Money Management Guide

by Georgia Hemphill

*** Important Concepts of Objective 2 ***

"YOU ARE BETTER OFF BEING IN A COMMUNITY THAN BY YOURSELF."

As a community member you receive many benefits you could not pay for individually. Members of a community provide for one another.

"UNDERSTANDING TAXES IS AN IMPORTANT PART OF MONEY MANAGEMENT."

Taxes play a role in both earning and spending.

LEARNING TO READ A STATEMENT OF FINANCIAL POSITION IS IMPORTANT.

It tells you your net worth, assets, and liabilities.

Assets - Liabilities = Net Worth.

THE INCOME & EXPENSE STATEMENT SHOWS YOU HOW YOU'VE HANDLED YOUR MONEY.

It lists and summarizes income and expense transactions that have taken place over a specific period of time, usually a month or a year.

THERE ARE CERTAIN WAYS TO HANDLE NET LOSS AND NET GAIN.

When you have a net fain you should use the money for savings or other expenses. When you have a new loss you should increase income or decrease expenses.

"A SPENDING PLAN IS AN ESSENTIAL PART OF FINANCIAL PLANNING."

It helps you to manage your money in a positive manner, increase your net worth, set and reach goals, and analyze the opportunity costs of your trade-offs to maximize financial well-being.

There are certain things you need to be qualified for a job.

You need human capital and transferable skills. You also need to invest in yourself.

DEVELOPING YOUR CAREER CAN AFFECT YOUR LIFE IN MANY WAYS.

Your career affects your standard of living, lifestyle ,and your overall well-being.

PREPARE FOR HIGHER EDUCATION.

Prepare yourself academically. Get into the right habits. Explore potential interests. Select and apply for colleges right for your career goals.

GO FOR HIGHER EDUCATION FOR BETTER JOB OPTIONS.

It may cost more, but it gives you access to higher paying jobs & a lower chance of being laid off.