This was the result of a change in the structure of the U.S. Personal money management in the United States plays a much larger role in the financial success or failure of families today than it did in earlier eras, however, and it was a much more widely discussed topic at the beginning of the twenty-first century than it had ever been before. Likewise, financial success has since that time been at least theoretically possible through saving and investing any excess income. Since the rise of capitalism (the economic system characterized by private ownership of property and the ability to pursue profit with relative freedom) in the 1600s, the survival of individual households has frequently depended on their ability to allocate income effectively. While we may start our adult lives simply depositing our paychecks in bank accounts and spending most or all of that income using cash, checks, and credit cards, as we age we may find ourselves drawn more deeply into the worlds of borrowing, saving and investing, and insurance. The decisions we make regarding our personal finances can be complicated, and they change as we pass through the various stages of life. Most of us hold jobs during the most productive adult years of our lives, and the income we bring in must be managed effectively if we are to satisfy our basic needs and lead fulfilling lives. Though some of us may survive without sophisticated money management strategies, none of us can escape financial pressures entirely.

Personal Money Management refers to the process of balancing one’s individual wealth and income with financial needs, desires, and goals.

Introduction: Personal Money Management What It Means

Personal finances