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