The Beacon money guides
A clearer answer to your next money question.
Start with the question in front of you. These free personal finance guides break down the idea, work through the numbers, and point you toward a lesson when you want to practice.
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Money Foundations
Money Foundations · 3 min read
How to Make a Budget You Can Actually Use
Build a first budget from take-home pay, real expenses, and bill dates. Follow a worked monthly example and adjust it when your income changes.
Read the guideMoney Foundations · 3 min read
How Much Should You Keep in an Emergency Fund?
Work out an emergency savings target using essential expenses, then break it into smaller milestones with a practical savings example.
Read the guideMoney Foundations · 3 min read
How to Read a Pay Stub, Line by Line
Understand gross pay, deductions, net pay, and year-to-date totals. Follow a sample paycheck and learn what to check when your deposit changes.
Read the guideMoney Foundations · 3 min read
Net Worth vs. Income: Two Different Money Measures
Calculate net worth from assets and debts, distinguish it from income and cash flow, and understand what a changing balance sheet tells you.
Read the guideMoney Foundations · 3 min read
Sinking Funds: Save for a Bill Before It Arrives
Turn a future expense into a regular saving amount. Learn how to set a target, count the remaining paydays, and keep planned costs separate from emergencies.
Read the guideMoney Foundations · 3 min read
Lifestyle Inflation: Make a Pay Raise Count
Understand how new recurring expenses can absorb a raise. Compare take-home pay, work-related costs, one-time purchases, and longer-term goals.
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Credit
Credit · 3 min read
Credit Utilization: How to Calculate It
Calculate credit utilization for one card and across several cards. Understand reported balances, payment timing, and common credit myths.
Read the guideCredit · 3 min read
Credit Report vs. Credit Score: The Difference
Learn how a credit report differs from a score, why scores can vary, and how to compare the underlying records when something looks wrong.
Read the guideCredit · 3 min read
How to Build Credit When You Have No History
Understand secured cards, credit-builder loans, and credit reporting. Compare the costs and habits involved in establishing a first credit history.
Read the guideCredit · 3 min read
Statement Balance vs. Current Balance on a Credit Card
Learn why your statement and current balance differ. Follow purchases and payments through a billing cycle and check which amount your autopay covers.
Read the guideCredit · 3 min read
How to Dispute a Credit Report Error
Build a clear credit-report dispute using the account details, the specific error, and supporting records. Learn how to track the response and follow up.
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Debt
Debt · 3 min read
Debt Snowball vs. Avalanche: Compare the Tradeoffs
Compare the debt snowball and avalanche with a three-debt example. See how payment order changes and what to check before choosing a plan.
Read the guideDebt · 3 min read
Credit Card APR Explained With a Dollar Example
Translate a credit card APR into an approximate interest charge. Learn how balances, grace periods, fees, and payment timing affect the bill.
Read the guideDebt · 3 min read
Car Loan Terms: Look Beyond the Monthly Payment
Compare a four-year and six-year car loan using the same amount and rate. See how term length affects interest, total cost, and payment size.
Read the guideDebt · 3 min read
Debt-to-Income Ratio: Calculate It Without Confusing the Numbers
Calculate monthly debt payments as a share of gross income. Understand how DTI differs from your budget and why a lender’s calculation can vary.
Read the guideDebt · 3 min read
Debt Consolidation Loans: Compare the Full Repayment Cost
Check whether a consolidation loan actually improves your repayment plan. Compare fees, loan length, proceeds, and the risk of rebuilding old balances.
Read the guideDebt · 3 min read
Balance Transfers: Do the Math Before Moving Card Debt
Calculate a balance-transfer fee and a payoff amount for the promotional period. Check purchase interest, deadlines, and what happens to a remaining balance.
Read the guideDebt · 3 min read
Buy Now, Pay Later: Put Every Installment on the Calendar
Understand pay-in-four loans, overlapping payment schedules, returns, and fees. Use a calendar example to see the full commitment before checking out.
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Investing
Investing · 3 min read
Compound Interest Explained: A Simple Example
See how compound interest differs from simple interest, follow a worked example, and understand why contributions and assumptions matter.
Read the guideInvesting · 3 min read
Index Funds vs. ETFs: How the Terms Overlap
Learn why an index fund can also be an ETF. Separate investment strategy from fund structure, then compare holdings, trading, and costs.
Read the guideInvesting · 3 min read
Expense Ratios: What a Fund Costs to Own
Convert a fund’s expense ratio into an approximate dollar cost. Learn where fees appear and which additional charges the ratio does not include.
Read the guideInvesting · 3 min read
Diversification: Look Inside Your Investments
Understand diversification across and within asset types. Use a fund-overlap example to see why owning more funds does not always spread risk.
Read the guideInvesting · 3 min read
Why Bond Prices Fall When Interest Rates Rise
Separate a bond’s coupon from its market price. Use a one-year example to understand interest-rate risk, selling before maturity, and bond-fund differences.
Read the guideInvesting · 3 min read
Dollar-Cost Averaging: What Regular Investing Can and Cannot Do
Follow equal-dollar purchases at changing prices. Understand average cost, investment risk, and the difference between investing paychecks and delaying a lump sum.
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Banking
Banking · 3 min read
Checking vs. Savings Accounts: What to Compare
Compare checking and savings accounts by access, fees, interest, and purpose. Use a practical example to separate bill money from savings.
Read the guideBanking · 3 min read
APY vs. Interest Rate: Reading a Savings Offer
Understand what APY includes, how it differs from a stated interest rate, and why fees and changing rates matter when comparing savings accounts.
Read the guideBanking · 3 min read
CD vs. Savings Account: Match the Money to the Date
Compare a certificate of deposit with a savings account by access, rate terms, penalties, and maturity. Work through a simple timing example.
Read the guideBanking · 3 min read
Overdraft vs. NSF Fees: What Happened to the Payment?
Distinguish a payment the bank covers from one it returns. Learn what overdraft opt-in covers and how pending transactions can affect available money.
Read the guideBanking · 3 min read
FDIC vs. NCUA Insurance: What Protects Your Deposits?
Understand federal deposit and share insurance, the role of ownership categories, and why multiple accounts or a financial app do not automatically add coverage.
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Retirement
Retirement · 3 min read
How a 401(k) Employer Match Works
Read an employer match formula, calculate an example, and understand vesting and contribution timing before changing your retirement election.
Read the guideRetirement · 3 min read
Roth vs. Traditional IRA: Understand the Tax Timing
Compare Roth and traditional IRAs by contribution and withdrawal tax treatment. Follow an equal-cost example and check the rules that affect eligibility.
Read the guideRetirement · 3 min read
Leaving a Job? Understand Your 401(k) Options
Compare leaving a 401(k), moving it to another plan, and rolling it into an IRA. Learn how a direct rollover differs from receiving the money yourself.
Read the guideRetirement · 3 min read
Social Security: What Claiming at 62, 67, or 70 Changes
Compare early, full-retirement-age, and delayed retirement benefits with a clear example. Keep work, Medicare, and household needs in the decision.
Read the guideRetirement · 3 min read
Retirement Beneficiaries: Keep the Account Instructions Current
Understand primary and contingent beneficiaries, account-specific forms, and life events that call for a review. Learn what to verify after submitting a change.
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Taxes
Taxes · 3 min read
Marginal vs. Effective Tax Rate, With an Example
See how tax brackets apply to layers of income. Compare marginal and effective rates using a fictional example, and separate tax from withholding.
Read the guideTaxes · 3 min read
Tax Deduction vs. Tax Credit: What Each Changes
Compare a deduction with a credit using simple dollar examples. Understand refundable credits and why eligibility matters more than the headline amount.
Read the guideTaxes · 3 min read
Capital Gains and Cost Basis: What Part of a Sale Is Profit?
Separate sale proceeds from an investment gain. Work through purchase costs, selling costs, holding periods, and records for reinvested dividends.
Read the guideTaxes · 3 min read
Estimated Taxes for Freelancers: Build a Payment Routine
Understand why freelance income can require tax payments during the year. Separate a tax reserve from an actual payment and check the IRS calculation rules.
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Housing & Mortgages
Housing & Mortgages · 3 min read
Mortgage Escrow: Why Your Payment Can Change
Understand the escrow portion of a mortgage payment. Follow a taxes-and-insurance example and separate a higher ongoing bill from a shortage repayment.
Read the guideHousing & Mortgages · 3 min read
Private Mortgage Insurance: What PMI Does and When It Can End
Learn who PMI protects, how it affects a conventional mortgage payment, and the difference between requesting cancellation and automatic termination.
Read the guideHousing & Mortgages · 3 min read
What Does Renters Insurance Cover?
Understand personal property, liability, and additional living expenses. Learn how a simple inventory and policy details can reveal gaps in coverage.
Read the guideHousing & Mortgages · 3 min read
Mortgage Points: When Does Paying Upfront Reduce Your Cost?
Translate discount points into dollars and estimate how long payment savings take to recover the upfront cost. Compare lender credits and holding periods.
Read the guideHousing & Mortgages · 3 min read
Fixed vs. Adjustable-Rate Mortgages: Read the Future Payment Rules
Compare a fixed rate with an ARM’s introductory period, index, margin, and caps. Learn which questions reveal the risk of a later payment increase.
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Financial Protection
Financial Protection · 3 min read
Insurance Premium vs. Deductible: Compare the Whole Cost
Compare the cost you pay to keep coverage with the amount you may pay after a loss. Work through dollar and percentage deductible examples.
Read the guideFinancial Protection · 3 min read
Credit Freeze vs. Fraud Alert: Which Does What?
Compare how a credit freeze and fraud alert work, where to place them, and what each can—and cannot—do after a possible identity theft incident.
Read the guideFinancial Protection · 3 min read
How to Spot a Phishing Scam Before You Respond
Learn a practical way to check suspicious account messages, invoices, and texts. See how to verify a request safely and respond if you shared information.
Read the guideFinancial Protection · 3 min read
HSA vs. FSA: Compare the Rules Before You Enroll
Compare health savings accounts and health flexible spending arrangements by eligibility, unused money, job changes, and reimbursement records.
Read the guideFinancial Protection · 3 min read
Term vs. Whole Life Insurance: Begin With the Coverage Need
Compare coverage duration, premiums, and cash value. Use a simple needs estimate and learn which policy illustrations and guarantees to examine.
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Looking for the whole learning path? Explore Beacon’s personal finance curriculum.