Money Management Guide
Depository Institutions, Taxes, Spending Plan, etc.
Top Ten Concepts
2. The two types of depository institutions are commercial banks, which are for profit and open for anyone who wants to utilize a depository institution and credit unions, which are not-for-profit (owned by members), and have membership qualifications.
3. The community benefits from taxes (roads, libraries, recreation (park trails), police and fire departments, public schools and universities, military for national security, government assistance programs, and political leaders and government agencies.
4. Taxpayers pay with...
Income Tax- tax on earned and unearned income
Excise Tax- tax collected from seller and as such remain often hidden in price of produce/service
Sales Tax- tax on purchased goods and services
Payroll Tax- tax on earned income that supports Social Security and Medicare programs
Property Tax- tax on property, such as land, buildings (including homes), and motor vehicles.
5. Net worth depends on how a person manages their income and is found by subtracting your liabilities from your assets.
6. A statement of financial position can be made to describe an individual or family's financial condition on a specified date by showing assets, liabilities, and net worth.
7. The three components of an Income and Expense Statement are Income (money received), Expenses (money spent), and Net Gain/Net Loss (Income-Expenses).
8. There are several different tracking methods that can fit specifically to your needs for Income and Expense Statements, such as your smartphone, keeping receipts, money management computer software programs, depository institution account statements, and records in writing.
9. A Spending Plan is important because it increases your net worth, helps you set and reach your goals, helps you manage your money in a positive manner, and allows you to analyze the opportunity costs of your trade-offs, to maximize your financial well-being.
10. Contractual expenses are expenses that you're required to pay a certain amount for (Rent, Internet, Cell Phone). Non-contractual expenses are easy to reduce or eliminate, such as food, entertainment, etc.
Spending Plan Guide
Some categories, such as Housing, Transportation, Insurance, etc. are sorted in the Spending Plan.
Income Tax is a tax on earned and unearned income.
By keeping your receipts organized, it will make it easier for you to accurately complete your Income & Expense Statements.