Money Management Guide

The 10 most important concepts to money management!

Objective:

Assess comprehension of money management concepts including Introduction to Depository Institutions, The Basics of Taxes, the Statement of Financial Position, the Income and Expense Statement and the Spending Plans lesson plans

Depository institutions

1. Depository institution – businesses that provide financial services

2.
There are two main types of Depository institutes known as:
commercial banks which are a for profit, Open to anyone who wants to utilize a depository institution Offer numerous financial services. Usually the largest depository institutions.
Credit unions which are a non-profit, Have membership qualifications – members must share a “common bond”. Offer many services but usually not as many as a bank Are often able to pay higher interest rates and charge lower fees

Taxes

4. a compulsory contribution to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.
5. Taxes are often taken out of paychecks & the numbers can be found on the paycheck stubs

The Statement of Financial Position

5.The statement of financial position is another name for the balance sheet. It is one of the main financial statements and it reports an entity's assets, liabilities, and the difference in their totals.
6.

The Income and Expense Statement

7. Customize the categories to represent all income and expenses you have

8. Three main components: income, expenses, and net gain/loss

The Spending Plan

9.A spending plan is an important financial planning tool that helps achieve goals

10.Make your spending plan work for you make sure to control, evaluate, and adjust your spending plan

Citations:

I got most of my information from the powerpoints sent but I will also attach the other websites.