money managment guide
By Alexandra Martz
A credit union is a non profit institution. This type of institution is not open to everyone. This institution also doesn't offer as many services to the members as a commercial bank would.
You have the chose to decide which is best for you. When your decided you should know that location is the most important thing to look at. Location: Online, multiple or just one, out of the US or only in state, and do you have transportation.
Commercial banks are for profit and they are open to everyone. They offer many services to their members. This is the largest Depository Institution.
Some services are offered
Safe deposit box
Special needs payments : this payments are travelers check, certified checks, Cashiers check, and money orders.
Online banking: Transfer money, Pay bills, Access account info. Apply for credit
mobile banking: This is basically the same as online banking except you can do it from your phone on an app.
Debit cards: This is a card that you can use to pay for varies items in stores using the money you have in your checking account.
ATMs :This a machine that you can use usually found out side a bank and you can draw money fro this machine from you checking account.
Contactless payments: This is a card that you can swipe in front of the registers sensor to pay for your items.
There are varies fees that can occur if your not carful. The first fee you could receive is an over draft fee : this is when you take out more money than you have. There is also
ATM fees: this happens when you use an atm from a different depository institution.
The last fee is call a minimum balance fee: this fee requires you to have a certain balance in your account and if you don't you get this fee.
Credit union: insures credit and is protected by FDIC.
Commercial bank: insures banks and other type but not credit unions, and it is also insured by FDIC.
Money saving tools
Accounts that help you manage your money
These accounts are called
checking: which is money that you want to be able to spend.
savings: money you don't want to spend. Some banks even make it so you can only spend a limited amount through this account.
This how the people pay Taxes
1st:income tax/ this is tax on earned and unearned income
2nd:Excise tax/ this is collected form the seller and its usually hidden in the price
3rd:Sales tax/ tax of goods and services
4th:property/ a tax of property such as homes and cars
5th:payroll tax/this is a tax that helps social security and Medicare
The Equation For Income Tax
This is money for
people with disabilities
kids who have lost a parent.
Do employers pay Social Security and Medicare
yes they do here is an Equation to help lessen the confusion.
employees pay 100$ + employers pay 100$ = 200$ for federal taxes
How is the tax rate determined?
Statement of finacial position
Statement of finacial position
Monetary VS Tanglible assets
Monetary assets can be converted to cash/ money in checking accounts
Tangible assets: property that is bought to create a certain kind of life such as home, car, electronics,
THE MOST IMPORTANT THING TO REMEMBER
What is a Spending Plan
Steps for a spending plan
1st/ You need to track your income and your expenses
2nd/ personalize your spending plan by make certain adjustments for your personal needs: Ex. going out to eat money
3rd/ Assign money to each category
4th/implement and control: making your planed spending decisions, using a control system
5th/ Evaluate and make adjustments
When assigning money to you categories you should take three things into consideration.
Goals: how much money do you want to have in the future.
trade-offs and opportunity costs
contractual expenses: cell phone is an example.
money management and computer software
internet based spending plan program
Depository Institutions programs
check register system