Personal Finance Wikipedia

Leo Migdal

-Dec 8, 2025, 10:51 PM

Personal finance is the financial management that an individual or a family unit performs to budget, save, and spend monetary resources in a controlled manner, taking into account various financial risks and future life... When planning personal finances, the individual would take into account the suitability of various banking products (checking accounts, savings accounts, credit cards, and loans), insurance products (health insurance, disability insurance, life insurance, etc.), and... Before a specialty in personal finance was developed, various closely related disciplines, such as family economics and consumer economics, were taught in various colleges as part of home economics for over 100 years.[1] In 1920, Hazel Kyrk's dissertation at the University of Chicago was instrumental in developing the disciplines of consumer and family economics.[1] Margaret Reid, a professor of home economics at the same university, is recognized... In 1947, Herbert A. Simon, a Nobel laureate, suggested that a decision-maker did not always make the best financial decision because of limited educational resources and personal inclinations.[1]

Personal finance is the term used to describe all aspects of an individual's money management, including saving and investing. It encompasses budgeting, banking, insurance, mortgages, investments, retirement, tax, and estate planning. The term often refers to the entire industry that provides financial services to individuals and households and advises them on financial and investment opportunities. Individuals with goals and desires must plan accordingly to fulfill those needs within their financial constraints, which also impacts how they approach the above items. To make the most of your income and savings, it's essential to become financially savvy by routinely keeping up to date with the latest financial products and technology, which will help you distinguish between... The best online banks and online brokerage platforms will provide free resources, education, and access to financial professionals for little to no extra cost.

Personal finance is about meeting your personal financial goals. These goals could be anything—having enough for short-term financial needs, planning for retirement, or saving for your child’s college education. It depends on your income, spending habits, savings, investing, and financial protections (insurance and estate planning). Not understanding how to manage finances or be financially disciplined has led Americans to accumulate enormous debt. In Q3 2025, the Federal Reserve Bank reported household debt had increased by $197 billion, bringing the total household debt to $18.59 trillion. Personal finance encompasses the whole universe of managing individual and family finances, taking responsibility for your current and future financial situation, and setting financial goals.

It also includes handling individual financial tasks and saving for emergencies. Personal finance is about meeting your financial goals and understanding all the routes to do this, from saving and investing, and keeping debt under control, to buying a home to planning for retirement—and coming... Not getting control of your personal finances can leave you unprotected when a crisis comes along–whether it’s an illness, an unexpected job loss, or the death of the family breadwinner. The pandemic that began in March 2020 showed all of these issues in sharp relief and showed the importance of planning for emergencies. What the pandemic showed is that people are a lot more secure if they have an emergency fund, have learned to budget and have created a financial plan–one with a Plan B and Plan... Those who haven’t done these things, should get busy doing them.

It–and the war in Ukraine–are both wake-up calls that stock market crashes can happen abruptly in a crisis and that everyone needs a crisis investment plan. For starters, you need to buy at least the minimum amount for your state. The two types of liability coverage for an auto accident are bodily injury liability (for injury to other people) and property damage liability (for property damage). Bodily injury liability specifies both a per-person liability and a total liability per accident. For any damage outside of that you will need to pay personally, unless you have an umbrella insurance policy to make up the difference. Finance refers to monetary resources and to the study and discipline of money, currency, assets and liabilities.[a] As a subject of study, it is a field of business administration which involves the planning, organizing,...

Based on the scope of financial activities in financial systems, the discipline can be divided into personal, corporate, and public finance. In these financial systems, assets are bought, sold, or traded as financial instruments, such as currencies, loans, bonds, shares, stocks, options, futures, swaps, etc. Assets can also be banked, invested, and insured to maximize value and minimize loss. In practice, risks are always present in any financial action and entities. Due to its wide scope, a broad range of subfields exists within finance. Asset-, money-, risk- and investment management aim to maximize value and minimize volatility.

Financial analysis assesses the viability, stability, and profitability of an action or entity. Some fields are multidisciplinary, such as mathematical finance, financial law, financial economics, financial engineering and financial technology. These fields are the foundation of business and accounting. In some cases, theories in finance can be tested using the scientific method, covered by experimental finance. The early history of finance parallels the early history of money, which is prehistoric. Ancient and medieval civilizations incorporated basic functions of finance, such as banking, trading and accounting, into their economies.

In the late 19th century, the global financial system was formed. In the middle of the 20th century, finance emerged as a distinct academic discipline,[b] separate from economics.[1] The earliest doctoral programs in finance were established in the 1960s and 1970s.[2] Today, finance is also... A personal budget (for an individual) or household budget (for a group sharing a household)[1] is a plan for the coordination of income and expenses.[2] Personal budgets are usually created to help an individual or a household of people to control their spending and achieve their financial goals. Having a budget can help people feel more in control of their finances and make it easier for them to not overspend and to save money.[3] People who budget their money are less likely... In the most basic form of creating a personal budget the person needs to calculate their net income, track their spending over a set period of time, set goals based on the information previously...

The 50/30/20 budget is a simple plan that sorts personal expenses into three categories: "needs" (basic necessities), "wants", and savings. 50% of one's net income then goes towards needs, 30% towards wants, and 20% towards savings.[4] In the pay yourself first budget people first save at least 20% of their net income, and then freely spend the remaining 80%. They can also choose a 70/30, 60/40, or 50/50 budget for more savings. The most important part of this method is to put one's savings apart before spending on anything else.[5] Personal financial management refers to "ways" or "methods" of managing ones own personal finances.

It is also known by its acronym, PFM, which refers to the type of software used for personal finance apps. Simply put, PFM refers to software that helps users manage their money. PFM often lets users categorize transactions and add accounts from multiple institutions into a single view. PFM also typically includes data visualizations such as spending trends, budgets and net worth. PFM started in 1983 with the founding of Intuit. Scott Cook and Tom Proulx, the company’s founders, witnessed the rise of the personal computer and saw an opportunity to develop personal financial software.[1] Their flagship product, Quicken, became a standard for many households...

Around the same time, a similar competing product introduced by MECA Software, conceived by MECA President Gerald Rubin, and designed by author Andrew Tobias called Managing-Your-Money (MYM) came out,[3] first running on the Apple-II,... Microsoft worked with Intuit and CheckFree in 1997 to create Open Financial Exchange (OFX), which allowed financial institutions to exchange data with web users, paving the way for online PFM software.[5] Yodlee was founded... Originally a site that let users view email, banking, news, travel, and shopping in one place,[6] it soon pivoted to focusing exclusively on banking, allowing users to view their financial accounts from different institutions... A wave of online PFM tools launched around 2006, with Wesabe and Mint at the forefront. Mint was acquired by Intuit in 2009 for $170 million,[7] and Wesabe went under in 2010. Wesabe’s CEO cited the fact that Mint automatically aggregated accounts and transactions as a key reason that Wesabe lost market share to Mint.[8] Since 2008, PFM has expanded in scope.

Financial advisory companies such as LearnVest, Personal Capital and Credit Karma integrate PFM into their software.[9] Personal finance refers to managing your money to achieve financial stability and accomplish your personal goals. This concept is about making smart and informed choices about earning, spending, saving, and investing. By building a solid foundation in personal finance, you can reduce financial stress, seize opportunities, and create a path to long-term success. Mastering the basics of personal finance is the first step toward achieving financial security. It begins with understanding how to effectively manage your income and expenses, and a clear definition is essential.

Personal finance management refers to the practice of managing money to support your unique goals and lifestyle. It covers various tasks, including budgeting, saving, investing, managing debt, and protecting your assets with insurance. This category has the following 14 subcategories, out of 14 total. The following 154 pages are in this category, out of 154 total. This list may not reflect recent changes. Temporary protection, at a lower cost than other options, that can be converted to permanent

Permanent policies with a guaranteed death benefit and guaranteed cash value that grows over time Long-term coverage that’s highly customizable to your needs and budget Long-term coverage protection with the ability to invest your policy’s cash value in the market Helps to pay for someone to help you with everyday tasks, if you ever need it

Personal Finance Wikipedia

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It–and The War In Ukraine–are Both Wake-up Calls That Stock