Money Management Guide

The most important concepts

What is a Depository Institution?

A Depository Institution is a business that provides financial services to its people and members.

Their services vary from:

  • Special Needs Payment Instruments
  • Transaction and Saving tools
  • Safe-Deposit Boxes
  • Financial Adive

Commercial Bank vs. Credit Union

Commercial Bank:

  • For-Profit
  • Open to anyone who wants to utilize a Depository Institution
  • Largest of Depository Institutions
  • Offers many financial services

Credit Union:

  • Not For-Profit
  • Have membership qualification
  • Members MUST share a common bond
  • Often able to pay higher interest rates & charge lower fees

More Services

Online Banking & Mobile Banking

Online Banking is the way to complete certain transactions from a secure internet site. Online Banking allows you to:

  • Transfer money
  • Pay your bills
  • Apply for credit
Mobile Banking is fairly similar to Online Banking except that it allows you to access your banking account from personal devices such as:

  • Smartphones
  • Tablets
  • Etc.

Debit Cards & ATM's

Debit Cards are plastic cards that is connected to the card holders account. This method is often more faster. It also has a PIN number that makes its secure, so random people cant use your money.

An ATM is a machine that allows you to get money from your account help from someone. You account can be accessed by your Debit Card with its PIN number. ATM's allows you to:

  • Withdrawing money
  • Transfer money to other accounts
  • Checking your money

Avoid The FEES!

Overdraft Fee

Overdraft Fees are fees charged if you withdraw more money than you already have.
  • Ex: Susan went to the ATM to get $100, but then ended up having to pay a fee for taking $20 that she didn't have.


An ATM fee are charged when using another ATM that's not connected with your Depository Union.

  • Ex: Matthew used an ATM in New York, but later was charged with a ATM fee.

Minimum Fee

A Minimum Fee is charged if you go below a balance.

  • Ex: David was charged with a Minimum fee, after taking $10 that was supposed to be saved in his account.


What are Taxes?

Taxes are a sum of money demanded by the government to support its facilities or services. Taxes are paid by Taxpayers.( A person who pays taxes) There are different types of taxes that are paid such as:

  • Income Tax: Tax determined by the income of a person which helps fund the government.
  • Payroll Tax:Tax on EARNED income that supports the Social Security and Medicare.
  • Excise Tax:Tax that is collected from seller or retailer, often in the purchase of certain items such as gas and hotels. Which helps paid for the Expenses of the State and Local Government.
  • Sales Tax:Tax purchased on goods that you buy. Sales Tax is often 6% of the item that is purchased. This helps funds the expenses of the states and government.
  • Property Tax: Tax on property that you own such as land, homes, and cars. This is determined by the value if your property. This helps fund schools and the local governments.

Managing Your Money


A Statement of Financial Position (SFP) is a financial statement that describes an individual or family's financial condition. The three components of a SFP are:

  • Assets: Everything that a person owns with monetary value such as cash or the value of personal possessions.
  • Liabilities: A debt or obligation that is owned to another person such as, loans and the balance on a credit card.
  • Net worth: The measure of your financial wealth, which is calculated by subtracting your liabilities from your assets.


A Income and Expense Statement (IES) is a statement which lists and summarizes your income and expense transactions that has taken place over a period of time. Usually a month or a year. The components of IES are:

  • Income: Money that is received by earned or unearned income.
  • Expenses: Items that are paid for.
  • Net gain/loss: Calculated by subtracting your expenses from your income. ( If net is gained use the extra money for savings or other expenses. If loss increase your income and/or decrease your expenses.)

Spending Plans?

Spending Plans are important to a persons financial planning because they help set and reach goals, increase you net worth, helps manage your money in a positively manner, and analyzes the opportunity cost of trade-offs. Some ways to develop a spending plan are by :

  • Writing it down with Paper & Pencil
  • Spreadsheets
  • Money management software
  • Applications.