Money Management Guide
Lessons 3.1-4.4 By: Emily Balson
Depository Institution
Depository institutions are businesses that provide financial services such as commercial banks and credit unions.
Interest
Interest is the price paid for using someone else's money. You can either earn or be charged interest. Interest is determined by your interest rate.
Taxes
Taxes are a sum of money demanded by a government to support the government itself as well as specific facilities or services.
Income Tax
Income tax is tax on earned or unearned income. Earned income is money earned from working for pay while unearned income is money received from sources other than employment,
Statement of Financial Position
A financial statement is something that describes an individual or family's financial condition on a specific date by showing assets, liabilities, and net worth.
Net Worth
Your net worth is your personal "financial temperature."You find your net worth by subtracting your liabilities from your assets. Net worth is an objective measure of wealth, to increase your net worth you will have to increase your assets or decrease your liabilities.
Income and Expense Statement
An income and expense statement lists and summarizes income and expense transactions that have taken place over a specific period of time, usually a month or year.
Expenses
Expenses is the cost required for something or the money spent on something.
Spending Plan
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.
Budget
A budget is an estimate of income and expenditure for a set period of time.