Money Management Guide
By Deja Murphy
• They provide a safe and secure place to store money.
• They include credit unions and commercial banks.
• They are a sum of money demanded by government to support the government or other services.
• The different types include federal income tax, state income tax, property tax, sales tax, and excise tax.
Ways To Manage YOur Money Include:
The Statement of Financial Position
• It’s a financial statement that describes an individual or family’s condition of a specific date by showing assets, liabilities and net worth.
• It helps you find your measure of financial wealth (net worth)
Income and Expense Statement
It lists and summarizes income and expense transactions that have taken place over a specific period of time, usually a month or year.
- Income is money that you receive while expenses are money you spent.
The Spending Plan
It’s 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.
- If you have a net gain, you can add more money to savings or another expense and if you have a net loss, you should increase income, decrease expenses, or both.