NOTES TO FINANCIAL STATEMENTS
For the year ended December 31, 1995
1. DESCRIPTION OF THE FUNDS
The Schwab Money Market Fund, the Schwab Government Money Fund and the Schwab U.S. Treasury
Money Fund (the "Funds") are series of The Charles Schwab Family of Funds (the "Trust"), an open-end,
management investment company organized as a Massachusetts business trust on October 20, 1989 and
registered under the Investment Company Act of 1940, as amended.
In addition to the three funds described above, the Trust also offers -- the Schwab Tax-Exempt Money Fund
(Sweep and Value Advantage Shares), the Schwab California Tax-Exempt Money Fund (Sweep and Value
Advantage Shares), the Schwab New York Tax-Exempt Money Fund (Sweep and Value Advantage Shares),
the Schwab Value Advantage Money Fund(R), the Schwab Institutional Advantage Money Fund(TM) and the
Schwab Retirement Money Fund(R). The assets of each series are segregated and accounted for separately.
The Schwab Money Market Fund invests primarily in a diversified portfolio of short-term obligations of major
banks and corporations. The Schwab Government Money Fund invests exclusively in a diversified portfolio of
obligations issued or guaranteed by the U.S. Government, its agencies or instrumentalities and repurchase
agreements thereon. The Schwab U.S. Treasury Money Fund invests solely in United States Treasury notes, bills
and other direct obligations of the United States Treasury, backed by the full faith and credit of the United States
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies are in conformity with generally accepted accounting principles for
investment companies. 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