Do you know where all your money goes? Do you keep track of your money and know how much you spend? Many people can't actually account for where their money goes. They know how much they make but where it all goes, they are not sure! That is where money management comes in.
Money management is the process of handling all aspects of your finances. This includes making a budget, setting financial goals, saving, investing, and managing your wealth. It's not just about saying no to spending but developing a plan that allows you to say yes to things you want. This can be done individually by you or with the help of financial tools. The financial tools available include financial institutions, financial planners, money management apps and software. In this lesson you will learn about money management, the available tools, and why money management is important.
Alfonso and Tina graduated from college last year and recently got married. They both have decent jobs and are now expecting their first child. They want to purchase a house, start saving money for their children's college and for their own retirement, but they have no idea where all their money goes. Alfonso and Tina are having difficulties starting their money management planning. As a friend, what advice would you give them?
Many tools are available to help with money management. Alfonso and Tina need to create a budget that will show the money coming in and the money going out. They also need to start saving for buying a house, for child expenses and future education, and for their retirement. They can utilize financial tools such as software, apps, or financial institutions. If they still have trouble getting started, they can seek the help of financial professionals.
