4 Money

• Money basics10 lessons

4. Plan your money before you spend it, and make compound interest work for you, not against you.

Card debt is expensive. In 2025, US bank credit card accounts that paid interest were charged an average rate of over 22% a year (Federal Reserve). Fees compound too: the SEC shows that on $100,000 earning 4% a year for 20 years, a 1% yearly fee leaves nearly $30,000 less than a 0.25% fee. Many households have little cushion. In 2025, 37% of US adults said they would not cover a $400 emergency expense with cash or its equivalent (Federal Reserve survey, self-reported).

1. 4.1Give every dollar of take-home pay a job before the month starts, and know how many months your savings would cover your essential bills.
   4.9 Making a monthly budget4.17 Know how long your savings would last
2. 4.2Pay your credit card's full statement balance every month, not just the minimum, and use the rule of 72 to see how fast debt, savings and prices double.
   4.6 Why minimum payments cost so much4.7 The rule of 72
3. 4.3Do the math yourself: count up to check your change, and compare the price per unit before you assume bigger is cheaper.
   4.1 Counting back change4.2 Comparing unit prices
4. 4.4Find the cancellation, renewal and fee terms before you sign anything. File your tax return on time even if you cannot pay it all, because filing late adds a penalty with both the IRS and the CRA.
   4.10 Reading a contract to find how to cancel4.13 Filing your own tax return
5. 4.5Use your country's tax-sheltered accounts (a 401(k) or IRA in the US, an RRSP or TFSA in Canada), take any employer match first, and choose low-cost, broad index funds with a low yearly fee.
   4.14 How retirement accounts save you tax4.15 Index funds and why fees matter
6. 4.6Go into every pay talk with one researched number, name it clearly, and then stop and wait for the answer.
   4.16 Ask for a raise with a number
7. 4.7Read the terms of your money: what an APR costs, what your savings earn, who inherits, and what a check allows.
   4.8 What does APR mean on a credit card4.11 What is a high yield savings account4.12 What is a contingent beneficiary, and how to name one4.4 How do you write a check4.3 Endorsing and depositing a check
8. 4.8Get paid straight into an account in your own name, and give your account numbers only to a payer you chose.
   4.5 Setting up direct deposit with a void check