Money Lessons
Learn what you should have learned about money in high school.
Begin with the decisions that shape everyday life. These short lessons introduce the language and principles behind earning, spending, saving, and borrowing.
Everyday money foundations
01 / Know your income
Gross income is what you earn before deductions. Net income is what remains after deductions such as taxes. Build your spending plan around the money you actually receive, and account for changes if your income varies.
02 / Have a spending a plan
A spending plan compares income with expenses. Identify essentials, flexible spending and savings, then check what is left. Include occasional costs as well as monthly bills so they do not become surprises.
03 / Save with a purpose
Name the goal, estimate its cost and decide when you need the money. Dividing that amount across the time available gives you a starting savings target. Review the plan as your circumstances change.
04 / Prepare for unexpected costs
An emergency fund is money set aside for unplanned essentials or an interruption in income. The amount you need depends on your expenses and circumstances. Accessibility matters because emergencies rarely arrive on schedule.
05 / Understand the cost of borrowing
Borrowing means repaying the amount borrowed, usually with interest and sometimes fees. Compare the interest rate, repayment term and total cost—not just the monthly payment. A longer term can lower payments while increasing the total interest paid.
Think beyond this month
Time, purchasing power and uncertainty all affect how money works over the longer term.
06 / Compound interest
Compounding happens when interest earns additional interest. It can help savings accumulate, but it can also increase a debt balance. The rate, time period, fees and whether interest is added to the balance all matter.
07 / Inflation
Inflation is an increase in the general level of prices. When prices rise, the same amount of money buys less. A future savings goal may therefore cost more than it does today.
08 / Risk and diversification
Investments can lose value, and returns are not guaranteed. Diversification means spreading investments rather than relying on a single holding. It can reduce concentration risk, but it does not eliminate risk or prevent all losses.
These principles are a starting point for learning, not recommendations for a particular account, investment or product.