Financial Education
Learn essential financial concepts to make informed decisions about your money
Educational Content: This information is for educational purposes only and should not be considered personalized financial advice. Always consult qualified professionals for your specific financial situation.
28/36 Rule
Housing costs should not exceed 28% of gross income, total debt should not exceed 36%
Down Payment Impact
20% down avoids PMI, but 3-5% down can still work with proper planning
Total Cost of Ownership
Include property taxes, insurance, maintenance, and HOA fees in your budget
15% Rule
Car payments should not exceed 15% of gross monthly income
New vs Used
New cars depreciate 20-30% in the first year, used cars offer better value
Total Transportation Costs
Include insurance, gas, maintenance, and registration in your budget
50/30/20 Rule
50% needs, 30% wants, 20% savings and debt repayment
Emergency Fund
Save 3-6 months of expenses in a high-yield savings account
Pay Yourself First
Automate savings before spending on discretionary items
Compound Interest
Time is your biggest advantage - start investing early, even with small amounts
Risk vs Return
Higher potential returns come with higher risk - diversify your investments
Dollar-Cost Averaging
Invest regularly regardless of market conditions to reduce timing risk
Tax Brackets
Progressive tax system - only income above each bracket is taxed at that rate
Standard vs Itemized
Take whichever is higher: standard deduction or itemized deductions (amounts change yearly - consult current tax tables)
Tax Withholding
Aim to owe/get refund less than $1,000 - adjust W-4 if needed
Rule of 25
Need 25x your annual expenses to retire safely (4% withdrawal rule)
Employer Match
Always contribute enough to get full company match - it's free money
401(k) vs IRA
401(k): Higher contribution limits, employer match. IRA: Lower limits, more investment options (limits change yearly)
Emergency Fund Size
3-6 months expenses for stable jobs, 6-12 months for unstable income
Where to Keep It
High-yield savings account - accessible but separate from checking
Build Priority
$1,000 starter fund first, then full emergency fund before investing
Debt Avalanche
Pay minimums on all debts, extra payments to highest interest rate debt
Debt Snowball
Pay minimums on all debts, extra payments to smallest balance first
Credit Card Strategy
Pay full balance monthly, use for rewards, keep utilization under 30%
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