Money Management Guide

Depository institutions

This includes commercial banks and credit unions. One of the main differences between the two is that commercial banks are for profit and credit unions are not. Depository institutions are allowed to take in consumers money and deposit it away safely in a savings account or checking. This allows the consumer to have easy access to their funds.


Uggghh Taxes... No one really likes them but believe it or not their are positive marks for it. Taxes come in all different shapes and sizes from the payroll tax, which automatically takes money from your paycheck each check, to your sales tax which almost all stores have whenever you purchase an item. Now your asking where is your money going? Look no further than towards your state parks and museums, to you nations military and monuments. It also helps keep your government up and running!

The Statement of Financial Position

This can be broken down into three simple things. You have both Assets and Liabilities. Assets is money you are saving or money that you already have and Liabilities would be maybe money that you owe someone or maybe a car payment. The third part is your net worth. This is a combination of both your assets and your liabilities. You want to have a high net worth, and the way you can accomplish this is by having more assets than you do liabilities.

The Income and Expense Statement

This is a way to manage your money. This takes in your income and all of your expenses and tries to balance it all out in order have a high net worth. A good way to think of it is to think of the income as a asset and all the expenses as liabilities. Expenses can range from taxes, to car payments, and even to as little as going out to see a movie. Now many people think of income as just money from working a job. It can be getting money for your birthday or even mowing a lawn. To have a high net gain or net worth your income has to be higher than your expenses.

The Spending Plan

This is used to help track and to put in place where you want your income to be spent. Depending on your current financial situation this could go from house payments such as electricity bills or water bills, to a phone bill. The spending plan helps you prioritize your spending and to make sure its all going where it needs to be.