Money Management Guide
By Meredith Robinson
Whats this About?
1. Statement of Financial Position
2. Depository Institutions
3. Spending Plans
5. Income and Expense Statement
6. What are the differences between Commercial Banks and Credit Unions
Credit Unions- A not for profit group of members that safe a common bond. Credit Unions offer many services but usually not as many as banks, credit unions are also able to pay higher interest rates and charge lower fees.
7. Spending Plan development Process
Step 1- Track current income and expense.
Step 2- Personalize your spending plan.
Step 3- Allocate money to each category.
There are two steps to maintaining the spending plan.
Step 1- Implement and control.
Step 2- Evaluate and make adjustments.
8. What are the components of a Statement of Financial Position
1. Assets- An asset is everything a person owns with monetary value.including monetary assets, tangible assets, and investment assets.
2. Liabilities- A debt or obligation owed to by others.
3. Net Worth- Your net worth is your assets minus your liabilities and that equals your net worth. The higher the net worth the wealthier.
9.What are the components of Income and Expense statements
1. Income- The money received, including earned income, unearned income and income received from government programs.
2. Expenses- The money spent including, taxes, saving and investing, insurance, housing, transportation, food ,and others.
3. Net gain or Net loss- Income minus expenses equals net gain or net loss. If you have a net gain use that money for savings or other expenses. If you have a net loss increase your income and decrease your expenses.