Money Management
By: Stanley Joseph
Why is it important to manage your money?
If you do not know how to manage your money there will be a lot of things you will not be able to do. It is very important to manage your money if you want to buy a car or a home. Most of the time you will not have enough money to buy a car or home in cash so you need to take out a loan. You will need to pay the loan back at a monthly rate. If you do not manage your money correctly you will end up with a lot of debt.
Budget
An estimate of income expenditure for a set period of time is known as a budget.
Financial Institution
A financial institution is an establishment that focuses on dealing with financial transactions, such as investments, loans, and deposits.
Depository
Any financial institution in the United States that is legally allowed to accept monetary deposits from consumers is considered to be a depository institution.
Commercial Bank
A commercial bank offers services to the general public and to companies
Savings and Loan Association
An institution that accepts savings at interests and lends money to savers chiefly for home mortgage loans and may offer checking accounts and other services is a savings and loan association.
Credit Union
A credit union is a nonprofit making money cooperative whose members can borrow from pooled deposits at low interest rates.
Investment Bank
An investment bank is a bank that purchases large holdings of newly issued shares and resells them to investors.
Insurance Company
An insurance company offers insurance policies to the public.
Collateral
Collateral is something of value used to secure a loan against the event of default.