartment Mistakes
Moving into your first apartment indeed marks an exciting milestone in life.
However, it is also a moment of awakening when realizing that filling the apartment with all the necessities is not child’s play. My lesson learned the hard way.
It requires great planning and acute mindfulness of one’s budget. While the thrill of setting up your own place can easily lead to overspending, it’s important to keep the budget in check and be judicious about your purchases.
Here are some aspects to consider:
It’s easy to forget that there’s a huge list of big and small things you’ll still need to buy to fully equip your space. However, the keyword here is “need” and not “want”. I should have been better at differentiating between what is absolutely necessary for your immediate living situations and what can be procured later.
Define what you can spend right away by considering the moving costs and other related expenses. After setting the budget, the next most important step is to stick with it. You will be tempted to stretch your limit, but remember that financial restraint is key.
Moreover, remember that you don’t need to get everything right away, certain things can wait. Spend wisely, and stick to immediate needs. You might be surprised to find out that some items you thought were essential, in fact, can be comfortably lived without.
Your home is meant to give comfort, not financial stress.
The above statement is a lesson that stick with you for a long while. Keeping track of your expenses and making wise decisions can help establish your first apartment without breaking the bank.
Learn is $5000 enough to move out?
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Big Items for Your First Apartment Checklist
You’re finally out of your parents’ house and ready to start your own life. Congrats!
This is an important step when you want to move out at 18.
Moving into a new place is both exciting and daunting. To help you make sure you have everything you need for your new digs, we’ve put together a first apartment checklist of all the big items you’ll need to buy.
This is where to focus your money or look to find free items.
1. Mattress
Living in your first apartment?
Do not underestimate the importance of a good mattress.
It’s the foundation for quality sleep, which is crucial for your health and daily performance. Investing in one is non-negotiable even if budget is a constraint.
Personally, this. is the one item I would say to buy new! Thankfully you can find affordable mattresses now.
2. Bed Frame & Headboard
You may be tempted to skip the bed frame in your first apartment, but it’s a key piece that offers myriad benefits.
In full honesty, I didn’t get a headboard for my mattress until well after I was married. But, it was one small thing that made me happy.
Popular bed frame options vary in price from $60 for a simple metal frame to over $200 for wooden or upholstered models. Make sure to evaluate your needs and budget before buying.
3. Couch
Your first apartment is exciting, and the right couch can really set the tone. It’s not only a seating arrangement but also a place for relaxing, entertaining, and unleashing your personality.
When setting up your first apartment, you might be conflicted about whether to buy a new couch or look for a used one. Here are some factors to consider:
For those living by themselves:
A new couch can be a significant investment, but it is worth the cost if you value personal comfort, hygiene, and aesthetics.
Utilize discount stores to find quality furniture that is within your budget. A new couch often comes with warranties or protection plans that can give you peace of mind for any potential repairs or damages.
Investigate measurements and delivery options thoroughly to ensure your new couch comfortably fits your apartment layout.
If you are planning to live with a roommate:
You can consider getting a used couch. This is a great way to cut costs during a time when budgeting and saving money are important.
To make sure the couch you’re acquiring is clean and pest-free, buy or get it for free from trusted sources. Friends or family are often the best people to approach when looking for used furniture.
Look into garage sales or online platforms like Craigslist for options. However, always inspect the couch thoroughly before purchasing it from these sources.
Whether you choose new or used, ensure that the couch fulfills your needs.
4. End Tables and Lamps
End tables and lamps are essentials you need in your first apartment. They offer functionality along with a touch of class to your space.
There are many reasons why they should be on every first apartment checklist.
Versatility: Side tables can be used in various ways, from serving as a coffee holder, providing a place for books and magazines, or showcasing photo frames and indoor plants. It can also function as an extension of your workspace when you need to create an impromptu office setup.
Convenience: Having a side table next to your bed or sofa allows you to have important items within easy reach. This may include your phone charger, eyeglasses, or remote controls.
Decorative Value: Side tables contribute to the aesthetic appeal of your living space. They come in different styles, shapes, and designs that can complement various types of interior décor themes.
More than likely with lamps, you will notice where you need them the most after you move. So, it is okay to wait and buy them.
5. Dining Room Table
Your first apartment isn’t complete without a dining room table. It’s the multi-tasking hero of your living space, essential for meals, socializing, and possibly working or studying.
Finding the right dining room table for your apartment can be a fun and rewarding experience. However, it may be daunting for some, given the myriad of options available in the market.
Here’s a step-by-step guide to help you find your ideal fit:
Determine the Size Needed: The first step in finding the right dining room table is to measure the space it will occupy. Knowing the size helps narrow down the options and ensures a comfortable fit. Consider the number of people you plan on hosting on a regular basis – that should dictate the size of the table you need.
Consider the Shape: Dining tables come in various shapes, including square, rectangle, round, and oval. Identifying the shape that suits your space and lifestyle is crucial. Rectangular tables are the most common, but circular ones are great for maintaining an intimate dining experience, while an oval one can be a middle ground between a square and a round table.
Decide on Style: Whether you lean more towards a modern, contemporary, or rustic look, there are countless styles of dining tables to choose from. Ensure that the style of the table resonates with the rest of your home decor for a harmonious look.
Remember, choosing the right dining table is a balance of both form and function. Considering these aspects will surely help you find the dining room table that fits your lifestyle and space.
A good friend of mine had great luck finding a dining room table at a Restore resale shop. Something to definitely check out!
6. Kitchenware
Moving into your first apartment often comes with the challenge of equipping your kitchen efficiently.
To help guide you in making thoughtful purchases without breaking the bank, here are some important kitchen items you should consider investing in.
Basic Cooking Equipment: A Starter kitchen at the bare minimum requires at least two pots and a frying pan. These should be supplemented with necessary cooking utensils like a ladle, spatula, whisk, etc. You also need a high-quality knife set, at least one cutting board, and measuring cups and spoons to help you prepare and portion your meals accurately.
Food Storage & Serving Items: Get microwave-safe food storage containers to store leftovers efficiently. Additionally, invest in a good set of plates, bowls, glasses, and coffee mugs.
Countertop Appliances: While these can be a bit costly, consider getting a microwave, an InstantPot, and a coffee maker. These can vastly simplify and speed up your daily meal prep.
These are the basic items for a minimalistic kitchen.
7. Patio Furniture
Patio furniture can be an excellent cost-effective addition to your first apartment. Often overlooked, patio furniture can provide advantages for a first-time tenant:
Getting patio furniture as hand-me-downs or buying used ones can save you lots of expenses.
Plus patio furniture can be easily refurbished or painted to match your apartment’s interior design. You can showcase your creativity and add a personal touch without spending much.
8. Grill
One must-have in your first apartment is undoubtedly a grill. Nothing beats the flavor of a good grill and it’s perfect for friendly gatherings or quiet evenings.
Having a grill can add a sense of fun and adventure to your living situation. It allows for new culinary experiences and outdoor entertaining, especially during warmer months when you can have a delightful barbecue party in your yard or balcony.
Grilling can also act as a social catalyst. Whether it’s a relaxed summer evening cookout with neighbors or a gathering of friends for a sporting event, grilling can bring people together in a fun and casual way.
Thanks to websites like Craigslist, eBay, and Facebook Marketplace, second-hand grills in good condition are often available locally and at a much lower cost than brand-new grills.
9. Storage Items
Stepping into your first apartment, huh? The organization will be your closest ally.
Crisp and neat storage items can help you stay clutter-free and make your space feel like home.
This is something I would wait to buy until you are in your space and know what you need. There are so many storage ideas and organization items.
10. Decor
Making your first apartment feel like home is both exciting and challenging. Decor plays a crucial role, transforming an empty space into a cozy, personal refuge.
You want the decor to reflect your style, but the cost may be more than you can afford.
Enter thrift shopping for some of your favorite items.
You can always splurge on that one item you want!
How do I prepare for my first apartment?
Getting your first apartment can be incredibly thrilling, but let us guide you through a smooth transition.
Before making any purchases, it’s critical to create a budget that takes into account moving costs and other associated expenses.
Additionally, make a checklist of essential items to ensure a smooth move, but remember to prioritize immediate needs as some items may not be necessary initially.
Being prepared and methodical about your approach can help significantly in making your first apartment feel like home. It’s all about spending wisely and sticking to your plan.
First Apartment Checklist for Bedroom
Ready to move into your first apartment and need help setting up your bedroom?
This checklist will ensure you won’t miss any essentials.
Bed: Choose a full or queen-size bed to maximize space.
Mattress: Select the right firmness for your sleep style. Don’t forget a mattress pad and bedding.
Nightstand: You need this to place essentials like a reading lamp and a glass of water.
Dresser: An essential piece of furniture for your clothing storage.
Lamp: A softer lighting option for your bedroom. Don’t forget light bulbs!
Closet Organizers: Invest in baskets or cloth storage cubes for easy organization.
Desk and Chair: A small workspace if your room allows. Opt for a stool or folding chair to save money.
Remember every space is unique, tailor this list to your needs and budget.
First Apartment Checklist for Kitchen
As you embark on your solo living adventure, setting up your kitchen shouldn’t be a brain tease.
Here’s a lifesaver list of must-haves:
Remember, your kitchen is not just for cooking, but for hosting toasts and storing eats. Cheers to your new apartment kitchen!
First Apartment Checklist for Living Room
When setting up your first apartment living room, remember to shop for these essential items:
A Cool Lamp or Two: Lighting is crucial. Pick unique lamps that add both light and character to your space.
Side Tables: Grab a couple; these provide additional surfaces for decorations or mugs of tea.
Storage Solutions: Think TV cabinets or bookshelves where you can neatly store your belongings.
Extra Seating: More seats for more guests.
Window Treatments: Curtains or blinds not only offer privacy but can also tie a room together.
Decorative Pillows and Throw Blankets: For aesthetics and comfort.
Decor Items: This includes wall art, picture frames, coffee table books, houseplants, candles and vases. Make your space you.
Be smart in your selections, ensuring each item marries functionality with aesthetics. Holistic harmony is key in a living space.
Technology for Your First Apartment
In today’s digital era, modern apartments are nearly incomplete without a range of essential tech items.
These add convenience, entertainment, and a sense of security to your cozy abode.
Smart TV: This is essential for entertainment and relaxation. It can be a source of news, sports, movies, and shows that make your apartment a much more enjoyable living space.
Roku Stick: If you opt for a basic TV, then these devices enable you to stream content like Netflix, YouTube, and Hulu directly to your TV. This is much needed if you prefer digital streaming over traditional network channels.
Computer / Laptop: This is useful for work, learning, entertainment, and communications in the current digital era. It helps you stay connected to the world and perform various tasks easily.
Wifi Router: A Wi-Fi router is a must-have in this age as it provides an internet connection for all your devices. It enables you to stay connected to the world, shop from home, stream entertainment, or work remotely.
Chargers: Chargers for phones, laptops, and other electronics are essential. They keep your devices powered up and ready for use at any moment.
Speakers: They enhance your entertainment experience by providing high-quality sound for music, TV shows, and movies. They can also be useful for work or study, for instance when participating in video conferences or online courses.
Thankfully prices have dropped significantly on TVs since I bought my first one!
First Apartment Checklist for Bathroom
One key area to consider is your bathroom – it’s essential to have all the basis to make your daily routines smooth and simple. Here’s what you’ll need:
Cleaning Your First Apartment
Ready to take that first crucial clean sweep in your very first apartment? Here’s how you’ll nail it!
Start with unpacking your cleaning essentials, preferably even before you start arranging your furniture. This will make it easier to spot dust, stains, and dirty spots that are usually hidden.
Now, let’s dig into your basic apartment clean-up kit:
Honestly, these frugal green items are perfect to keep things clean and on budget.
Things you need for an apartment that you wouldn’t think of
Moving into your first apartment is an exciting milestone, but it’s also full of small details that are easy to overlook.
Some essential items might not make it on your moving checklist, leaving you scrambling on your first day in your new place.
Basic Handyman Tools: A Leatherman or small toolkit is essential for assembling furniture and making minor repairs.
Hangers: You’ll need more of these than you think for your wardrobe.
Extension cords and surge strips: You’ll need these to plug in all your electronics in spaces with limited outlets.
Drawer organizers: Helps keep your belongings categorized and easy to find. Especially important in small spaces where efficient storage is key.
Flashlight: You never know when a power outage may happen. A flashlight is a crucial tool for safety and navigation in the dark.
Batteries: Handy for various gadgets like remote controls, flashlights, and smoke detectors.
First aid kit: Accidents can happen anywhere, and having a first aid kit handy can make dealing with minor injuries easier and more efficient.
Light bulbs: Essential for maintaining good lighting in your apartment. You don’t want to be left in the dark when a bulb burns out.
Matches and/or lighters: Useful not only for candles and gas stoves but also a necessity in case of a power outage.
Pen and paper: Although we live in a digital age, pen, and paper are still handy for jotting down quick notes, lists, or reminders.
Fire Extinguisher: Better to be safe than sorry!
Carbon Monoxide Detector: Extremely important to have in your apartment
Duct Tape: It solves every DIY project – while almost any.
Security Cameras: It bums me out completely to add this to the list, but in today’s society it is a must-have.
Renter’s insurance is instrumental for various reasons
It provides financial protection in case of unforeseen circumstances like theft, damage due to disasters like fires, or liability if someone gets hurt in your apartment.
Additionally, considering the value of electronics, furniture, clothing, and other personal belongings, investing in renter’s insurance helps safeguard one’s possessions, making it invaluable, especially for first-time renters.
How do I budget for my first apartment?
Managing your expenses while moving into your first apartment is crucial since it’s usually an expensive endeavor with many large and small essentials needed to fully complete your home.
Having a budget not only helps you to control your finances effectively but also assists in prioritizing immediate needs, avoiding unnecessary items, and managing moving costs and related expenses.
Step 1: Make a Budget
Budgeting is, unquestionably, a crucial strategy to manage your personal finances efficiently, particularly while setting up a new apartment.
Begin by detailing your annual net income.
Subsequently, list down all your essential expenditures, such as food, household supplies, phone bills, car payments, credit card bills, clothing, transportation costs, internet charges, healthcare expenses, school loans, and entertainment.
Don’t forget to add a section for “miscellaneous” to cover any unanticipated expenses.
Make sure your expenses are less than your income.
While rent will be your biggest expense, you want to make sure you can truly afford the amount without going broke.
If you observe that your expenses are relatively high, it’s time to analyze your spending patterns and cut down on unnecessary spending.
Step 2: Save Money
Saving money and living frugally requires strategic thinking and discipline.
Honestly, the simplest thing you can do is to set aside 20% of your income each paycheck. That will ensure you are on your way to becoming financially independent.
Simply remember, frugal living doesn’t equate to deprivation, it’s about making informed choices to optimize your resources.
The 100 envelope challenge is extremely popular!
Step 3: Start a Side Hustle
Side hustles can be a flexible and rewarding way to supplement your income, and they’ve become much more popular in recent years.
Manage your time wisely and ensure the side hustle is something you enjoy or are passionate about. It should be a source of additional income without causing stress or burnout.
Here are ways to make money online for beginners.
First Apartment Tips
Embarking on the journey of renting your first apartment can be both exciting and daunting, hence having some essential tips can be quite handy.
1. Make a list of apartment essentials
A list of apartment essentials plays a crucial role, particularly for first-time movers.
The benefits and significance cannot be overstated. Here’s why:
Prevents Overspending: Moving into a new apartment is already expensive. There are lease deposits, rent due, utility set-ups, and other hidden expenditures that can easily catch first-time movers off guard. Having a list of apartment essentials can keep your spending in check, ensuring that you only purchase what’s necessary and avoid unnecessary or impulsive purchases.
Minimizes Stress: The task of moving can be overwhelming, and missing essential items only adds to the stress. A well-thought-out list can not only help you keep track of what you’ve already acquired but also what you need to purchase or source.
Ensures You’re Prepared and Organized: By carefully creating an apartment checklist, you’re ensuring that you have everything you need in your new home, from cleaning supplies and toilet paper to the necessary items for your furry friends.
Saves Time: A concise and focused list saves you time by clearly stating what needs to be acquired, allowing you to focus on other important matters related to the move.
Follow this approach, and you’ll have a comfy, well-equipped apartment in no time.
2. Consider your budget
Experts advise rent shouldn’t exceed 25-30% of your income. But, don’t forget to include your other costs like food, bills, loans, etc
Remember, your dream apartment isn’t worth it if it’s a financial nightmare. Think smart, save hard, and enjoy your new home’s comforts without breaking the bank.
Learn the ideal household percentages.
3. Research apartments
Researching apartments requires careful consideration of numerous factors such as the proximity to vital facilities like workplaces, grocery stores, hospitals, and entertainment joints.
Try to physically tour potential residences where possible to examine amenities and gauge the atmosphere of the neighborhood.
Don’t forget to make inquiries and view the apartment personally or through a floor plan, all these will help you make a wise decision.
4. Check apartment listings for features and amenities
When searching for the perfect apartment, consider features and amenities that align with your lifestyle.
If there is a sym space, you could eliminate your monthly gym membership.
Just make sure the cost of the upgraded amenities is worth the price tag.
While checking apartment listings, ensure to evaluate the location, amenities, available space, and physical integrity.
5. Think about the size and layout of the apartment
Understanding the size and layout of your new apartment is crucial before you start styling and furnishing it.
Acquire a floor plan from the apartment management, and if possible, tour the apartment physically to note the positioning of rooms, doorways, hallways, and stairwells. Take measurements of these areas and visualize the kind of furniture and fixtures they can accommodate fittingly, taking into account maneuverability around corners as well.
Moving to your first apartment is exciting, yet demands careful consideration of the size and layout.
6. Look for apartments with good security
When you’re hunting for your next apartment, don’t forget to check out its security features. This is crucial for your peace of mind.
Ensure the apartment is in a safe neighborhood, close to amenities like hospitals or public transport.
Ask if the apartment complex has features like controlled access gates, security guards, and CCTV surveillance.
Check the apartment for proper alarm systems, well-functioning locks on doors and windows, and that fire safety measures are in place.
Verify the cell phone reception inside the apartment for any emergency calls.
Lastly, always ensure that the parking area is secure and well-lit.
Remember, your apartment isn’t just a place, it’s your sanctuary. It should feel like one, too.
7. Make sure you get a good deal
Before signing a lease, it’s crucial to ensure the rent price is a good deal.
According to the U.S. Census Bureau, the median gross rent from 2015-2019 was approximately $1,097 per month.
8. Talk to the management and make sure you understand the rules
Get to grips with your apartment’s rules by thoroughly reading your lease. Take note of any restrictions, and don’t fear to ask for clarifications. Data indicates that understanding lease terms significantly reduces tenant-landlord conflicts.
It is important you understand your lease as it is a binding contract.
First Apartment Checklist PDF
Moving into your first apartment is exciting but daunting. The First Apartment Checklist PDF helps simplify the process.
Take it at your own pace—don’t rush. This is your journey to your new home. Enjoy!
FAQ
Moving into a new apartment can be quite exciting yet daunting. It’s crucial to carefully inspect the space to ensure it meets your needs and is in optimal condition.
Check the overall cleanliness. Despite initial cleaning, apartments often accumulate dust while vacant. Ensure you have cleaning supplies handy to tackle any overlooked dirt or grime.
Inspect the utilities. Ensure the availability of necessary technology setups and provisions for all your electronic gadgets. And make sure no wires are hanging from the ceiling.
Verify the safety features. Always have a working lock on the door as well as a well lit entrance.
Examine appliances. Make sure essential household appliances like washers, dryers, and a dishwasher are provided and in working condition.
The comfort and safety of your new apartment rely hugely on these checks.
When determining how much you should spend on rent, it’s generally suggested that your allotment should be no more than 25-30% of your after-tax income.
For instance, if your yearly income after taxes is $40,000 per year, your rent should be about $833-$1,000 per month.
Keep in mind, this amount should cover:
Your rent
Utilities (unless they’re included in your rent)
Rental insurance
It’s essential to create a realistic budget by considering your other necessary expenses like food, transport, healthcare, and entertainment. If needed, find ways to cut some of these costs to afford your dream apartment.
Now Get Moving with your Apartment Shopping List!
In conclusion, creating and managing a first apartment checklist requires a judicious mix of prudence and patience.
It’s an exciting journey of setting up your first independent space but it’s also a test of properly managing your resources without compromising on your basic needs.
It’s crucial to remember that you do not need to get everything at once, and it’s okay to take your time to gradually fill your apartment.
Remember, be mindful of your budget and prioritize based on your specific needs and preferences.
And don’t forget, you’re not just setting up an apartment, you’re creating your own unique sanctuary.
With patience and careful planning, you’ll soon have an apartment that’s not only functionally equipped but also a reflection of your personal style. The experience, in the end, will prove to be as rewarding as it is educational.
Know someone else that needs this, too? Then, please share!!
When it comes to spending money, there are the needs in life, and then there are the wants. Of course, when it comes to essentials, you need to shell out for a roof over your head, food, healthcare, WiFi, and other essentials. But those enticing wants can open up a world of fun purchases, dining out, travel, and other discretionary expenses.
What is the definition of a discretionary expense? It’s a non-essential outlay of cash. Examples are any spending that is not required or that is driven by individual preference (say, a brand new fully loaded Bronco vs. a used minivan). They’re optional things that you can choose to spend money on or not. Think of upgrading to a new phone because the camera is cooler or deciding to head to the beach for a long weekend. Those are discretionary, for sure.
Digging into the difference between discretionary and essential spending can help you understand and optimize your spending and your budgeting.
Because discretionary expenses are unnecessary, they can be a good place to trim one’s budget and find more funds to use elsewhere. Read on to learn more about these costs and how to manage them.
What Are Discretionary Expenses?
So, how can someone identify discretionary expenses? To do so, it can be helpful to take a step back and consider what a necessary expense is.
Needs are more or less mandatory or unavoidable. For example, housing expenses, like mortgage payments or rent, are things a person can’t do without.
Most workers have to pay federal and state taxes on their work income. People with outstanding debt are generally expected to make monthly payments. And, in everyday life, food (aka groceries) and fuel (aka gas or public transit) are typically must-haves.
Some of these necessary expenses will still be variable, changing every month. For example, an electricity bill may go up and down depending on how much time is spent at home and the season of the year.
However, the wants of life (or what some people may call the fun stuff) are those expenses paid from your discretionary income. They reflect the goods and services that may not be vital for survival but that people frequently spend money on.
Types of Discretionary Expenses
What are discretionary expenses exactly? Here’s a list of some common ones to consider.
• Eating out: Your everyday meals are a necessity, but when you grab a pricey green juice to go, take a seat at the sushi bar, or join friends for drinks on a Friday, those are discretionary expenses.
• Grooming services: Soap and shampoo may be musts, but massages, manis, facials, and the like are luxuries. Same goes for sending your furbaby to the doggie spa.
• Entertainment: Concerts, movies, comedy shows, and plays can be wonderful experiences. Though you may argue that Taylor Swift or Beyonce tickets are necessary for survival, these are discretionary spending in truth.
• Media: Books, streaming platforms, magazines, and the like are also discretionary expenses.
• Subscription boxes: Do you have wonderful things turn up on your doorstep regularly as part of a subscription? Whether makeup samples or snacks of the world, these don’t count as needs but wants.
• Gifts: Sure, you love treating your nearest and dearest, but splashing out on gifts is optional and therefore a “want,” not a need. Same for holiday trappings, like that high-priced chocolate pecan pie from your favorite bakery.
• Travel: While the “I need a vacation” sentiment runs strong, taking a trip is considered a discretionary expense.
• Clothing: Some clothing (such as items you wear to work) may be rightly considered needs, but when you buy cute shoes on sale just because, well, they are so cute, that is a “want.”
Understanding Needs vs. Wants
Are you seeing a pattern here? Any expenses beyond core costs are considered discretionary; it’s a matter of needs vs wants. Typically, discretionary costs reflect wants. They aren’t needed for a person to function in day-to-day life. Rather, they have more to do with lifestyle.
Broadly, discretionary expenses could include vacations, entertainment, luxury items, eating out in restaurants, and electronic gadgets.
Exactly what constitutes a discretionary expense isn’t always cut and dry. As with any personal choice, there’s likely a significant element of subjectivity.
• As mentioned above, while food is generally thought of as a necessary expense, some types of eating are actually discretionary. Eating at restaurants is avoidable and often more expensive than making food at home. Buying luxury ingredients at the grocery store (ahem, imported cheeses) can be more costly than sticking to pantry staples.
• Similarly, clothing, in many instances, is a necessary expense. If a person lives in a cold climate, owning an insulated winter coat is a legitimate need. (Without one, the person could risk their health or well-being).
Still, there’s tons of variation in the price of winter coats. Choosing to buy a utilitarian coat often costs much less than buying a designer jacket.
Even within the categories of essential expenses, individuals can exercise their discretion to save money.
💡 Quick Tip: Don’t think too hard about your money. Automate your budgeting, saving, and spending with SoFi’s seamless and secure online banking app.
Budgeting for Discretionary Expenses
Tracking discretionary expenses is key in case times get tough or a person wants to make a budget or tighten theirs up. When planning for future financial goals, like saving up for a mortgage down payment, finding places to pare back can add up.
Tracking discretionary expenses can help with making or paring back budgets.
One of the most important strategies for tracking discretionary spending is creating a household budget. Budgeting may help individuals to ensure there’s enough money to cover necessary expenses and bills. Once those needs are covered, it’s possible then to set the remaining money aside for discretionary spending.
Advantages of Budgeting for Expenses
Consider these reasons why budgeting for expenses can benefit you:
• Avoid overspending: When you have a budget, you have guardrails. You know how much money you have coming in and how it’s allotted. You know that if you spend too much, you could wind up with high-interest credit card debt, which can be challenging to pay down.
• Paying off debt: With a budget for your expenses, you can likely rein in spending and focus on putting dollars toward wiping out high-interest debt.
• Saving for your future: If you follow a budget and don’t go overboard with discretionary spending, you can likely funnel funds toward important short- and long-term goals, such as buying a house or paying for your child’s college education.
Tallying Monthly Income and Earnings
To start building a monthly household budget, tally up total monthly income after taxes. Be sure to include all sources of income, such as:
• Salary
• Any money made from freelance or side gigs
• Passive earnings, such as rental property income or dividends.
Understanding Regular Non-Discretionary Expenses
Next, a would-be budgeter might want to write down all necessary expenses and add up their associated costs. Some regular expenses could vary from month to month. So, it might be helpful to go back and look at costs incurred every month during the last year. This way, it’s easier to average the amounts that get spent on X, Y, and Z essential costs.
Whenever budgeting, it’s important to determine whether incoming money can cover both regular and surprise costs. Ideally, an individual would have enough money saved or in income to pay for all necessary expenses.
Setting Aside Funds for Later
On top of short-term expenses, some budgeters like to allot amounts each month either to savings or to a rainy day fund (you’ll learn more about the actual amount in a minute). With some money management accounts or retirement plans, users can directly deduct funds from a paycheck on payday.
Automating savings might cut the temptation to shop, as these funds are already transferred to another vault or account (and, hence, harder to spend).
If money isn’t being auto-saved, budgets can be updated to include savings under the discretionary fund category. Over time, as savings grow, squirreled away funds could go toward pursuing long-term financial goals, such as a home down payment, starting a kid’s college fund, or investing for retirement.
Tabulating a Discretionary Expense Budget
Once essential expenses have been budgeted for, a list of discretionary spending costs can be drafted. This can cover broad categories that might include trips, entertainment, savings, or eating out.
When either income drops or the cost of a necessary expense goes up, it can be necessary to update one’s budget accordingly. Making cuts to discretionary expenses may be one place to find more cash.
Budgeters could rank, for instance, their discretionary spending according to what’s least or most important. A food lover, for instance, might want to allot more to dining out than an avid skier.
With discretionary expenses prioritized and mapped out, it can be easier to tighten a budget, identifying easier-to-cut-back-on items.
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Budgeting Strategies That Include Discretionary Expenses
There are a variety of different budgeting methods. And, some are particularly suited to tracking discretionary spending. Here’s a look at common budgeting strategies:
The 50/30/20 Rule
The 50/30/20 rule was popularized by Elizabeth Warren and Amelia Warren Tyagi in their book All Your Worth. The idea behind this strategy is that monthly income is divided proportionally between three categories:
• 50% goes to essentials, or needs
• 30% goes to discretionary spending, or wants
• 20% goes to savings.
This strategy prioritizes savings, removing it from the category of discretionary spending and making sure it’s part of every month’s budget. This budgeting strategy takes a broad view and can be good for people who are easily overwhelmed by tracking details.
Line-item Budgeting
For those who love to dive into the nitty-gritty details of spending habits, line-item budgeting might be a better fit. Line-item budgeting can involve breaking out a spreadsheet, examining expenses in fine-toothed detail.
For example, rather than simply having a broad category for all groceries, a line-item budget could break down how much gets spent on buying meat, vegetables, dairy, bread, prepared foods, and coffee. Naturally, the more details that are tracked, the more information a budgeter has on exactly where their money is going.
Line-item budgeting can show the nitty-gritty of personal spending habits.
There may even be pockets of “essential” spending — for instance, the types of groceries being bought — that could be pared back. Rather than helping a person to allocate funds, a line-item budget focuses on tracking spending.
It can also help people to compare their spending habits over extended time periods, such as a month or a year.
Making comparisons in this way can help keep spending in line with previous months. Because line-item budgeting is a spending tracking system, it doesn’t necessarily help build toward goals, like savings or retirement. It’s not designed to cut costs.
Envelope Budgeting
Envelope budgeting can be a useful way to track discretionary spending for two reasons: 1) It’s tangible, and 2) it’s strict.
When using the envelope method, a person writes down their discretionary spending categories on individual paper envelopes. Next, they decide how much they’re willing to spend in each category.
To limit the urge to spend beyond the budget, only the allotted amount is placed as cash in each envelope. Afterwards, just the cash in that envelope is used to make purchases within that category of expenses. The idea is to train oneself to avoid using debt or credit cards, which can encourage impulse spending.
And here’s the rub: Once the cash within a given envelope has run out, it’s gone. You could borrow from another envelope if that has some available cash. But most envelope budgeters strive not to spend beyond the predetermined funds.
So, if the entertainment fund has run dry, then it’s Netflix at home instead of going out to the movie theater. And, if a person blows through their eating-out budget, it could be fun to do a refrigerator sweep. Often, a tasty meal can be whipped up with groceries that have already been purchased.
Though this budgeting approach may sound harsh, it can provide stricter guardrails that help individuals to spend within their means.
For some, adopting this “tougher” approach to budgeting can help reinforce tighter spending habits.
Zero-Based Budgeting
Zero-based budgeting is another way to track spending. The idea behind this budgeting strategy is that every dollar of income has a designated role and can be assigned as an expense. In this way, one’s income minus expenses equals zero.
Zero-based budgeting can take a little bit of extra work, since individuals would need to sit down at the start of each month to assign exact dollar amounts to necessary expenses, discretionary expenses, savings, and other costs.
With zero-based budgeting, the goal is to stick within the dollar amount assigned to each expense. Budgeters seek to stop spending in each category when the allotted dollar amount gets spent.
Still, it may not always be possible to avoid running over the anticipated budget. In those cases, the amount spent in excess of the budget could be subtracted from discretionary funds in the next month. Or perhaps the budgeter may want to allocate more funds in the future for discretionary categories.
💡 Quick Tip: If you’re faced with debt and wondering which kind to pay off first, it can be smart to prioritize high-interest debt first. For many people, this means their credit card debt, so try to eliminate that ASAP.
Tracking Discretionary Spending with a Budget
One part of adopting a budget is finding a tracking system that works for the long haul. So, when figuring how to track spending, it can be helpful to go with the approach that fits individuals’ financial goals and habits.
Online budget tracking tools are one way to help make sense of spending. There are plenty on the market, and your bank may well have tools for this purpose.
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.
Better banking is here with up to 4.50% APY on SoFi Checking and Savings.
FAQ
Is clothing a discretionary expense?
Clothing can be a discretionary expense if it’s not a necessity, such as a warm winter coat or basic clothes to wear to work. When you buy something just because you like it but don’t need it, that’s a discretionary expense.
What are discretionary expense examples?
Examples of discretionary expenses include travel, entertainment, and eating out.
What are examples of non-discretionary expenses?
Non-discretionary expenses are typically the needs or musts of basic life, such as housing and utilities, food, healthcare, transportation, and minimum debt payments.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Do you dream about living full-time outside the United States? The best countries to work abroad are affordable, safe and offer job opportunities for foreigners (or at least reliable WiFi for virtual entrepreneurs). Here are 10 international destinations where you can unpack, get to work, and stay a while.
In our latest real estate tech entrepreneur interview, we’re speaking with James Segil from Openpath.
Who are you and what do you do?
I’m James Segil, and I am the president and co-founder of Openpath, an LA-based startup which creates smart, secure physical access systems for the modern office. I’m an entrepreneur with proven experience having built and sold three successful technology companies.
I run day-to-day operations and business development at Openpath, where we are helping companies reduce common touch points and make a contactless user experience as part of a new, healthy post-pandemic environment.
What problem does your product/service solve? My fellow co-founders Alex Kazerani, Samy Kamkar, Rob Peters and I had the idea for Openpath when we grew tired of forgetting our office keys at home and were frustrated with having to carry multiple badges to get into buildings. We were also worried about security at work given the state of the world today. We started Openpath in 2016 because saw an opportunity to really improve the office access and the keyless-entry experience by making it more frictionless and secure. We saw that we could use our phone to open the doors instead of having to carry a keycard.
Our solution combines hardware and enterprise, cloud-based software to improve the experience for people accessing buildings with hands-free access and mobile credentials, all through a beautifully designed product. Openpath’s access control platform helps companies across a range of sectors including commercial real estate, manufacturing/industrial, offices, retail, schools, gyms and places of worship, and supported over 5 million unlocks a month.
What are you most excited about right now?
Getting America back to work safely with Germ-Free access to your building and office. We are currently laser-focused on helping building owners, managers and tenants to provide employees and visitors secured access without touching any physical surfaces.
We just announced our “Wave to Unlock” feature, through which users can wave their hand in-front of a reader from a safe distance in order to unlock an entry, removing all surface contact. The patented Triple-Unlock technology works over WiFi, LTE, and Bluetooth, and guarantees a fast and reliable connection, which is critical for efficient and safe access. This is part of our offerings to help companies facing demands to update workspaces for returning employees to work.
We’re hearing from building owners, tenants, city planners, architects, and security consultants that this touchless solution is calming some employee concerns about returning to the workplace as a touchless, hands-free, germ-free experience.
What’s next for you?
Beyond the COVID-19 response, we are looking for new ways to improve the day-to-day work experience of every worker in the world through frictionless access. Our obsession on user experience drives us as we want people to experience the built world in a more personalized and secure way.
What’s a cause you’re passionate about and why?
I’m passionate about reducing homelessness, which is how I became very involved with The Giving Spirit, a grassroots charity that assembles survival kits for the homeless here in Los Angeles. We have helped over 40,000 homeless since we started and continue to focus on helping those who are the most in need during this difficult time.
Thanks to James for sharing his story. If you’d like to connect, find him on LinkedIn here.
We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop me a line (drew @ geekestatelabs dot com).
You are probably used to tapping and swiping your debit card as you go through your day, whether to grab a salad for lunch or pay for a new bottle of shampoo. Debit cards are welcome at most of the places where you can use a credit card, and that includes online retailers as well. This can be a welcome way for some people to spend when shopping online as it can help with budgeting (you only spend what’s in your bank account) and allow you to avoid those credit card interest charges.
However, paying online by debit card isn’t exactly the same as using a credit card, and it’s important to understand the impact, both positive (avoiding a hefty credit card interest rate) and negative (you may not earn rewards nor have fraud protection).
Here, you’ll learn how to use your debit card safely and wisely when purchasing online.
Can You Use A Debit Card Online?
Generally, if a website accepts a credit card for online purchases, it also will accept a debit card.
You may not see debit cards listed specifically as a payment option on a merchant’s website. But if the front of your debit card has a credit network logo (such as Visa or Mastercard) and the business accepts credit cards from that network, you should be able to use it.
To use a debit card for an online purchase, you’ll want to check “credit card” as the payment method and then enter your debit card’s account number, expiration date, and three-digit security code (CCV) to make the purchase.
Unlike debit purchases you make in-person, you won’t need to provide your PIN when purchasing something online. The reason is that the transaction will be treated as a “credit” transaction, which means that the transaction is pending (meaning waiting to be authorized, cleared, and settled).
The money will be deducted from your checking account around two to four days later.
Before an online debit transaction clears, you may see a difference between your checking account’s “current” balance, which includes only deposits and deductions that have actually cleared, and your “available” balance, which includes authorized transactions that haven’t yet cleared.
What Are Some Pros to Using a Debit Card Online?
There are a few advantages to using a debit card as opposed to a credit card for online purchases that consumers may want to consider. These include:
Reducing Credit Card Debt
Using a debit card to make online purchases may help reduce credit card use (and debt).
When you shop with a credit card vs. a debit card, you’re borrowing money you’ll have to pay back later. If you don’t pay the debt back within a designated period of time, the lender is going to charge interest.
And, if you only pay only the minimum required to carry your balance each month, that debt could grow into a hard-to-get-rid-of burden.
Sign-up bonuses, discounts, unlimited cash-back offers, and travel points can make it tempting to use a credit card for every purchase. But shoppers need to be careful about paying off those purchases on time, or they could end up spending more on interest payments than they receive in rewards.
When you use a debit card, you can’t spend more than you have at the moment. And because there’s no debt, there’s no interest to worry about.
Some Debit Cards Come with Rewards
While rewards and perks for spending are mostly associated with credit cards, many debit cards are now offering rewards programs as well, including cash back, points, or miles every time you swipe your card.
Lower Fees
Debit cards typically don’t have any associated fees unless users spend more than they have in their account and incur an overdraft charge.
By contrast, how credit cards work typically involves fees. Credit cards may come with an annual fee, over-limit fees (if a purchase pushes their account balance over their credit limit), and late-payment fees, in addition to monthly interest on the card’s outstanding balance.
There is also typically no fee for withdrawing cash using your debit card at your bank’s ATM. If you use a credit card to get cash, on the other hand, you may incur a significant cash advance fee. You may also have to pay interest on the advance amount, which often starts accruing the day of the advance, not at the end of the statement period as with regular charges.
Recommended: ATM Withdrawal Limits – What You Need To Know
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Is There a Downside to Using a Debit Card Online?
There are some advantages to using a credit card over a debit card. Here are a couple of things to consider when making the choice to use a debit card online.
Using a Debit Card Online Won’t Build Your Credit History
Have you ever heard someone complain that they couldn’t get a loan or credit card because they’ve never borrowed money? They thought they were being financially responsible, but the bank didn’t want to risk lending money to someone who didn’t have a history of making payments on a loan or line of credit.
That catch-22 extends to purchases made with a debit card. Even though your goal may be to stay fiscally responsible by making only debit (i.e., cash) purchases to avoid debt, you’re not helping your FICO® score, which represents how responsible you are with borrowed money.
And even though you may have marked the “credit” payment option when paying online, the money is still coming directly from your account, so it won’t directly impact your score.
Less Fraud Protection
You may have heard that it isn’t as safe to use a debit card online because federal laws don’t offer the same consumer protections that credit cards get.
It’s true that there is a difference.
Credit card use is covered by the Fair Credit Billing Act which provides a set procedure for settling “billing errors,” including unauthorized charges. If someone uses your stolen credit card account number to make online purchases, you generally aren’t responsible for those charges and can dispute those charges.
Debit card use is protected by the Electronic Fund Transfer Act , which also gives consumers the right to challenge fraudulent debit card charges. Your liability depends on how quickly you report the problem, though, so you need to act relatively fast to get that federal protection.
If someone makes unauthorized charges with your debit card number and you didn’t lose your card, you aren’t liable for those transactions as long as you report the charges within 60 days of receiving your statement.
You also could have zero liability if your card was lost or stolen and you report it before any unauthorized charges occur. If you report the lost or stolen card after it’s been used, the amount you owe will be determined by how quickly you report the loss. Within two days, your liability will be $50; within 60 days, $500.
However, if you wait more than 60 calendar days after you receive your statement to make a report, and the thief goes on a shopping spree, you could lose all the money in any account linked to your debit card.
Some debit card issuers now offer “zero liability” protections that go beyond what federal laws provide. If your debit card is backed by Visa or Mastercard, for example, you may find you have the same protections they offer their credit card users. (You may want to check with your financial institution to verify this coverage.)
Less Purchase Protection
Many credit cards offer purchase or damage protection, which means that if the item you buy is damaged or stolen within a specified period of time, you can get your money refunded. Credit cards may also offer extended warranties on electronic purchases, as well as travel perks, such as rental car insurance.
Debit cards are less likely to offer these perks.
Recommended: Does Applying For a Credit Card Hurt Your Credit Score
How to Use Your Debit Card Safely Online
To protect your identity while shopping online with your debit card, you may want to follow these simple precautions.
• Looking for the lock. When making purchases with your debit card online, it’s a good idea to make sure you’re shopping with a reputable company and on a secure website, especially when it’s time to enter your card number. A good safeguard is to look for the locked padlock icon in your browser. It can also be a good habit to log out of a site as soon as you finish shopping.
• Monitoring your statements. It can be wise to regularly check your checking account and scan for any debit charges you don’t recognize. That’s because the faster you report a problem, the less trouble you should have recovering from any fraudulent activity.
• Using a secured network at home. You may want to avoid shopping or paying bills when you’re using public WiFi. Even secured public networks have some risk. And you never know who might be watching over your shoulder when you enter a password or other personal information.
• Keeping your card, and your account number, to yourself. Giving your card or account number to a friend or family member could lead to trouble down the road, including charges you didn’t expect. And, it may be difficult to recover any lost funds because the usage may not be considered unauthorized. If you want to allow someone you trust to use your account on a regular basis, consider adding them officially as an authorized user.
The Takeaway
Debit cards can be used online for most purchases and can be a great way to manage your spending.
Debit cards generally don’t come with the annual fee and other fees found with some credit cards. Plus, they don’t allow you to rack up debt because you aren’t offered a credit limit that’s higher than your checking account balance.
However, credit cards often come with more perks and purchase protections than debit cards. And, responsible use of a credit card can be a good way to build your credit score.
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.
Better banking is here with up to 4.30% APY on SoFi Checking and Savings.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit can earn up to 4.30% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 6/9/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
From film stars to activists, there’s no denying that celebrities are held as idols by millions of people. They influence our fashion choices, promote favorite causes or charities, and their opinions can even sway public sentiment. But what many don’t realize is that underneath all the glitz and glamour is often a sharp intellect—many famous faces excel in more than just red carpet moments. Keep reading to learn more about 12 prominent celebrities who have proven they have brains as well as beauty!
1. Cardi B
One Redditor posted, “Hear me out: Cardi B. She is incredibly well versed in current events, and most of the information she disseminates is pro-people and she does so in an easy to understand way for people from all walks of life. Additionally, she is involved in her community and even donated $$$ to her underfunded middle school so the arts could have some funding.”
Another user commented, “I KNOW Cardi is smart, all the takes she shared on political/societal matters were extremely on point I thought.”
One user added, “I’ve always found her smart and entertaining, but a lot of people are unwilling to listen to people (especially Black/Afrolatina women) if they don’t meet their perceived standards for intelligence. A lot of people call her a lot of things I don’t want to repeat for her appearance and past, but she’s really smart, and she defends the right people. (Especially when she dragged Peter Gunz…).”
One commenter replied, “I have learned so much from Cardi’s interviews/lives where she talks about politics.”
2. Ken Jeong
One user shared, “Ken Jeong is a literal doctor.”
Another user added, “We know. He tells us every chance he gets. And it’s funny every time.”
“Agreed. Being academically talented doesn’t mean one is intelligent, at all. Having said that, I think Ken Jeong is a pretty intelligent guy,” one user replied.
3. Natalie Portman
One Redditor posted, “The first person that comes to mind is Natalie Portman.”
One user replied, “IIRC she was in the Galactic Senate representing Naboo back in the Republic days.”
Another user asked, “Wasn’t she a Harvard graduate?”
One user answered, “Yeah she is: she has a degree in psychology.”
4. Mayim Balik
One Redditor shared, “Mayim Bialek is literally a neuroscientist.”
Another user added, “Fun fact—Mayim Bialek got her PhD in the same program as I did, and they provide us with the stats on what kinds of jobs grads end up getting. There is only one in the ‘actor/actress’ category.”
One commenter said, “Publishing research in the hard sciences is challenging and often requires you to jump on a project with a really good PI or lengthy postdocs to get that publication. It would make sense that an actress wouldn’t be too motivated to push for the publication of a dissertation. It can take up to a year or longer to publish the results. She’s busy doing other things.”
5. Cindy Crawford
One user commented, “Cindy Crawford was her high school valedictorian and was majoring in biochemistry (or something similar) at Northwestern, IIRC.”
Another user added, “She had a full scholarship to Northwestern IIRC as well. I had a friend who went to high school with her in IL. She was super brainy and was valedictorian, and everyone at school was shocked to learn that she was dropping out of college to model.”
6. Hedy Lamarr
One Redditor added, “Old Hollywood example, but Hedy Lamarr.”
Another user replied, “She was brilliant, and her frequency hopping technology was the basis for modern day wifi and Bluetooth, among other things.”
One commenter exclaimed, “And GPS!”
One user commented, “I think she wins this thread, nowadays actors/celebrities are just not on this level.”
7. Jodie Foster
“Jodie Foster graduated magna cum laude from Yale,” one user shared.
Another commenter added, “She’s also fluent in French, but she went to a French school when she was younger.”
One Redditor confirmed, “Yeah, she spends a lot of time in France, which keeps her fluent, like properly fluent where she can have sophisticated discussions in the language. She has also made some French films. Not that being multilingual necessarily makes you super smart (in many parts of the world, it’s common to speak multiple languages), but by all accounts, JF is as comfortable in French as she is in English.”
8. Keanu Reeves
One user posted, “Keanu Reeves. He seems like a very intelligent guy. I’ve heard him talk about stuff like AI, Deepfakes, Metaverse, etc. recently, and I also found out that he has written and published a whole book of poems. Also, he keeps dropping banger quotes like Colbert asking him ‘What happens when we die?’ and him answering, ‘The ones who love us will miss us.’ On the Drew Barrymore show, she asked him, ‘Are you a lover or fighter?’ and he replied, ‘If you can’t fight for your love, what kind of love do you have?’ He may not have the educational qualifications, but the guy clearly knows and understands life.”
Another user added, “He’s also been described as an incredible observer, listener, and deeply empathetic person.”
One user also shared, “You definitely don’t need qualifications to demonstrate intelligence: I’ve got a PhD and my sister’s a nurse, and she’s got more intelligence (and far more common sense) in her little finger than I have in my entire body.”
9. Shakira
One Redditor added to the thread, “Shakira.”
Another user replied, “Her lyrics in Spanish were above everyone else in Latin America when she started. Her interviews were very deep, and she was just a teen. Reaching the crossover and sustaining it for so long. From a Middle Class background with no hyper-educated parents. Discovering Pique’s cheating ways with her marmalade analysis, lol. She’s really a smart*ss.”
Another confirmed, “I knew about the languages years ago but the marmalade thing is next level. That’s like the main character smart, lol.”
“Spanish, English, French, Catalan, Italian, Portuguese. She also can speak a bit of Arabic, but I don’t know how much,” added by one user.
10. Dexter Holland
“Dexter Holland (lead singer of The Offspring) has a PhD in molecular biology from USC,” one Redditor shared.
Another user replied, “Also flies fighter jets in his spare time and has flown the band to and from gigs on more than one occasion. Dude is literally just out here doing all the side quests.”
11. Stephen Colbert
One user shared, “Stephen Colbert is one of the smartest celebrities, in my opinion. He not only possesses a quick wit and comedic genius, but also an impressive level of emotional intelligence. Also, his extensive knowledge of Lord of the Rings is remarkable, and he has shown himself to be a true expert on the subject.”
Another added, “Yes, he’s one of my picks too! A genuine nerd (in the best possible way), and he really comes across as an intelligent person.”
“Listening to him being interviewed, you can really feel his intelligence shining through. He’s just a naturally bright and analytical person,” one user responded.
12. Chris Pine
One user posted, “Chris Pine, literature major.”
Another added, “He used to write erotica too. A perfect man, lol.”
“I always wonder if he’s published any of it under a pseudonym,” one user mused.
Another Redditor concluded, “Chris Pine comes off as incredibly smart in simple interviews too, and never forget his erotica writing class. I’d pay good money to read his writings.”
Do you agree with the list above? Don’t be shy! Share your thoughts below.
Original source: Reddit.
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When you have kids you always want to do what’s best for them. You wonder, what is the right brand of diapers to buy, which baby lotion is the best for their skin, which car seat is the safest? The sheer number of decisions that you have to make as a new parent can be overwhelming.
One of the decisions my husband and I are currently grappling with is around the state of our children’s education. Where should they go to school? Where will they receive the best education? Is there a certain educational philosophy that would fit best with their learning style?
When I was growing up the decision was easy. You go to the school that’s closest to where you live. And while this is still an option, parents can also consider a number of other choices. You can send your children to public school, charter school, private school, or you can homeschool.
This article will introduce these four different schooling options, what they are, how they work, and the eduction costs involved so you can make the decision that is best for your family.
What’s Ahead:
The cost of private, public, charter, and homeschool tuition and other costs to consider
Private
Public
Charter
Homeschool
Average out of pocket tuition
$11,004
Free
Free
Free
Other costs to consider
Uniform Extra curriculars Transportation Tutoring Field trips “Keeping up with Joneses”
School supplies Tutoring Clothing Field trips
School supplies Tutoring Clothing Field trips Transportation
Curriculum School supplies Textbooks Computers Workstation (desk/chairs) Opportunity costs
In 2019, there were approximately 56.6 million students attending elementary and secondary school in the U.S. Of those students, 5.8 million were enrolled in a private school and 50.8 million were enrolled in public schools.
As of 2017, 7.1% of public schools are classified as charter schools. Charter schools have seen their numbers grow from 6,860 in 2016 to 7,010 in 2017.
There are approximately 2.5 million students from grades K-12 being homeschooled in the US. According to the National Home Education Research Institute. This is equivalent to approximately 3% – 4% of school-aged children.
Private school
Private school can be super expensive for the average family. While we all want what is best for our kids you might be wondering, why would I stretch myself so thin financially when I can send my kids to public school for free?
Great question.
Every family will have their own reasons for choosing the school system that is right for them but some of the reasons families opt for private include:
Smaller class sizes (sometimes). According to EducationalData.org, the average class size for private schools is 18.8 students compared to 24 students in public school.
Looking for a specific educational approach. For instance, some families might want their children to experience the Montessori style of learning.
Gifted children or children with special needs. Certain children learn better in particular environments or require different supports.
Religious or cultural preference. Many private schools have a religious affiliation which may be especially important to a family.
The cost of attending a private school
Private schools are funded by private companies and by the banks of moms and dads!
According to Private School Review, the average cost of tuition for private school is $11,004. Breaking this down even further, the average tuition for private elementary school is $9,900 per year. The average tuition for private high school is $14,711 per year.
Of course, the cost will also depend on where you live. If you’re located in Connecticut or Massachusetts I’m sorry to say you will be paying the highest private school tuition rates at over $24,000 per year (ouch).
If you look into private schools associated with the National Association of Independent Schools (NAIS), the cost of tuition is even higher. The average day tuition for a NAIS school sits at $26,866 for the 2019-2020 school year.
If you want to send your little one off to boarding school at a NAIS school, the five-day average is $46,475, and the average for a seven-day boarding school is $60,600. Wowza, that kid better get into Harvard…am I right?
Other costs associated with private school
When it comes to the cost of sending your child to private school, tuition cost is just one piece of the puzzle. You should also consider:
Uniforms.
Extracurricular activities.
Gas money. (this could get pricey if you have a long daily commute to and from school)
The cost of keeping up with the Joneses. A lot of wealthy families send their kids to private schools. This means you might be dealing with kids that have a lot and, in turn, your kids will want to keep up. Of course, it’s up to you to manage your children’s expectations but be prepared to have this conversation.
How to minimize costs
If you want your children to attend private school because of the smaller class sizes or specific programs being offered, you can look into financial aid to see if you qualify. If cost is an issue you can also consider religious vs. secular private schools, as religious private schools tend to be cheaper.
Public school
The majority of elementary and secondary students in the U.S. are enrolled in public schools. Public schools can be a great option for families for a number of different reasons including:
Cost. I mean you can’t beat free, right?
Availability. All children in the U.S. have access to a free public education.
Diversity. Public schools are often more diverse in terms of ethnicity and socioeconomic status.
The cost of attending public school
The average cost of public school education per student (pre K through to grade 12) in the U.S. is $13,440. The cost of a public school education is covered by funding from the government at the federal, state, and local levels.
While you don’t have to write out a check to pay for your children’s public education, don’t be mistaken, you are still paying. Payment comes in the form of taxes!
So, while you won’t have to dish out thousands of dollars for tuition, you will pay in other ways. Yay!
Of course, if you already live in a home that is located in a great school district then you probably won’t worry about your property taxes in relation to your kids’ education!
Other costs to consider
School supplies and clothing. In 2019 American households planned to spend an average of $696.70 on back to school shopping. This included school supplies, clothes, shoes, and electronics.
Tutoring. According to tutors.com, the average hourly price of a private tutor ranges between $25 – $80 per hour.
Field trips. Any special trips outside of the school walls are going to cost you. It’s estimated that the average expense for field trips and extra activities at the elementary level ranges from $10 to $3,500.
How to minimize costs
Shop the back to school sales. This can apply to clothes, shoes, and electronics. You can check out whether or not your state has a sales tax holiday that is specifically geared at back to school purchases. You can check out if your state offers a sales tax holiday and when it is on the Sales Tax Institute website.
Buy used. If you are trying to keep costs down then consider going to a consignment store to buy used clothing or shoes. This can be especially useful for younger kids who seem to grow out of their stuff every few months.
Charter schools
Charter schools are a type of public school and while they share some characteristics with a regular public school, they also have their differences.
How are charter schools and public schools similar?
Both publicly funded.
Both offer free tuition.
How are charter schools and public schools different?
Run by independent groups while regular public schools are governed by the school board and school district.
Charter schools don’t have to follow the same rules and regulations as regular public schools. They enjoy a greater sense of freedom and flexibility when it comes to their curriculum and even their school hours.
Students usually have to apply to get into a charter school. If there are not enough spots for all of the applicants then a lottery is held.
Charter schools often come to fruition in an effort to achieve a specific goal
You don’t have to live in a particular district to go to a charter school. If you can get yourself there, and you’ve been accepted, then you can go.
The cost of attending a charter school
As I already mentioned, the cost of a charter school is the same as a public school, it’s free!
Other costs to consider
There’s not much new to consider here. It’s the same costs associated with a regular public school – you know, school supplies, clothes, and potentially some tutoring and field trips. However, if you get into a charter school that is super far away from where you live then you’ll also want to consider the amount of gas you’re going to be needing for your commute.
Homeschooling
With the current state of the world, I wouldn’t be surprised to see an influx in the number of children being homeschooled. Or maybe, all of the parents who temporarily had to step in to play the role of teacher have been scared off for good!
Regardless, homeschooling is another option and one that accounts for approximately 2.5 million students from kindergarten to grade 12.
Homeschooling is pretty self-explanatory – it’s schooling your kids at home. There are several reasons that a family might choose this as an option including:
Other school options were not a good fit for their child.
The family has a specific religious background that will direct the way they teach.
Similarly, they might have a particular educational philosophy that they want to follow.
Some parents might feel that it is safer to teach their children from home.
Your child has special needs.
The cost of homeschooling
Obviously, when it comes to homeschooling there will be no hefty tuition. However, there are still many costs associated with this form of schooling. According to the National Home Education Research Institute (NHERI), families who homeschool spend an annual average of $600 per student.
Other costs associated with homeschooling
Homeschooling is different from the other school options I’ve covered in this story because you will be the teacher and you will be teaching out of your home. So, you have to consider all of the costs associated with that task of teaching such as purchasing a curriculum, unless you decide to create your own.
You will also need to ensure that your students have all of the tools they need to learn. This could include:
Textbooks.
Laptops.
Wifi.
Craft supplies.
Science experiment supplies.
Pens and paper.
Comfy chair to sit in and desks to work at.
Use your imagination – you can see how your costs could get out of control if you didn’t have a strict budget!
Cost of being home
Then there is the cost associated with having your children at home most of the time. This could increase your heating or cooling bills, your water bill, and most definitely the food bill.
Extracurriculars
What about extracurriculars? If your kids have been at home all day then they could probably use a dose of socialization (or socially distanced socialization) — depending on the times! Extracurricular activities can get expensive so make sure you consider this.
Field trips
Also, if you want to take your students on any field trips, that’s going to be coming out of your wallet. And, because your class sizes are probably pretty small you likely won’t be getting a volume discount at your local science center or zoo.
Personal development
Unless you come from a background in education, you might want to consider some teaching classes to improve your pedagogical skills.
Opportunity costs
If you really want to think about the cost of homeschooling from all angles you also want to consider your opportunity costs. What are you giving up to homeschool your kids? Are you giving up a lucrative career or a job that you’re truly passionate about? Is it worth it to you?
On the flip side, maybe homeschooling your littles and spending tons of time with them is what you are passionate about.
Your sanity
Last by not least. What is your sanity worth? Are you mentally prepared to take on the role of teacher with your children? Again, this will depend on a number of factors including whether or not you want to take on this role or you feel it is your obligation due to…oh, I don’t know, a worldwide pandemic.
How to minimize costs
Look for free publicly-funded curriculums online.
Borrow books from the library instead of purchasing new.
Use free online resources for teaching (we all know there’s a ton of good info available on YouTube and blogs).
If you plan to go on the same field trip several times (e.g. local science center) then consider buying a family pass instead of purchasing individual tickets for each visit.
How to save for your kids education
If you know you want your kids to attend private school and your bank is not overflowing with money, then it’s important to start saving as early as possible. In fact, you might want to consider saving while your kids are still babies, or even when you start thinking about having kids. It sounds crazy but private school is expensive.
While private school is the most expensive when it comes to out of pocket tuition, each type of school has costs associated with it. There is no free education.
If you want to start putting some money into savings for your kids education, be it tuition or back to school clothes, you can check out Chime®. Chime is a great option for those who like to bank digitally as it operates online and offers both checking and savings accounts. *
Chime is a good place to keep savings associated with your kids schooling because they offer 2.00% APY. 7 So, instead of earning nothing back if you just leave this money sitting in a checking account, you will at least be earning some interest.
* Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. 7 The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of November 17, 2022. No minimum balance required. Must have $0.01 in savings to earn interest.
Do people who attend one type of school perform better?
If you’re a parent then you know that there are virtually an endless number of ways that you can screw up your kids. You give them too much attention as babies – hello attachment issues. You let them see a screen before they are 10 – ugh, how could you. You put them into public school instead of spending your grocery money on private school – do you even care about your children?
The question is, do people who attend one type of schooling perform better and then make more money as adults?
Private vs. public
In a longitudinal study published in 2018, researchers found that kids (K to 9th grade) in private school perform better academically, socially, and psychologically then kids who attend public schools. However, when you control for sociodemographic factors that typically direct which students are able to go to a private school ( a.k.a how much money your parents make) “all of the advantages of private school were eliminated.”
The study also reported that “there was no evidence to suggest that low-income children or children enrolled in urban schools benefited more from private school enrollment.”
Public vs. charter
The National Assessment of Education Progress (NAEP) evaluates students’ academic achievement at grade four, eight, and 12 levels in both private and public schools across the country. In 2017 they compared the reading and math test scores of grade eight students from traditional public schools and charter schools and found no measurable difference. (Note that these results were observed after controlling for parents’ educational attainment).
Anecdotally, I know a lot of super amazing, smart, successful, and kind people who graduated from public school. I too graduated from public school and I hold no resentment towards my parents for not putting me in a private, charter, or homeschooling situation.
Public vs. homeschooling
According to NHERI, homeschooled students “score above average on achievement tests regardless of their parents’ level of formal education or their family’s household income.”
However, an article in the Studies in Educational Evaluation Journal proposes that comparing academic achievement in public school to academic achievement in homeschool is not comparing apples to apples. The study suggests that this is because it’s hard to know if the evaluation methods used to determine academic achievement in a homeschool environment are compatible with the teaching and education occurring within that context.
So, when it comes to which is “better” academically or performance-wise the answer is murky at best. It depends more on what is the right fit for your child.
Do people who attend one type of school make more money as adults?
Honestly, when researching the answer to this question you can find evidence to support each type of schooling. Proponents of private school will give you evidence to suggest that your child will have a higher earning potential if they go private. Proponents of public and charter schools will have their own evidence to suggest that a public education is the way to reach success, as will the homeschoolers.
What’s important to remember is that your children’s school is one variable in their lives. You want to know two variables that are more likely to contribute to your child’s future earning potential – their socioeconomic background (how much money do their parents make) and their parents’ educational level (high school degree vs. master or doctorate).
As a parent, I get that we all want to do right by our children. But, when it comes to trying to predict their future earning potential I have to stop and shake my head. Yes, we want our kids to find financial security but when it comes to their education shouldn’t we be more worried about finding a school that supports their learning style, challenges their amazing aptitude for curiosity, and encourages them to see the beauty in diversity and new ideas?
And, if you feel bad because you live in a not-so-stellar school district and don’t have the means to relocate, remember this. School in the traditional sense of the word is just one way that you learn. There are so many other ways to encourage your children’s development and challenge their curiosity. Bring home mountains of free library books and teach them the joy of reading. Take them outside in nature and explore, you can even use YouTube to learn about new places and cultures.
Is the cost of each type of school worth it?
Now I hope you’re armed with a lot more information when it comes to evaluating which type of school is best for your kids and your family. There is no one size fits all solution when it comes to school. Every kid is different, the way they learn is different, the schools are different, the teachers are different. There are simply too many variables to say which one is better, or worth more than the other. What you value is ultimately going to be different than what I value.
When it comes to finding the right fit, this is a mental calculation you will have to perform with your family. If you’re struggling to choose between all of the options the first question you can ask yourself is, “can I afford private school?” If you have to choose between paying your child’s tuition and keeping the lights on in your house, maybe private school isn’t the right choice.
Summary
When deciding on which type of school to send your child to, remember, based on the research, your kids will have the opportunity to succeed in life regardless of the type of school they go to. There are many things that are more likely to improve your kids’ chances of success and a better financial outcome – like having a loving parent and someone they can consistently count on.
Cell phones are practically a necessity of modern life – but cell phone plans can cost a pretty penny. Whether you’re trying to cut down on your monthly phone bill or are on the hook for paying for your own cell service for the first time, these less expensive cell phone plans are worth checking out.
The best cheap cell phone plans are affordable without skimping on features like calls, texts, and data.
What’s Ahead:
Overview of the best cheap cell phone plans
Boost Mobile
Price range – $10 to $50 per month.
Network details – T-Mobile.
Contract – No contract required.
Tired of paying an arm and a leg on your cell phone bill and want to save on wireless? With Boost Mobile, you could pay as little as $10 a month for a simple, contract-free plan. Boost Mobile’s cheapest plan includes unlimited talk and text and 1GB of data. You also have the option to add on additional “data packs” if you need more data in a given month.
If you’re looking for unlimited data, Boost Mobile’s $50 per month plan features unlimited talk, text, and mobile data, along with a 12GB mobile hotspot. You can add another line to the plan for only $30 per month. Boost Mobile even features an “Affordable Family Plan” with unlimited talk, text, and data for only $150 for five phone lines.
Boost doesn’t make you sign any long-term contracts, so you’re never locked into an extended agreement. The company uses the T-Mobile network and claims to offer coverage in 99% of areas nationwide.
Learn more about Boost Mobile or read our full review.
Mint Mobile
Price range – $15 to $35 per month.
Network details – T-Mobile.
Contract – 3-, 6-, or 12-month contract.
If you’re looking for an affordable plan with unlimited data, Mint Mobile is an attractive option. The company offers unlimited talk, text, and data for just $30 per month. Data switches seamlessly between 5G and 4G LTE, using whichever is strongest in your area.
Mint also offers a basic cell phone plan with unlimited talk and text and 4GB of data for just $15 per month. All Mint plans include a mobile hotspot at no extra charge, and you can always add more data to your plan if you run out before the month is up.
Mint Mobile uses the T-Mobile network, and you can buy a new phone or bring your own (as long as it’s compatible with the network and isn’t locked).
Unlike some other cheap cell phone plan providers, Mint does require customers to sign a contract for 3-month, 6-month, or 12-month plans. The 3-month plan is a great way to give the service a whirl, and then you can always sign up for a 12-month plan in order to lock in Mint Mobile’s low introductory prices.
Learn more about Mint Mobile or read our full review.
Xfinity Mobile
Price range – $15 to $60 per month.
Network details – Verizon.
Contract – No contract required.
Some people use a consistent amount of data each month, but others may have different data needs depending on their work, personal life, and travel plans. Xfinity Mobile makes it easy to transition seamlessly between plans with unlimited data and pay-as-you-go plans with a limited amount of data each month.
Their basic plan starts at $15 per month for one line and comes with 1GB of data. Their unlimited data plan starts at $45 per month. Best of all, you can switch between unlimited and by-the-gig plans whenever you need to.
You can also purchase an unlimited plan for some lines in your group, while paying by the gig for others. This is a great option if you need unlimited data but have other family members, like young children or elderly relatives, who only need talk and text capabilities.
Xfinity Mobile uses Verizon’s network, which means that it has good coverage nationwide. You can bring your own phone to a plan, or purchase a new one. Xfinity Mobile also works with tablets and smartwatches, so you can stay connected on all of your devices.
Xfinity Mobile is only available to existing Xfinity Internet customers, so if you don’t already have Xfinity as an internet provider, it may not be the best fit.
Learn more about Xfinity Mobile or read our full review.
Ting
Price range – $10 to $45.
Network details – T-Mobile and Verizon.
Contract – No contract required.
Ting shares many great features with some of the other providers on this list: extremely low prices, flexible monthly plans, and no contract required. For example, you can purchase a plan for as low as $10 per month for unlimited talk and text, plus an additional $5 per month per 1GB of data.
But where Ting really shines is its customer service. You can contact customer support over the phone, chat online, or submit a ticket if you’re having difficulties. Ting’s customer service representatives are always there to help.
If you’re looking for unlimited data, Ting has that too, with unlimited plans starting at $45. All plans come with the option to use a portion of data as a hotspot. Ting uses the T-Mobile and Verizon networks, so odds are it provides good coverage no matter where you live.
Also need internet? Ting provides fast, affordable fiber internet in some select cities, including Charlottesville, VA, Wake Forest, NC, and Westminster, MD.
Learn more about Ting.
Cricket Wireless
Price range – $30 to $50 per month.
Network details – AT&T.
Contract – No contract required.
Many cheap cell phone companies are entirely digital affairs. While it’s possible to purchase a plan, order a new phone, and manage your account entirely online, some customers may prefer in-person assistance. If that’s the case, Cricket is a great option, with brick-and-mortar locations in communities all around the country.
Cricket plans range from $30 to $60 per month for one phone line. While these prices are a little higher than many competitors, you can lower the price per line by adding additional lines.
The $30 per month plan comes with unlimited talk, text, and 2GB of data, while the $60 per month plan comes with unlimited talk, text, and data. There are also plenty of options in between if you only use a moderate amount of data.
Cricket Wireless is owned by AT&T and uses the AT&T network for its customers. Cricket claims that they provide coverage for 99% of Americans. There’s no credit check, no hidden fees, and no annual contract, so you can change your plan at any time.
Learn more about Cricket Wireless.
Tello
Price range – $5 to $39.
Network details – T-Mobile.
Contract – No contract required.
Need a basic cell phone plan and have an extremely limited budget? You can get a basic phone plan with Tello for just $5 per month. No, that’s not a typo. Tello’s most basic plan comes with unlimited text, 100 minutes for phone calls, and no data.
But Tello doesn’t only have the least expensive bare-bones plan. At $39 per month, a plan with unlimited talk, text, and data is also extremely affordable. Plus, Tello allows customers to mix and match plan options.
You can choose exactly how much data and how many minutes of phone service you need, so you never have to overpay for services you won’t use. For example, if you use a medium amount of data but only talk on the phone a couple of times a month, you could choose a plan with 100 minutes of phone service and 8GB of data for $26 per month.
If you don’t want to bother with creating a custom plan, you can also choose from one of Tello’s premade plans ranging from $10 to $39 per month. If you need to make an international call or text, Tello’s pay-as-you-go model means that it’s surprisingly affordable.
Learn more about Tello.
Visible
Price range – $40 per month.
Network details – Verizon.
Contract – No contract required.
Visible offers an affordable cell phone plan with attractive referral bonuses for customers who convince friends and family members to sign up. The basic plan starts at $40, which is a bit higher than some competitors. But each time you refer a friend, you get a month of service for only $5.
You can also add friends and family members to your plan in order to lower your bill through the Visible’s Party Pay option. With Party Pay, costs drop to $25 per line for parties of four or more.
All plans come with unlimited text, talk, and data. Visible uses Verizon’s network, so coverage is good in most areas in the United States. You can also call and text loved ones in Canada, Mexico, the U.S. Virgin Islands, and Puerto Rico at no extra cost.
While Visible doesn’t have the extreme budget plan offerings of some competitors, it’s a good fit for customers who know they want unlimited data, text, and calling but don’t want to pay the high cost of a plan from a big three provider.
Learn more about Visible.
Twigby
Price range – $9 to $43 per month.
Network details – Verizon and T-Mobile.
Contract – No contract.
Looking for a dead-simple phone plan with built-in flexibility and excellent coverage? Consider Twigby, which offers affordable plans starting at just $9 per month before discounts.
Not only does Twigby offer reasonably priced plans, but they also feature some hefty discounts for new customers. Customers can earn a whopping 50% off the sticker price for the first six months. This means that a bare-bones plan with no data and 300 minutes costs a mere $4.50 per month for the first half of the year. A more generous plan with 10GB of data and unlimited minutes costs only $21.50 a month for the first six months.
Twigby plans also come with international calling and texting, WiFi calling and texting, and the ability to use a hotspot at no extra charge. You can buy phones directly from Twigby, or bring your own phone if it’s compatible.
Unlike many competitors, Twigby doesn’t offer any plans that come with unlimited data. The highest amount of data you can purchase as part of a plan is 10GB. For people who need to use their phones a lot without connecting to WiFi, this means that Twigby might not be the best option.
That said, Twigby offers impressively affordable plans with great customer service and plenty of extra perks. Plus, unlike big-name cell service providers, Twigby is refreshingly honest and upfront about pricing and plans.
Learn more about Twigby.
Summary of the best cheap cell phone plans
Provider
Cost for one line
Network details
Contract
Best for
Boost Mobile
$10 to $50
T-Mobile
No
Overall
Mint Mobile
$15 to $35
T-Mobile
3, 6, or 12 months
Unlimited data
Xfinity Mobile
$15 to $60
Verizon
No
Flexible data needs
Ting
$10 to $45
T-Mobile and Verizon
No
Great customer service
Cricket Wireless
$30 to $50
AT&T
No
In-person help
Tello
$5 to $39
T-Mobile
No
Budget prices
Visible
$40
Verizon
No
Referral bonuses
Twigby
$9 to $43
Verizon and T-Mobile
No
Discounts
How we came up with our list of cheap cell phone plans
We looked for cell phone plans that were affordable, flexible, and came with a variety of different options.
All of the providers on this list provide affordable, low-cost plans ranging from $5 to $60 for a single line. On the low end, you can get a budget phone plan with texting and minutes for just $5 a month from Tello. On the other hand, you can get a more moderately priced plan with unlimited data, talk, and text from almost any of these providers.
We also looked for flexibility when it came to contracts, data usage, and billing. Most of these providers let you pay month to month rather than locking you into a year-long contract. Many also allow you to seamlessly switch between plans depending on your needs that month.
Finally, we looked for plans with options. Not everybody has the same cell phone needs, and you shouldn’t have to pay for services that you never even use. These providers offer a variety of different options, whether you only use your phone to call and text, or if you primarily use it for data and as a hotspot.
What are cheap cell phone plans?
Cell phones are ubiquitous in this day and age, but they don’t come cheap. On top of the cost of the phone itself, customers also have to pay for cell phone service and the ability to call, text, and use data.
Cheap cell phone plans aim to undercut behemoth competitors like Verizon and T-Mobile by offering the same service at a lower cost. Many also offer the ability to customize and fine-tune plans according to your particular needs.
Whether you need to start paying your own phone bill for the first time or you’re contemplating switching from a pricier plan, these cheap phone plans could end up saving you a good chunk of change each month.
Who should use a cheap cell phone plan?
People who want to save money
The main draw of cheap cell phone plans is that they save you money without sacrificing quality. These plans are able to provide the same overall level of service for a fraction of the cost.
People who want a simple plan
Don’t need all the bells and whistles of a fancy cell phone plan? Many of these providers offer bare-bones cell phone plans at bottom-of-the-barrel prices.
Who shouldn’t use a cheap cell phone plan?
Those locked into a contract
If you’re already locked into a contract with another provider, it could be costly to switch. If you’ve bought a phone from another provider, you may not be able to use that phone with a different carrier.
Those who are happy with a traditional cell phone plan
If you’re happy with your current coverage, there’s no need to switch. That said, you’ll likely be able to find a better deal with a cheap cell phone plan.
Most important features of cheap cell phone plans
While cheap cell phone plans share many similarities, they’re not all created equal. Which one is the right fit for you depends on what features matter most to you.
Cell phone coverage
Cell phone coverage is one of the most important features when it comes to any cell phone. Good coverage allows you to easily make calls and texts without any delay or lag time.
Unlimited data options
Once an optional extra in many cell phone plans, unlimited data is now one of the most sought-after features. Just keep in mind that providers will typically drop your data speed after a certain threshold, meaning that power users may face low speeds toward the end of the month.
Flexibility
Gone are the days where customers are locked into two-year contracts with big-name providers. Cheap cell phone plans usually don’t require a commitment longer than a month, and you’re free to upgrade, downgrade, or cancel your plan at any time.
Price
You don’t need to pay an arm and a leg just for decent cell coverage and high-speed data. Cheap cell phone plans can often provide the same basic services as a big provider with a much lower price tag.
While using your credit card can be an easy and convenient way to make purchases, you’ll need to be on the lookout for would-be thieves. The level of credit card fraud that occurs is staggering. According to recent data from industry publication The Nilson Report, payment card losses amounted to $27.85 billion in 2019.
To protect yourself from credit card fraud, you might consider a virtual credit card. We’ll talk about what a virtual credit card is, their advantages and downsides, and how to get a virtual credit card.
What Is a Virtual Credit Card?
A virtual credit card is a temporary, disposable credit card that can be used when making online purchases. Their intent to safeguard your actual credit card numbers from fraudsters. In turn, it could protect your credit card from hackers.
Virtual credit cards are made for temporary use. When you use a card online, the retailer can only see and store the temporary credit card number, adding another layer of protection should a data breach occur.
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How Do Virtual Credit Cards Work?
Not all credit card networks issue virtual credit cards. If a virtual credit card is offered, you can request a temp credit card from the bank through your online account. When you get a virtual credit card, the 16-digit number is randomly generated, and comes with a security code and expiration date. This information is tied to your account.
A major perk of a virtual credit card is that they’re intended for temporary use. These cards typically expire after a day, although some have a 12-month expiration date. A new 16-digit credit card code can be generated for each transaction.
Virtual Credit Card vs Digital Wallet
The major difference between virtual wallets and digital wallets is that with a digital wallet, you would store the exact credit card numbers as what’s on your credit card. When you make a purchase with a digital wallet, however, many digital wallets store a temporary card number.
Another major difference between the two is where they can be used. You can use a virtual credit card for any online purchase where credit cards are accepted. A digital wallet, on the other hand, can only be used at retailers where digital wallet payments are accepted, which might not be everywhere.
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Pros and Cons of Virtual Credit Cards
Here’s an overview of the advantages and drawbacks of using virtual credit cards, which we cover in more detail below.
Pros and Cons of a Virtual Credit Card
Pros
Cons
Greater protection from fraudsters
Generally only useable online or over the phone
Flexibility in use
Can be more challenging to use for certain purchases
Ability to customize how long the virtual credit card is active
May be more difficult to receive a refund
Transactions show up on your account
Requires extra legwork to get
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Pros
Here are the major upsides of using virtual credit cards:
• Greater protection from fraudsters: Your actual 16-digital credit card number, payment information, and personal information is safeguarded when using a virtual credit card. In the case that a hacker steals your virtual card number, that number will expire shortly. Plus, the hacker won’t have access to your personal information or identity.
• Flexibility in use: You can change your temp card number as often as you like, at the drop of a hat, and create new card numbers for different retailers. You can even set spending limits or freeze your account without the same changes being reflected in your actual credit card account.
• Transactions are posted to your account: While the credit card number is a temporary one, credit card charges made with your virtual card do show up on your credit card statements. In turn, you can keep better track of all purchases, whether using a virtual card with temporary numbers or your actual credit card number. This tie to your account also means you can get cash back rewards with a credit card even if it’s temporary.
• Ability to customize how long the number stays active: Depending on the credit card issuer, you might be able to customize the length of time a virtual card number stays active. Or, you can set a specific spending limit. This might come in handy if you’re using a joint credit card, or if you use a virtual credit card for recurring monthly purchases.
Cons
There are also drawbacks to virtual credit cards that are important to take into account as well. These include:
• Generally can only be used online or over the phone: Due to their nature and intent, virtual credit cards generally can only be used online and for some over-the-phone purchases. So it won’t offer fraud protections when you use your credit card for brick-and-mortar purchases. However, if you link your virtual credit card to your digital wallet, you might be able to use your virtual credit card at select physical locations.
• Might be more challenging to use for certain purchases: If you’re using a virtual card to book a flight or hotel reservation, and the card number expires after 24 hours, it could get a little prickly when the hotel asks for the same credit card number. In those cases, you might need to call your bank, or consider using a permanent credit card.
• Might be harder to get a refund: Another scenario when using a virtual credit card can be more complicated is when a refund is issued and the retailer can’t refund the amount to a virtual card after it has expired. In that case, you might have to opt for a store credit instead.
• Requires extra legwork to get: If you want to take advantage of the added security of a virtual credit card number, you might have to make a bit more effort than just swiping your card. You’ll have to contact your issuer each time you want to get a temp credit card number, and stay on top of short usage windows.
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How Is a Virtual Credit Card Number Generated?
Virtual credit card numbers are randomly generated sequences that are linked to your existing credit card account, just like an authorized user on a credit card would be. In some cases, to access the virtual card number, you’ll need to download the virtual card issuer’s app. Other issuers may allow you to do so through their website or through the existing banking app.
Depending on the credit card issuer, you might receive a virtual card number for different merchants. Or, you might receive a randomized 16-digital credit card sequence to use for any merchant.
The number might be good for 24 hours, after which you’d need to request a new number. Some virtual credit cards allow you to choose when a credit card is set to expire. For instance, you might choose for it to expire after a day of use, or after several months so you can use the same virtual card for recurring purchases.
Tips for Protecting Your Identity Online
Even using a virtual credit card number doesn’t make you immune to theft. Here are some ways to protect your identity and virtual credit card online:
• Sign up for a credit monitoring service. This will help you detect any suspicious behavior.
• Use a virtual private network (VPN). For a more secure connection, connect to a VPN when using public WiFi.
• Create unique passwords. Passwords to online merchant accounts should not only be unique, but a combination of letters and numbers.
• Set up alerts on your virtual credit card. Setting up alerts on your credit card for online purchases can make you immediately aware of fraudulent activity.
• Use trusted, known sites. For instance, check to see if the site is secure and has “https” instead of “http” in the URL.
• Don’t buy into credit card loss protection. If you receive an unsolicited email or call from someone claiming to be from the security department of a credit card company and asking you to activate the protection features on your card, beware. It’s a scam. You don’t need it, as credit cards typically have built-in liability protection.
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Virtual Credit Card Alternatives
If your credit card issuer doesn’t offer a virtual credit card, or you don’t think it’s a good fit for you, here are some other options:
• Prepaid credit cards: If concern when using a credit card for a purchase is top of mind, a prepaid credit card is a reloadable card that you can use for purchases. Note that while these are a safe way to make purchases, prepaid credit cards come stacked with fees and don’t help you build credit.
• Gift cards: A gift card is also a safe way to make purchases online without fraudsters accessing your personal information or credit card number. Gift cards can be used for particular merchants or anywhere the credit card network with which the gift card is associated is accepted.
The Takeaway
A virtual credit card can provide an extra layer of protection and prevent your credit card and personal information from getting into the wrong hands. However, you can typically only use virtual credit cards for online purchases and some purchases over the phone. Plus, they usually can only be used temporarily, often for one day.
If you’re looking for digital options in your credit card use, you might consider the credit card offered by SoFi. While SoFi doesn’t offer virtual cards, you can sync up your credit card to your digital wallet. Plus, you can enjoy 2% unlimited cash back rewards on eligible purchases. Cardholders earn 1% cash back rewards when redeemed for a statement credit.1
The SoFi Credit Card offers unlimited 2% cash back on all eligible purchases. There are no spending categories or reward caps to worry about.1
Take advantage of this offer by applying for a SoFi credit card today.
FAQ
Is a virtual credit card secure?
A virtual credit card offers added protection as you aren’t using your actual credit card number when making purchases. This helps prevent fraudsters from accessing your actual credit card number and sensitive information. Instead, you receive a temporary 16-digit code with its own expiration date and security code.
Can I get an instant approval for my virtual credit card?
Some virtual credit cards do offer instant approval. Once you receive your random credit card code, you usually can use it right away.
Can you get a virtual credit card anonymously?
No, you won’t be able to obtain a virtual credit card anonymously. You’ll need to request a virtual credit card by logging on to your existing credit card account. Once you make a request, you’ll receive your virtual credit card.
1See Rewards Details at SoFi.com/card/rewards.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
The SoFi Credit Card is issued by The Bank of Missouri (TBOM) (“Issuer”) pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
1Members earn 2 rewards points for every dollar spent on eligible purchases. If you elect to redeem points for cash deposited into your SoFi Checking or Savings account, SoFi Money® account, or fractional shares in your SoFi Active Invest account, or as a payment to your SoFi Personal, Private Student, or Student Loan Refinance, your points will redeem at a rate of 1 cent per every point. If you elect to redeem points as a statement credit to your SoFi Credit Card account, your points will redeem at a rate of 0.5 cents per every point. For more details please visit SoFi.com/card/rewards. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA/SIPC. SoFi Securities LLC is an affiliate of SoFi Bank, N.A.