11-2 Key Components of Personal Finance

 

What is budgeting?

•  Managing credit

• Setting aside money for short-term and long-term goals

•  Creating a plan to manage income and expenses effectively

Why is saving and investing important in personal finance?

• To generate potential returns over time

• To build a good credit score

• To create a budget

What does credit management involve?

• Creating a retirement savings plan

• Managing debts responsibly and maintaining a good credit score

• Identifying and managing potential financial risks

What is retirement planning?

• Managing credit cards

• Setting aside funds to support an individual's lifestyle after retirement

• Identifying and managing potential financial risks

What is risk management and insurance?

• Understanding different types of insurance

• Creating a budget

• Setting aside money for short-term and long-term goals