English (US)

Key Highlights

Here’s what you need to know about career-focused education:

• A trade school offers specialized programs that prepare you for specific skilled trades.
• This path provides focused, hands-on training that often takes less time than a traditional college degree.
• There is a high demand for skilled tradespeople, making trade school graduates sought-after in the job market.
• Many schools provide career services to assist with job placement after graduation.
• Financial aid options are often available to help you manage the cost of your education.

Understanding Trade Schools in the United States

Have you ever wondered about educational paths outside of a four-year university? In the United States, trade schools offer a fantastic alternative. These educational institutions, also known as vocational schools or technical schools, provide post-secondary education designed to prepare you for a specific career.

Unlike traditional colleges, a trade school focuses on teaching you the practical, hands-on skills you need to enter a particular field. This approach can be a more direct and efficient way to start your journey toward a rewarding new career. The next sections will explore what makes these schools unique.

What Defines a Trade School?

So, what is a trade school? These institutions, also called career schools, offer a curriculum centered around a specific skilled trade. Instead of a broad education, you receive focused, practical training that equips you with the specific skills needed for a particular job, such as automotive repair or welding.

To attend, you typically need a high school diploma or an equivalent, like a GED. The great part is that these schools often teach you everything from the ground up, so you usually don’t need any prior experience to enroll and start learning.

Ultimately, a trade school is designed to get you career-ready. The entire educational experience is geared toward preparing you for entry-level work in a hands-on profession, providing a clear and direct path into the workforce.

How Trade Schools Differ from Traditional Colleges

A trade school is quite different from traditional colleges that offer a bachelor’s degree. The primary distinction lies in the focus of the education. While colleges require a wide range of general education courses in subjects like history and science, trade schools dive directly into the training you need for your chosen career.

This specialized approach allows for a much shorter program duration. You can be ready to enter the workforce in a fraction of the time it takes to earn a four-year degree. The focus is entirely on preparing you for specific careers.

Here are a few key differences:

• Focus: Trade schools teach technical skills for a specific job, while colleges offer a broad education across many subjects.
• Time: A trade school program can often be completed in two years or less, whereas a bachelor’s degree typically takes four years.
• Coursework: You won’t find general education requirements at a trade school; every class is relevant to your future profession.

The Purpose and Mission of Trade Schools

The core mission of a trade school is to provide efficient and effective job training. These vocational programs are built to equip you with the exact skills employers are looking for in the skilled trades. The goal is to make you a qualified candidate for an entry-level position as soon as you graduate.

How do they achieve this? By combining theoretical knowledge with extensive hands-on practice. You can expect to spend a significant amount of your time in labs or workshops, using the same tools and equipment you’ll encounter in your future career. This method ensures you are not just learning concepts but also how to apply them in real-world scenarios.

Many trade schools also have a strong focus on job placement. They often have dedicated career services departments that help you with your resume, connect you with employers, and host career fairs. This support system is a huge advantage in transitioning smoothly from student to professional.

How Trade Schools Operate

The operation of a trade school program is structured for efficiency and practical learning. Unlike the large lecture halls you might find in a traditional college education, a technical school often features smaller class sizes. This allows for more personalized attention from instructors who are typically experts in their field.

These educational institutions prioritize hands-on experience, meaning your learning environment is designed to mimic a real workplace. You’ll find that the curriculum is streamlined to teach you precisely what you need to know for your career, without extra coursework. Now, let’s look closer at the structure and learning environment.

Typical Structure of Trade School Programs

A typical trade school program is designed to be one of the shorter programs available in post-secondary education. The structure is built around getting you ready for a specific job quickly. This is achieved by blending classroom instruction with a heavy dose of practical training. You’ll learn the theory behind your trade and then immediately apply it in a hands-on setting.

Enrollment requirements are usually straightforward. Most schools require you to be at least 16 or 18 years old and have a high school diploma or GED. Some may also use a placement test to ensure you are a good fit for their programs, rather than standardized tests like the SAT or ACT.

The curriculum is direct and focused. For instance, an auto mechanic program won’t require you to take a history class. Instead, all your courses will relate to automotive systems.

Program Element	Description
Duration	Typically 8 months to 2 years.
Curriculum	Focused on a specific trade with no general education courses.
Learning Style	A mix of classroom theory and hands-on lab or workshop practice.
Admission	Usually requires a high school diploma/GED and a minimum age.

Hands-On Learning and Skill Development

Hands-on learning is the cornerstone of a trade school education. The entire experience is designed to give you practical experience that you can use on day one of your new job. You won’t just read about how to do something; you’ll actually do it, over and over, in a supportive learning environment.

This focus on developing specific skills is what sets these schools apart. You’ll work with the tools and technology used in your chosen field, building muscle memory and confidence. This approach is far more effective for mastering technical skills than just sitting in a classroom.

Some programs even incorporate opportunities that resemble apprenticeships, allowing you to gain real-world experience. The benefits of this learning style include:

• Developing practical skills that are directly transferable to the workplace.
• Building confidence by working with industry-standard equipment.
• Learning from instructors who have professional experience in the trade.

Schedule and Format of Classes

When considering a trade school program, you’ll find that the schedule and format of classes are designed with your success in mind. Class sizes are generally smaller than at a four-year university. This intimate setting allows for more direct interaction with your instructors, ensuring you get the guidance you need to master complex skills.

Many trade schools also offer flexible hours to accommodate students with jobs or other commitments. You may find programs with evening or weekend classes, making it easier to balance your education with your life. Some schools are even incorporating online courses for the lecture-based portions of their curriculum, paired with in-person, hands-on lab work.

The duration of a trade school program is one of its biggest advantages. While a traditional degree takes four years, most trade school programs can be completed in anywhere from eight months to two years. This accelerated timeline means you can start your career and begin earning a salary much sooner.

Popular Areas of Study at Trade Schools

Trade schools offer a surprisingly wide range of areas of study. While many people think of traditional skilled trades like welding or carpentry, the options extend into high-demand sectors like health care and technology. These programs are all designed to teach you valuable technical skills.

Whether you’re passionate about working with your hands, helping people, or diving into the digital world, there is likely a vocational degree that aligns with your interests. Let’s explore some of the most popular fields you can pursue.

Technical Fields and Skilled Trades

The skilled trades are the classic foundation of trade school education, and for good reason. These technical fields offer stable, well-paying careers for people who enjoy hands-on work. Programs in the various trades are designed to give you expertise in a specific craft, making you a valuable asset in the workforce.

You can find training for a huge variety of professions. Whether you are interested in fixing cars, building structures, or ensuring comfortable living environments, there’s a program for you. An auto mechanic, for example, learns everything from engine repair to transmission systems.

Common programs in skilled trades and technical fields include:

• Welding
• Automotive and Diesel Repair
• HVAC Technician Training
• Electrical Maintenance
• CNC Machining

Healthcare, Technology, and Service-Oriented Programs

Beyond the traditional trades, many vocational schools offer excellent programs in healthcare, technology, and service industries. These fields are growing rapidly, and a trade school education can be your fastest route to a fulfilling career within them. For example, you could become a dental hygienist, a crucial role in any dental practice.

The technology sector also has many opportunities that don’t require a four-year computer science degree. You can get specialized training in areas like robotics, non-destructive testing, or computer technology to prepare for an entry-level tech role. These programs focus on the practical application of technology.

Service-oriented programs are another popular option. If you have a passion for hospitality or the creative arts, you might consider a program in culinary arts or cosmetology. These fields allow you to turn your passion into a profession through focused, hands-on training.

Certifications, Diplomas, and Specialized Training

When you complete a trade program, you typically earn a diploma or a certification rather than a degree. These credentials signal to employers that you have received specialized training and are ready for an entry-level position in your field. A vocational college focuses on providing this targeted education.

One of the main benefits of this path is efficiency. You spend less time and often less money to become qualified for a specific job. While a four-year college provides a broad education, a trade school gives you the exact skills you need to start working immediately after graduation. This can be a huge advantage if you are clear about your career goals.

Furthermore, some schools offer even more specialized training for those who want to advance in their industry. For example, an automotive technician might take an advanced program to specialize in a particular brand. This commitment to continuous learning can lead to greater career opportunities and higher earning potential.

Pathways After Trade School Graduation

After graduation, trade school graduates find themselves on a direct path to a new career. Many schools offer robust job placement assistance, connecting you with employers in various career fields who are actively seeking your new skills. This support can make the transition from student to employee seamless.

With a trade school education, your earning potential can be significant, especially in high-demand industries. You enter the workforce with practical experience, making you a valuable candidate from the start. Let’s examine some of the specific careers and job market trends you can expect.

Careers You Can Pursue with a Trade School Education

A trade school education opens the door to hundreds of specific careers across numerous industries. The job market for these trade school jobs is often strong due to the high demand for skilled professionals. You can pursue a career as a welder, electrician, plumber, or cosmetologist, to name just a few.

These roles are essential to our economy and communities. For example, an HVAC technician keeps our homes and offices comfortable, while a collision repairer gets vehicles safely back on the road. The skills you learn are tangible and immediately applicable.

Here are some examples of careers and their median average annual salary, according to the Bureau of Labor Statistics. Keep in mind these are not entry-level figures.

• Diesel Technician: $60,640
• Welder: $51,000
• CNC Machinist: $49,970

Job Market Trends for Trade School Graduates

Are you wondering about job market trends for skilled professionals? The good news is that trade school graduates are currently in high demand. The United States is experiencing a significant skilled labor shortage, meaning there are more jobs available than qualified people to fill them. This puts you in a great position after completing your training.

Data from the Bureau of Labor Statistics (BLS) and its Occupational Outlook Handbook often highlight strong growth projections for many skilled trades. Employers in industries from transportation to healthcare are actively looking for technicians and specialists with the hands-on training that trade schools provide.

This demand can also positively impact your earning potential. While the national average salary varies by profession and location, the need for skilled workers often leads to competitive wages and opportunities for career advancement. A trade school education can be a smart investment in a stable and rewarding future.

Trade School vs. Technical and Vocational Institutions

As you explore your options for higher education, you’ll likely come across the terms trade school, technical college, and vocational schools. While they are often used interchangeably and share the goal of career-focused training, there can be subtle differences between them. They all offer an alternative to traditional community colleges or four-year universities.

Understanding these nuances can help you choose the best path for your specific goals. Let’s break down how these institutions compare so you can make an informed decision about your future.

Differences Between Trade Schools, Technical Schools, and Vocational Schools

While the terms are often used interchangeably, there can be slight distinctions. “Vocational schools” is a broad term that can refer to both trade and technical schools. All of these institutions offer vocational programs designed to prepare you for a specific field of study.

A trade school typically focuses on hands-on careers and skilled trades, like welding or cosmetology, emphasizing practical application. A technical school may also offer certifications and associate’s degrees and sometimes follows a more traditional classroom lecture format, though this can vary. The key is that both are focused on career readiness.

The best way to understand the difference is to look at the specific programs offered by each school.

School Type	Primary Focus	Typical Credentials
Trade School	Hands-on training for a specific skilled trade (e.g., auto repair, plumbing).	Certification or Diploma
Technical School	Career-focused education, sometimes more academic, for technical fields.	Certification or Associate’s Degree
Vocational School	An umbrella term for schools offering job-specific training.	Certification, Diploma, or Associate’s Degree

Which Type of School Suits Your Goals Best?

Finding the right educational path is all about matching a school’s offerings to your career goals. If you know exactly which hands-on career you want to pursue, a trade school that specializes in that area might be a good fit. These educational institutions provide a direct line to your desired profession.

This type of career-focused education is ideal for individuals who are certain about their path and want to enter the workforce quickly. However, if you are still exploring or want a slightly broader technical education that could lead to an associate’s degree, a technical college might be more suitable.

To find the best fit, consider these points:

• Your Career Goals: Do you have a specific, hands-on trade in mind?
• Learning Style: Do you learn best by doing?
• Available Resources: Research the specific programs and support services offered by different schools.

Choosing the Right Trade School for Your Career Goals

Once you’ve decided that a trade school is the right path for you, the next step is choosing the right one. This decision is crucial, as the quality of your training will directly impact your future success. Your research should focus on finding a program that aligns perfectly with your career goals.

You’ll need to consider everything from the programs offered to the reputation of the school and the total cost of a trade school education. Taking these next steps carefully will ensure you invest your time and money wisely.

Researching Available Programs

Your first step in choosing a school is researching the available programs. Look for training programs that are directly related to the field of study you’re passionate about. Does the curriculum cover the specific skills that employers in that industry are looking for?

Dig deep into what each program offers. You want to ensure there is a strong emphasis on practical experience. A quality program will dedicate a significant portion of its hours to hands-on training in a lab or workshop that simulates a real work environment. This is where you will build the skills that make you a valuable job candidate.

When researching, be sure to:

• Review the course curriculum in detail.
• Ask about the amount of time spent in hands-on labs versus classroom lectures.
• Inquire about the school’s equipment and whether it is up to industry standards.

Evaluating Accreditation and Reputation

After finding programs you’re interested in, it’s vital to evaluate each school’s accreditation and reputation. Accreditation is a seal of approval from an official agency, indicating that the school meets certain standards of quality. This is important for ensuring you receive a legitimate education and can be a factor when seeking financial aid.

A school’s reputation also matters. Look for reviews from past students and see if the school has strong connections with employers in your field. Many trade schools are private schools, so doing your due diligence is essential. A good reputation often correlates with better training and job placement support.

Considering the trade school costs is also part of this evaluation. A reputable, accredited school should be transparent about tuition and fees. While cost is a factor, remember that a quality education is an investment in your future earning potential.

Visiting Campus and Speaking with Advisors

Nothing gives you a better feel for a school than visiting the campus. A tour allows you to see the facilities, workshops, and classrooms firsthand. You can observe the learning environment and decide if it’s a place where you can see yourself thriving. Most schools offer free in-person or virtual tours.

Speaking with student advisors is one of the most important next steps. They can answer all your specific questions about admission, financial aid, and the programs themselves. Advisors can also tell you about the available resources, such as career services or tutoring, that will support you during your studies.

Don’t hesitate to ask about student life and extracurricular activities. While the focus is on career training, connecting with classmates who share your passion can build a valuable professional network and create lasting friendships. This visit is your chance to gather all the information you need to make a confident decision.

Frequently Asked Questions

What are the most common requirements to enroll in a trade school?

To enroll in a trade school, you generally need to be at least 16 or 18 years old, depending on the institution. The most common educational requirement is a high school diploma or a state-issued GED. Unlike traditional colleges, a vocational college typically does not have extensive general education requirements for admission.

Are trade school graduates in high demand in today’s job market?

Yes, trade school graduates are in very high demand. The Bureau of Labor Statistics consistently shows a need for workers in the skilled trades due to a labor shortage in the United States. This demand often leads to strong job security and competitive wages in the job market.

What financial aid options can help pay for trade school in the United States?

To help pay for a trade school education in the United States, you may be eligible for various forms of financial aid. Many schools offer financial aid packages that can include federal grants, scholarships, and student loans. These options can help you manage costs and reduce potential student debt.

Key Highlights

Deciding how much to tip your movers doesn’t have to be complicated. Here are the main takeaways to guide you:

• Tipping movers is not required, but it is a standard practice to show appreciation for good service.
• A good rule of thumb is to tip $4–$8 per mover, per hour, or about $40–$65 per mover for a full day’s work.
• Factors like the complexity of your move, whether it’s a local or long-distance move, and the quality of service should influence the final amount.
• For long-distance moves with different crews, be sure to tip both the loading and unloading teams separately.
• Cash is the preferred method for tipping, as it ensures each mover gets their share directly.
• If you can’t tip, offering refreshments or leaving a positive review is a great way to show your gratitude.

Understanding Tipping Etiquette for Movers in the United States

When you’re in the middle of a relocation, the last thing you want to worry about is tipping etiquette. While your moving company pays its employees, tipping is a customary way to thank your moving team for their hard work and professionalism. It’s a direct way to acknowledge a job well done, especially when they handle your belongings with care.

As a good rule of thumb, consider tipping as a standard part of your moving budget. Think of it less as an obligation and more as a reward for good service. If your movers make your day less stressful and everything arrives safely, a tip is a powerful gesture of appreciation that is always well-received in the moving industry.

Why Tipping Movers Matters

Your moving team does more than just transport boxes from one place to another. They are responsible for the heavy lifting of your furniture, carefully protecting your belongings from damage, and navigating tight spaces or flights of stairs. This labor-intensive work requires strength, coordination, and a professional attitude to ensure your move goes smoothly.

Showing your gratitude with a tip acknowledges this hard work. It tells the movers that you recognize their effort and appreciate the care they took with your possessions. A simple tip can boost morale and make the moving team feel valued for the physically demanding job they perform, often in challenging weather conditions.

Ultimately, tipping for good service is a way to say “thank you” for reducing the stress of your move. When a crew goes above and beyond to work efficiently and professionally, a tip is the most effective way to express your satisfaction. It reinforces high standards and acknowledges the personal effort that went into your successful relocation.

When Tipping Is Expected versus Optional

Knowing when to tip comes down to the quality of service you received. If your movers met or exceeded your expectations, a tip is generally expected as a token of appreciation. Ask yourself if the crew demonstrated professionalism and care throughout the moving process.

A tip is well-deserved if the movers:

• Arrived on time and were communicative.
• Handled your possessions carefully, avoiding damage to items or property.
• Worked efficiently and maintained a respectful attitude.
• Went the extra mile to help with tasks like furniture reassembly.

However, tipping is always optional. You are not obligated to provide a tip, especially if you experience unsatisfactory service. If the crew was late without notice, careless with your belongings, or unprofessional, you are within your rights to reduce the amount or withhold a tip altogether. The decision to tip should be based entirely on your satisfaction.

Common Misconceptions about Tipping Movers

There are several common misconceptions about tipping that can cause confusion on moving day. One major misunderstanding is that a service fee or the total bill from the moving company already includes a tip for the crew. This is rarely the case; service fees cover operational costs, not employee gratuities.

Another frequent mistake is applying the same tipping rule of thumb used in restaurants. Here are a couple of points to clarify:

• Unlike tipping a waiter, you don’t typically tip a percentage of the total moving cost.
• The moving industry standard is to tip per person based on the hours worked or a flat rate per day.

Many people also assume that you only need to tip for moving services but not for packing services. However, packers perform a critical and often tedious job. If you hire a team for packing, it’s customary to tip them for their hard work as well. Thinking of tipping as a reward for a job well done, regardless of the specific task, is the best approach.

Factors That Influence How Much You Should Tip Movers

Deciding on the right tip amount involves more than just a standard calculation. Several factors can influence how much you should give, from the type of move to the quality of service you receive. Considering these elements helps you determine a fair and appropriate tip that reflects the crew’s effort.

The complexity of your move, the distance, the size of your moving crew, and even the weather conditions can all play a role. A move that involves heavy lifting up multiple flights of stairs will naturally warrant a more generous tip than a simple, ground-floor relocation. The following sections will break down how to adjust your tip based on these specific scenarios.

Move Complexity and Time Required

The complexity of your move is one of the biggest factors in determining how much to tip. Did your movers have to navigate narrow staircases, long hallways, or an elevator? A move that requires significant heavy lifting or maneuvering around tricky obstacles is physically more demanding and deserves a higher tip.

Furthermore, consider elements like the weather and the presence of specialty items. A crew working tirelessly through extreme heat or a snowstorm is certainly going the extra mile. The same applies if they are moving bulky items like a piano or a large safe. These challenges add to the difficulty of the job, and your tip should reflect that extra effort. The time required for packing and moving also influences the tip; a full-day move warrants more than a two-hour job.

Here is a quick reference to help you decide on a tip amount based on the service level.

Service Level	Suggested Tip (per mover)
Satisfactory	$4–$5/hour (≈ $40/day)
Outstanding	$6–$8/hour (≈ $60–$65/day)

Local Moves vs. Long-Distance Moves

The tipping etiquette for a local move is fairly straightforward. You typically have one crew that handles the entire job from start to finish. In this case, a good rule of thumb is to tip each mover around $4 to $8 per hour, depending on their performance. At the end of the day, you can hand each team member their tip directly.

Long-distance moves can be a bit more complicated. Sometimes, one crew will handle both the loading and unloading, even if it takes multiple days. In this scenario, you would tip the entire crew once the job is complete at your new home. However, it is more common for long-distance moves to involve different crews for loading and unloading.

If two separate teams are involved, you should tip both of them. Tip the loading crew after they have finished packing the truck at your original location. Then, tip the unloading crew once all your belongings have been safely delivered to your new place. This ensures that both teams are rewarded for their hard work.

Size of Your Move and Number of Movers

The size of your move directly impacts the amount of work required and often the number of movers on your crew. A larger home with lots of heavy furniture and bulky items will require a bigger moving crew and more time, which should be reflected in your total tip. The more effort involved, the more you should consider tipping toward the higher end of the range.

When you have a moving crew of three or more people, it’s important to budget for tipping each individual. Instead of handing a lump sum to the foreman or crew leader, the best way to ensure fairness is to give each team member their tip directly. This personal touch shows that you appreciate everyone’s contribution to the moving process.

Remember to prepare for this ahead of time by having enough small bills on hand. Whether it’s a team of two for a small apartment or a crew of five for a large house, planning to tip each mover for their part in handling your packing and moving makes the end of the day smoother for everyone.

Adjusting Tips for Exceptional or Unsatisfactory Service

Tipping is a reflection of the quality of service you receive, so you should feel empowered to adjust the amount accordingly. If your moving crew delivered exceptional service, you might want to consider giving a higher tip. These are professionals who truly made your moving process easier.

Consider a more generous tip if your movers:

• Went the extra mile by helping with unexpected tasks.
• Showed extreme care with fragile or valuable items.
• Completed a difficult move much faster than anticipated.
• Maintained a positive and helpful attitude throughout a long day.

On the other hand, you are not obligated to tip for unsatisfactory service. If the crew was unprofessional, damaged your property, or was significantly careless with your belongings, it is acceptable to offer a lower tip or no tip at all. Tipping is a reward for a job well done, not a requirement.

Alternative Ways to Show Appreciation Beyond Tipping

Moving is expensive, and sometimes a cash tip just isn’t in the budget. Fortunately, there are many other thoughtful ways to show your gratitude that your moving crew will appreciate. A simple, nice gesture can go a long way in acknowledging their hard work and making them feel valued.

From providing refreshments to leaving a glowing online review, these alternatives are excellent ways to express your appreciation without opening your wallet. These actions not only boost morale on moving day but can also have a lasting positive impact on the movers and their company. Let’s explore some of these meaningful alternatives.

Providing Refreshments or Meals

One of the most appreciated gestures you can offer your moving team is providing refreshments and snacks. Moving is physically demanding work, and staying hydrated and energized is crucial, especially on a hot day or during a long move. Having cold water or sports drinks available is a simple but highly effective way to show you care.

Depending on the time of day and length of the move, offering meals can also be a wonderful way to show your thanks. If the crew is working through lunchtime, ordering pizza or sandwiches for everyone is a fantastic gesture that gives them a chance to rest and refuel.

Here are a few easy ideas:

• Keep a cooler filled with bottled water and Gatorade.
• Offer simple snacks like granola bars, fruit, or bagels.
• Ask the crew their preference if you decide to order lunch.

This small act of kindness fosters a positive atmosphere and lets your moving team know you appreciate their efforts.

Leaving Positive Reviews for Movers

In today’s digital world, a positive review can be just as valuable as a cash tip. Taking a few minutes to share your good experience online is a powerful way to express your gratitude. Reviews help the moving company build its reputation and attract new customers, which directly supports the business and its employees.

When you write your review, be specific about what made your experience great. Mention the professionalism of the crew, how carefully they handled your belongings, or their efficiency. If you remember the names of the movers who impressed you, mentioning them in the review is an excellent touch. This kind of recognition can often lead to bonuses or promotions for them within their company.

Leaving a detailed, positive review is a lasting form of appreciation that benefits everyone involved. It not only helps future customers make informed decisions but also provides valuable feedback to the moving industry and validates the hard work of your crew.

Referrals and Thank-You Notes

Another meaningful way to show your appreciation is through referrals. If you were happy with your moving process, recommending the company to friends, family, or colleagues is a huge compliment. Word-of-mouth advertising is incredibly valuable for movers, and your referral is a testament to the quality of their service.

Don’t underestimate the power of a simple, handwritten thank-you note. While it may seem old-fashioned, taking the time to write down your thanks can leave a lasting impression on the moving crew. Handing a note to the crew leader at the end of the move is a personal and heartfelt gesture that acknowledges their hard work.

Both referrals and thank-you notes are cost-free ways to express your gratitude. They communicate that you were truly satisfied with the job and that you value the effort the team put into making your relocation a success. This form of appreciation helps build a strong reputation for the crew and their company.

Conclusion

Tipping movers is an integral part of showing appreciation for a job well done. Understanding the nuances of tipping etiquette—from when it’s expected to how much you should give—can significantly enhance your moving experience. Remember that factors like the complexity of your move, the distance, and the service provided can influence the tip amount. Additionally, there are other meaningful ways to express your gratitude, such as providing refreshments or writing a positive review. By taking the time to acknowledge the hard work of your movers, you not only foster goodwill but also help promote a culture of respect and appreciation in the moving industry. If you have any further questions or need personalized advice on tipping movers, don’t hesitate to reach out!

Frequently Asked Questions

Is tipping required if my moving company charges a service fee?

No, tipping is not required, even if there’s a service fee on your total bill. A service fee typically covers the moving company’s operational costs, while a tip is a direct gesture of appreciation for the moving crew’s hard work. Good tipping etiquette suggests rewarding the movers separately for good service.

Should I tip movers in cash or is another payment method acceptable?

A cash tip is the best and most preferred method. Handing small bills directly to each member of the moving team ensures they receive it immediately and can split it fairly. While some companies allow you to add a tip on a credit card, cash guarantees the money goes straight into their wallet.

Are there situations where tipping movers isn’t expected?

Yes, tipping isn’t expected if you receive unsatisfactory service. If the movers were unprofessional, careless with your belongings, or caused significant damage, you are not obligated to tip. Tipping is a reward for good quality of service and courtesy, not a requirement regardless of performance.

How much should I tip each mover if paying separately?

A good rule of thumb is to tip each mover $40 to $65 for a full day of work. You can hand this amount in cash to each team member individually. This approach is better than giving a lump sum to the crew leader, as it ensures everyone is recognized for their effort.

Key Highlights

Here’s a quick look at what you’ll find in our guide to higher education in Virginia:

• Virginia is home to over 100 colleges and universities, offering a wide range of choices for prospective students.
• The state features some of the nation’s best colleges, including top-tier public powerhouses and prestigious private colleges.
• Leading public institutions like the University of Virginia, Virginia Tech, and William & Mary are known for their academic excellence.
• You’ll also find outstanding private institutions such as Washington and Lee University and the University of Richmond.
• Many Virginia schools offer robust online programs, providing flexible learning opportunities.

Leading Public Colleges in Virginia

When you think of higher education in Virginia, its renowned public universities often come to mind first. These institutions are not just state treasures; they are nationally recognized for their academic rigor, research contributions, and overall student experience. Schools like the University of Virginia and Virginia Tech consistently appear on lists of the country’s top public schools.

Each state university offers a unique identity and set of strengths, from historical significance to cutting-edge research. Let’s explore some of the most prominent public universities in Virginia, including the distinguished University of Virginia, the innovative Virginia Tech, and the historic William & Mary.

University of Virginia

Founded by Thomas Jefferson in 1819, the University of Virginia (UVA) is celebrated as one of the best public universities in the nation. Located in Charlottesville, this public school has a rich history and a strong commitment to academic excellence. Its reputation is backed by impressive statistics, including a graduation rate of 94.7%, which is well above the national average.

UVA’s academic offerings are extensive, with a wide variety of programs of study across numerous schools and colleges. Whether you’re interested in undergraduate or graduate studies, you can find a program that fits your goals. The university also offers over 300 courses entirely online, making education accessible to a broader audience.

As a top-ranked institution, UVA attracts students from all over the world. The university is regionally accredited by the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) [https://sacscoc.org/], an agency that oversees many colleges and universities in the southern United States.

Virginia Tech

Virginia Polytechnic Institute and State University, more commonly known as Virginia Tech, is a leading public land-grant university in Blacksburg. It stands out for its extensive research portfolio, which exceeds $556 million, placing it in the top 5% of universities in the U.S. for research. This makes it a hub of innovation driven by its many research centers.

With over 30,000 undergraduate students, Virginia Tech offers a vibrant campus life and a wide array of academic choices. You can choose from more than 100 undergraduate programs, with particularly strong offerings in engineering, business, and sciences. The university also provides about 170 master’s and doctoral programs.

Virginia Tech’s commitment to quality education extends to its online offerings, which include nine master’s degrees and 19 certificates. With a high retention rate of 92%, it’s clear that students who choose Virginia Tech are highly satisfied with their educational journey.

William & Mary

Chartered in 1693, William & Mary holds the distinction of being the second-oldest institution of higher learning in the United States. Its long history includes surviving the Revolutionary War and the Civil War, making its campus in Williamsburg a place of deep historical significance. Today, the College of William & Mary is a cutting-edge research university while retaining its public ivy status.

The university excels in providing a personalized learning experience, with 80% of undergraduate students participating in research mentored by faculty. It offers over 45 undergraduate degree programs, with notable strengths in history and the social sciences. This focus on research and close faculty interaction prepares students well for their future careers.

In addition to its undergraduate excellence, W&M provides more than 40 graduate and professional degree programs through its schools of business, education, law, and marine science. This blend of rich history and modern academics makes William & Mary a unique and compelling choice for your education.

Outstanding Private Colleges in Virginia

Beyond the well-known public universities, Virginia is home to a fantastic selection of private colleges. These private institutions offer unique learning environments, often characterized by smaller class sizes and specialized academic programs. From liberal arts colleges to large evangelical universities, you can find a private school that aligns with your personal and academic goals.

Are you looking for a highly ranked private college in Virginia? You’re in luck. Schools like Washington and Lee University, the University of Richmond, and Liberty University are excellent examples of the quality and diversity available. Let’s take a closer look at what makes these private colleges stand out.

Washington and Lee University

Washington and Lee University, often called W&L, is a highly-ranked private liberal arts college in Lexington. As the ninth-oldest institution of higher education in the United States, it has a long-standing reputation for academic excellence. With fewer than 2,000 undergraduate students, W&L offers an intimate learning environment and an impressive 8-to-1 student-to-faculty ratio.

The university provides a robust selection of 36 undergraduate majors and 37 minors, allowing you to tailor your education to your interests. These diverse academic programs are designed to foster critical thinking and prepare you for a successful future. The school’s motto, “Not unmindful of the future,” reflects its forward-looking educational philosophy.

Like many top schools in the region, Washington and Lee University is accredited by the Southern Association of Colleges and Schools Commission on Colleges. This accreditation ensures that the university meets rigorous quality standards, giving you confidence in the value of your degree.

University of Richmond

The University of Richmond is a private liberal arts college that is frequently recognized for its academic quality and as a “best value” school. With an 8-to-1 student-to-faculty ratio and an average undergraduate class size of 16, you are guaranteed personalized attention from professors. This intimate setting is ideal for deep learning and mentorship.

You can explore over 60 undergraduate areas of study across five schools, giving you plenty of options to find your passion. The university is committed to making its top-tier education affordable and is need-blind in its admission process. It strives to meet 100% of students’ demonstrated financial need, with an average need-based financial aid award of over $55,000.

For official information about programs and admissions, you can visit the University of Richmond’s website [https://www.richmond.edu/]. There you’ll find details on its holistic admissions process, which considers every aspect of your application to get a complete picture of who you are.

Liberty University

As one of the largest private colleges in the nation, Liberty University is a private evangelical university in Lynchburg serving over 100,000 students through both its residential and online programs. Its massive 7,000-acre campus provides a comprehensive collegiate experience, while its extensive online platform offers flexibility for students worldwide.

Liberty offers an incredible range of over 700 unique degree programs, giving you an unparalleled level of choice. Whether you’re pursuing an undergraduate, graduate, or doctoral degree, you’re likely to find a program that fits your career aspirations. The university is also known for serving a large military student population of over 30,000.

According to education statistics, Liberty has a very high acceptance rate of 99.3%, making it an accessible option for many students. With a strong focus on both in-person and distance learning, Liberty University has established itself as a major force in higher education.

Noteworthy Four-Year Colleges Beyond the Major Players

While Virginia is famous for its top-tier universities, many other excellent four-year colleges deserve your attention. Institutions like James Madison University and George Mason University are major players in their own right, serving large populations of undergraduate students and contributing significantly to research and innovation.

These universities offer a wide range of areas of study and boast impressive facilities, including advanced research centers. They provide a high-quality education and a dynamic campus life that rivals many bigger names. Let’s look at what makes JMU and GMU such attractive options for prospective students.

James Madison University

James Madison University (JMU), located in Harrisonburg, is a public state university that serves nearly 22,000 students. It has earned a stellar reputation for student success after graduation. In fact, the U.S. Department of Education once named JMU the #1 best college for employment in Virginia, showcasing the real-world value of its degrees.

The university boasts a high graduation rate of 84%, a testament to its supportive and effective learning environment. As one of Virginia’s prominent public institutions, JMU offers a wide range of programs designed to prepare its large body of undergraduate students for successful careers. The school is known for strong outcomes, especially in fields like nursing and accounting.

Admissions at JMU require official transcripts, a letter of recommendation, and a personal statement. This holistic approach helps the admissions team understand each applicant’s potential beyond just numbers, making it a place where diverse talents can thrive.

George Mason University

George Mason University (GMU) is a large public research university located in Fairfax, just outside of Washington, D.C. With over 39,000 students, GMU is Virginia’s largest public research university and is known for its incredible diversity and innovative spirit. The university has a history of pioneering unique doctoral programs in fields like conflict resolution and information technology.

GMU offers more than 200 degree programs at the undergraduate and graduate levels. Its proximity to the nation’s capital provides students with unparalleled internship and career opportunities. The university is home to numerous research centers, making it a hub for groundbreaking work in a variety of fields, including a top-ranked criminal justice program.

For those seeking flexibility, GMU provides over 50 online and hybrid programs, taught by the same expert faculty who teach on campus. This commitment to accessibility and academic excellence makes George Mason University a powerful engine of opportunity in the Commonwealth.

Frequently Asked Questions

Which Virginia colleges are nationally ranked for academics?

Several Virginia colleges consistently earn top national rankings. The University of Virginia, Virginia Tech, and the College of William & Mary are often featured in publications like U.S. News & World Report for their strong academics, high graduation rates, and overall value, placing them among the best public universities in the country.

What are the best public colleges in Virginia?

The University of Virginia and Virginia Tech are widely considered the top public colleges in the state. Other excellent options include James Madison University, known for great employment outcomes, along with major institutions like Old Dominion University, George Mason University, and the historically significant Virginia State University.

Which Virginia colleges are known for strong academic programs?

Many Virginia colleges offer standout academic programs. George Mason University excels in fields like criminal justice and IT. The College of William & Mary is renowned for liberal arts and history. The University of Richmond and Christopher Newport University also offer strong, student-centered programs, while Virginia Commonwealth University is noted for its arts and health sciences.

Ever wondered, “Do I need a passport to go to Canada if I have a REAL ID?” Your confusion is understandable. The rules around international travel sometimes change and can be unclear. While a REAL ID is valid for domestic US flights and access to some federal facilities, international travel is a different story.

At Remitly, we want to make it easier for you to see more of the world. In this guide, we’ll break down exactly what you need to visit Canada from the United States (US), examine the key differences between a REAL ID and a passport, so you can travel with confidence.

Understanding REAL ID: what it can and can’t do

The US introduced REAL ID in 2005, setting new standards for driver’s licenses and identification (ID) cards. So, REAL ID is more of a standard than a specific piece of identification. 

Your driver’s license could be a REAL ID, but so could a state identification card. If it is, you’ll see a REAL ID star in the top right-hand corner of your ID card.

As of May 7, 2025, REAL ID became mandatory to board domestic flights within the US or to enter federal buildings.

But although it allows you to get on a domestic flight, it’s not a valid travel document for international trips. That means you can’t use it to get into Canada, Mexico, or any other foreign country. Even if you’re just driving into Canada for the day, passport requirements still apply.

A REAL ID-compliant license ID card isn’t enough because it does not prove US citizenship or legal status. It only proves your identity. 

If you’re traveling to Canada, you’ll need additional documentation depending on how you’re getting there. If you’re flying, you’ll need a valid US passport for all travelers, including children. If you’re driving over the border, you can also use a passport card, an Enhanced Driver’s License (EDL) from certain states, or a Trusted Travel Program card like NEXUS. 

These documents satisfy both Canadian and US border entry requirements for those traveling by road.

Document type	Purpose	Accepted for Canada travel?	Notes
REAL ID	Domestic flights, federal facilities	No	Not valid for crossing international borders
US passport	International air, land, or sea travel	Yes	Required for air travel; also valid by land or sea
Passport card	Land and sea travel to Canada, Mexico, the Caribbean, and Bermuda	Yes	Not valid for air travel
Enhanced Driver’s License (EDL)	Land and sea travel to Canada	Yes	Only available in certain US states
Trusted traveler card (NEXUS, SENTRI, FAST)	Expedited border crossings	Yes	Must be used at designated lanes or kiosks

Ultimately, a REAL ID can improve convenience for domestic travel, but it doesn’t replace the need for a passport. Getting a REAL ID for travel to Canada won’t work. A passport is still your best bet for traveling internationally. Always confirm your Canada travel documents before your trip to make sure you have a smooth entry into the country and back into the US.

We’ll get into this in more detail below.

Passport requirements for travel to Canada

A valid US passport is still the most reliable and widely accepted travel document for Canada, along with anywhere else in the world. But there are other options, depending on how you’re traveling.

To fly into Canada

For a flight, you should have a passport book for everyone who is traveling, including children and infants. A passport card is not enough if you plan to fly. 

Canadian immigration officers will not let you into the country if you don’t have the right ID, and you probably won’t even get that far. Generally, airlines will check your identification before you leave, and if you don’t meet the passport requirements Canada has in place, they won’t allow you to get on your flight.

To drive or sail to Canada

The rules are slightly different for travel by land or sea. If you’re driving over the border into Canada, you can use a passport card. You can also use an Enhanced Driver’s License issued by Michigan, Minnesota, New York, Vermont, or Washington. 

Trusted Travel Program cards like NEXUS make things even easier. With a NEXUS card, you can drive right through the designated lane at the border and show your card to the automatic reader. You probably won’t even have to talk to anyone. However, remember that to use this program, everyone in your vehicle must be a NEXUS member.

The same also applies if you enter Canada by boat. So if you’re taking a cruise to Alaska and stopping off in Vancouver, a passport card or EDL is enough to confirm your identity and citizenship.

Holding a valid passport makes all of this simpler, because it’s accepted no matter what method of travel you use. If you want the smoothest entry to Canada and back into the US, a valid passport complies with all the rules, so you don’t have to worry about different standards for different methods of travel.

Alternative documents: passport cards and enhanced IDs

A valid US passport might be the gold standard for travel to Canada. But not everyone has a passport, and if you’re not a frequent traveler, you may feel you don’t need one.

Let’s take a look at some of the alternative documents you can use to visit Canada without a passport. Each method has its limitations, so make sure you fully understand when it can and can’t be used before you start your journey.

Passport cards

A US passport card is a wallet-sized version of a traditional passport book. Issued by the US Department of State, they serve as official proof of both identity and US citizenship. They meet the passport requirements Canada has established and allow you to enter the country by road or sea.

Pros

• Valid for road and sea entry
• Cheaper than a passport book
• More portable and harder to damage than a passport book

Cons

• Not valid for international air travel
• Only valid for land and sea travel to Canada, Mexico, Bermuda, and the Caribbean
• Application takes a similar length of time to a passport book—around four to six weeks for standard processing.

Enhanced Driver’s Licenses (EDLs)

An EDL is a great solution for people who frequently enter Canada by road. They are issued in most US states that share a border with Canada: Michigan, Minnesota, New York, Vermont, and Washington.

The cost and processing time for these vary depending on your state. In general, they cost around USD $30-$50 more than a regular driver’s license, and the processing time is usually two to six weeks.

Pros

• Since it’s also your driver’s license, it means you need one less piece of ID
• Meets Canadian passport requirements
• Cheaper than a passport

Cons

• More expensive than a regular driver’s license
• Must be renewed every few years, depending on the policies of your state.

NEXUS Card

Probably the easiest way to enter Canada—whether you fly, drive, or sail—is with a NEXUS Card. This scheme was specifically set up to make travel easier for people who cross the border frequently.

However, to get a NEXUS card, you need a valid passport in the first place.

It can take from 12 to 24 months to qualify for this program, and comes with a processing fee of USD $120 per adult applicant. Once you have your card, you’ll be able to use designated travel lanes with expedited customs processes. But because of the cost and time frame involved, it’s really only useful if you intend to make frequent border crossings.

Pros

• Expedited travel lanes
• Reduced customs checks

Cons

• More expensive than other IDs
• Requires a valid passport
• Long application time

Special considerations and exceptions

Getting the travel documents Canada requires is usually straightforward. However, some special cases are easy to overlook. Knowing the rules in advance can help avoid stressful surprises at the border.

Minors traveling to Canada

For children under 18 traveling by land or sea, a passport is still recommended. But you can use a combination of documents that show the child’s full name, date of birth, and citizenship status. This includes:

• Birth certificate
• Certificate of citizenship or naturalization
• Certificate of Indian status

Remember that photo ID will be required along with these documents, so make sure you have it for each child.

You may also be asked to prove your legal custody of the child, so bring any legal custody documents with you. If you share custody with another parent or guardian, try to get a consent letter that includes the full name, address, and telephone number of the other parent or guardian. Customs officers will often check with the other parent, so make sure you keep them fully informed.

Cruise passengers

Cruise travel follows slightly different requirements, depending on the itinerary. If you’re taking a closed-loop cruise—one that begins and ends in the same US port—you can use a passport card, EDL, or even a combination of a birth certificate and a government-issued photo ID to travel through Canadian waters. 

Remember, though, that if the cruise ends in a different port from the one it starts from, it’s not a closed-loop cruise. That’s true even if both ports are in the US. For example, if you cruise from Los Angeles to Alaska, you’re not taking a closed-loop cruise, and you’ll need to carry a valid passport with you.

Realizing you have the wrong documentation

If you reach the border or the airport and find out that your REAL ID or driver’s license isn’t enough to let you into Canada, you’ll most likely be denied entry. Border agents cannot make exceptions to the rules, no matter what reason you may have. 

Emergencies

If you absolutely need to cross the border in a hurry, the US Department of State offers expedited passport processing. It takes two to three weeks to get a passport this way. 

You can get a passport within 14 days if you can prove that you have international travel already booked. There’s also a 72-hour service for life or death emergencies.

Plan your Canada trip with confidence

Now you know that a REAL ID is not enough to travel to Canada by itself. The best document will always be a valid passport, as it works for air, land, and sea travel. However, if you aren’t flying, you can also use an EDL, a passport card, or some other forms of ID to enter Canada.

Get your documents in order well before you travel, and you won’t be surprised at the border, and you can enjoy the Great White North more easily.

FAQs

Can I use my REAL ID to fly to Canada?

No. REAL ID is only valid for domestic flights within the US. Flights into Canada require a valid passport or other documentation proving citizenship.

What’s the difference between a passport book and passport card for Canada travel?

A passport book and a passport card have the same information. Both meet the passport requirements Canada has established. However, passport cards are not valid for international travel by air. A passport card lets you into Canada by road or sea, but not by air.

Do children need passports to travel to Canada?

Children under the age of 18 can enter Canada with a birth certificate or certificates of citizenship or naturalization to prove their US citizenship, combined with a photo ID to prove their identity. However, this only applies to those entering Canada by road or sea. To fly into Canada, everyone needs a full passport, including children.

Can I drive to Canada with just an Enhanced Driver’s License?

Yes. Enhanced Driver’s Licenses demonstrate your citizenship and your identification, and are valid for travel into Canada by road.

What should I do if my passport expires while I’m in Canada?

If your passport expires while you’re in Canada, visit the nearest US embassy or consulate. You’ll find one in every major city in Canada, and they can issue a limited emergency passport that’ll allow you to return to the US.

How long does it take to get a passport for Canada travel?

The current processing time for a US passport is four to six weeks. It’s also possible to pay extra for an expedited service that takes around two to three weeks. In emergencies, you can apply to get a passport within 14 calendar days, or even within 72 hours if there’s a life or death emergency.

Have you ever looked at a job posting with a $65,000 salary and thought, “What does that actually mean for my paycheck?” Sometimes hearing a big annual number can feel a bit abstract. And if you moved to the US from a place where salaries are calculated differently, it can feel even more confusing.

At Remitly, we talk to immigrants and newcomers every day who are navigating the same questions. How do salaries work here? How much actually lands in your bank account? And is $65,000 a good salary for building a life, supporting family back home, and maybe even saving a little? That’s why we’ve put this guide together: to make it easier to understand.

How to calculate your hourly rate from a $65,000 salary

Once you know the basic US full-time work setup, usually 40 hours a week throughout 52 weeks a year, then everything clicks into place. We’re calculating in US dollars throughout.

The simple formula

To convert a yearly salary into an hourly wage, you divide by 52 and then divide again by 40. So, for $65,000 a year, that works out at $31.25 an hour. 

If you like thinking about it in daily or monthly terms, that’s about $250 a day, $1,250 a week, or roughly $5,417 a month, before taxes. It can help to see the pieces of the puzzle instead of just the big yearly number.

Gross income vs. net income

When you first start working in the US and receive that long-awaited first paycheck, you might initially think, “Wait…who took all my money?” Remember that gross income is the number you’re told, and net income is the number you actually get.

Your gross salary includes everything before taxes and benefits. Your net salary is what hits your bank account after federal taxes, state taxes (depending on where you live), and Social Security and Medicare contributions. If you get health insurance through your employer or contribute to retirement, those amounts come out too.

So, while your gross monthly income on a $65,000 salary is $5,417, many people take home something closer to $4,062. Once you see it broken down, it feels a lot less overwhelming.

What your hourly pay looks like after taxes

If we use a pretty typical estimate, which is around 25% of your earnings going to taxes and deductions, your hourly wage goes from $31.25 down to about $23.44. Your daily pay becomes roughly $187, your weekly amount becomes about $938, and your monthly take-home pay becomes about $4,062.

It’s not exact because everyone’s tax situation is different, but it gives you a sense of the numbers you can actually plan your life around.

How $65,000 fits into the bigger picture of US salaries

Once you know your hourly earnings, your next question may well be “Okay…is $65,000 actually good?” 

How $65,000 compares to similar salaries

Sometimes it helps to see nearby salaries to understand the differences. If you earned $60,000, that would be about $28.85 an hour. At $70,000, it bumps up to around $33.65 an hour. And at $80,000, you’re looking at roughly $38.46 per hour.

It’s surprising how even a small raise, like $5,000, can change things. That extra $5,000 a year is about $2.40 more per hour. 

How it compares to US averages

In the last figures available, the median household income in the US sat around the $80,000 range. So $65,000 is slightly below average for households, but not far off the average for individual workers. Many immigrants earn considerably less than this however, especially in their first few years.

If you’re earning this much, you’re doing better than you may think, and you can still grow your salary and move up from there.

Jobs that typically pay around $65,000

The $65,000 average figure shows up in all kinds of fields. Teachers in several US states earn within 10% of this amount on average. While figures vary a lot around the US, starting salaries for registered nurses and some tech roles, like IT support specialists, are around there, too.

Skilled trades such as electricians or HVAC technicians can also hit $60,000-70,000 once they have some experience under their belts. Many immigrants eventually move into roles around or above these numbers with the right training and skills. So while you might not be up with the curve when you first move to the US, that can change over time.

How the cost of living affects a $65,000 salary

This is where the whole conversation gets a bit more complex, as the same $65,000 can feel totally different depending on where you live.

Examples from major US cities

In New York, Los Angeles, or San Francisco, even a decent salary gets stretched pretty thinly. A one-bedroom apartment can cost anything between $2,500 to $7,000 a month, or even more. So if you’re earning $65,000 in one of these cities you’re always going to be budgeting pretty tightly and you’re almost certainly not living alone.

But take that same salary to cities like Austin, Boise, or Charlotte, and things suddenly feel a lot more comfortable. In many Midwestern areas, like Cleveland or Kansas City, your money goes even further. You can rent an apartment, pay your bills, and maybe even still put some savings away without feeling squeezed.

Cost of living is one of the biggest reasons two people with the same salary can have completely different experiences. Once you see those differences, you’ll quickly see why purchasing power matters so much.

Understanding purchasing power

Your “purchasing power” is just a fancy way of saying, “What can my money actually buy?” And that answer changes depending on rent prices, transportation options, grocery costs, health insurance, socializing, hobbies, and childcare.

If you live in an area where owning a car is a must, you’ll likely spend more each month on vehicle-specific essentials like gas, insurance, parking, and maintenance. But in cities with a strong public transit system, those costs may disappear completely, with lower, transport-related expenses taking their place.

The same is true for other expenditure. In some regions, health insurance is cheaper, or employers cover more of it. In others, childcare can cost more than rent.

Your real hourly rate in different contexts

Some people, especially those new to working salaried roles in the US, might be surprised to find out that a salary doesn’t always show the true value of their time. When you’re paid hourly, you know exactly what each minute is worth. 

But with a salary, your pay check stays the same whether you work 40 hours or 50. So if your job regularly expects late-night emails, weekend prep, extra hours, or being “always available,” your real hourly rate quietly drops below the number we calculated earlier.

So while that on-paper figure of $31.25 an hour when earning $65,000 is correct for a standard 40-hour week, if you’re actually working closer to 50 hours most weeks it works out closer to $25 an hour. And that still doesn’t count the invisible time we all use up around work, like commuting both ways.

That doesn’t mean a salaried job is a bad thing. Many come with perks that don’t show up in hourly math, like health insurance and paid time off. The important part is simply knowing your real hourly rate so you can decide if the job matches your lifestyle, your energy, and the future you want to build. 

How to budget and manage money

Now that the numbers make more sense, let’s take a look at how this salary fits into your life, your goals, and what matters to you and your family.

Using the 50/30/20 rule

Most people use the 50/30/20 rule as a simple way to think about budgeting. It divides your take-home pay into three parts: needs, wants, and savings or debt repayment. With a take-home income of roughly $4,063 a month on a $65,000 salary, that breaks down to around $2,031 for essentials, $1,219 for things you enjoy, and about $813 toward savings or goals.

Once you’ve got even a loose framework in place, it becomes easier to build habits that help you feel more in control. That could be automating a small savings transfer each payday, planning meals instead of winging it, or making room in your budget for fun instead of just bills.

Flexible ways to budget that fit real life

Not everyone connects with, or can afford to stick to the 50/30/20 rule, and that’s completely normal. Life doesn’t always fit neatly into ratios, especially in 2025, when rent, groceries, and life in general feel more expensive than they used to. 

Some people prefer the “pay yourself first” approach, where savings or goals come before spending. Even a small amount set aside each month can build momentum over time. The rest of your income becomes flexible based on what you need and value.

Other people use category-based budgeting or apps that track spending automatically so it feels simple and painless. These tools can help you see patterns and adjust as your life changes. For some people, savings might start smaller at first. The goal isn’t perfection; it’s simply knowing where your money goes so you can make intentional choices.

Financial tips for newcomers in the US

If you’re still adjusting to life in the US, the first few months of tracking your spending can be eye-opening. Money tends to disappear faster than expected in a new country, and having a clear sense of where it’s going helps you stay in control. Even small habits like keeping receipts or checking your banking app regularly can make a difference. 

Building a small emergency fund can also give you a sense of stability that’s priceless when you’re far from home. It doesn’t have to be huge. Even saving a little each month can create a safety net. And as you settle in, you’ll get better at spotting deals, understanding pricing in your area and finding your personal balance between saving and enjoying life in your new home.

Planning for taxes and savings

If you’re employed, your taxes are usually taken out automatically. If you’re a freelancer or self-employed, setting aside around 20–25% for taxes keeps surprises away. You can also reduce your taxable income by contributing to a 401(k) or HSA if you have access to them.

Even small contributions count. For example, putting $3,000 into a 401(k) could save you hundreds of dollars in taxes, depending on your bracket. Over time, these little decisions can really build your understanding of your longer-term financial position.

Growing your earning potential over time

A salary of $65,000 can be a great place to start, but it doesn’t have to be your finish line.

Increasing your salary

Most people increase their income gradually through experience, training, or simply pushing for pay rises based on their performance at work. Keeping track of what you achieve, like the projects you finish and the problems you solve, makes it easier to have confident conversations with your manager. 

You can also try new certifications, short courses, online platforms, workshops, or training seminars—anything that can open doors to roles that pay more. Think of professional development as investing in yourself, one step at a time.

Leveraging immigrant strengths

Being multilingual and knowing how to navigate different cultures can be major assets in the US job market. Many employers are actively looking for people who understand diverse communities or can bring global perspectives to their teams. 

Skills you may see as “normal” or everyday are often the exact things that set you apart professionally in some circumstances. Your personal experiences could be your competitive advantage.

Building connections within immigrant communities, local meetups, or professional groups can also open doors to opportunities, mentorship, and genuine friendships. Sometimes the best leads come from someone who simply understands your journey. 

Making your $65,000 salary work for you

Beyond the numbers, what matters most is how far your income goes where you live, and how well it supports your goals, whether that’s building a home in a new country, supporting loved ones back home, saving for your future, or all of those.

The more you understand your earnings, the more confident you become in your decisions. And as you continue building your life in the US, Remitly is here to support you every step of the way, especially when it comes to sending money to the people who matter most.

FAQs

How many hours a week is $65,000 a year?

It’s usually based on a standard 40-hour workweek, though your real hourly rate can change if you work more or fewer hours.

How much is $65,000 a year per day?

A full-time worker earning $65,000 makes about $250 per day before taxes and roughly $187 after taxes.

Can you live comfortably on $65,000 a year?

It depends on where you live, but in some US cities $65,000 can provide a comfortable lifestyle with room to save. In more expensive areas, you may need to budget more carefully and in the most expensive parts of the US, it won’t be enough.

How much do I need to make per hour to earn $65,000 a year?

Assuming you work 40 hours a week, you’d need to earn about $31.25 per hour before taxes to total $65,000 per year.

Traveling can be an exciting time, and it’s easy to pack everyday items in your luggage and forget all about them—a simple book of matches, for instance, just in case. It’s not until you’ve checked your luggage that you remember those matches buried at the bottom of your suitcase. Suddenly it dawns on you—can you bring matches on a plane?

Sometimes it can feel like we’re decoding a secret language when it comes to air travel rules. We also don’t always think of simple items as dangerous. Although the Transportation Security Administration (TSA) guidelines are straightforward, they’re updated frequently to ensure passenger safety. That means boxes of matches might be allowed one day and prohibited the next.

If you’re getting ready for a trip, don’t stress, because Remitly is here to break it all down. Our guide covers which matches you can bring on a plane, the types of matches you should avoid, and international rules.

TSA rules for matches: what’s allowed and what’s a hard no

No one wants their items confiscated or their checked luggage opened after it’s already been dropped off. The good news is that match regulations are clear and easy to understand. Once you know the rules, you can pack confidently and travel stress-free. 

The one-book rule: matches in carry-on only

The TSA states on its official site that you may bring one book of safety matches in your carry-on bag. The same information can also be found on the Federal Aviation Administration (FAA) website.

Here’s a quick breakdown:

• You cannot pack safety matches in checked baggage.
• You cannot pack strike-anywhere matches in any baggage.
• You cannot bring more than one book of matches on a plane.

The rules are simple, and if you follow them, you should pass through TSA smoothly.

Flashback facts: when matches (and cigarettes) were everywhere on planes

Air travel before the 1990s was very different, and not just because of the extra legroom. 

Here are some interesting facts about flying back then that you may not have known:

• Planes had designated smoking sections, and yes, people smoked throughout the entire flight.
• Flight attendants handed out free cigarettes during service.
• Travelers could board with multiple boxes of cigarettes, matches, and even lighters without a second glance from TSA.

While many of us would welcome the additional legroom, most travelers today appreciate smoke-free cabins—for both health and safety reasons.  

This also shows how safety regulations have evolved over time to protect the passengers and flight crew on board.

Types of matches and travel restrictions: know the difference before you pack

Not all matches are created equal. Understanding which types are allowed on planes can make traveling much smoother. No one wants to be stopped by the TSA, so let’s look at the different kinds of matches to help ensure you’ve packed the correct ones.

Safety matches: the only match type TSA allows

Safety matches are often seen in small cardboard boxes or paper booklets. They only ignite when struck on the dark, reddish strip on the side of the box. 

If you’re unsure whether the matches you have are safety matches, here are a few things to look for:

• They come in small books or rectangular boxes.
• They’re labeled “safety” or “non-strike matches.”
• The striking strip is on the box or booklet.

If you need to bring matches when you travel, safety matches are the only type that the TSA allows. 

Strike-anywhere matches

TSA prohibits strike-anywhere matches entirely. 

These matches can be ignited on any rough, dry surface, making them very easy to light—even when not being handled. Because they require so little friction to ignite, they can spark from cabin pressure, shifting during the flight, or simply from rough handling as luggage is loaded on and off the plane.

In the past, many strike-anywhere matches were easy to spot thanks to their green tips. The well-known manufacturer Diamond produced the popular green-tipped version, which was sold almost everywhere. However, these days, they’re harder to find, and it’s not because they’ve been discontinued, but because they’re mostly sold in stores. 

The United States Postal Service (USPS), for example, no longer delivers these matches by mail due to the risk of them igniting during transit.

As you can see, for both the TSA and USPS, safety is the main priority. Improperly packed strike-anywhere matches, especially in checked luggage, can create serious hazards. 

Look for these signs that your matches are strike-anywhere:

• The match has a green or white tip.
• Labels such as “strike-anywhere,” “survival,” or “windproof.”
• Often thicker than safety matches.

What about stormproof matches?

For seasoned campers and hikers, it might be easy to notice the difference, but for many, “stormproof” labels can be confusing. 

You might see matches labeled as:

• Camping matches
• Waterproof matches
• Stormproof matches

Most of these are classed as strike-anywhere, which means they aren’t allowed on a plane, even if they’re in a plastic container.

Camping-friendly doesn’t always mean TSA-friendly. When in doubt, the best thing to do is assume the matches aren’t allowed and search out ones that are clearly marked safety matches.

How to pack matches for air travel (and not get flagged at TSA)

Now that you know which matches are allowed and which bag to carry them in, the next step is packing them properly to avoid delays at security.

Where to pack your matches

The easiest way to pack a book of safety matches is to put it in an easily accessible location, such as a small pocket in your backpack or bag. This way, if the TSA stops you, you can easily pull out the matchbook without having to dig through your bag or pocket.

If your carry-on bag needs to be checked when you’re already at the gate, be sure to remove the matches and keep them with you on the flight. 

What to expect during TSA screening

Even though one book of safety matches is allowed, your bag might still be flagged for inspection.

TSA officers may:

• Ask you to remove them to inspect the label and confirm they’re safety matches.
• Ask questions if they appear to be strike-anywhere.
• Require you to discard them if they feel the matches pose a safety risk due to unclear packaging.

Tips for passing through security smoothly:

• Keep matches accessible and separate from lighters.
• Avoid novelty matches as they may fall under prohibited categories or cause confusion if not properly labeled.
• If the TSA stops you for a random bag check, be proactive and let them know you have one book of safety matches in your carry-on.
• Avoid loose matches, as they’ll likely be confiscated if your carry-on bag is checked.

Luggage check: flying with matches in the right bag

Now that we’ve gone over all the differences and rules between strike and safety matches, here’s an overview:

Luggage type	Safety matches	Strike-anywhere matches
Carry-on	One book permitted	Prohibited
Checked luggage	Prohibited	Prohibited

Alternatives for matches: smart options for travelers

Even though you can fly with one book of matches in your carry-on, there are alternative options that might be easier and less stressful.

Lighters: a surprisingly simple option

Like safety matches, the TSA allows certain types of lighters to be brought on board the plane. 

Here are the types of lighters allowed in your carry-on bag:

• One disposable lighter (such as a Bic)
• Zippo lighters without fuel
• Rechargeable lighters must have the cap on and battery removed; lithium batteries must not exceed two grams or 100 Wh.

Torch and jet flame lighters are banned completely and should not be placed in either your carry-on or checked luggage. 

Like safety matches, ensuring your lighter is properly stored and easy to retrieve from your carry-on will make things a bit easier if your bag is checked by TSA.

International travel considerations: not all countries follow TSA guidelines

Checking TSA guidelines before your flight is a great way to ensure you pack properly for your trip. However, if you’re traveling internationally, you’ll want to check the rules in your destination country as well. Many regulations overlap, but other countries have their own safety measures and restrictions in place. 

Virgin Australia prohibits both safety and strike-anywhere matches in your carry-on or checked luggage. This is why it’s a good idea to check the rules for the destination you’re flying to. Following local regulations helps you avoid fines, confiscation, or other legal issues.

If you have any doubts, start with your airline’s website, as they’ll have a list of restricted items.

Travel smart: know before you go

Don’t let the excitement of a trip be overshadowed by packing mistakes. Matches, liquids, and snacks all have specific restrictions when it comes to flying. That’s why we encourage travelers to be proactive, from packing to visas, as no one likes being caught off guard.

If the TSA stops you, let them know about your matches or anything else that may require a more thorough search of your bag. It’s all about safety and getting everyone where they need to go without hiccups, and hopefully no turbulence.

Need more safety tips for traveling? Check out our blog for more!

FAQs

Can you bring matches in your carry-on bag?

Yes, the TSA allows you to bring one book of safety matches in your carry-on.

Are strike-anywhere matches allowed on planes?

No. The TSA prohibits strike-anywhere matches in both carry-on and checked luggage.

What happens if the TSA finds matches in your checked luggage?

If the TSA finds matches in your checked luggage during screening, your luggage will most likely be opened, and the matches will be confiscated.

Do match rules differ for international flights?

Different countries have different restrictions. It’s best to check both the TSA website and the website of your destination country to see which rules or regulations may apply to you.

 

Seeing “ACH withdrawal” on your bank statement can be confusing, especially if you don’t know what it means.

It’s nothing to worry about, though. An ACH withdrawal is a pretty common transaction in the US, used for everything from paying bills to making recurring transfers.

In this Remitly guide, we’ll cover what the ACH network is, how these transactions work in the US, and give you some common examples of these types of withdrawals—so that if an ACH withdrawal appears on your statement, you’ll know it’s probably nothing to worry about.

What is the ACH network?

ACH stands for Automated Clearing House. It’s a secure electronic system that banks and credit unions in the US use to send and receive money without using checks, cash, or credit cards. Think of it as a digital highway that connects nearly every bank account in the country. In 2024 alone, it handled 33.6 billion payments worth a total of $86.2 trillion USD. 

The network is managed by the National Automated Clearing House Association (Nacha), which sets the rules and standards for how all participating financial institutions must handle ACH payments. Two operators process the transactions: the Federal Reserve and The Clearing House.

Most transactions on the ACH network are processed in batches at regular intervals through the business day. However, the system now also supports same-day transfers, so many transfers arrive in accounts within hours.

What does an ACH withdrawal mean?

An ACH withdrawal is an electronic transaction that pulls money out of your bank account. It’s also known as an ACH debit.

The key word here is “withdrawal.” Money is being taken out of your account, not put in. You give permission to a business or individual to collect funds from your account electronically in exchange for goods or services.

In most cases, you provide authorization directly to the company, not to your bank. Once it’s set up, the company or person initiates the withdrawal according to the schedule you agreed to. You can revoke this authorization later.

There are also ACH deposits (called ACH credits), which are where payments are pushed into your account. A common example is when your employer pays you through direct deposit.

The “pull” nature of ACH withdrawals makes them especially useful for paying recurring expenses such as cell phone plans, utilities, or subscriptions. Once you authorize a company to collect the payment, they can automatically withdraw the agreed amount on schedule without you having to remember to pay manually each time.

How does an ACH withdrawal work?

Understanding how an ACH withdrawal works can help you feel more confident about using them. Let’s take a look at the steps.

1. You grant authorization

Before any money can be taken from your account, you have to give permission for a company to withdraw a certain amount of money, either once-off or on a recurring basis (e.g., monthly). The authorization can be given in one of a few ways, including signing a paper form, filling out an online agreement, or providing your bank account details over the phone under specific rules.

When you authorize an ACH withdrawal, you’ll typically need to provide your bank account number and routing number (the 9-digit number that identifies your bank). 

2. The request is sent

When it’s time for payment, the company you authorized (known as the originator) sends a debit request to its bank. Their bank is known as the Originating Depository Financial Institution (ODFI). The request includes your account information, the amount to withdraw, and the payment date.

3. The request is processed

The ODFI doesn’t send each payment request to the ACH Operator (either the Federal Reserve or The Clearing House) individually. Instead, it collects multiple ACH transactions throughout the day and sends them together in a batch. The ACH Operator then sorts all of these transactions and routes each one to the correct financial institution.

4. Funds are pulled

Once the ACH Operator routes a payment request to your bank—known as the Receiving Depository Financial Institution (RDFI)—it verifies that you have enough money in your account and then withdraws the authorized amount. The funds are then transferred back through the network to the ODFI. If there aren’t enough funds in your account, the bank may return the payment or allow it to go through and overdraw your account.

5. The transaction is complete

The money arrives in the originator’s bank account, and the debit shows up in your account activity. Standard ACH withdrawals typically take one to three days, while Same Day ACH can process much faster.

Pros and cons of ACH withdrawals

Like any payment method, ACH withdrawals come with both advantages and limitations. Understanding these can help you decide when they’re the right option.

Benefits of ACH withdrawals

ACH withdrawals are a popular payment choice for businesses and people who need to manage regular payments because they are:

• Cost-effective: For businesses, ACH debits are typically far cheaper than credit card fees or wire transfers. Consumers typically aren’t charged a fee for incoming ACH withdrawals.
• Convenient: Once set up, payments happen automatically on a set schedule. You don’t need to remember due dates or manually make each payment.
• Automated and consistent: Because ACH withdrawals are processed electronically, manual steps are reduced, helping ensure bills are paid on time.
• Secure: ACH transactions go through regulated banking networks equipped with strong security measures. Consumers also have federal protections for unauthorized or incorrect withdrawals.

ACH withdrawal disadvantages

While ACH withdrawals are convenient, there are some limitations to keep in mind:

• Limited control over timing: Once you authorize a company to take funds, the timing of the payment follows your agreement with them. You can’t speed up or slow down the withdrawal from your end.

• Processing speed: Standard ACH withdrawals usually take one to three business days. Same Day ACH exists, but it’s controlled by the company initiating the payment.

• Authorization risks: Sharing your account information carries some risk. If it falls into the wrong hands, someone could attempt unauthorized withdrawals. However, these can be disputed and reversed under federal law.

• Potential for returned payments: If there aren’t enough funds in your account when the withdrawal is attempted, the payment may be returned, or you could face overdraft fees if it’s processed.

Examples of ACH withdrawals

ACH withdrawals are used in a range of scenarios. Here are a few examples of when these withdrawals can be used.

Automatic bill payments

Many service providers, such as utility companies, mortgage lenders, insurance providers, and some credit card companies, use ACH withdrawals to collect monthly payments.

When you set up an autopay with a company, you’re authorizing an ACH withdrawal. The company automatically pulls the amount you owe on the agreed date, so you never have to worry about missing a payment and incurring late fees.

Subscription services

Monthly subscription payments to services like Netflix and Spotify, or membership fees for gyms and meal delivery services, can be paid through ACH withdrawal.

After you provide your bank account information during the sign-up process, the company withdraws the subscription fee each cycle, so your service continues uninterrupted.

Person-to-person (P2P) transfers

Some P2P apps, like Venmo and Cash App, might use ACH transfers to move money from your bank account when you send money to someone. For example, if you split a restaurant bill with a friend and send them your share of the total through one of these apps, it might show up as an ACH withdrawal on your bank statement.

E-commerce purchases

Some online retailers give you the option to pay directly from your bank account instead of using a debit card or credit card. When you choose this payment method at checkout and provide your bank account details, you give the merchant permission to process an ACH withdrawal to collect the payment for your purchase.

Funds transfers

Some financial institutions let you schedule automatic transfers into an external savings or investment account using ACH. This can make long-term saving easier and more consistent.

Managing your ACH payments confidently

An ACH withdrawal is a common, secure electronic payment that happens when you’ve authorized a person or business to take money from your bank account.

Understanding how ACH withdrawals work and what it means for money to be pulled from your account can help you manage your finances with more confidence. You’ll be able to spot these transactions on your bank statement and identify any that look unfamiliar.

Whether you’re paying your electricity bill, streaming subscription, or gym membership fees, ACH withdrawals make it easy to stay on top of recurring expenses.

FAQs

How is an ACH withdrawal different from a wire transfer?

ACH transfers process payments in batches and happen automatically after you’ve authorized a company or individual to request payments from your bank. This makes them ideal for recurring payments. Wire transfers, on the other hand, are processed individually and in real time. They typically arrive within hours, but they are much more expensive than ACH transfers.

Are ACH withdrawals safe?

Yes. The ACH network is highly secure and regulated by Nacha and the Federal Reserve. Withdrawals require authorization using unique information that only you should have. If money is withdrawn from your account without your permission, the Electronic Fund Transfer Act limits your liability as long as you report it within 60 days of receiving your bank statement.

How long does an ACH withdrawal take?

Most withdrawals take one to three business days from when the payment is initiated to when the money lands in the payee’s account. It might seem like the money disappears from your account instantly, but this is only one side of the equation. The bank still has to process and settle the transfer through the ACH network before the recipient receives the money.

Can I stop or reverse an ACH withdrawal?

You can cancel or stop a future recurring payment by contacting the company you authorized to make an ACH withdrawal from your account and your bank. For payments that have already been processed, you have 60 days from the date of your bank statement to dispute an unauthorized transaction. This process is managed by your bank, but it can be complex, so it’s best to act fast if you notice any suspicious withdrawals.

TikTok has become one of the world’s most powerful platforms, with over a billion active users and a creator economy that’s redefining how people earn a living. Every day, new voices go viral, trends spark overnight, and short videos evolve into long-term careers.

If you’ve ever wondered whether it’s possible to make real money on TikTok, you’re not alone. For aspiring creators, the earning potential ranges from a few extra dollars a month to full-time income—and in some rare cases, millions. Knowing where most creators actually fall on that scale can help set realistic goals. 

In this Remitly guide, we’ll break down how TikTokers make money, share real examples of what different types of creators earn, and explain the key factors that influence their income. You’ll also find practice steps to start building your own presence and explore whether TikTok could be a meaningful income stream for you. 

TikTok’s multiple revenue streams explained

Most TikTokers don’t earn from just one source. Instead, they piece together income from several different streams—both on and off the app. This kind of diversification is key to building financial stability and making the most of an engaged audience.

TikTok Creator Fund

The TikTok Creator Fund was one of the app’s first efforts to pay creators directly for their content. While TikTok has started shifting toward newer monetization models, the Fund still offers a helpful benchmark for what early earnings can look like.

Payouts typically ranged from $0.02 USD to $0.04 per 1,000 views—meaning a video with a million views might earn between $20 USD and $40. Actual earnings depended on factors like video engagement, region, and whether the content met TikTok’s guidelines.

To qualify, creators needed at least 10,000 followers and 100,000 video views over the past 30 days. It wasn’t a huge income source for most, but for many, it was a starting point.

Brand partnerships and sponsored posts

For many creators, brand deals are where the real money is. Companies pay influencers to promote their products or services, and those rates can vary a lot—based on follower count, engagement, niche, and reputation. 

• Micro-influencers might earn a few hundred dollars per post.

• Mid-tier creators often charge several thousand. 

• Top creators can make $10,000 USD or more for a single collaboration.

These partnerships come in different forms: one-time posts, multi-video campaigns, or even long-term ambassadorships. As a creator’s audience grows—and their influence strengthens—brands are often willing to pay more for access to that reach.

TikTok Live gifts

When creators go live on TikTok, viewers can send virtual gifts as a show of support. These gifts have real monetary value—creators can convert them into actual earnings, though TikTok takes a percentage.

Earnings from live streams vary widely:

• Smaller creators might earn a few dollars per session.
• Popular streamers with loyal audiences can earn hundreds—or even thousands—during special events or viral moments.

While not every live will bring in big income, consistent streaming and audience engagement can add up over time.

TikTok Shop and affiliate marketing

TikTok Shop gives creators a built-in way to promote and sell products directly on the platform. Through affiliate marketing, creators earn a commission when someone makes a purchase via their video or livestream links.

Commission rates vary by brand and product category, but creators in niches like beauty, home décor, lifestyle, and tech often see higher conversions. If you’re regularly recommending products your audience already trusts, this can be a strong source of passive income—even for smaller accounts.

Merchandise and external sales

Many TikTokers also branch out beyond the app by building income streams elsewhere. 

Common side hustles include:

• Selling branded merchandise

• Launching digital products (like templates, eBooks, or presets)

• Starting paid communities on platforms like Patreon or Discord

• Growing on YouTube or Instagram to expand reach and revenue

These external ventures help creators diversify their income and avoid relying too heavily on TikTok alone—especially important as algorithms and platform rules evolve.

Real TikTok earnings: what creators actually make

TikTok earnings vary widely depending on factors such as follower count, engagement, and niche. Here’s a general idea of what creators at different levels might earn:

• Micro-influencers (10K–100K followers): Often earn between $100 USD and $1,000 per month, mostly through brand deals or affiliate links.

• Mid-tier creators (100K–500K followers): Can bring in several thousand dollars monthly from sponsorships, live gifts, and product promotions.

• Top creators (1M+ followers): May earn $10,000+ USD per post, with annual incomes in the millions if they have strong brand partnerships and external ventures.

Big names like Charli D’Amelio (reportedly earning $17.5M USD annually) and Addison Rae ($8.5M) show what’s possible at the highest level—but those cases are rare. Most creators earn much less, and even those with large followings often combine several income streams to reach full-time earnings.

Compared to platforms like YouTube or Instagram, TikTok may offer faster growth, but lower payouts per view. That makes diversifying income essential for long-term success.

Key factors that determine how much TikTokers make

Not all TikTok creators earn the same—even with similar follower counts. These key factors can influence how much you actually make on the platform:

Follower count

The more followers you have, the more earning opportunities tend to open up—especially for brand deals and affiliate marketing. But it’s only one part of the equation.

Engagement rate

Brands care more about how engaged your audience is—likes, comments, shares—than your raw follower number. A smaller, active audience can be more valuable than a large but passive one.

Your niche

Some niches attract higher-paying deals than others. Creators focused on finance, tech, fitness, or beauty often see more brand interest than those in general entertainment, because their content aligns with products people are ready to buy.

Where you live

Your location affects how much you can earn—especially from programs like the Creator Fund. For example, creators in countries like the US or the UK often earn more per view than those in regions with lower advertiser demand.

Consistency

Posting regularly helps grow your audience and stay visible to the algorithm. It’s not just what you post—but how often.

Breaking down TikTok creator fund payments

Many creators joined the Creator Fund hoping it would lead to steady income—but the reality often fell short. To qualify, you needed:

• 10,000 followers
• 100,000 video views in the past 30 days
• Full compliance with TikTok’s community and content guidelines

These thresholds made the program feel accessible, especially for up-and-coming creators. But earnings were based on a vague formula that considered factors like video views, engagement, region, and broader platform trends.

Because the payment pool didn’t grow alongside the number of eligible users—and the payout model lacked transparency—many creators found their earnings surprisingly low. A video might rack up views, but bring in just a few dollars.

Payments also differed by region. Creators in countries with stronger advertising markets tended to earn more. Here’s a rough comparison of estimated payouts for one million views:

Country	Estimated earnings (1M views)	Notes
United States	$20–$40 USD	Higher advertiser demand boosts earnings
United Kingdom	$15–$35 USD	Slightly lower, but still competitive
Brazil	$5–$15 USD	Lower advertising market means smaller payouts

These geographic disparities caused frustration—especially for creators whose content performed well but earned far less due to location.

In response to this feedback, TikTok has begun phasing out the Creator Fund in favor of new programs that reward longer, high-quality videos. The goal: make TikTok more competitive with platforms like YouTube, where creators typically earn more for long-form content.

Brand partnerships: where the real money is

For many creators, brand deals are the most profitable and consistent source of income. Sponsored post rates vary, but here’s a rough range:

• Smaller creators (under 10K followers): around $100 USD per post
• Mid-tier creators: can earn $1,000–$5,000 USD per post
• Top creators (500K+ followers): often charge $10,000+ USD, depending on engagement

The most common types of partnerships include:

• Product gifting: Free products in exchange for content—usually unpaid

• Paid posts: Flat-rate sponsorships to feature a product or service

• Long-term partnerships: Brand ambassadorships with recurring income and multi-post campaigns

If you’re hoping to land more brand deals, focus on:

• Sharpening your niche and content style
• Keeping a professional email in your bio
• Highlighting your most successful videos
• Maintaining a clear, consistent presence across platforms

When brands look for new creators, they’re not just looking at follower count—they’re looking at fit, content quality, and audience trust.

Start your TikTok monetization journey

Earning money on TikTok isn’t just for viral stars. Whether you’re aiming to supplement your income or build a full-time creator career, there are multiple paths to explore.

Here’s where to start:

• Learn the platform: Study what works in your niche and stay current with trends.
• Post consistently: Regular, high-quality content builds trust and engagement.
• Experiment with income streams: Try affiliate links, live gifts, brand outreach, or even your own merch.
• Track your growth: Use analytics tools to measure what’s resonating and adjust as you go.

Like any income stream, TikTok monetization takes time and effort—but it also offers creative freedom and flexibility. And with new features like TikTok Shop and evolving creator reward programs, the earning potential continues to grow.

If you’re ready to begin, take the first step by setting up your TikTok profile for success—and exploring more Remitly guides on side hustles, online income, and building financial confidence as an immigrant.

FAQs

How much do TikTokers make per view?

TikTok’s Creator Fund typically paid $0.02 to $0.04 USD per 1,000 views, though rates varied by region and engagement. Other monetization methods—like brand deals or affiliate marketing—can offer higher per-view value, depending on your niche and audience.

How many followers do you need to start making money on TikTok?

To join the Creator Fund, you need at least 10,000 followers and 100,000 views in the past 30 days. However, many creators start earning through brand partnerships and affiliate links with as few as 1,000–5,000 followers if they have strong engagement.

Do TikTokers get paid for likes or comments?

No. TikTok doesn’t directly pay for likes or comments. However, higher engagement boosts your visibility—and that can lead to more views, better brand deals, and stronger earnings overall.

How much do TikTok live streamers make from gifts?

Live streamers can earn a share of the value of virtual gifts sent by viewers. Payouts vary, but popular streamers sometimes earn hundreds of dollars per session, especially during themed events or viral moments.

Can you make a living as a TikTok creator?

Yes, but it often requires combining income from several sources—like sponsorships, product sales, and affiliate links. Full-time creators typically invest heavily in content quality, audience engagement, and platform strategy.

Have you ever looked at a $45K-a-year salary offer and wondered what it really means for your day-to-day life? If you’ve been asking yourself, “How much is $45,000 a year per hour?” and what it might look like after taxes, you’re not alone.

Knowing how to convert an annual salary into an hourly rate can help you compare job offers, plan your finances, and understand your earning potential. That’s why we’ve created this Remitly guide. We’ll walk you through the math, explain key factors like taxes and typical work hours, and share tips to help you manage your money effectively.

The simple math: $45,000 USD a year to an hourly rate

The most common way to calculate your hourly wage from a salary is by using the 40-hour workweek as a baseline. This standard assumes you work 52 weeks a year, giving you a total of 2,080 work hours annually.

To find your hourly rate, simply divide your salary by those hours:

$45,000 USD ÷ 2,080 = $21.63 USD per hour

This number represents your gross hourly income, before deducting taxes, insurance, or retirement contributions. Keep in mind that actual hours worked may vary if you take unpaid leave or have overtime. It’s a useful benchmark for seeing how your pay compares to local wage standards and other job offers.

But what’s your take-home pay? A look at post-tax income

A $45,000 salary may sound great, but the amount that actually lands in your account each payday is different. After taxes and mandatory deductions, your take-home pay is usually lower than your gross salary.

Here’s what typically gets deducted from your paycheck:

• Federal income tax: The US tax system is progressive, meaning you’re taxed at different rates as your income increases. Most taxpayers qualify for a standard deduction, which is a set amount the government lets you subtract from your income before calculating your taxes. In 2025, a single filer can deduct $15,750 (set to increase to $16,100 in 2026). After this deduction, someone earning around $45,000 would likely owe around $3,400 in federal income tax. Your exact amount can vary depending on filing status, tax credits, and other deductions. 
• State income tax: Not all states collect income tax, but some do. Rates vary widely, from 0% in states like Florida and Alaska to as much as 13% in others. Your location will play a big role in how much you take home.
• Federal Insurance Contributions Act (FICA) taxes: These are the payroll taxes that fund Social Security and Medicare. They’re a flat 6.2% for Social Security and 1.45% for Medicare, totalling 7.65% of your income. The amounts are taken from your income before federal tax is applied.

Here’s how that might look in real numbers:

Deduction type	Estimated rate	Annual amount
Federal income tax	Progressive	$3,416
State income tax	0%-5%	$0-$2,250 (but unlikely to be this high due to pre-tax deductions that reduce the taxable amount)
Social Security	6.2%	$2,790
Medicare	1.45%	$653
Total deductions	—	$6,859-$9,109

With these deductions, your estimated take-home pay comes to about $35,891 per year or roughly $17.25 per hour based on a standard 2,080-hour work year. 

Keep in mind that your exact take-home pay will vary based on your location, tax situation, deductions, and benefits. However, this example provides a realistic picture of what you’ll actually earn after taxes, helping you plan your budget and manage expenses. 

How many hours you work matters

Your hourly rate depends not just on your salary but also on how many hours you actually work. Even with a fixed annual salary, your true hourly earnings can vary based on overtime, part-time schedules, or paid time off.

Part-time work

If you work fewer hours than the standard 40 hours per week, your effective hourly rate increases because you’re earning the same salary for less time worked. For example, if you earn $45,000 a year but only work 20 hours per week, your hourly rate would be:

45,000 ÷ 1,040 hours = $43.27 per hour

While salaried part-time positions are rare, this example clearly shows how reducing the number of hours can increase what each hour is worth.

Working overtime without additional pay

On the flip side, working more than 40 hours a week without extra compensation lowers your effective hourly rate. For example, if you work 50 hours per week all year, that’s 2,600 hours annually:

45,000 ÷ 2,600 hours = $17.31 per hour

This shows that putting in extra hours without additional pay reduces how much you earn for each hour worked.

Including Paid Time Off (PTO)

Paid vacation and holidays can boost your effective hourly rate since you’re paid for time you don’t actually work. For instance, if your salary includes two weeks of PTO, you’d work about 2,000 hours a year instead of 2,080:

45,000 ÷ 2,000 hours = $22.50 per hour

In other words, your pay stays the same, but you earn more for each working hour.

Creating a budget on a $45,000 salary

Managing your finances on a $45,000 salary starts with knowing your take-home pay and deciding how to spend it wisely. A simple budgeting framework is the 50/30/20 rule, which divides your income into needs, wants, and savings or debt repayment.

How the 50/30/20 rule works for a $45,000 salary

Here’s an example of how a $3,000 monthly take-home pay might be divided using the 50/30/20 formula:

Category	Percentage	Amount
Needs (rent, utilities, food)	50%	$1,500
Wants (entertainment, dining)	30%	$900
Savings and debt repayment	20%	$600
Total	100%	$3,000

 

50% for needs: This goes toward essentials like rent or mortgage, utilities, groceries, transportation, and insurance. These are expenses that keep your life running smoothly and usually can’t be avoided.

30% for wants: Discretionary spending for things that bring enjoyment, like dining out, entertainment, hobbies, and subscriptions. This category allows room for lifestyle flexibility without overspending.

20% for savings or debt repayment: This includes contributions to an emergency fund, retirement accounts, or paying down debts like student loans or credit cards. Building savings and reducing debt helps contribute to long-term financial health.

Practical tips for budgeting on $45,000 a year

Living on a $45,000 salary is completely manageable with the right approach. These tips can help you budget smarter and make the most of your money.

• Track your expenses: Keep a record of all your spending for at least a month to spot patterns and identify areas where you may be able to cut back.
• Automate savings: Set up automatic transfers to a savings account or retirement funds to make savings effortless.
• Prioritize high-interest debt: Focus on paying off credit cards or loans with the highest interest first to reduce long-term financial strain.
• Separate needs and wants: Clearly distinguish essential expenses from discretionary spending to avoid overspending on non-essential items.
• Plan for irregular costs: Include seasonal or occasional expenses like holidays, insurance premiums, or car maintenance to prevent surprises.
• Use budgeting tools: Apps like Mint, YNAB, or PocketGuard, or even a simple spreadsheet, can help you track spending, visualize progress, and stay accountable.
• Set financial goals: Define both short-term and long-term goals to guide how you spend and save.
• Negotiate bills where possible: Reduce recurring expenses, like utilities, internet, or insurance, by comparing providers or asking for discounts.
• Review subscriptions: Cancel or pause subscriptions you don’t actively use to free up extra funds.
• Reassess regularly: Revisit your budget monthly or quarterly to adjust for changes in income, expenses, or financial priorities.

With structure and consistency, a $45,000 salary can support a solid and sustainable financial plan.

Maximizing your total compensation

Your $45,000 salary is just the starting point. Benefits like retirement matching, health insurance, training, and commuter perks can add significant value to your overall compensation. Understanding and using these extras can help you get the most out of your job.

Health insurance and wellness benefits

Employer-provided health, dental, and vision coverage can save you hundreds or even thousands of dollars each year compared to paying from your own insurance. Some companies also offer wellness stipends or gym memberships that support both your physical and financial well-being.

Retirement contributions

Many employers offer 401(k) or other retirement plans and may match a portion of your contributions. Even a modest employer match is effectively extra compensation that grows tax-advantaged over time. Taking full advantage of any employer match is one of the easiest ways to build long-term wealth faster.

Professional development and education stipends

Some employers provide funds for courses, certifications, or training programs. Using these perks to improve your skills can increase your earning potential over time. Taking advantage of these opportunities can also make you competitive for promotions or higher-paying roles within your company.

Employee discounts and perks

Workplaces may also provide discounts on products, services, or commuter costs. Even small savings on regular purchases add up over the year, effectively increasing your take-home value.

By combining salary with benefits, your total compensation often becomes much higher than just the number on your paycheck.

Know your worth and plan accordingly

A $45,000 salary equals about $21.63 per hour before taxes. This simple calculation is a helpful starting point for comparing job offers, understanding your earning power, and planning your finances.

The real insight comes when you factor in taxes, work hours, and smart budgeting. Keeping these elements in mind allows you to make informed choices, manage your money confidently, and build a financial plan that fits your goals and lifestyle.

With this knowledge, you’re better prepared to take control of your finances and make decisions that move you closer to long-term financial stability.

FAQs

Is $45,000 a year a good salary?

It depends on your location, lifestyle, and financial goals. It’s above the federal minimum wage, so it can cover basic living expenses, but it might feel tight in high-cost cities. If you’re single and living in a moderate-cost area, you can typically live comfortably with careful budgeting.

How much is $45,000 a year per month?

Your gross monthly income is $45,000 ÷ 12 = $3,750. After taxes, your take-home pay could be roughly $3,000 to $3,200, depending on your state and personal deductions. The net amount is what you can realistically use for living expenses, savings, and discretionary spending.

How much is $45,000 a year per week?

A $45,000 salary comes to $45,000 ÷ 52 = $865.38 per week gross. After taxes, your net income could be about $690 to $730, which can help you plan spending and budgeting on a weekly basis.

How much is $45,000 a year per day?

Assuming a standard five-day work week, $45,000 ÷ 260 workdays equals $173 per day gross. After taxes, this could be about $138 to $146 per day, which is useful to know if you budget in shorter time periods.

Can you live comfortably on $45,000 a year?

“Comfortable” depends on your circumstances. A single person in a low-cost or moderate-cost area can typically cover essentials, occasional leisure activities, and some savings. Families or those in high-cost cities will need more strategic planning to meet all their financial goals.

How does $45,000 compare to the median salary?

The median US household income was $83,730 in 2024, so $45,000 falls below the national average. Still, many individuals can live reasonably well on this income depending on local costs. Comparing your salary to the median helps you understand your earning position and plan meaningful financial goals.

Post Office money orders have been one of the most reliable and safest payment methods available in the US for more than 150 years. 

Although digital payments, like the ones you can make with Remitly, have overshadowed the humble money order over the past couple of decades, this payment method is still useful in a bunch of scenarios.

This guide covers everything you need to know about how Post Office money orders work, where and how to buy and cash them, and when they’re the best choice for sending money.

What is a Post Office money order?

A Post Office money order is a prepaid payment instrument that’s issued by the US Postal Service (USPS). You pay for them upfront and receive a paper document that guarantees payment to your nominated recipient.

Unlike checks, money orders can’t bounce because they’ve already been paid for. They’re also trackable and traceable, so they’re generally considered much more secure than cash payments. 

Money order slips have security features that make them a safe way to transfer money without using electronic methods. They’re printed on uniquely patterned paper, have watermarks, and they carry tracking numbers. Depending on when and where it was issued, your money order may also feature a QR code or barcode you can use to check the status of the order.

When to use a Post Office money order

Post Office money orders work well for situations where you need to make a secure, guaranteed payment but sending money via the bank or using a remittance service isn’t an option. Even in our digital world, there are still scenarios where using a money order makes sense.

Rent and utility payments

Many landlords and utility companies will accept money orders, and some even prefer them over checks because, as we mentioned, money orders can’t bounce. This means the people you’re paying can be certain they’ll receive the funds.

On top of the benefits for the recipient, money orders have some advantages for payers. When you send a money order to your landlord or utility company, you can be sure the funds will clear. This reduces the likelihood of late fees or getting a black mark on your payment record.

Online transactions

Security is always a concern when you’re buying things from strangers online. Who hasn’t heard a story about someone who’s been scammed in an online marketplace?

Money orders make these kinds of transactions safer. They create a paper trail without exposing your bank account details to the person you’re sending money to. They’re safer than carrying cash and more likely to be accepted than a check, which makes them ideal for online marketplace purchases.

Sending money long distance

If you need to send money to family or friends in another US state but can’t use a bank transfer or a payment app, a Post Office money order is a reliable alternative.

You can mail the slip to whoever needs the funds and track its movement across the country. When the recipient gets the money order, they can cash it at any USPS or a selection of banks, credit unions, or check-cashing businesses.

International payments

The USPS used to offer international money orders that let you pay people overseas, but it stopped selling these in October 2024 and stopped cashing inbound money orders a year later. Although that’s cut out a relatively cost-effective way to send small amounts of money overseas, you don’t have to fret: with Remitly you can send funds from the US to other countries securely, and without the sometimes long waiting times involved with bank transfers.

How to buy a Post Office money order

Money orders might seem a bit strange if you’ve never used them before, but the process of buying one is actually pretty simple.

What you’ll need

Before you head to your local Post Office, you’ll need to gather a few essentials:

• Cash or debit card
• Valid photo ID (e.g. driver’s license or passport)
• Recipient’s full name and address

The USPS does not accept credit cards or checks for money order payment.

Step-by-step purchase process

There’s no minimum for money order purchases and you can buy one for as little as one cent. There is a maximum, though: you can only send up to $1,000 USD per money order, though there’s no daily limit on the number of orders you can purchase. So you can buy multiple slips to send a larger amount.

The entire process takes just a few minutes:

1. Visit any Post Office during business hours (usually 9 am to 5 pm)
2. Go to the counter and request a money order
3. Provide the recipient’s information and your payment amount
4. Pay the money order amount plus fees
5. Keep your receipt for tracking and records

It’s really important that you keep the receipt you receive from the Post Office: that’s your proof of purchase, and it’s the only way to track the money order once it leaves your hands. Store it somewhere safe until you know the person you’re sending funds to has received the money order.

How to send a money order from a Post Office

Payment made, it’s time to fill out the money order and send it. 

Write the recipient’s full legal name (as it appears on their identity document) in the “Pay to the order of” field and add your details in the purchaser sections to show the recipient who sent it. If you’re paying a bill, be sure to include your account number so the money is routed correctly.

After filling out all the details, consider making a photocopy for your records if you can, put it in an envelope, and deliver it to the recipient. You can do this by hand, or you can just mail it.

Where to cash a Post Office money order

When you receive a money order, you’ll need to take valid photo ID and the original money order slip to where you’d like to cash it. You’ve got a few options.

At Post Offices

Any US Post Office will honor money orders for free, which makes this a convenient and cost-effective option for getting your cash. You’ll receive the full amount on the order, too, without any deductions.

Banks and credit unions

Most banks and credit unions will cash postal money orders for their account holders.

Some banks provide this service free of charge to clients, though they may charge fees or even refuse to cash money orders for people who don’t bank with them. So it’s best to confirm this ahead of time.

Check-cashing services

Groceries, pharmacies, and dedicated check-cashing businesses also cash money orders and usually have longer opening hours than Post Offices or banks. While this is more convenient, these places usually charge a small fee based on the amount of the money order. 

Post Office money order fees and refunds

The USPS charges money order senders a small fee based on the amount they’re sending. At time of writing, you’ll pay:

• $2.55 USD for orders up to $500 USD
• $3.60 USD for orders between $500.01 USD and $1,000 USD
• $21 USD processing fee for replacing lost or stolen money orders

If your money order is lost or stolen, you’ll need the original receipt to have it replaced and you’ll have to fill in form 6401 to prompt the USPS to look into it.

You can get refunds on any money orders that aren’t cashed by the recipient. All you need to do is take your receipt to the Post Office and start a Money Order Inquiry, which you can track on the USPS website. The process takes up to 60 days, though.

Post Office money orders vs. other payment methods

Post Office money orders work well in many situations, but understanding how they compare to other payment methods can help you to choose the right money transfer method for your specific needs.

Compared to bank money orders

USPS money orders cost much less to send than the ones you can send from the bank. People generally trust the USPS, too, which is why they can be cashed at so many different outlets.

That said, you might be able to send a higher amount through a bank. This could be convenient if you need to pay a recipient quite a bit more than $1,000 USD and don’t want to buy multiple orders.

Compared to cashier’s checks

There’s one big benefit that money orders offer over cashier’s checks: you don’t need a bank account to purchase them.

To write a cashier’s check, you’ll definitely need to have an account with the bank that backs it. They usually don’t have a mandated maximum limit, though, so you can send much more than the $1,000 USD limit on USPS money orders. That makes cashier’s checks better for large transactions like buying a car or making down-payments on a property, for example.

Compared to wire transfers

Post Office money orders are much less expensive than wire transfers, which can cost $35 USD or more per transaction. Although they cost more to send, wire transfers are significantly faster than postal money orders because they’re sent electronically. 

Since the USPS no longer offers international money orders, a wire transfer is one of your remaining options if you want to send money across borders. You can also use Remitly, of course, to send money to recipients worldwide quickly and securely.

Tips for using money order safely

There are always risks involved in sending money, though you can overcome many of these by following smart security practices and staying alert to potential scams.

Security best practices

Follow these guidelines will help you to protect your money orders from theft, fraud, and loss across the entire transaction process:

• Look after money orders like you would if they were cash.
• Never send blank or partially filled money orders.
• Use trackable mail services when sending money orders.
• Photocopy completed money orders before mailing them, if you can.
• Keep your money order receipt.

Avoiding scams

You’ll need a little healthy skepticism and some vigilance to protect yourself from money order scams.

It’s best not to accept money orders with a higher value than the payment price. A common money order scam involves sending someone a fake order for more than the agreed amount, then asking you to cash it and wire the difference back to their account. Because it’s a falsified document, you end up being short the full amount plus the “extra” paid to you.

Be suspicious of unexpected money orders or those with amounts larger than expected. Always verify that the order is legitimate with your bank or the Post Office before providing any goods or services to the sender.

If you come across anything that seems suspicious, report it to the US Postal Inspection Service.

Make your next money order payment with confidence

US Post Office money orders offer a great combination of security, availability, and affordability. Whether you’re paying rent, sending money to family, or making purchases that require a guaranteed payment, postal orders provide peace of mind for senders and recipients.

With Post Offices conveniently located across the US, it’s easy to use this trusted payment method. Just remember to fill them out correctly and completely, keep your receipts, and store them securely before sending or cashing them.

FAQs

Can I buy a Post Office money order with a credit card?

No. The USPS doesn’t accept credit cards for money order purchases: you can only pay with cash or a debit card.

What happens if I lose my Post Office money order receipt?

It’s really difficult to replace a money order if you don’t have a receipt. It may not even be possible in some cases. You can still file a Money Order Inquiry, but the process will be way more complicated and time-consuming without your original receipt.

How long does a Post Office money order take to clear?

Post Office money orders can be cashed immediately after they’ve been issued. Unlike bank money orders, which typically take one to three business days to clear, there’s no waiting period.

Can I cancel a Post Office money order after purchase?

Yes, you can request a refund for an uncashed money order. Just head to the Post Office with your money order receipt and complete the refund request form. It will usually take a few weeks for money to get back to you.

Are there age restrictions for buying Post Office money orders?

There aren’t any specific age restrictions for sending Post Office money orders. That said, the Post Office will require a valid form of identification, so you should be prepared to provide this regardless of your age.

Nowadays, online banking services are everywhere, and platforms like Remitly allow you to send money from one person to another with the click of a button. But long before we paid for nearly everything electronically, there was simple cash, and before that, there were beads and cattle.

Money, as we know it today, hasn’t always existed. The term commodity money refers to the use of physical goods as currency. We’re talking about items like salt, livestock, and precious metals. 

Seeing the importance that these items have held over thousands of years helps us appreciate how modern money evolved, and understand why many places still use commodity money as a form of payment. 

What is commodity money, exactly?

Commodity money is a physical item used as a method of payment for another good or service. This process is commonly known as bartering, and it’s been around for a long time. 

We say commodities used for trade have intrinsic value because they have innate worth or use that doesn’t depend on market trends or subjective opinions. Think about livestock, for example; we get meat, milk, and eggs from farmed animals. All of these items can be eaten and sustain humans. Their value isn’t man-made, but intrinsic. 

This is in contrast to paper and digital money, which have value only because society assigns worth to them. Electronic money doesn’t have a practical, physical use on its own—we’ve given it value by deciding it can be used to buy things. Modern currencies are also known as fiat money, or money that has been assigned value by a government.

Intrinsic value is one key feature of commodity money; the other is that it needs to be a widely accepted method of payment for goods and services. Precious metals, for example, are valuable as a medium of exchange because they have many practical uses, such as being worn as jewelry. In many cultures, gold is a symbol of wealth and status. 

Real-world examples of commodity money

Let’s look at some real examples of commodity money, both historical and modern. 

Agricultural products

These are items that humans farm and harvest, such as salt, grain, livestock, rice, tea, and coffee, which have been historically used for bartering. Tea bricks, which are compressed blocks of tea leaves, were used as currency along the Silk Road. The word “salary” comes from the Latin salarium, which translates to “salt money”. 

These items are edible and commonly used, making them extremely valuable throughout history because they serve as a means of survival.

Precious metals

There are eight precious metals in total, but we’ll focus on two of the most well-known ones: gold and silver.

Historically, gold and silver were viewed as a source of wealth; they’ve been used for millennia as a means of paying for goods and services. They’re durable and divisible (i.e., they can be melted and remade), giving them a universal appeal across cultures and countries. They can also be made into attractive-looking items, like jewelry. 

In the modern financial world, we’ve adopted the term “gold standard,” which is the act of backing fiat money with physical gold to give it value. The gold standard isn’t really used much today, but the precious metal is still seen as a safe-haven asset in times of economic turmoil. 

Other goods

Shells, beads, and even large stones, like the Rai stones of Yap Island in Micronesia, have long held cultural significance. 

Cowrie shells historically held value in Africa and Asia largely because of their uniform weight and size, and their relative rarity. They were easy to carry around and weigh, giving them a set, standard value. They were also quite durable, making them even more appropriate as a form of money.

Rai stones were used for big-ticket goods and services, such as dowries and land purchases. They were quarried hundreds of miles away and transported by boat, adding to their value. 

Because of their long history and prominence in various cultures, these items still hold cultural value today.

The advantages of commodity money

There are numerous pros to using commodity money, even in today’s modern world. Here are a few: 

• Inherent value: These items are worth something because of their practical uses. Precious metals, for example, are used in electronics that power our 21st-century lifestyles through smartphones and computers. 
• Stable value: Because the value of these items is tied to physical goods, they’re less prone to the swings that fiat money can have during economic ups and downs.
• Self-regulating: The supply of many of these commodities is finite or hard to come by, such as precious metals that need to be mined and coffee that must be grown continuously.

The disadvantages of commodity money

As much as commodity money has its place in history and our contemporary world, it does have its downsides, such as: 

• Portability issues: It’s easy to move cowrie shells, but it’s not as simple as moving a herd of cattle or a house.
• Lack of divisibility: Some commodities aren’t easy to divide into smaller units to make minor purchases, such as a live cow or land.
• Inconsistent quality: Unlike paper or electronic money, which is designed to be uniform in every way, the quality of commodities can vary—two gold coins might not have the same purity, or a bag of rice may have spoiled. 
• Supply fluctuations: A bad harvest can destroy crops, driving up the price of related commodities, while the discovery of a large deposit of gold could see the precious metal’s price devalue as supply is increased. This not only disrupts the wider economy, but also affects the individuals who are buying and selling these items. 

The movement from commodities to currencies

The shift from commodity money to modern currencies was a gradual process shaped by growing economies and the need for faster, more reliable trade. As societies expanded, everyday transactions became too complex for systems based on livestock, grain or precious metals. These goods were valuable, but they were not always practical. Some were hard to transport, others were difficult to divide, and many were vulnerable to spoilage or changes in quality. 

As trade networks grew across regions and continents, people needed a payment system that was lighter, more uniform and easier to manage. The introduction of paper money marked a major turning point. 

Historians often point to China as the origin of the first true paper currency during the Tang Dynasty. Merchants started using paper notes as receipts for the large amounts of metal coins they deposited with trusted agents. Over time, these notes became widely accepted on their own because they represented real value stored elsewhere. This idea spread slowly to other parts of the world, setting the stage for modern banking systems.

Nowadays, the adoption of fiat money seems like a no-brainer for the convenience and stability it offers over commodities. Even so, some countries and communities still use commodity money in limited ways. In parts of Africa and Asia, items like livestock or grain remain common for bartering in rural areas. In regions without stable banking systems, goods such as coffee beans or tobacco can serve as a reliable way to store value or trade for essentials. 

Commodity money in a contemporary world

The best way to understand commodity money is to see it as a physical good with intrinsic value that serves as a medium of exchange. It has its benefits, like its practical uses in everyday life, but it also has disadvantages, like a lack of portability and inconsistent quality.

While the world has largely moved onto fiat currencies, knowing where our modern payment methods originated helps us understand the way economics works—and highlights how important trust and stability are in any financial system. We rely on this trust in governments to keep paper and electronic money stable, and collectively agree on this money’s value.

FAQs

What are the main characteristics of commodity money?

The first main feature of commodity money is its intrinsic value, which means these items have practical uses in our day-to-day lives. The second is its ability to be a medium of exchange—sought after and widely accepted.

What is the difference between commodity money and fiat money?

Commodity money has intrinsic value, whereas fiat money has extrinsic value. Fiat money, like the US dollar, has value only because the government has assigned it value, and society agrees on this worth and trusts it.

What are some examples of commodity money in history?

These include cowrie shells, gold and silver, grain, livestock, tobacco, coffee, tea, and salt.

How is the value of commodity money determined? 

Let’s look at a couple of examples to understand this: When gold coins were used, their purity and weight determined how much they were worth. When it came to goods like salt and tobacco, these were valued according to their supply and demand. 

Can cryptocurrency be considered commodity money?

This is a hotly debated topic. Cryptocurrency is a digital currency, so it doesn’t have inherent value like gold or rice. However, some cryptos, like Bitcoin, need to be “mined” digitally, so their scarcity creates a value similar to that of a commodity. Most economists, however, see cryptocurrency as a separate asset class, distinct from commodities and fiat money.

Is gold still considered commodity money?

Yes and no. In most economies, fiat money is used instead of precious metals like gold. However, countries like the US have a gold reserve, because the qualities of gold that made it a valuable commodity all those years ago still exist. This is also why many investors choose to keep their money in gold.