Money Management

« Back to Glossary Index

Money management is the process of managing one’s finances in a way that maximizes financial well-being and minimizes financial stress.

It involves setting financial goals, creating a budget, tracking expenses, managing debt, saving and investing, and planning for the future. Effective money management requires a combination of knowledge, skills, and attitudes, including financial literacy, self-discipline, and a willingness to make trade-offs and prioritize one’s spending.

Money management is essential for achieving financial security, building wealth, and creating a stable financial future. By managing their money effectively, individuals and households can reduce financial stress, avoid debt and financial crises, and achieve their long-term financial goals.

Good money management practices also help people make the most of their money, allowing them to enjoy the things they value while building a brighter financial future.

« Back to Glossary Index