Money Management Guide

By Alex Dolen

The two types of banking?

Commercial banking and credit unions are the two different types of banking.

Commercial banking is open to everyone were as credit unions have certain stipulations but usually offer better interest rates if you do qualify.

How credit works?

Credit is a great way for people to get things they want but in manageable monthly payments. When using credit you are usually charged interest which in simple terms is a small percent of the value of the product/good.


Taxes are a sum of money demanded by a government to support the government itself as well as specific facilities or services. Taxes greatly benefit the economy and are to fund many government projects.

The five kinds of taxes?

1. Income tax

2. Excise tax

3. Sales tax

4. Property tax

5. Payroll tax

The components of a financial statement?

Assets and liabilities are factors of a financial statement. These two factors contribute to your net worth as well. Net worth is easily calculated by subtracting your liabilities from your assets.

Income and Expense statements?

It list and summarizes income and expenses that have taken place over a period of time usually a month or year in time.

The forms of Income?

Income comes in three different forms.

Earned income- Any money earned from work.

Unearned income- Income received from sources other than employment such as a gift.

Received income from government programs- Offer a form of income, usually temporary.


Expenses are the most frustrating part of a money management plan because they add up very quickly and can easily exceed your income if you do not budget. A small list of expenses include taxes, insurance, housing, and food among many other things.

What is a spending plan?

A spending plan is a budget, budgeting helps minimize wasteful spending and increase your wealth while still enjoying life and meeting your daily needs and wants.

Spending plan Guide

This is a basic breakdown of were you should start when creating a spending plan. The breakdown is posted in percentage of income.

Saving and investing- 10%

Insurance- 7%

Housing- 30%

Transportation- 20%

Food- 15%

Other needs- 18%