NOTES TO FINANCIAL STATEMENTS
For the six months ended June 30, 1999 (unaudited) (All dollar amounts are in thousands unless otherwise
1. DESCRIPTION OF THE FUNDS
The Schwab Money Market Fund, Schwab Government Money Fund and Schwab U.S. Treasury Money Fund
(the "funds") are series of The Charles Schwab Family of Funds (the "Trust"), an open-end investment
management company organized as a Massachusetts business trust on October 20, 1989 and registered under
the Investment Company Act of 1940 (the "Act"), as amended.
In addition to the three funds described above, the Trust also offers the Schwab Municipal Money Fund, Schwab
California Municipal Money Fund, Schwab New York Municipal Money Fund, Schwab New Jersey Municipal
Money Fund, Schwab Pennsylvania Municipal Money Fund, Schwab Florida Municipal Money Fund, Schwab
Value Advantage Money Fund,(REGISTRATION MARK) Schwab Institutional Advantage Money Fund,
(REGISTRATION MARK) Schwab Retirement Money Fund,(REGISTRATION MARK) and Schwab
Government Cash Reserves. The assets of each series are segregated and accounted for separately.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies are in conformity with generally accepted accounting principles. The
preparation of financial statements in accordance with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
SECURITY VALUATION -- Investments are stated at amortized cost, which approximates market value.
SECURITY TRANSACTIONS, INTEREST INCOME AND REALIZED GAINS (LOSSES) -- Security
transactions are accounted for on a trade date basis (date the order to buy or sell is executed). Interest income is
accrued daily and includes amortization of premium and accretion of discount on investments. Realized gains and
losses from security transactions are determined on an identified cost basis.