money managment guide

By Alexandra Martz

Depository Instituion

A Depository institution provides you a type of fincial service, like a commercial bank or a credit union.

What Depositories also do for you

They offer you the chance to earn interest. Interest is an amount of money given for using someone's money. there are many situations where you can earn or be charged interest. This is determined by interest rate.

Some services are offered

Finical advice

Safe deposit box

Special needs payments : this payments are travelers check, certified checks, Cashiers check, and money orders.

Special Features

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.

What is taxes?

This is money taken by the government because it peoples support certain service's that a community such as the US might need.


This is a group of people with common interests and needs. This pertains to the US, state, county, local. Its better to be in a community than be alone because your surrounded by people with common interests. Some of the benefits of being in a community are Road/ libraries/ military or national security/ Gov. Assistance programs/ public schools and universities/ police and fire department/ parks and trails/ and political leaders and gov. agencies.

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

Federal +state income= income tax

Federal income

When you make more money this type of income will rise. This income will help support roads, Education, disaster, national parks, museums, assistance programs

State Income

This helps support highways, schools, state parks, state assistance programs

Social Security

This is money for


people with disabilities

kids who have lost a parent.


This money helps pay for taking care of older people. When they can no longer take care of them selves.

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?

representatives in the governments decide these people are elected by taxpayers

End Conclusion

We couldnt have a lot of things we need as a community to survive without taxes.

Statement of finacial position

The three most important things to understand

Net worth: the value of possessions minus the debt

Assets: the possessions

Liabilities: the debt/ loans

Statement of finacial position

This is a spreadsheet that helps you organize all your assets and liabilities to calculate your net worth. Most people do this once a year to keep track of where they are at.

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,

Investment assests

This is when you take an amount of money and put it into a business or stocks and you hope this give you some income.

Calcualting your net worth

Assets - liabilities= net worth This is usually found on you statement of financial positions spreadsheet. Assets can increase your net worth and liabilities can decrease it.



Wealth concept

When you have someone who has a very high income and a very low net worth compared to some one who has a medium income and a high net worth Who is wealthier.

the person with the higher net worth would be the wealthier person.

Spending Plan

What is a Spending Plan

In laminas terms this is basically a budget. it need to be one a spreadsheet. On this spreadsheet you will need to basically map out what you will be spending in comparison to what you spent the moth before eon everything even bills. This will help you see what you are spending to much on and what you are need to spend more on.

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


it would be beneficial to create a time period for some of the more important categories like savings and retirement accounts. Also you should keep a time period on you spreadsheet or paper or software whatever you are using to track yourself.


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.

Determining net gain or loss

income - expenses= net loss or gain

when you have net loss you should try to decrease expenses and increase income.

Control Systems

money management and computer software

internet based spending plan program

Depository Institutions programs

check register system

envelope system

Why is this important

This is important because you need to know where your money is and where its going. You need to be able to track what you are spending on to know how much you can afford to spend on other more important things. This will help you understand what you could spend less on and what you could spend more on.


Today=Statement of financial position

Past=Income and expense statement----------------------------->

future=spending plan