What is a Slush Fund?

A slush fund is a pool of money set aside for a specific purpose, usually outside your main budget.

People use the term in two main ways:

1. Everyday money talk (neutral/positive):

   • A casual “fun money” or miscellaneous pot in your budget

   • Used for things like small treats, takeout, hobbies, or unplanned expenses

2. Business/politics (negative):

   • A secret or off-the-books fund

   • Sometimes linked to unethical or improper spending (like bribes or hidden expenses)

So context matters: in personal finance, a “slush fund” can just mean a flexible spending bucket.

In corporate or political contexts, it often has a shady meaning.

Using KOHO Essential Instead of a “Messy” Slush Fund

If you like the idea of a flexible spending bucket—but want it to be clean and transparent.

With KOHO Essential Account, you can make a clear “slush” or flex spend pot inside a real money tool:

• It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000.

• Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.

• Grow your savings with a 2% interest savings rate on your entire balance.

• Earn 1% cash back on groceries, eating & drinking, and transportation.

• You can subscribe to Credit Building for $10/month, it's an affordable way to build your credit history.

• Enjoy unlimited transactions and free e-transfers (never worry about fees when sending money to someone again).

Should You Have a Personal Slush Fund?

Used well, a personal slush fund can:

• Give you permission to spend on small joys without guilt

• Stop you from dipping into savings or emergency funds for non-essentials

• Make your budget feel less strict and more livable

Just make sure:

• You decide the amount upfront (e.g., $50–$200 per month)

• You don’t let it become an excuse for constant impulse spending

• You keep true emergency savings separate

Think of it as: “fun money with a limit,” not a bottomless pot.