Money Management Guide

by Zhoubin NI

1. Depository institution

  • Depository institution is businesses that provide financial services
  • Two type of depository institution is Commercial Bank and Credit Union

2. Difference of Commercial Bank and Credit Union

    Fees and loan rates at credit union are generally lower, while deposit dividend and interest rates are generally higher than banks and other for-profit institutions.


3. The Basics of Taxes

The taxes is a sum of money demanded by a government to support the government itself as well as specific facilities or services

4. How do the taxpayers pay tax?

  • Income Tax
  • Payroll Tax
  • Property Tax
  • Sales Tax
  • Excise Tax

5. Statement of Financial Position

Statement of Financial Position is a financial statement that describes an individual or family’s financial condition on a specified date by showing assets, liabilities, and net worth

6. The three components of Statement of Financial Position

  • Assets
  • Liabilities
  • Net worth

7. Calculating net worth

Assets- Liabilities= Net worth

8. Income and Expense Statement

Income and Expense Statement is lists and summarizes income and expense transactions that have taken place over a specific period of time, usually a month or year

9. Three components of Income and Expense Statement

  • Income
  • Expense
  • Net gain or net less

10. Spending Plan Development Process

  • Track Current Income and Expense
  • Personalize Your Spending Plan
  • Allocate Money to Each Category
  • Implement and Control
  • Evaluate and Make Adjustments