Money Management Guide
My Top 10 Most Important Concepts
#1 Taxes
There are taxes on property that a person owns, such as land, houses, and cars.
#2 Banks
There are two types of institutions: Credit Unions and Commercial Banks
#3 Taxes
There are taxes on the amount of income earned, called payroll taxes
#4 Earned vs. Unearned Income
Earned Income is money earned from working
Unearned Income is money earned from sources other than employment
#5 Difference between Excise Tax and Sales Tax
Excise Taxes are already put into the final price
Sales Tax is added on after
#6 Statement of Financial Position
Broken down into Assets and Liabilities and determines Net Worth which is Assets - Liabilities
#7 Spending Plan
Help set and reach goals, increase net worth, and manage money in a positive manner.
#8 Income Tax
A tax on earned and unearned income
Federal and State Income tax both based on your amount of income
#9 Expenses
The cost of something. You can have a lot of expenses it just depends on how much you buy. To increase net worth you need to decrease your expenses
# 10 Insurance
Insurance is protection against a possible bad event.
Ex. Health Insurance, Life Insurance, Car Insurance
Ex. Health Insurance, Life Insurance, Car Insurance