Bon and bien are often confused, because they have somewhat similar meanings and they can

both be adjectives, adverbs, or nouns. See the summary table at the bottom.

Adjectives
Bon is usually an adjective. It modifies a noun and means good, suitable, efficient, correct,
useful, etc. Bien means good, moral, right, healthy, etc., and can only be used as an adjective
with copular (state-of-being) verbs such as être.

 Il est bon étudiant. Il est bien comme étudiant.

He is a good student. He is a good student.

J'ai passé une bonne soirée. Ça serait bien !

I had a nice evening. That would be good!

Il a bon cœur. Très bien ! 

He has a good/kind heart. Very good!

Ce timbre n'est pas bon. Je suis bien partout.

This stamp is not valid. I'm at ease anywhere.

Luc est bon pour le service. Ce n'est pas bien de dire ça.
Luc is fit for (military) service. It's not nice to say that.

Je le trouve bien.
I think it's nice.
    

Adverbs of manner
Bien is usually an adverb. It means well or can be used to stress something. Bon, in the rare
instances where it is used as an adverb (see adverbial adjectives), means good or pleasant.
 
J'ai bien dormi. Il fait bon ici.
I slept well.    It's nice/pleasant here.

Il se porte bien. Il fait bon vivre.

He is in good health. It's good to be alive.

Je vais bien, merci. Il fait bon étudier.

I am well, thank you. It's good to study.

 La radio ne marche pas bien. Ça sent bon !

The radio isn't working right. That smells good!

Je le vois bien souvent.

I see him quite often.

J'ai bien dit ça.

I *did* say that.
Nouns
Bon can refer to any sort of important or official piece of paper: form, bond, coupon, voucher,
etc. Bien means good in the general sense, and biens means goods (as opposed to services).
 
un bon à vue = demand note
le bien public = public good
un bon de caisse = cash voucher
le bien et le mal = good and evil
un bon de commande  =  order form
dire du bien de = to speak well of
un bon de livraison =  delivery slip
faire du bien à quelqu'un = to do someone good
un bon de reduction = coupon
les biens d'un magasin = a store's goods
un bon du Trésor = Treasury bond
biens immobiliers = real estate