Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Courses
  • Find a Job
  • Home
  • Economics, Finance, & Analytics
  • Investments, Trading, and Financial Markets

Money Management - Explained

What is Money Management?

Written by Jason Gordon

Updated at April 17th, 2022

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More

Table of Contents

What is Money Management?How Does Money Management Work?Services and Solutions

What is Money Management?

In a simple language, money management refers to an act of handling ones finances to avoid debt and liability risk. Money management is important for individuals, organizations and the government. The core processes of money management are budgeting, saving, spending, investing, tracking of expenses, and the evaluation of taxes (corporate tax, income tax, and other taxes). Money management entails strategies and techniques that ensure that money is appropriately disbursed, spent and accounted for. Money management is also called portfolio management or investment management, which explains how manages handle pool of funds, mutual funds or even retirement plans.

Back to:INVESTMENTS & TRADING

How Does Money Management Work?

Money management is a set of procedures through which individuals manage their personal finances and corporate organizations handle their expenses, savings, investment and other parts of their finances. Money management directly impacts the credit score of an individual or creditworthiness of a firm, the amount of debt a person or company ends up with is also dependent on how well they manage their finance. Through adequate money management, an individual or investor can increase improve their credit score and net worth. There are several processes through which corporations and individuals can manage their finances. In the investment industry, money management is crucial, it entails plans and processes that aid effective management of investment funds.

Services and Solutions

Managing personal finance is a daunting task that requires the intervention of technological solutions. Diverse solutions and applications that allow individuals to manage their finances exist. These applications are used for daily spending activities of individuals and it helps track spending, savings, and others. Common examples of personal finance apps that individuals use are mint, level money, acorn, digit, wally, good-budget, and others.

money management

Was this article helpful?

Yes
No

Related Articles

  • Earnings Per Share - Explained
  • Bulldog Bond - Explained
  • Discount for Lack of Voting Rights (Stock) - Explained
  • Irrational Exuberance - Explained



©2011-2023. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand