50-30-20 Budget

Budgeting

A 50-30-20 budget divides your spending into three categories: 50% for needs, 30% for wants, and 20% for savings and investments.

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This framework is useful if you're starting out with budgeting and need a structure that still gives you flexibility to decide where your money goes within each bucket.

Quick Example

With an income of $6,000: $3,000 goes to needs (mortgage, utilities, groceries, debt repayment), $2,000 to wants (eating out, streaming, fun money), and $1,000 to savings.

How Monarch Helps

In Monarch, use the category and group features to divide categories into your three buckets and allocate your income percentage to each group. Monarch can also suggest allocation amounts based on your previous spending.

Balanced Budget

Budgeting

A balanced budget is when your expenses match your income, including allocations for savings and investments.

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A balanced budget means your spending is aligned with what you've planned — you won't need to go into debt or scramble to pay bills.

Quick Example

On an income of $3,000: set aside $1,000 for rent, $100 for utilities, and $400 for groceries. If you keep the rest of your expenses under $1,500, your budget is balanced.

How Monarch Helps

Monarch shows you how much you have left to budget as you allocate expenses. If you go 'in the red' (over your income), you can adjust your spending allocations as you go.

Budget

Budgeting

A budget is a plan for your spending and savings — how much you intend to spend based on your income so that your expenses don't exceed what you earn.

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There are many budgeting methods: flex budgeting, 50-30-20, category budgeting, zero-based budgeting, and more. Budgeting helps you avoid debt, cut impulse purchases, and reach goals like saving up or paying down debt more quickly.

Quick Example

If you make $4,000/month: set aside $1,500 for mortgage, $100 for utilities, $200 for debt repayments, and $300 for groceries. With the remaining $1,900, allocate $900 to fun money and $1,000 to savings.

How Monarch Helps

Monarch's budget-building tools support flex, zero-based, and custom budgeting styles. You can create custom categories, set up recurring expenses, and link your accounts for automatic tracking.

Cash Flow

Budgeting

Cash flow is how much money goes in and out of your household. It shows how much you have left after expenses — or whether you've spent more than you earned.

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If you have money left over, your cash flow is net positive. If you've spent more than you made, it's net negative. Calculate it by subtracting expenses from income. A net positive cash flow each month gives you funds left to save, invest, or put toward debt.

Quick Example

Income $5,000 – Expenses $4,500 = +$500 (net positive). Income $5,000 – Expenses $5,500 = -$500 (net negative).

How Monarch Helps

Monarch generates cash flow reports based on your expenses and income, giving you an overall picture of your positive/negative cash flow and details on where your money is going.

Category Budget

Budgeting

A category budget allocates your spending based on specific categories of expenditure — groceries, utilities, housing, and so on. It tends to be more detailed than flex budgeting.

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Zero-based and envelope budgeting are both types of category budgets. Because you assign a specific spending limit to every category, it offers a detailed view of your money but requires more upfront planning.

Quick Example

On $4,000/month: rent $2,000, utilities $100, groceries $400, car $100, childcare $1,000, eating out $200, clothes $100, savings $100.

How Monarch Helps

Monarch's category budget mode offers preset and custom categories, group organization, and suggested allocation amounts based on your spending history.

Envelope Budget

Budgeting

An envelope budget (also called the cash envelope method) allocates portions of your income to spending 'envelopes' — each representing a hard limit for that category.

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Once the cash in an envelope runs out, you stop spending in that category. Leftover money can go to savings, other envelopes, or roll over to next month. It's useful if you want firm spending limits.

Quick Example

On $3,000/month: $1,500 in housing, $100 utilities, $100 car/gas, $400 groceries, $200 debt repayment, $100 takeout, rest to savings. If $20 is left after utilities, save it or move it to another envelope.

How Monarch Helps

In Monarch, create custom categories and groups that reflect your 'envelopes' and use the rollover feature for any unspent funds.

Expenses

Budgeting

Expenses are things you pay for — essentially what makes money leave your bank account. They range from your mortgage and groceries to taxes and streaming subscriptions.

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Tracking your expenses is fundamental to budgeting. If expenses outpace your income, you'll need to go into debt or dip into savings to cover your bills.

Quick Example

On a $4,000/month income, your expenses might include $1,500 rent, $300 groceries, $100 utilities, and $200 gas — totaling $2,100 before any discretionary spending.

How Monarch Helps

Monarch automatically tracks your expenses through linked accounts. You can also add manual transactions and scan receipts for quick entry.

Related Terms

Income Cash Flow

Fixed Expenses

Budgeting

Fixed expenses are recurring costs that generally don't change month to month and can't easily be adjusted — such as rent, mortgage, subscriptions, debt repayments, and insurance.

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Fixed expenses set the pace for the rest of your budget. Once accounted for, you can allocate remaining income to non-monthly and flexible expenses — the core of a flex budget.

Quick Example

Your rent is $1,500, internet is $80, car insurance is $120, and a streaming subscription is $15. These are your fixed expenses — exactly $1,715 leaves your account every month, no matter what.

How Monarch Helps

Monarch's Flex budgeting mode automatically identifies and tracks your fixed expenses, then helps you allocate the rest of your income.

Non-Monthly Expenses

Budgeting

Non-monthly expenses are costs that occur less than once a month — like annual subscriptions or one-time purchases such as a new laptop or appliance.

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These can be tricky to plan for since they're not part of your regular budget. Strategies include setting up a sinking fund (saving a little each month), pulling from your emergency fund for unplanned costs, or using the non-monthly bucket in a flex budget.

Quick Example

Your car registration costs $200 once a year. By setting aside $17/month in a sinking fund, the money is ready when the bill arrives — no scrambling or surprise debt.

Flexible/Variable Expenses

Budgeting

Flexible expenses (also called variable expenses) are costs that change month to month — like restaurants, groceries, clothes, or landscaping.

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These can often be increased or decreased based on your budget needs. For example, if you want to put more toward debt repayment, you can cut back on dining out. Managing flexible expenses is central to a flex budget. The amount you have for flexible spending is your flex number.

Quick Example

In January you spent $300 on groceries. In February, with a big dinner party, you spent $500. Groceries are a flexible expense — the amount changes from month to month.

How Monarch Helps

Monarch's flex budgeting feature automatically calculates your flex number and suggests allocation amounts based on your historical spending data.

Flex Budgeting

Budgeting

Flex budgeting divides your expenses into three buckets: Fixed (same every month), Non-monthly (irregular), and Flexible (variable). How much you have left for flexible spending is your flex number.

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Flex budgeting emphasizes flexibility — you allocate to fixed and non-monthly expenses first, then spend the remainder however you like. It's less labor-intensive than a category budget and offers more freedom.

Quick Example

Income $6,000. Fixed expenses (mortgage, utilities, subscriptions, insurance) = $3,000. Non-monthly (car tire replacement) = $1,000. Remaining flex budget = $2,000 for groceries, clothes, and fun.

How Monarch Helps

Monarch's default budgeting mode is flex budgeting.

Flex Number

Budgeting

Your flex number is how much money you have available for flexible expenses in a flex budget. Monthly Flex Number = Income – Fixed Expenses – Non-Monthly Expenses – Goals.

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To find your weekly flex number, divide your monthly flex number by 4.3 (since 52 ÷ 12 = 4.33 weeks per month). Weekly Flex Number = Monthly Flex Number ÷ 4.3.

Quick Example

Income $5,000. Fixed expenses $2,500. Non-monthly $300. Goals $200. Monthly flex number = $5,000 – $2,500 – $300 – $200 = $2,000. Weekly flex number = $2,000 ÷ 4.3 = ~$465/week.

How Monarch Helps

Monarch automatically calculates your flex number when you use flex budget mode.

Income

Budgeting

Your income is how much money you bring in each month — including paychecks, freelance earnings, retirement withdrawals, Social Security, dividends, bonuses, and inheritances.

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Knowing your income is essential to budgeting, since you need to know how much you earn before you can allocate funds to expenses.

Quick Example

Your take-home paycheck is $3,200/month and you earn $500/month freelancing. Your total monthly income is $3,700 — the starting point for building your budget.

How Monarch Helps

Monarch automatically tracks your income based on your linked accounts.

Related Terms

Gross Income Net Income Cash Flow

Gross Income

Budgeting

Gross income is the amount of income you bring in before taxes and deductions are applied. When filing taxes, you list your gross income.

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Quick Example

You earn $80,000 a year before taxes — that's your gross income. After federal and state taxes, your take-home (net income) might be closer to $58,000.

Related Terms

Net Income Cash Flow

Net Income

Budgeting

Net income is your income after subtracting taxes and expenses — also known as cash flow. It can be positive (you earned more than you spent) or negative (you spent more than you earned).

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Quick Example

Income $1,000 – Expenses $800 = Net income +$200. Income $1,000 – Expenses $1,500 = Net income -$500.

How Monarch Helps

Use Monarch's cash flow reports to see your net income each month and how it changes over time.

Related Terms

Gross Income Cash Flow

Monthly Budget

Budgeting

A monthly budget is a spending plan built around your monthly expenses — the most common budget structure, since most bills (rent, debt repayments, subscriptions) recur monthly.

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Quick Example

In March, you plan $1,500 for rent, $400 for groceries, $200 for gas, and $300 for dining out. That's your monthly budget — a plan that resets at the start of April.

How Monarch Helps

Monarch's budget is structured monthly, though you can opt to view weekly recaps on your dashboard.

Related Terms

Budget Yearly Budget

Rollover Budget

Budgeting

A rollover budget carries leftover funds from one month into the next. If you allocated $400 for groceries and spent $300, the extra $100 rolls into next month's grocery budget.

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Rollover budgets are useful for categories where you want to reward underspending or where costs vary across months. A sinking fund is a form of rollover budgeting.

Quick Example

You budgeted $200 for clothes in October but only spent $80. That $120 rolls into November, giving you $320 — useful if you're planning a bigger purchase next month.

How Monarch Helps

In Monarch, you can set individual budget categories to rollover, carrying positive or negative balances into the next month.

Related Terms

Envelope Budget Sinking Fund

Sinking Fund

Budgeting

A sinking fund is a savings method where you set aside a small amount each month to cover a large future expense — like a vacation, car repair, or annual bill.

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When the time comes, you'll have enough saved to cover it without going into debt. You can use a dedicated savings account or a rollover budget category.

Quick Example

Your car insurance renews every 6 months at $600. Set aside $100/month in a sinking fund and the full amount is waiting for you when the bill arrives — no debt needed.

How Monarch Helps

Track your sinking fund with Monarch's rollover categories or Save Up goals feature.

Related Terms

Non-Monthly Expenses

Yearly Budget

Budgeting

A yearly budget is a plan for your income and expenses over an entire year — the best way to get a bird's-eye view of your financial health.

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Build it by totaling your monthly budgets plus any expected annual or non-monthly expenses. Check in quarterly and do a year-end review to set new goals.

Quick Example

Your monthly expenses total $3,500 ($42,000/year). Add your annual car insurance ($1,200) and holiday spending ($800), and your full yearly budget is $44,000.

Related Terms

Monthly Budget

Zero-Based Budget

Budgeting

Zero-based budgeting allocates every single dollar of your income to a specific purpose — expenses, savings, or investments — so your income minus your allocations equals zero.

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It's the most detailed budgeting style, offering a clear view of exactly where your money goes. It can be labor-intensive but is especially helpful if you have low or variable income.

Quick Example

On $4,000/month: $2,000 rent, $200 utilities, $100 gas, $500 groceries, $200 debt repayments, $100 takeout, $500 childcare, $400 savings.

How Monarch Helps

Select the category budget option in Monarch and allocate funds to each category. Monarch shows how much income remains to allocate as you go.

APR

Credit

APR (Annual Percentage Rate) is the yearly cost of borrowing on a credit card or loan, including both interest and fees. It represents the true cost of borrowing money.

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Credit card servicers are required to display the APR when advertising a card. It's often shown as a range since APRs are variable and change with the market interest rate.

Quick Example

A credit card with a 20% APR on a $1,000 balance will cost you approximately $200 in interest over a year if you make no payments — that's the real annual cost of carrying that balance.

Balance (Credit Card)

Credit

Your credit card balance is how much you have charged on the card and owe to the card servicer.

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Paying the balance in full during the grace period means no interest is charged. Making only the minimum payment results in interest charges on the remainder. Missing the payment entirely incurs both interest and a late fee.

Quick Example

You charged $500 in groceries, $200 for a dinner out, and $100 for gas this month. Your credit card balance is $800 — the amount you owe by your payment due date.

How Monarch Helps

Monarch shows your card balances on your accounts page, as long as your card is linked and in sync.

Related Terms

Credit Card APR Credit Utilization

Balance Transfer Card

Credit

A balance transfer card lets you move the balance from one or more cards to a new card, usually at a temporary 0% APR (the introductory rate).

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This 'pauses the clock' on interest accumulating, letting you pay down the balance faster. To qualify, you typically need a high credit score and pay a fee of 3%–5% of the transferred balance.

Quick Example

You have $5,000 in credit card debt at 22% APR. You transfer it to a card with 0% APR for 12 months. During that year, every dollar you pay reduces the balance — not interest.

Credit Card

Credit

A credit card lets you make purchases on credit — essentially a short-term loan from the card servicer, which you repay at the end of the billing period.

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Paying the full balance by the due date means no interest. Paying only the minimum results in interest charges on the remaining balance. Cards come with fraud protection, chargeback options, and rewards like cash back or travel perks. Most cards have credit score and income requirements.

Quick Example

You buy a $150 jacket with your credit card. The card company pays the store and adds $150 to your balance. At month end, pay the full $150 (no interest) or the $15 minimum (and get charged interest on the remaining $135).

Credit Limit

Credit

Your credit limit is the maximum amount you can charge to your credit card, set by the card servicer based on your income and credit score.

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Reaching your limit ('maxing out') will cause your card to be declined. Keeping your balance well below your limit is important for your credit utilization ratio and credit score.

Quick Example

Your credit card has a $5,000 limit. If your balance hits $5,000, the card is declined. To protect your credit score, keep your balance below $1,500 — that's 30% of your limit.

How Monarch Helps

View credit limits for all your cards in one place on the Monarch dashboard.

Interest

Credit

Interest is a periodic charge on the balance of a loan or credit card — calculated as a percentage of the outstanding balance. The larger the balance, the more you pay.

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Simple interest charges a fixed percentage of the original loan amount. Compounding interest calculates daily on the growing balance (including previously added interest), meaning your balance grows faster over time.

Quick Example

A $10,000 loan at 20% simple interest = $2,000 total. The same loan at 10% compounding daily = $2,213 in interest by year-end without any payments.

Introductory Offer

Credit

An introductory offer is a temporary promotion from a credit card servicer — such as bonus rewards, low rates, or cash back boosts — to attract new cardholders.

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These offers are temporary and usually come with conditions (like charging a minimum amount in the first few months). Once the period ends, the card reverts to standard rates and rewards.

Quick Example

A travel card offers 60,000 bonus points if you spend $3,000 in the first 3 months — worth about $600 in flights. That's an introductory offer designed to attract new cardholders.

Introductory Rate

Credit

An introductory rate is a temporary low APR — often 0% — offered on a new credit card to attract customers. Balance transfer cards typically offer this for the first 3–6 months.

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It can make debt repayments more impactful since interest isn't compounding. Be aware of when the introductory period ends and the standard APR kicks back in.

Quick Example

You open a balance transfer card with 0% APR for 15 months. You transfer $3,000 and pay $200/month. By month 15, the balance is fully paid with $0 in interest charged.

How Monarch Helps

Connect a card in Monarch and add your current APR to see exactly how much interest you're being charged and how quickly you can pay it off.

Minimum Payment (Credit Card)

Credit

The minimum payment is the smallest amount you must pay toward your credit card balance each statement period to avoid late fees. It's usually 1%–5% of your balance plus interest and fees.

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Making only the minimum payment is not recommended — it can take years to pay off the balance and rack up significant interest. Pay as much as you can above the minimum, or use a debt repayment strategy like the debt avalanche or snowball.

Quick Example

Your statement shows a $2,000 balance. The minimum payment is $40. Paying only $40/month at 20% APR means it takes over 8 years and costs ~$2,300 in interest to fully pay off.

Credit Bureaus

Credit

Credit bureaus collect financial data — payment history, credit utilization, hard inquiries — and compile credit reports used to calculate your credit score. The three bureaus are Equifax, Experian, and TransUnion.

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Quick Example

When you apply for a car loan, the lender pulls your report from Equifax. It shows your payment history, open accounts, and credit utilization — all collected and maintained by the bureau.

Credit Monitoring

Credit

Credit monitoring is a service that tracks your credit score and report for new entries, alerting you to key changes that could indicate fraud or unauthorized account activity.

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It usually comes with a monthly fee and can be valuable if you've experienced identity theft or had unauthorized accounts opened in your name.

Quick Example

You get an alert that a new account was opened in your name. You didn't open it — so you contact the bureau to flag potential fraud. That alert came from your credit monitoring service.

Related Terms

Credit Score Credit Bureaus FICO Score

Credit Score

Credit

A credit score is a number that represents your credit history — including borrowing behavior, repayment timeliness, account types, and any defaults or bankruptcies.

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Lenders use your score to gauge how risky you are to lend to. The two main models are FICO and VantageScore. FICO weights: Payment history 35%, Utilization 30%, Credit history length 15%, New inquiries 10%, Credit mix 10%. VantageScore weights: Payment history 40%, Length & mix 21%, Utilization 20%, Balances 11%, New inquiries 5%, Available credit 3%.

Quick Example

You apply for a mortgage. The lender sees your FICO score of 760 and offers you a 6.5% rate. Your neighbor with a 620 score gets offered 8.2% on the same loan — credit scores have a real cost.

How Monarch Helps

Enable credit score tracking in Monarch to view your VantageScore (using Equifax data) on your dashboard.

Credit Score Range (FICO)

Credit

FICO scores range from 300 to 850. Higher is better: 800–850 Exceptional, 740–799 Very Good, 670–739 Good, 580–669 Fair, 300–579 Poor.

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Maintaining a score of 740+ gives you the best loan approval chances, competitive rates, and access to premium credit products.

Quick Example

You've paid all your bills on time for years and kept utilization low. Your FICO score is 790 — Very Good — which gets you approved for a rewards card with a 0% introductory rate and no annual fee.

Credit Score Range (VantageScore)

Credit

VantageScores range from 300 to 850: 781–850 Superprime, 661–780 Prime, 601–660 Near Prime, 300–600 Subprime.

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Quick Example

Your VantageScore is 720, putting you in the Prime range. While most lenders use FICO for approvals, this score confirms your credit is in good standing.

How Monarch Helps

Enable credit score tracking in Monarch to see your VantageScore (Equifax data) on your dashboard.

Credit Utilization

Credit

Credit utilization (your utilization ratio) is the percentage of your available credit currently in use. A $3,000 balance on a $6,000 limit = 50% utilization.

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Utilization accounts for 30% of your FICO score. Keeping it low — ideally below 30% — is important for a healthy score. Avoid maxing out cards or closing high-limit cards.

Quick Example

You have two cards: $900 balance on a $3,000 limit card, and $700 on a $7,000 limit card. Total balance $1,600 ÷ Total limit $10,000 = 16% utilization — well under the recommended 30%.

How Monarch Helps

View your utilization ratio for individual cards and overall in Monarch's accounts tab.

FICO Score

Credit

A FICO Score is the most widely used credit scoring model by lenders. It uses data from the three credit bureaus, weighting payment history (35%), utilization (30%), credit history length (15%), new inquiries (10%), and credit mix (10%).

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Many banks and financial services offer free FICO score access if you have an account with them.

Quick Example

You check your FICO score through your bank app and see 745. When you apply for a car loan, the dealer uses that score to set your interest rate — your 745 qualifies you for their best available rate.

Hard Inquiry

Credit

A hard inquiry is when a lender officially checks your credit report and score to make a lending decision. Each hard inquiry can drop your score by a few points for a few months.

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Multiple hard inquiries in a short period can significantly lower your score. However, when rate shopping for a mortgage, both FICO and VantageScore count multiple inquiries within a grace period as a single inquiry.

Quick Example

You apply for three credit cards in one month. Each application triggers a hard inquiry, temporarily dropping your score by a few points — a good reason to be selective about how often you apply.

Payment History

Credit

Payment history is the record of how reliably you've paid your credit and loan accounts — on-time payments count positively, while late, missed, or delinquent payments count negatively.

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It is the most heavily weighted factor in both FICO and VantageScore. Accounts sent to collections or bankruptcies can negatively impact your score for up to seven years.

Quick Example

You missed a credit card payment in January. Even though you caught up in February, the missed payment appears on your credit report and lowers your score. Payment history is 35% of your FICO score.

How Monarch Helps

Monarch's Bill Sync feature tracks your loan and credit card due dates and reminds you when payments are due.

Revolving Credit

Credit

Revolving credit is a credit account you can draw from repeatedly — like a credit card or line of credit — up to a set credit limit, unlike installment loans with a fixed payout.

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You're typically not charged interest during the grace period. Once it ends, interest is charged on any unpaid balance. Revolving credit accounts count toward your credit mix in your score calculation.

Quick Example

Your credit card has a $5,000 limit. In January you charge $2,000. In February you pay it off and charge $1,500. The balance goes up and down each month — that's revolving credit in action.

How Monarch Helps

Track revolving credit balances, limits, and due dates in your Monarch accounts tab.

VantageScore

Credit

VantageScore is a credit scoring model from the three credit bureaus. It weights: Payment history 40%, Length & mix of credit 21%, Utilization 20%, Balances 11%, New inquiries 5%, Available credit 3%.

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While VantageScore is used less often than FICO for lending decisions, it still provides valuable insight into your credit standing.

Quick Example

Your VantageScore is 760 (Prime). While your lender may use FICO for the final loan decision, your VantageScore gives you a reliable ongoing picture of your credit health.

How Monarch Helps

Monarch displays your VantageScore (Equifax data) on your dashboard when you enable credit score tracking.

Buy Now Pay Later (BNPL)

Loans & Debt

Buy Now Pay Later (BNPL) lets you finance small retail purchases in installments — typically without a credit check — spreading the cost over a few weeks or months.

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While payments are usually interest-free, missing them can trigger stiff penalties and high interest rates. Some BNPL companies now report payment data to credit bureaus.

Quick Example

You buy a $200 pair of shoes online using BNPL, split into 4 payments of $50 every two weeks. As long as you pay on time, there's no interest — but miss a payment and a $25 late fee kicks in.

How Monarch Helps

Link your BNPL accounts in Monarch to track balances and upcoming payments.

Related Terms

Liabilities Credit Score Credit Bureaus

Compounding Interest

Loans & Debt

Compounding interest calculates interest on both the original balance (principal) and any previously added interest — usually daily. This means your balance grows faster over time.

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Compounding interest can work for you (savings accounts grow faster) or against you (high-interest debt balloons quickly even with minimum payments).

Quick Example

A $10,000 loan at 24% yearly interest compounding daily: after 90 days you're paying ~$7/day in interest, totaling $2,711 in interest at year-end without payments. But $10,000 at 5% APY in savings grows to $44,860 over 30 years.

Related Terms

APR APY Interest

Debt Avalanche

Loans & Debt

The debt avalanche is a repayment strategy where you aggressively pay down your highest-interest debt first while making minimum payments on all others.

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Once the highest-interest debt is paid off, you roll that payment into the next-highest-interest debt. This is the most efficient way to pay off debt and save on total interest paid.

Quick Example

You have a $3,000 card at 22% APR and a $1,000 card at 12% APR. With the avalanche method, you put all extra cash toward the $3,000 card first — paying less total interest over time.

Related Terms

Debt Snowball Minimum Payment (Loans)

Debt Snowball

Loans & Debt

The debt snowball is a repayment strategy where you aggressively pay down your lowest-balance debt first while making minimum payments on all others.

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Once the smallest debt is gone, you roll that payment into the next-smallest balance. While not as interest-efficient as the debt avalanche, the quick wins can keep you motivated.

Quick Example

You have a $500 medical bill, a $2,000 credit card, and an $8,000 car loan. With the snowball method, you knock out the $500 bill first — then roll that freed-up payment into the credit card.

Related Terms

Debt Avalanche Minimum Payment (Loans)

Minimum Payment (Loans)

Loans & Debt

The minimum payment on a loan is the required amount due each payment period. It typically covers a portion of the principal and the accumulated interest.

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Quick Example

Your student loan has a $25,000 balance at 5% interest. Your minimum monthly payment is $265. Paying only the minimum means it takes 10 years and ~$6,800 in interest to fully pay off.

Related Terms

Debt Snowball Debt Avalanche Interest

Public Service Loan Forgiveness (PSLF)

Loans & Debt

PSLF is a federal program that forgives remaining federal student loan balances for individuals who work full-time for a qualifying public service employer — including public schools, government agencies, the military, and qualifying non-profits.

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To qualify: work full-time for a qualifying employer, have a Direct federal loan, be enrolled in an income-based or 10-year repayment plan, and make 120 qualifying monthly payments (not necessarily consecutive). Apply through studentaid.gov.

Quick Example

You're a public school teacher with $40,000 in federal student loans. After 10 years of full-time teaching and 120 qualifying payments on an income-based plan, your remaining balance is forgiven.

Account Balance

Banking

Your account balance is the total amount of money in a checking or savings account — the sum of all deposits minus all withdrawals. Some banks charge fees if you fall below a minimum balance.

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Quick Example

You deposited your $3,000 paycheck on Monday and paid $1,200 in rent on Wednesday. Your account balance is now $1,800.

How Monarch Helps

View all your bank account balances in one place by linking your accounts in Monarch.

Related Terms

Assets

Savings Account

Banking

A savings account holds your money and typically pays monthly interest on the balance. Unlike a checking account, you can't use it to pay directly via check or debit card — funds must be transferred out.

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Quick Example

You move $500 from checking to savings each month. After 12 months your balance is $6,000 — plus a small amount of monthly interest earned on top.

How Monarch Helps

View your savings account balance in the Monarch accounts tab.

Related Terms

APY High-Yield Savings Account

Transfer

Banking

A transfer moves money from one bank account to another. Between accounts at the same institution, it's usually instant. Between different banks, an ACH transfer typically takes 1–3 business days.

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Wire transfers are faster but come with fees and carry risk — funds are hard to recover once sent. Only send wires to verified contacts.

Quick Example

You move $1,000 from your savings at Chase to your checking at Bank of America. It's the same money — just moved. That's a transfer.

Related Terms

Transfer (Monarch)

APY

Banking

APY (Annual Percentage Yield) is the yearly return on a balance or investment, factoring in compounding interest. A $10,000 balance at 5% APY earns $500 over one year.

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Quick Example

You deposit $10,000 in a HYSA with 4.5% APY. At the end of the year — without adding or withdrawing anything — your balance grows to $10,450.

Health Savings Account (HSA)

Banking

An HSA is a tax-advantaged account for employees with a High-Deductible Health Plan. Contributions come from pre-tax income, and withdrawals for qualified health expenses are tax-free.

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Qualified expenses include doctor visits, prescriptions, dental and vision care, over-the-counter medicines, prenatal care, and medical equipment. Many employers also match HSA contributions.

Quick Example

Your employer offers an HSA with a $500 annual match. You contribute $1,500 pre-tax, they add $500. You now have $2,000 to spend on dental, prescriptions, and doctor visits — all tax-free.

How Monarch Helps

View your HSA balance and transaction history in the Monarch accounts tab.

Related Terms

Income (Taxes)Assets

High-Yield Savings Account

Banking

A high-yield savings account (HYSA) is a savings account — usually from an online bank — that pays significantly more interest than traditional accounts: typically 3.5%–5% vs. ~0.5%.

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HYSAs may require a minimum deposit or limit you to six withdrawals per month. They're ideal for funds you don't need regularly, like your emergency fund or a long-term savings goal.

Quick Example

You move your $10,000 emergency fund from a traditional savings account (0.5% APY) to a HYSA (4.5% APY). After one year, you earn $450 in interest instead of just $50.

Asset Class

Investing

Asset classes are categories of investments that share similar risk levels, regulations, and market behavior — such as equities (stocks), fixed income (bonds), cash, real estate, precious metals, and crypto.

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Diversifying across asset classes helps investors manage risk so that when one area of the market drops, other areas can offset the impact.

Quick Example

Your portfolio has 60% stocks, 30% bonds, and 10% cash. When the stock market drops 20%, your bonds and cash cushion the overall impact on your portfolio's total value.

Brokerage

Investing

A brokerage account lets you buy, sell, and trade investments — stocks, ETFs, mutual funds, and more — with more flexibility than employer retirement accounts like a 401(k).

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Brokerage accounts come with greater risk and no upfront tax advantages. Selling investments at a gain usually means paying capital gains tax. Most can be opened entirely online.

Quick Example

You open a brokerage account with Fidelity, deposit $5,000, and buy shares of an S&P 500 index fund. Over time, if the fund grows, so does your money — though it can also fall in value.

How Monarch Helps

Link your brokerage account in Monarch to track your balance, gains, losses, and transactions — all factored into your net worth.

Capital Gain

Investing

A capital gain is the profit you make when you sell an investment for more than you paid for it. For example, buying a stock at $50 and selling at $150 = $100 in capital gains.

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Capital gains are taxable income. Some investors offset gains with investment losses to reduce their tax liability — a strategy called tax-loss harvesting.

Quick Example

You bought 10 shares of a stock at $20 each ($200 total). Five years later, each share is worth $80. You sell all 10 shares for $800 — your capital gain is $600.

Index Fund

Investing

An index fund is a type of mutual fund that mirrors the performance of a market index — like the S&P 500, NASDAQ, or Dow Jones — offering a passive, low-maintenance way to invest.

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Quick Example

Instead of picking individual stocks, you invest $200/month in an S&P 500 index fund. Your money is spread across 500 companies automatically — growing and dipping with the overall market.

Related Terms

Stock Market Portfolio ETFs

ETFs

Investing

ETFs (exchange-traded funds) are bundles of stocks and bonds traded on the stock market like a single stock. They typically track a specific market segment — like semiconductors, real estate, or commodities.

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Quick Example

You buy shares of a real estate ETF for $150. That single purchase gives you exposure to dozens of real estate companies — similar to a mutual fund, but traded like a stock throughout the day.

Investments

Investing

Investments are assets you put money into with the expectation they'll grow in value over time. They can include stocks, real estate, bonds, precious metals, and more.

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Returns come through dividends, rental income, or capital gains (profit from selling). Investments carry risk — there's no guarantee of gains, and some investments lose value.

Quick Example

You invest $5,000 in a mix of stocks and bonds. At a 7% average annual return, it grows to approximately $9,835 over 10 years — nearly doubling without any additional contributions.

Portfolio

Investing

A portfolio is the collection of investments you hold — typically a mix of asset types (stocks, bonds, real estate) to spread risk and smooth out market swings.

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Portfolios in retirement accounts (IRA, 401k) or education accounts (529) can be managed by an investment firm or by you. Diversification helps prevent a single investment's failure from wiping out your savings.

Quick Example

Your portfolio includes $20,000 in an S&P 500 index fund, $10,000 in bonds, and $5,000 in a real estate fund. If stocks drop 15%, your bonds and real estate help offset the loss.

How Monarch Helps

Track your portfolio balance and growth in Monarch, with your investments factored into your net worth.

Stock

Investing

A stock is a fractional ownership stake in a publicly-traded company that you can buy, sell, or trade. Stocks grow when the company's value or demand for its shares rises. They can also pay dividends — direct cash payments from company profits.

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Stock prices can fall if demand drops or investors sell in large volumes. Depending on how much you own and the stock type, you may receive voting rights on company decisions.

Quick Example

You buy 5 shares of a company at $100 each ($500 total). Six months later, the stock rises to $130/share. Your 5 shares are now worth $650 — a $150 gain.

Stock Market

Investing

The stock market is where investors buy and sell stocks in publicly traded companies. Its performance is tracked by indexes like the S&P 500, NASDAQ, and Dow Jones Industrial Average.

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A rising stock market generally signals a growing economy; a falling market can indicate economic trouble. Investors access the stock market through a brokerage account.

Quick Example

In 2024, the S&P 500 rose about 24%. If you had $10,000 invested in a fund tracking that index, your balance would have grown to approximately $12,400 by year-end.

Roth 401(k)

Retirement

A Roth 401(k) is an employer-provided retirement account funded with post-tax income, meaning withdrawals in retirement are completely tax-free.

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Investments are managed by a brokerage chosen by your employer. Unlike a Roth IRA, there are no income limits. For 2026, the contribution limit is $24,500 (combined with Roth IRA contributions).

Quick Example

You earn $70,000 and contribute 6% ($4,200/year) to your Roth 401(k) from your after-tax paycheck. When you retire in 30 years, you can withdraw that money — and all its growth — completely tax-free.

How Monarch Helps

Link your Roth 401(k) to Monarch to track its balance and include it in your net worth report.

Employer Match

Retirement

Employer matching is when your employer contributes to your retirement or savings account to match your own contributions, up to a set percentage of your income — essentially free money.

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For example, a 5% employer match on a $100,000 salary means up to $5,000 added to your account annually. It's always recommended to contribute at least enough to capture the full match.

Quick Example

You earn $60,000. Your employer matches 100% up to 4% of your salary. If you contribute $2,400/year (4%), your employer adds another $2,400. That's $4,800 toward retirement — half of it free.

IRA

Retirement

An IRA (individual retirement arrangement) is a tax-advantaged retirement account you own independently — not through an employer. Types include Traditional, Roth, Rollover, SEP, and SIMPLE IRAs.

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IRAs are a useful supplement to employer plans, or a primary savings vehicle for the self-employed. They typically offer more investment choices and can be self-managed or advisor-managed.

Quick Example

You're self-employed with no employer 401(k). You open a Traditional IRA and contribute $7,500 per year, reducing your taxable income while steadily building your retirement savings.

Roth IRA

Retirement

A Roth IRA is a retirement account funded with post-tax income. Your contributions grow tax-free and withdrawals in retirement are not taxed.

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For 2026, you can contribute if your MAGI is under $168,000 (single), $252,000 (married filing jointly), or $10,000 (married filing separately). Contribution limit: $7,500/year ($8,600 if over 50). You can manage investments yourself or through a brokerage.

Quick Example

You contribute $500/month ($6,000/year) to a Roth IRA starting at age 25. By age 65, assuming 7% average annual growth, your account could be worth over $1.2 million — and every withdrawal is tax-free.

How Monarch Helps

Link your Roth IRA in Monarch to track balance, growth, and net worth impact.

Rollover IRA

Retirement

A rollover IRA is used to move funds from a former employer's 401(k) into an individual account — tax-free — when you leave a job.

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Instead of leaving your 401(k) with a former employer (and paying management fees) or withdrawing early (and facing penalties), rolling it into an IRA preserves your savings and keeps them growing.

Quick Example

You leave your job and have $25,000 in your old employer's 401(k). Instead of cashing out (and paying taxes and penalties), you roll it into a Rollover IRA — the money keeps growing and you avoid all fees.

Traditional IRA

Retirement

A traditional IRA is a tax-deferred retirement account funded with pre-tax dollars. You pay taxes when you make withdrawals in retirement.

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Anyone can open one, and it can be self-managed or advisor-managed. Rollover IRAs are a form of traditional IRA used to consolidate old 401(k)s.

Quick Example

You earn $60,000 and contribute $7,500 to a Traditional IRA. This reduces your taxable income to $52,500, lowering your tax bill now — though you'll pay tax on withdrawals in retirement.

How Monarch Helps

Link your traditional IRA to Monarch to view balance, growth, and net worth.

Retirement

Retirement is when you stop working and fund your living expenses through savings withdrawals, investment income, Social Security, or passive income.

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Retirement accounts allow penalty-free withdrawals starting at age 59½. Social Security retirement age is 67 for those born in 1960 or later. Medicare eligibility begins at 65.

Quick Example

You retire at 65 with $800,000 in your 401(k), $200,000 in a Roth IRA, and $2,000/month in Social Security. Together, these cover your living expenses without needing to work.

Retirement Planning

Retirement

Retirement planning is the process of deciding when you want to retire, how much you'll need, and how to grow your savings and investments to reach that goal.

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The earlier you start, the more time your investments have to compound. Resources include employer-linked brokerage advisors, financial planning services, and digital tools.

Quick Example

At age 30, you calculate you'll need $1.5 million to retire at 65. To get there, you need to invest about $800/month — so you set up automatic contributions to your Roth IRA and 401(k) today.

How Monarch Helps

Monarch's Save Up goals feature helps you set retirement contribution goals, link them to your accounts, and track progress in real time.

Withdrawals (Retirement)

Retirement

Retirement withdrawals are when you take cash from your retirement accounts. Tax treatment depends on the account type — traditional account withdrawals are taxable; Roth withdrawals are tax-free.

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Withdrawing before age 59½ incurs a 10% early withdrawal penalty with some exceptions (disability, hardship, job loss, etc.). At age 73, Required Minimum Distributions (RMDs) kick in — you must withdraw annually from most retirement accounts or face a 25% penalty.

Quick Example

You're 55 and want to withdraw $10,000 from your Traditional IRA for a home repair. Because you're under 59½, you owe income tax on the amount plus a 10% early withdrawal penalty ($1,000).

Capital Gains Tax

Taxes

The capital gains tax is what you pay when you sell an asset for more than you bought it for. It applies to stocks, bonds, ETFs, crypto, and certain real estate.

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Long-term assets (held 1+ year): taxed at 0%, 15%, or 20% depending on income. Short-term assets (held under a year): taxed at your regular income rate. For home sales, you can exclude up to $250,000 ($500,000 married) if you've lived there 2 of the past 5 years.

Quick Example

You bought stock for $5,000 two years ago and sold it for $12,000 — a $7,000 long-term capital gain. At a 15% rate, you owe $1,050 in capital gains tax when you file.

Related Terms

Capital Gain Income (Taxes)Tax Bracket

Income (Taxes)

Taxes

For tax purposes, income is everything your household brings in — wages, business revenue, rental income, capital gains, retirement withdrawals, dividends, interest, and more.

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Income is subject to payroll taxes (flat rate, funds Social Security and Medicare) and income tax (based on your tax bracket). Your tax bracket uses your Modified Adjusted Gross Income (MAGI) — gross income minus qualified deductions. More deductions = lower MAGI = less tax.

Quick Example

You earn $75,000 in salary, $2,000 in freelance income, and $500 in dividends. Your total gross income for tax purposes is $77,500 — before deductions are applied.

Standard Deduction

Taxes

The standard deduction is a flat amount subtracted from your gross income to reduce your taxable income. For 2026: $16,100 (single), $32,200 (married filing jointly), $24,150 (head of household).

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For most households, the standard deduction is simpler and more beneficial than itemizing individual deductions.

Quick Example

You're a single filer with $70,000 gross income. You take the $16,100 standard deduction, reducing your taxable income to $53,900 — the amount your tax rate is applied to.

Related Terms

Income (Taxes)Tax Bracket

Tax Bracket

Taxes

Your tax bracket is the rate applied to your income. Tax brackets are progressive — you only pay each rate on income within that bracket's range, not on your entire income.

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2026 rates (single filers): 10% on $0–$12,400 · 12% on $12,401–$50,400 · 22% on $50,401–$105,700 · 24% on $105,701–$201,775 · 32% on $201,776–$256,225 · 35% on $256,226–$640,600 · 37% on $640,601+. Pre-tax contributions to HSAs, FSAs, and 401(k)s lower your taxable income.

Quick Example

A single filer with $110,000 taxable income pays 10% on the first $12,400, 12% on the next $38,000, 22% on the next $55,300, and 24% on the remaining $4,300 — a total of $18,998, not the flat 24% it may seem.

Related Terms

HSA Income (Taxes)Standard Deduction

Equity

Real Estate

Home equity is how much of your home you actually 'own' — your home's current value minus your remaining mortgage balance. A $300,000 home with a $100,000 mortgage = $200,000 in equity.

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Equity grows as you pay down your mortgage or your home appreciates in value. If you owe more than your home is worth, that's called being 'underwater' (negative equity). You can access equity through a cash-out refinance, HELOC, or home equity loan.

Quick Example

You bought your home for $300,000 with a $60,000 down payment. After 5 years of payments, your mortgage balance is $220,000 and the home is worth $350,000. Your equity: $350,000 – $220,000 = $130,000.

How Monarch Helps

Link your mortgage in Monarch to view your home equity on your accounts page and in your net worth report.

Mortgage

Real Estate

A mortgage is a loan used to purchase real estate. It's a secured loan — if you stop making payments, the lender can seize and sell the property.

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Mortgages typically come in 15 or 30-year fixed or variable rate terms. Most require a credit score of 620+ and a 10% down payment, though programs exist for lower scores or down payments.

Quick Example

You buy a $400,000 home with 10% down ($40,000). Your mortgage is $360,000 over 30 years at 7% interest — a monthly payment of about $2,395.

Private Mortgage Insurance (PMI)

Real Estate

PMI is insurance your mortgage lender requires if you have less than 20% equity in your home. You pay the premium, but it protects the lender if you default.

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To avoid PMI, make a 20% down payment. If you didn't, PMI is cancelled automatically once your equity reaches 20% through regular mortgage payments.

Quick Example

You buy a $300,000 home with 5% down ($15,000). Because you have less than 20% equity, your lender adds PMI — about $100–$150/month — to your payment until you reach 20% equity.

Related Terms

Mortgage Equity

Renters Insurance

Real Estate

Renters insurance covers the replacement cost of your belongings if they're damaged by fire, theft, flooding, or structural issues — and protects you from liability if a visitor is injured in your rental.

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Most landlords require it when signing or renewing a lease. Landlord insurance only covers the building and the landlord's property — not your belongings. It's usually billed monthly or annually.

Quick Example

A pipe bursts in your apartment, ruining your laptop ($1,200), TV ($800), and couch ($600). Without renters insurance you pay $2,600 out of pocket. With a $15/month policy, your insurer covers most of it.

Appreciation

Planning

Appreciation is when an asset you own — like a stock, home, or interest-bearing account — increases in value without you making additional payments. A house bought for $200,000 and later worth $400,000 has appreciated 50%.

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Quick Example

You buy a home for $350,000. Seven years later, similar homes sell for $500,000. Your home has appreciated by $150,000 — boosting your net worth without any extra payments.

Related Terms

Assets Investments Capital Gain

Assets

Planning

Assets are things you own that have tangible value — savings accounts, investments, real estate, vehicles, jewelry, and more. Assets count positively toward your net worth.

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Quick Example

You have $10,000 in savings, $25,000 in a 401(k), a car worth $15,000, and a home worth $300,000. Your total assets = $350,000.

How Monarch Helps

Add assets to Monarch via the accounts tab. You can sync real estate and vehicle market values using Zillow and VinSync integrations.

Related Terms

Equity Investments Liabilities

Liabilities

Planning

Liabilities are amounts you owe — debts, credit card balances, and liens. They count negatively against your net worth.

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Quick Example

You have a $220,000 mortgage, $8,000 in student loans, and $2,500 in credit card debt. Total liabilities = $230,500 — subtracted from your assets to calculate your net worth.

How Monarch Helps

Monarch automatically subtracts liabilities from assets to calculate your net worth, visible on your dashboard.

Related Terms

Assets Investments Mortgage

Long-Term Disability Insurance

Planning

Long-term disability insurance replaces 50%–70% of your income if a qualifying disability — injury, illness, mental health condition, or cancer — prevents you from working.

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Payouts can last for years, sometimes until age 67. Coverage begins after a 3–6 month waiting period, so a robust emergency fund is important to bridge the gap.

Quick Example

You're a 35-year-old earning $85,000/year. A serious injury leaves you unable to work. Your long-term disability policy replaces 60% of your income ($51,000/year) until you recover or reach retirement age.

Net Worth

Planning

Your net worth is the total value of everything you own (assets) minus everything you owe (liabilities). Growing your net worth is a key benchmark of financial progress.

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Quick Example

You have $200,000 in assets (home equity, savings, investments) and $80,000 in liabilities (mortgage balance, student loans). Net worth = $200,000 – $80,000 = $120,000.

How Monarch Helps

Monarch's accounts tab calculates your net worth automatically from all linked accounts — bank, investment, retirement, real estate, and loans.

Emergency Fund

Planning

An emergency fund is a cash reserve for unexpected essential expenses — job loss, medical bills, major repairs — that keeps you from going into debt when life surprises you.

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How much to save: $1,000 (or 10% of income) if paying off high-interest debt; 3–6 months of expenses if you have stable income and no dependents; 6–12 months if you have dependents or irregular income. Keep it in a high-yield savings account — accessible, but separate from everyday spending.

Quick Example

You unexpectedly lose your job. With 4 months of expenses ($12,000) saved in your emergency fund, you can cover rent, groceries, and bills while job hunting — without going into debt.

How Monarch Helps

Create a Save Up Goal in Monarch to track your emergency fund progress and plan monthly contributions.

Financial Goals

Planning

Financial goals are benchmarks you set for your money — paying off debt, building an emergency fund, saving for retirement — with a target amount and timeline.

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Use the SMART framework: Specific, Measurable, Attainable, Relevant, and Time-bound. Example: 'I'll save $40,000 for a 6-month emergency fund in 3 years and 4 months by saving $1,000/month.'

Quick Example

Your goal: save $20,000 for a home down payment in 2 years. That means saving $833/month. You cut subscriptions, reduce dining out, and set up an automatic transfer to hit it on time.

How Monarch Helps

Monarch's Pay Down and Save Up goals link your accounts and contributions, show your progress, and let you forecast timelines based on future contributions.

Financial Plan

Planning

A financial plan is a big-picture roadmap of where you want your finances to go. It includes your current situation, goals, budget, progress, and the steps to get there.

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You can build one yourself using tools like Monarch, or work with a financial planner or advisor who can tailor a plan to your specific needs and goals.

Quick Example

Your financial plan: pay off $8,000 in credit card debt in 18 months, build a $15,000 emergency fund by year 3, and max out your Roth IRA contributions for the next 10 years.

Personal Finance

Planning

Personal finance is how an individual or household manages their money — budgeting, saving, paying debt, investing, and building long-term wealth.

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You don't need to be an expert, but core skills like budgeting, avoiding overspending, and saving for the future are essential for reducing financial stress and growing your net worth over time.

Quick Example

You earn $5,000/month. Fixed expenses are $2,800. That leaves $2,200 to allocate to savings, investments, and discretionary spending — managing that allocation well is personal finance.

Household (Monarch)

Monarch

Your Monarch Household is the combined budget for everyone on your account. You can add as many people as you want at no extra cost.

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The main account holder is the Admin and manages billing and membership. Household members can view all transactions, link their own accounts, add transactions, and edit budget categories.

Quick Example

You and your partner both link your bank accounts to one Monarch account. You can see both incomes and all spending in a combined view, or filter to see just your individual transactions.

Related Terms

Shared Views (Monarch)

Monarch

Shared Views lets you see your entire household's finances together — combined budget, cash flow, and net worth — while still being able to view individual finances separately.

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Label accounts by owner and mark them as individual or shared. Filter cash flow and other reports by household member or view them as a combined whole.

Quick Example

You label your joint checking as 'Shared' and your personal savings as 'Mine.' In cash flow reports, you can toggle between your individual view and your combined household view.

Related Terms

Household (Monarch)

Flex Budget (Monarch)

Monarch

Monarch's default budgeting mode is flex budgeting. It automatically sorts your expense categories into Fixed, Non-monthly, and Flexible buckets based on your spending history.

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You can manually rearrange categories as needed. Monarch calculates your Flex Number automatically, shows how much you have left to budget, and suggests individual category allocations based on transaction history. You'll get alerts if you approach or exceed any bucket.

Quick Example

Monarch detects your rent, internet, and insurance never change — it puts them in Fixed. It spots your annual Amazon Prime charge and adds it to Non-monthly. Groceries and dining go into Flexible.

Related Terms

Flex Budgeting Flex Number

Category Budget (Monarch)

Monarch

Category budgeting is one of two budget format options in Monarch (switch in Settings). Each category gets its own spending limit, with Monarch suggesting amounts based on past transactions.

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Categories are organized into Groups for a higher-level view. Group budgeting can be turned off in Settings. Monarch offers 40+ default categories plus the ability to create custom ones. You'll be alerted when you exceed any category amount.

Quick Example

You set a $400 budget for groceries and $150 for dining out. Monarch tracks your transactions and alerts you when you've spent $350 on groceries — so you can adjust before going over.

Related Terms

Category Budget

Reports (Monarch)

Monarch

Monarch Reports provide financial insights in three formats: Cash Flow (money in and out), Spending (top expense categories over time), and Income (income sources and totals).

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You can create custom reports filtered by tax-deductible expenses, spending trends, household members, or specific groups and events — like tracking all expenses for a vacation.

Quick Example

In the Spending report, you notice you spent $800 on dining out last month — double your budget. The report breaks it down by week so you can see exactly when the spending spiked.

Related Terms

Net Worth Financial Planning

Goals (Monarch)

Monarch

Goals in Monarch are tools for setting a financial target — either a Save Up goal (savings) or a Pay Down goal (debt) — and tracking your progress toward it.

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Link your goal to an account and tie contributions to your budget. Progress is tracked in the Goals tab.

Quick Example

You create a Save Up goal for a $5,000 vacation fund and a Pay Down goal for your $8,000 car loan. Both appear on your Goals tab so you can track progress side by side.

Related Terms

Financial Planning

Pay Down (Monarch)

Monarch

Pay Down goals in Monarch help you track debt payoff progress. Link a loan or credit card account and Monarch maps your payoff timeline based on your current payments.

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Monarch syncs your payment info and interest rate, then shows your trajectory over time in the Debt Dashboard.

Quick Example

You link your $12,000 student loan to a Pay Down goal. Monarch shows you'll be debt-free in 4 years at your current rate — or 2.5 years if you add $200/month extra.

Save Up (Monarch)

Monarch

Save Up goals track your progress toward a savings target — like an emergency fund or vacation fund. Create and manage them in the Goals tab.

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Link a savings or investment account, set a target amount, and tie contributions to your budget. Monarch maps a timeline based on your expected future contributions.

Quick Example

You create a Save Up goal for a $10,000 emergency fund, linked to your HYSA. Contributing $500/month, Monarch shows you'll hit your goal in exactly 20 months.

Related Terms

Financial Goals

Debt Dashboard (Monarch)

Monarch

Your Debt Dashboard in Monarch (found under Goals → Pay Down) shows your overall debt payoff progress and maps how long it will take to become debt-free.

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It also shows how different repayment strategies — like the Snowball or Avalanche methods — would change your payoff timeline.

Quick Example

Your Debt Dashboard shows $5,000 on a 22% APR card and $12,000 in student loans at 5%. It calculates that the Avalanche method saves you $1,200 more in interest than the Snowball method.

Bill Split (Monarch)

Monarch

Bill Split in Monarch lets you divide a restaurant bill or group expense — Monarch does the math for you. Access it in the Monarch mobile app.

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Scan or upload a receipt, assign items and prices to each person, and share a QR code so others can confirm their portion (no Monarch account needed). Proceed directly to Venmo or use the totals as a reference for cash payment.

Quick Example

You and 3 friends share a $120 dinner bill. You scan the receipt in Monarch Bill Split, assign each item to the right person, and instantly see two friends owe you $28 and $35 respectively.

Group Budgeting (Monarch)

Monarch

Group budgeting in Monarch organizes your budget categories into broader Groups — like Housing, Food, and Transportation — for a higher-level view of your spending. Categories are automatically grouped, but you can rearrange them.

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Quick Example

Your Groceries, Dining Out, and Coffee categories are grouped under 'Food & Drink' with a $700 budget. Monarch shows your combined food spending across all three categories in one view.

Related Terms

Category Budget (Monarch)

Transfer (Monarch)

Monarch

In Monarch, a Transfer is a special category for money moving between your accounts. Transfers don't count toward your spending or budget to prevent double-counting. Credit card payments, investment trades, and bank transfers are all classified as transfers.

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Quick Example

You pay your $1,500 credit card bill from your checking account. Monarch marks this as a Transfer — so it doesn't appear as $1,500 in expenses (those individual charges were already counted).

Related Terms

Transfer

Forecast / Forecasting (Monarch)

Monarch

Forecasting (Monarch Plus feature) maps the projected trajectory of your savings, investments, and finances — up to 50 years into the future.

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Access it in the Forecast tab. Monarch uses your current income, spending, debts, asset appreciation, and inflation assumptions to build your forecast. Customize inputs and add life milestones like buying a home, having a child, or early retirement.

Quick Example

You open the Forecast tab and see that at your current savings rate, your net worth will reach $500,000 in 12 years. You add a 'Buy a home' milestone and see how a $60,000 down payment shifts that timeline.

Financial Glossary

Every money term, plain and simple

50-30-20 Budget

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Quick Example

How Monarch Helps

Related Terms

Balanced Budget

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Budget

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Cash Flow

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Category Budget

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Envelope Budget

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Expenses

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Fixed Expenses

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Non-Monthly Expenses

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Flexible/Variable Expenses

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Flex Budgeting

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Flex Number

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Income

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Gross Income

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Net Income

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Monthly Budget

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Rollover Budget

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