What is a Student Loan? A student loan is exactly what it sounds like – a loan given to students to finance their studies. This is most common for college or university students, but also works for trade schools and other vocational studies. Most of the time when a person takes out a loan, they Read More…

Definition When we think of money, stored value means anything that isn’t cash, but you can still use to transfer value – checks, debit cards, gift cards, and forms like that. These are used to transport some dollar amount which we can later exchange for goods and services. Each of these forms of stored value have their Read More…

Knowing your net worth is the first step towards growing it! This tool will help you organize your assets in one place, and even help project how they will grow in the future. If you have used our Home Budget Calculator to help see where you can improve your savings, the next step is measuring Read More…

The first BIG purchase many people make is when they buy their first car. This calculator will help show the impact of many of the biggest factors people need to consider when taking out their first loan for a big purchase. If you have used our Credit Card Payment Calculator to see how minimum payments Read More…

The biggest expense most people have is the place they live, one of the biggest decisions young people face is whether to buy their home, or continue to rent. Conventional wisdom says that buying will pay off in the long term, but believe it or not this is not always the case! Make sure you Read More…

Credit Cards! These are usually the first “loans” a person takes out, and the first monthly payments! Tens of thousands of young people dig themselves deep into credit card debt before they even realize it, so have fun with this payments calculator to see how much these bits of plastic REALLY cost! If you have Read More…

The most difficult thing people think of with personal finance is building your monthly budget, and sticking to it. There are tons of different expenses and payments to consider, so we put all the big ones in one place! This tool will also help you see exactly how much you can set aside for savings Read More…

Want to be a millionaire? Everyone does, but do you know how much you need to save and what rate of return you need to get on your investments to reach that million level? This financial calculator helps you learn how your savings grows over time and how sensitive your final savings balance is to Read More…

Find out the difference between Simple and Compound Interest! See how big an impact your tax rates and inflation have on your savings over time! If you have already used our Becoming A Millionaire Calculator, you can use your targeted Expected Investment Return numbers in this calculator to see how to make that return happen! Read More…

The first thing to consider with all personal finance is the idea of compound interest! This is what separates the “Piggy Bank” savers from the Warren Buffets; making use of interest compounding is how you can really make your savings grow! If you have already used our Investment Return Calculator, you can use this calculator Read More…

There are hundreds of small tips and rules you will hear about managing your personal finances, but putting everything together into one coherent plan can be a daunting task. You have probably already heard about budgeting, spending plans, savings strategies, credit cards, and all points in between – now we will put everything together to Read More…

Raising a family is expensive. According to CNN, it costs over $230,000 to raise a child from birth to age 17 in the United States! Starting a family is the biggest change you can make to your life as a whole, but for your personal finances in particular. Some say that no one is ever Read More…

Your home will probably be the biggest purchase you make in your lifetime. Buying a home not only saves money on rent, but is a serious asset that can appreciate over time. Since homes are so expensive, (almost) no-one buys them in cash. Instead, homes are typically purchased with a special type of loan, called Read More…

Buying a car is usually the first big purchase a person will make. There is also no shortage of horror stories of people immediately regretting the decision, either by buying a new car and later struggling to meet payments, or a used car with hidden mechanical problems demanding costly repairs. When you need to buy Read More…

Automatic Payments – Blessing Or Curse? That title may be a bit hyperbolic – Automatic Bill Payments can be a huge time saver, and do help make sure your bills get paid on time (avoiding late fees and general headaches). This does come at a price, though – when your bills are automatically paid, you Read More…

“Spending Shocks” are large, irregular expenses. According to CBS, more than 60% of Americans cannot absorb a $500 spending shock: spending shocks are the #1 reasons why budgets end up abandoned, and being prepared for large spending shocks is the best thing you can do to keep your personal finances healthy. Types of Spending Shocks Read More…

Building a budget or spending plan is tough. Sticking to the plan is even tougher. Thankfully, there are a few ways you can game the system to make sure you stay under budget, and your savings continues to grow. Budgeting Strategies A “Budgeting Strategy” means different ways to approach your budgeting to build something that Read More…

If you know something about personal finance, you understand how complicated it can be to make sure all bills are paid on time, you are fully insured, and your credit is healthy. Juggling all the different aspects of finances usually means savings and investing takes a back seat to everything else on your plate. This Read More…

If you are severely behind on your bills and all other debt management plans have failed, the last option available is declaring Bankruptcy. What is Bankruptcy? Bankruptcy is a type of forced debt settlement, and is a legal procedure. When you declare bankruptcy, the courts will gather all your unsecured creditors together, and hear the Read More…

If you find yourself over your head in debt, there is always a light at the end of the tunnel. Credit counselling agencies, both for-profit and non-profit, exist in every state to help people build a clear, workable path back to healthy personal finances. If you do need the help of a credit councillor, this Read More…

If you start falling seriously behind on your bills with simple prioritization and negotiation not enough to catch up, you still have some options available to keep your finances under control. One of the most straight-forward options is Debt Consolidation. When to Consider Debt Consolidation Most adults have at least half a dozen creditors, such Read More…

Everyone has had financial emergencies, when a huge spending shock breaks your budget or spending plan into pieces. If you have more than one emergency in a short time, such as if you lost your job, your outstanding debt balances might start to spiral out of control. Even in extreme circumstances, it is still possible Read More…

It happens to everyone: a monetary emergency happens, such as a car breakdown, draining your bank account. Bills are still coming in, and you already know that you will not even be close to paying off everything this month. One of the goals of strong personal finance is trying to avoid these scenarios by having Read More…

Every person makes hundreds of purchases every week. Think about how many individual items you have when buying groceries, how often you eat out or use a vending machine, or how often you buy new clothes. Each purchase has a reason, but each purchase costs money. One of the cornerstones of strong personal finances is Read More…

Every high school student makes a choice when they are about to graduate – enter the job market right away, enter a trade school, or enrol in a university? Everyone will make the same kind of choice many times throughout their lives. If you first choose to work, the option is usually still available later Read More…

When you are evaluating how to spend your money, most people make a fairly simple comparison – if the benefit you think you will get from the purchase is bigger than the cost, then most people go ahead with the purchase. When you are working to master your personal finances, you might notice a problem. Read More…

Health Insurance is usually the most complicated and expensive insurance you need. Unfortunately, it is also usually the most important, making it very difficult to avoid the cost. With very few exceptions, health insurance is mandatory for all citizens in the United States, but the way you become insured will change drastically based on your Read More…

Life Insurance is an insurance policy designed to pay out if the insured person dies. They were created to make sure that if the main income holder of a household dies, the payout from the policy can be used to help continue to support his or her family. Over the last 50 years, Life Insurance Read More…

Homeowner’s Insurance is a broad type of insurance coverage designed to cover a home and the property it sits on. This insurance is very broad, wrapping many different types of coverage into one package. If you want to take out a mortgage on a home, the institution you borrow from will probably require you to Read More…

“Rental Insurance” is taken out on property you rent to insure against damage. Rental insurance works like a lighter version of Homeowner’s Insurance. Why Would I Need Rental Insurance? As a renter, this insurance does not do you much good. For example, if there is a fire at your apartment caused by one of your Read More…

If you drive a car, you need to be covered by some sort of car insurance. You have probably seen dozens of advertisements from insurance companies claiming to help lower your rates, improve your coverage, or just help you compare, but before you buy your first insurance (or change providers), the first step is knowing Read More…

Once you file your income taxes, the IRS will review all the forms you submit, and either issue your return or refund, usually with very little turnaround time. However, occasionally the IRS will ask you to provide some supporting documentation before your return is accepted. The Basics of an Audit An “Audit” is what happens Read More…

Most young people are perfectly capable filing the Form 1040 EZ, or even using the longer Form 1040 or 1040 A. As personal finances grow more complex, becoming eligible for more and more tax credits, or needing to report common tax additions, filing your own taxes can be a greater burden, with more tax credits Read More…

Everyone loves getting tax breaks, but what can really ruin your finances in the long-run is forgetting about tax additions – extra taxes and fees that you need to add on to your tax bill. Missing these extra taxes will hurt – taxpayers are currently charged 6% APR on all outstanding tax balances. This means Read More…

When you file your income taxes, you can “write off” certain expenses, and get extra tax credits based on your living situation. This means that if you had a qualifying expense over the course of the year, you basically get to subtract that expense from the income you report to the IRS, which will increase Read More…

What is income tax? Income tax is the tax you pay on your income, usually directly taken out of your paycheck. Everyone who works in the United States should be paying income tax on their earnings. Income is more than just wages and salaries too. If you earn rents from rental properties, investment income, interest Read More…

What Is Sales Tax? “Sales Tax” is a tax that is charged on goods sold to end customers. The Sales Tax is a set percentage of the price of the goods sold. In the United States, all states except Alaska, Delaware, Montana, New Hampshire, and Oregon charge a sales tax, but the sales tax will Read More…

Short Term Financing “Short Term” financing means taking out a loan to make a purchase, usually with the loan term at less than a year. There are many different types of short-term financing, the most common of which are “Buy Now, Pay Later”, “Unsecured Personal Loans”, and “Payday Loans”. Short Term Financing VS Credit Cards Read More…

What are Credit Cards? Credit cards is a form of unsecured credit (meaning a loan without collateral) that you can use to make everyday purchases. All credit card purchases are made using a loan – you borrow money from your credit card issuer, and later pay it back with interest. Credit Cards Vs Debit Cards Read More…

Before Debit Cards Before the 21st century, if you wanted to buy groceries or visit the mall, you had 4 options that you could use to pay, all of which had their own drawbacks: Cash, checks, credit cards, and short-term financing. Cash is always reliable to make a purchase, but is prone to being lost Read More…

Beginners trying to tackle their personal finances for the first time see debt as sort of a “boogeyman”, a specter that looms overhead, trying to trap people into inescapable cycles of minimum payments and late fees. Or at the very least, something to be avoided whenever possible. Deep down, we all know this is not Read More…

If you want to start building your first workable budget, it is important to know exactly what should be in it, how to keep it updated, and the specific reason you want to have this budget. What does a budget look like? A budget is usually a spreadsheet or table. On one side or column, Read More…

You might have experience reconciling your checkbook by comparing your own written records with your bank statements. Fortunately, in the 21st century, this exercise is a bit dated, for two reasons: Paper checks probably only account for a small amount of your total expenses per month You probably have an automatic record with your bank’s online Read More…

When you are getting your financial records organized, it is important to keep track of your spending, so it is important to keep track of receipts. This can add up to a lot of paper very quickly, so one of the most common questions beginners are faced with is “how much do I save, and for Read More…

Credit Reports are basically a report that contains your credit history – both the good and bad. If you watch late-night TV, you have probably seen a few commercials offering free credit reports, so you might know that these are important. Most people, however, don’t know just how big a role a credit report can Read More…

The idea behind insurance is that there are random bad – and expensive – things that happen to just about anyone. Car crashes, medical emergencies, and other problems that can destroy your personal saving and investing plans if they happen. How Does Insurance Work? To protect against this, insurance companies work to pool the resources Read More…

To be “In Debt” means to owe money to someone else, usually making fixed payments to pay back the amount over time, plus interest. Debt means different things to different people – having some debt is perfectly healthy for your personal finances, but too much can leave you buried. There is also a major difference Read More…

Everyone needs some income – money to pay the bills and live off of, but income comes in many shapes and forms. It might seem obvious, but your total compensation for work is more than just the paycheck you get – depending on your age and where you work, there can be many different forms Read More…

An “Investing Strategy” is a plan for how to save money to help it grow. Sometimes an “investing strategy” can just mean “plan for trading stocks”, but it really means a lot more. Liquidity, Risk, and Potential Returns All investments balance liquidity (how easily it can be converted into cash for other use), risk (the Read More…

Today, all of our financial lives are online. Apart from a few paper records, everything you need to know can be accessed from nearly anywhere in the world, instantly. The only problem is making sure that you are the only one who has access to it. Fraud and Identity Theft are growing problems, impacting just Read More…

“Consumerism” can have many meanings, but each person in an economy is a “Consumer” – someone who buys and uses goods and services. As the world’s economy grows, each person is involved in more, and bigger, transactions, and so the rights and responsibilities of being a well-education consumer are more important now than ever before. Read More…

Building the next “Big Thing”. Being your own boss. Getting the full rewards for your work. There are a lot of reasons to start a business (along with lots of risks), but taking the plunge is a step every entrepreneur has to face if they plan on striking out on their own. Why Do People Read More…

What Is Credit? “Credit” is when you have the ability to use borrowed money. This can come in many different forms, from credit cards to mortgages. There is a wide range of ways to use credit, which means that it is often a challenge for beginners to learn all the different ins and outs of Read More…

When should someone start planning for retirement? Fidelity Investments recommends most young people try to save up 2x their annual salary by the time they turn 35, which is a pretty good benchmark to shoot for. Unfortunately, retirement is so far off the mind of most young people that they find their retirement account is Read More…

Financial Records are what you use to have an easy way to tell where all your money and assets are, and exactly how much you have, at any given time. They are not one document, or even one type of document. In fact, most people’s financial records will not look the same as anyone else’s, Read More…

How Is Money Created? In the United States (and many other countries), the question “How is money created?” comes up a lot. The treasury isn’t just printing cash all day, if they were the government debt would be zero! In the US, money is created as a form of debt. Banks create loans for people Read More…

Definition of Wealth “Wealth” means having an abundance of something desirable. This can be tangible, like money and property, or intangible. Intangible Wealth Just because something does not have a monetary value does not mean it is worthless. Having strong connections with friends and family is often considered a major component of wealth – since Read More…

When talking about Banking, people generally group Banks, Credit Unions, and Savings & Loan companies all in one group. They do provide similar services, but they each have specific differences that might make them a better or worse fit for your financial needs. What They Have In Common All three of these institutions can do Read More…

Definition of Spending Plan A “Spending Plan” is exactly as it says – a plan of what you will be spending each month. There are usually two parts – your “fixed” spending and your “variable” spending. The fixed part is usually the same every month, with things like rent/mortgage payments, grocery bills, insurance, and car Read More…

What is a Balance Sheet? The Balance Sheet (or Statement of Financial Position) is one of the four financial statements required by the SEC based on the U.S. GAAP (Generally Accepted Accounting Principles). According to the SEC, the Statement of Financial Position presents “detailed information about a company’s assets, liabilities and shareholders’ equity.” In other Read More…

Definition: The Income Statement is one of the financial statements that all publicly traded companies share with their investors. The income statement shows the company’s sales, expenses, and net profit (or loss) over a period of time–usually 3 months, year-to-date, and twelve months. The income statement also comes with a lot of notes and discussions from the Read More…