Money Management Guide

Learn important skills you should know about managing money!

Depository Institutions

Depository institutions are businesses that provide financial services. Commercial banks and credit unions are examples of depository institutions. These options both have benefits such as:

  • A safe place to store money
  • A way to manage cash
  • The opportunity to earn interest
  • Mobile/online banking
  • Debit cards
  • ATM's

Commercial Bank Opportunities

  • For profit
  • Open to anyone who wants to utilize a depository institution
  • Offer numerous financial services
  • Usually the largest depository institutions
  • Different locations
  • Fees

Credit Union Opportunities

  • Not for profit, owned by members
  • Have membership qualifications
  • Offer many services but usually not as many as a bank
  • Are often able to pay higher interest rates and charge lower fees


Taxes are a sum of money demanded by a government to support the government itself as well as specific facilities or services. It's important to take into account how taxes could affect you depending on where you live, what your income is, and the things you purchase or own like a house or a car.

Income and Expense Statements

An income and expense statement lists and summarizes income and expense transactions that have taken place over a specific period of time, usually a month or year. These can be very helpful when trying to manage your money because they are a written visual reminder to help you keep track of how much money you have to spend on the things you need, how much you put into savings, and how much you'll have at the end of your set time period.

Statement of Financial Position

A 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. These can be very helpful by showing a person what their net worth is. A persons net worth can be determined by calculating their assets minus their liabilities. If someone wants to increase their net worth they would have to increase their assets and decrease their liabilities. Having a high net worth is a good thing because it measures a persons financial position.

Spending Plans

A spending plan is an income and expense statement sometimes referred to as a budget which records both planned and actual income and expenses over a period of time. These are very helpful tools for people that want to set a fixed amount of how much money they're going to spend for a specific amount of time. There are five steps to developing and maintaining a spending plan.

  1. Track current income and expenses
  2. Personalize your spending plan
  3. Allocate money to each category
  4. Implement and control
  5. Evaluate and make adjustments


In conclusion, all of these things can come together to help people keep track of their finances from the past, present, and future to create high well being and a better outlook of how someone is spending their money. These are also good for showing someone how they can cut back spending on the things they don't need to put more money where they might need it, whether that's in their savings or for a car payment. These all depend on the person that are using these tools and how effectively they want to use them.