Money lessons
Short lessons on budgeting, saving, debt, credit and investing. Each one shows the idea as a picture, gives you the facts worth keeping, and lets you practice right on the page.
Start here: read your paycheck
Gross pay minus taxes and deductions equals net pay. Budget from net pay and check each stub line once a year.
See where your money goes and give every dollar a job.
Where your money goes
Make a plan
Make a budgetGive every dollar of take-home pay a job.Zero-based budgetGive every dollar a job until $0 is left.Pay yourself firstSave on payday, then spend what is left.Irregular income budgetPlan on your lowest month. Save the rest.Set money goalsAn amount, a date and a monthly number.Automate your moneySavings first, bills next, then spend the rest.Spend less, keep more
Lower your billsOne afternoon of calls, savings every month.Save on groceriesPlan meals, buy store brands, waste less.Stop impulse spendingWait 48 hours, add friction, budget for fun.Bank feesOverdraft, NSF and monthly fees, and how to skip them.Credit union vs bankSame basics, different owners. Compare actual offers.How interest worksThe price of money, earned or paid.APY vs APRAPY for what you earn, APR for what you pay.Build the cushion that keeps a surprise bill from becoming debt.
Your cushion
Next level
Sinking fundsSave monthly for bills you know are coming.Save for a carDown payment plus fees, divided by months to go.Where to keep cashMatch each dollar to when you will need it.Certificates of depositA locked rate for money with a known date.Money market accountsInsured savings with checks, minimums and a variable rate.Treasury billsShort government loans, sold at a discount, state-tax free.I bondsInflation-linked savings bonds with a 1-year lock.Understand what debt costs and pay it off in the right order.
Credit cards
How credit cards workPay the statement in full, pay zero interest.Credit card interestHow APR turns into monthly interest.Lower your card APRA five-minute call can cut what you pay.Buy now, pay laterFour small payments are still a loan.Snowball vs avalanchePay debts in the order that fits you.Balance transfersCompare the fee to the interest you'd pay.Loans
AmortizationSame payment each month, a changing split.Personal loansA fixed payment for a set term. Watch the fee.Car loansA lower payment can mean a higher price.Student loansFederal or private decides your options.Repayment plansYour loan dates decide which plans you can pick.Refinance student loansA lower rate, but federal protections end for good.Debt-to-income ratioMonthly debt payments ÷ gross monthly income.Cosigning a loanYou owe all of it if they don't pay.Getting out of a hole
Debt consolidationOne lower-rate payment, if the old cards stay at zero.Payday loansAbout 391% APR, and easy to get stuck.Medical debtCheck it, ask for help, then pay on a plan.Debt collector rightsAsk for proof, dispute in writing, keep records.Debt settlementPaying less than you owe, at a real cost.Bankruptcy basicsWipe out or restructure debt, under court rules.Debt or investCompare the debt's rate with a realistic return.How scores are built, and how to protect yours.
Your score
Build and protect
Build creditOne small bill, paid in full, for 6 months.Secured credit cardYour deposit becomes your credit limit.Authorized userBorrow a good card's history while you build your own.Improve your scoreOn-time payments and low balances do most of the work.Negative itemsSeven years for most, ten for bankruptcy.Closing a cardClosing shrinks your limits, so your utilization can jump.Card rewardsWorth it only when you pay in full every month.Credit freezeBlock thieves from opening accounts in your name.Let time and compound growth do the heavy lifting.
Investing basics
What is investingSaving is for soon. Investing is for years away.Compound interestGrowth on your growth, given time.InflationWhy idle cash buys less every year.Stocks vs bondsOwnership that swings vs loans that steady.Index fundsOne purchase, hundreds of companies, tiny fees.ETFsA whole basket of investments that trades like one stock.Expense ratiosThe quiet yearly fee that compounds against you.DiversificationDon't let one company decide your future.Retirement accounts
What is a 401(k)Retirement savings straight from your paycheck.401(k) matchContribute enough to collect every matched dollar.401(k) vestingYour money is always yours. The match vests.What is an IRAA retirement account you open on your own.Roth vs traditionalPay tax now or later on retirement money.Retirement savings targetYour gap times 25, or about 15% of pay.401(k) rolloverMove it by direct rollover. Don't cash it out.Build a portfolio
Start investingCushion, debt, match, IRA, then more.Brokerage accountInvesting with no limits, and tax every year.Target-date fundsOne fund that sets and adjusts your whole mix.Asset allocationYour split between stocks, bonds and cash.Dollar-cost averagingSame amount, every month, whatever the market does.RebalancingBring your stock and bond mix back on target.DividendsProfit paid to owners, usually every 3 months.When stocks dropKeep investing, don't panic-sell, and check your timeline.Crypto risksBig swings, no insurance, lots of scams.Choosing an adviserFiduciary, clear fees, clean record.How your paycheck gets taxed, and the accounts that cut the bill.
Tax basics
Keep more of it
Standard vs itemizedPick the bigger number. Here's how to check.Credits vs deductionsOne cuts your income. The other cuts your tax.Earned Income Tax CreditA refund for working, even if you owe nothing.Child tax creditUp to $2,200 per child, partly paid as a refund.Health savings accountTax-free money for medical bills, now or later.Capital gains taxTax on the profit, and timing sets the rate.Get paid what you are worth, use your benefits and handle taxes when you work for yourself.
Your job
Working for yourself
Rent, buy and borrow for a home without letting housing eat the whole budget.
Renting
Buying
Down payment savingsDown payment plus closing costs, saved on autopilot.House you can affordWork backward from a payment that fits.How mortgages workEqual payments, mostly interest at first.Fixed vs adjustableOne rate for life, or cheaper now and riskier later.PMIA temporary cost of putting less than 20% down.Closing costsThe cash you need on top of the down payment.Mortgage escrowYour taxes and insurance, paid a month at a time.Refinance a mortgageWorth it when savings repay the costs before you move.Insurance, scams and the safety nets that keep one bad day from becoming a bad year.
Insurance
How insurance worksSmall known costs that protect you from huge ones.Insurance deductiblesWhat you pay first, and how to pick it.Health insurance basicsWho pays what when the medical bill arrives.COBRA insuranceSame plan after you leave, at the full price.Renters insuranceYour stuff, your liability, and a place to stay.Car insuranceLiability protects your future pay. Collision protects the car.Term life insuranceCover the years your family depends on your pay.Disability insuranceProtect your paycheck if illness stops you working.The money steps for moving out, partnering up, kids, college, loss and windfalls.
Starting out
Family and school
How the lessons work
How the lessons work
Each lesson covers one idea. You get the key facts, a worked example with the numbers added up, a calculator to try your own numbers, and three quick questions to check yourself. Finish the questions and the lesson is marked done on this device.
Where to start
Take the 2-minute checkup and your plan points you to the lessons you need first. Or start at the top and work down: see where your money goes, build a cushion, clear expensive debt, protect your credit, then invest.
How we keep it accurate
Every table and worked example on this site is calculated by code, not typed by hand. Limits that change each year, like retirement contribution caps, come from the IRS and are dated. Each lesson lists its sources.
What this is not
These lessons are general education. They are not personalized financial, tax or legal advice. If your situation is complicated, talk to a fee-only fiduciary adviser or a tax professional.
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