Money Management Guide

By: Kymber Roberts

Depository Insitiutions

Commercial Banks - Commercial banks are for-profit and are open to anyone who wants to utilize one. They offer numerous finical services and are usually the largest depository institutions. These can fit peoples life better than others and are very important to keep in mind.

Credit Union - Credit Unions are not-for-profit and have membership qualifications. They do offer services but not as much as the commercial banks and are not as big as commercial banks. One good thing is they are often able to to pay higher interest rates and charge lower fees. Depending on the person this could be very convenient and are important so they should be considered when thinking about depository institutions.


"You are better off being in a community than by yourself."- This is also something that i learned that I feel is important. As a community member you receive many benefits you could not pay for individually. By community I mean a group of people with a common interests and concern for the common goods. Another reason it is important is taxes are a way that members of a community provide for one another. It is important to know this so you can have the benefits rather than missing out on them

How taxpayers pay taxes- I feel that this is important because if you have this knowledge then you know all of your different options and you can pick the one that is best for you. Some different ways are income tax, payroll tax, property tax, sales tax, and excise tax. All of these are very important to know so you can mange your money well and have a higher well-being.

The Statement of Financial Position

Asset- I think assets are important to know because if you want to be able to know your financial position you have to understand this concept. Assets are everything a person owns with monetary value. So basically cash and the value of personal positions are the key part of this.

Liabilities - These are important because if you don't have them then you will not find out your financial position. Liabilities are a debt or obligation owed to others. Loans and the balance on your credit card play a major role in this concept.

The Income and Expense Statement

Three Components- The three components that are necessary are income, expenses, and net gain or loss. These are important because if you do not know these you will not be able to find out your income and expense statements. If you know your income and expense statement you know how much money you have left over or how much to spend in certain places so you can avoid debt.

Saving and Investing- Saving and investing includes and portion of income that is saved of invested for future use. Also retirement investments may be deducted directly from a pay check. This is important to know because if you save and invest your money you will have some saved up so if something happens and you go through a tough time you will have that money you saved to get back on your feet.

The Spending Plan

Financial Planning- A spending plan is important for financial planning because it helps mange your money in a positive manner, it can increase your net worth, and it can help you set and reach goals. These are helpful and can make you not stress as much about money so financial planning is important to know and helpful.

What it is- 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. It is important to know because before you can begin to understand and know all that a spending plan has to offer. You have to have a base to go off of.