Personal finance is the area of finance concerned with how people make decisions on spending and saving money and investing for retirement. When planning her personal finances, an individual needs to balance current spending habits against future spending demands, such as health expenses and retirement.
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- Budgeting Basics: Spending Less than You EarnLearning how to budget is a key way to avoid being saddled with debt, and allows you to be more in control of your finances. High school student Nicholas Bakke is using his budgeting skills these days to save up for an iPad. Purchase the items you want, says Bakke, but only after you can afford them. What’s your goal?