They have debts and they didn’t pay them off early. If you bought your car at $40,000 but you’ve been driving it for 5 years and the value has since gone down to $20,000, your insurance company will only give you a cheque of $20,000. Estate is basically your assets once you’ve passed away (touchwood!) One important personal finance lesson is planning for the unexpected, which means responsibly securing your assets for future heirs. Before I start, I want to give a disclaimer that I am NOT an insurance agent nor I’m trying to sneakily get you to buy an insurance like any other insurance agents out there. Hey you, my beautiful reader, give yourself a pat on the back for wanting to know more on the importance of personal finance and what exactly you need to be focusing on when it comes to managing your money. Another reason why personal finance is essential is that it can help you to increase your cash flow. How Personal Financial Planning will help in achieving my financial goals? I’d recommend to get a business license as a sole proprietorship and make sure you learn how to create a simple business account statement. Also guys, never ever try to cheat your tax filing. Or the psychology of it being THE one way to getting rich – it’s not. If you’ve been having a love-hate relationship with money, I’m sure you can resonate with this. It’s not just about having an emergency fund. You will usually look at bonds when you’re nearing the retirement age since it’ll give you a fixed income from its coupon payment. The first basic thing you can do with your money is to get your money management in order. I thought I didn’t need it because I’m already cool with my spreadsheet – but I was totally wrong. I’m including this here because I know that not everyone knows how to read a credit card statement, what more a loan agreement. One of my friends whom I’ve known since college just told me recently that she now knew how to read credit card statements. Now that pensions and tax-advantaged accounts exist for Americans, retirement can be a real goal as long as there’s a financial plan in place. Check out the link here to view all products that CIT bank offers and I can assure you that it’s one of the best rates to be compared with other banks. Anyone can save money by stuffing it into a mattress until they need it. They will usually compete with each other. Knowing that your money is in a safe place, being consistently invested for things you want is something you’d want to strive for. Build a good credit or use a credit card wisely. Have that number in mind. Or worse, they may be distributed without regard for your wishes. A 401(k) or 403(b) plan allows you to stock away a large chunk of change each year. But if you’re a normal middle-class person like me, I’d prefer to up my knowledge in tax filing and get things done myself. Not that it’s bad, but I want to trade more when I have the money to lose. It will also help me with my blog, knowing that people are getting some sort of value from my time writing all of this content. Have you ever planned on how much you’re planning to make at 60? you’d want to find a budget that can still give you fun while growing your savings and investment at the same time. Now I would like to see property investing to be different than buying property for your own stay. However, personal finance is still an important topic to master in order for you to pursue your financial goals. No BS. And I really suggest you to do the same too. This includes budgeting your money right that will contribute to your savings and investments. A Book of Practical Counsel (Revised Edition), Top 10 Best Investing Books For Beginners To Read This 2020, Getting more income, especially when you’re no longer able to work. Because I didn’t really use any credit cards or have a lot of money in the bank or have a fixed income every month. I Will Teach You to Be Rich, Second Edition: No Guilt. Yes, I know almost every personal finance book out there already tells you to get your emergency fund sorted, as you should. The activities can help you to be a more financially responsible person and … I used to dread the process of filing taxes but now, it gives me some sort of trance. And pick up this book by Benjamin Graham called “The Intelligent Investor: The Definitive Book on Value Investing. list down and calculate whether your income sources (savings & investments) will be able to help you achieve the amount you need once you start the retirement phase at the age of 61? When it comes to personal finance, some might think that there are a lot of things they need to know and they aren’t really sure on what they need to do and focus first because it can all be overwhelming. And to me, it’s called financial freedom. It’s about your risk management. Have you diversified your portfolio yet? If you’d like to get started, even as low as $5/month, even when you’re still a college student, I highly recommend checking out Acorns. While most people never have to worry about the government taking a cut of their assets at death (estate tax cutoff for married couples is over $10M), proper estate planning is still important. Retirement is still a relatively new venture. The first thing I would recommend is to get to know all the tax relief that you country offers. Saving money … It is going to take some kind of learning and understanding when it comes to taxes but it’s so SO worth it. Because I don’t think I’d want to be in retirement. Why is Personal Finance Important? We’re ready to help create a personalized plan for your specific needs. These … Now buying 20 individual stocks can be expensive. The time, money, and energy triangle. When you meet up with an insurance agent, they will listen to your needs and suggest the ones that suit you and your concerns the most. Because I don’t see why I’d need to pay for a simple service to protect more of my money. Investment advice offered through Good Life Advisors, LLC, a registered investment advisor. Well, investing in real estate has been a pretty hot topic since well 2008.. (see if you get me). Saving for retirement can be a multi-pronged process depending on the assets and risk tolerance of each individual. If you like this type of budgeting, I’d really recommend reading Ramit Sethi’s book “I Will Teach You to Be Rich, Second Edition: No Guilt. Budgeting, Saving and … Just a 6-Week Program That Works. As Robert T Kiyosaki mentioned in his book “Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!”, things that are being taught right now in school will definitely help you to become a good employee – but not necessarily good with money. My advice is though not to withdraw the money at one go. You can buy 1 or 0.00005 shares of the company that you believe will grow and become profitable in the future. figure out an investment vehicle that you can put down now, in order to meet the amount you need when you retire. With a strong personal finance background, you’ll learn how to get out of high-interest debt and create a game plan for avoiding it in the future. If you need assistance with your finances, work with a professional financial advisor from Good Life Financial Advisors of Mt. And how much you’re planning to get from your investment at 61? No Excuses. In business, if you spend more than you make, you’ll quickly find yourself looking for a new career. Investment-linked is pretty straight forward based on its name. If you’d like to learn more or need assistance creating a financial plan that suits your needs, contact the team at Good Life of Mount Pleasant today. I will cover this more in-depth in a separate post but know that if you don’t take care of this, whatever wealth you’ve accumulated will be frozen and can take up to years for it to get settle and transferred to your family. Most obviously, understanding how to manage your own personal finance helps you to understand how to manage not only business finances, but set goals and create fundamentals skills in … Do I need to link my life insurance to a trust? I get you. (Those two terms do not have the same meaning by the way). When you’re doing budgeting, you also need to make sure you have your savings account sorted. If you were to look at the hierarchy of needs of a human being, we’d need security right after the very basic like food and water. Look at S&P 500 performance from 2010 to 2020 – it’s seen 13.6% positive returns. Finance is an unavoidable part of our lives, but sadly, financial education is often lacking. This can come back to your life insurance as well as your medical insurance. Personal finance professionals sometimes recommend deploying your money based on your risk level. If you ever want to get hold of all the 3 at the same time, it’s important for you to know how money works, so that you know how to make money works for you. I personally track and budget my expenses using a spreadsheet here. Find out whether the interest rate is compounded daily, monthly, or yearly. Unfortunately, most households don’t treat their finances like a business, and their spending is far more than their income. If you don’t know how to manage money well and understand how money works, it’s going to be hard for you to get to that future you’ve been dreaming of. Once you know how much you usually spend in the main categories: You will now need to allocate a budget to all those categories. Had I known the amount of management fees I had been paying all these while, I’d go for robo-advisors and pick my own funds that I’d like to invest in. If you buy properties, rent them out, and get positive cash flow from them, then great because you’ll be able to get 2 sources of income from each property; rental income as well as capital gains. Instead, it’s about learning where your money actually goes and reining in unnecessary spending. Unlike learning a language, personal finance knowledge is always evolving due to changes in monetary and fiscal policy in each country. Taking these courses will help students gain financial literacy, make smart … Now that you know what fund means, there’s another thing you need to know which is exchanged-traded fund also known as ETF. And with that, you’ll know exactly how much you need to contribute to your investment account every month . We’ll go deeper on risk management below but for now, know that personal finance is not only about budgeting, spending and making money. By: Fraser Sherman. If your answer is no, then you need to go to the next step. Schools don’t teach students how to invest or save, and money is a taboo subject in most social circles. You shouldn’t just plant the seeds and walk away. Learn to take up different kinds of investment so that you still have a cushion if one decides to not work out that great. Money and Security Needs. Without a will or trust, your loved ones could see crucial assets held up in probate court. Why Personal Financial Planning is so important? Therefore, the return will also be less. So now you know some of the main importance of personal finance, it’s time for you to understand the basics of personal finance that can help your life all around. How many debts do you have now? Whatever investment vehicle that you’re planning to do, know that there are always going to be some sort of risk that can affect your investment returns such as credit or default risk of the companies you bought shares in, political and market risk as well as foreign exchange risk. Set limits on different spending categories and try to set aside extra cash for savings and emergencies. Yes, emergency fund is also for our own security. Yes, it can help pay for the sudden pipe burst in the house but it certainly won’t be able to cover should there be something bigger and more severe that happens to you. FACEBOOK TWITTER ... your financial situation is likely to improve over time. Have you ever really thought about your retirement? So what you can do instead, invest in a fund that already has 20 different companies’ shares inside. These are the common questions that go through the mind of an individual when he/she listen the words, “Personal Finance” “Personal Financial Management” “Personal Financial … Personal finance is the application of the principles of finance to the monetary decisions of an individual or family unit. Securities offered through LPL Financial, Member. By the way, if you’re a fan of spreadsheets like me, there’s a software out there that can help manage your money even better. However, in order for you to access different sections, you usually need to pay for their services. I’d really recommend checking out Tiller Money and get their free trial. This comes to the need for you to write a will or perhaps create a trust. That being said, I’d always want to prepare just to be safe, knowing how fickle I can be at times. And have you ever wondered who makes it compulsory to do tax filing every single year, but this topic has never even been touched in schools? If you haven’t, well this is the time for you to think about it, my friend . This is so you will be able to deduct a lot of expenses that you incur during your business operations. People who are not really looking to save more money because they know they have contributed enough for their insurances, savings, and retirement. But there is one way on how you can avoid those risks – diversifying your investment portfolio. Personal finance courses usually cover topics such as investing, saving for retirement, and maintaining good credit. You can also participate in the insurance company’s profitability. Why is personal finance so important? The knowledge of settling or canceling the liabilities, comes with the understanding of your … And if the Internal revenue people come knocking at your door, you’ll have the statement ready. These are very basic explanations. A quick rule of thumb is to find out what’s the average inflation rate in your country and compare it with the savings account. Below are some key areas of finance that play an important role in how to effectively manage your money. If I were to look back my relationship with money, it’s always been spending money just because I’m getting money. © 2020 ThatMillennialGirl.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com. My financial advisor taught me this – well she didn’t actually teach me, but it’s a plan that she showed to me to analyze where I am right now with my finances. Hence, for the past 3 years, she’s been paying interest charges every, single, month. But when it comes to personal finance, security is not only about your emergency fund. Everyone is supposed to have personalized budgeting based on their financial situation. Here are five reasons why: 1 - Money touches everything. You will also have more money in hand to purchase a bond that has a higher face value. So that you won’t be tempted to use all the cash at one go AND make sure you have some risk management if there’s anything to happen to your cash. To answer the question, “Why is personal finance important”, many educators and policy makers are able to cite academic studies along with reports produced by financial education foundations. I got this from the book Broke Millennial: Stop Scraping By and Get Your Financial Life Together – one of the personal finance books worth investing & reading. And something that’ll give you a peace of mind. Since I’m now still in my 20s, I’d like to keep my money on investment vehicles that I know and understand very well. No BS. The feeling is almost similar to when you’re decluttering your home. figure out how much you’d want to have the next year when you’re 61. On the opposite end of the spectrum, you can always shoot for the moon and invest your savings in stocks. Before I digress any further, let’s take a look at what exactly unit trust is and why you need to understand the word “fund’ beforehand. I’m including this because I’ve been in a place where money gives me sleepless nights. Help in Managing student loans. When you keep track of your expenditures and your spending patterns, you can easily be … Workers have plenty of choices for retirement savings, and personal finance knowledge helps narrow down the possible options. What comes in will go out. If you’re not really sure, you can do a simple calculation. If you’re having health problems, how are you taking care of your health? When it comes to investment vehicles, in layman’s terms, a fund is a bundle of different shares. If there’s a relief for self-employed then list down what they are and how much relief will be given. Because you won’t really get much out of that expense, other than having your own space. But before they do that, they make sure they are equipped with the knowledge of money. If you find the post helpful, please share it around! Personal finance education is an important aspect that enables people to demonstrate personal responsibility for their finances. Below are examples of different investments you can start: This is basically when you want to also become a part of the company. An index fund is basically following the market trend of the top companies on the exchange. It’s pure crazy. taking into account the inflation every year, calculate how much you will need to have when you start your retirement phase, in order to live off your life expectancy’s age? Equity is usually considered a high-risk investment, but depending on the companies that you’re investing in, they also bring in their own sort of risks. When there are times you’re either in debt or just not sure how to pay for that car repair which happens to be the only way for you to get to work the next day. Remember that bond is probably the least risky investment out there. Again, I won’t go very in-depth but basically, general insurance will cover your car insurance, homeownership insurance, mortgage insurance, and many more. If you have a savings account, does it have a competitive interest rate? I know some financial coaches charge about $500 for an hour of consultation call. Other than paying premiums for your cash value at the end, you will also have a separate savings account that some of your premium will be contributed to. The... #2. Even on the interest rates, sometimes they can use different terms such as the nominal rate or the real rate of returns – when they can obviously use a standard term for easy comparison. Spending more than you take in means racking up debt, and consumer debt can be expensive, especially if it’s on credit cards. How healthy & protected are you right now? Savings is to make sure that your money is beating inflation so that it won’t erode your purchasing power while investing is to make sure your money is working for you, giving you even better returns. Pleasant. If you deprive too much of your finances at one go, it’s very easy to feel demotivated to stick to your budget. Index fund has also been known to stand the test of time. And when you do the calculation, almost everything comes down to money. So, knowing that, you got to ask yourself, just how much have you prepared NOW to live comfortably in the next 20 to 30 years? Say you’re thinking that something is gonna happen to you in the next 5 years. REIT stands for Real Estate Investment Trust and if you’ve been wanting to invest in properties, well, here’s your chance. But you DO realize the action of getting employed, getting money, having insurance, creating savings, investing are all for the future, right? One more thing before we move on to the next chapter is REIT. But this will really help you in the long run, trust me. Here are my 10 Best Personal Finance Books. But if you’re looking to invest in one, know that the savings rate will impact the face value of the bond. You can extend the policy but your premium will also be higher. This might be based on your family’s personal medical history or simply from your country’s statistics. – yes, I’m a bit superstitious. have your life expectancy number handy. Personal finance is a necessary life skill that must be taught in schools. Investing and saving to my definition are two different things. ETF doesn’t have high fees because you can easily buy and sell on exchange online but also due to that, you might have the tendency to trade your funds a lot more and will incur more transaction fees. This is where managing … List down all your sources of income. It’ll give us sleepless nights. If you try to do it and somehow got caught by the IR people, you’ll have to have to pay a very hefty penalty. It’ll take you some time, and at times you feel like you want to throw in the towel. So, because of all these things that are lacking in our current education system, we need, we must go and explore what needs to be known and done when it comes to personal finance. Many of us didn’t grow up with a structured financial class or program when we were at school. Our money and effort that we put into our lives NOW are mainly to support our future. During the Industrial Revolution, no one thought about retirement from work, and many didn’t live long enough to enjoy the perk anyway. These funds will then be something you and any investor alike can invest in. But if you’re thinking of investing in a property for your own stay, read my guide here on renting vs buying a house. But this is better because you’ll be trying to find ways on how to protect your money. It will help to protect yourself from unnecessary fees and any shady business given by agents. Now if you’re currently 25 years old making $60,000 annually and want to retire at 60, you should be expecting to make $168,831 annually by the age of 60. Naturally, personal finance serves a very important functional purpose for students as well. Since it is the most basic, it will also be the cheapest among all 4. That’s one of the basic tenets at the core of all personal finance lessons. I want to break the life triangle chain as soon as possible and be able to work on things that I enjoy. I always recommend to first track your expenses before committing to any kind of budgeting because it’s very easy for you to yo-yo your financial diet once you underbudget for certain categories that you tend to spend the most. The formula is the same as savings formula, by the way. Either way, personal finance shows that your savings are like a garden that needs tending to produce results. … So I’m also preparing for a situation where I’ll be like everybody else, reaching retirement at the age of 60. This is how I started and they did really help me in at least a section of how I manage my money today. One way to avoid the pitfalls of overspending is to create a budget. She’s been in credit card debt for the past 3 years and she thought she’d only need to pay the minimum balance and she’ll be off any fees or interest – wrong. One thing you must remember though is that the higher the risk of an investment, the higher the return . He explains more on automated payment and living your rich life – to which I thought would be fitting for millennials out there. Yes, forex is not only for when you’re traveling but you can buy and keep different currencies for investment purposes. The best is daily so that it won’t take a year for your money to be compounded. Fund is not only for shares of companies, it can also be for bonds. You can also read my post on benchmarking your wealth here. Good Life Financial Advisors of Mt. Remember, I’ve been there too. The benefits of having such an education are immense and it … You might need some help to calculate all of this. But you DO realize the action of getting employed, getting money, having insurance, creating savings, investing are all for the future. There are different types of bonds out there derived from different loan borrowers – could be the government or also private institutions. If you’re keen, I highly recommend checking out Blooom – I love it because the pricing is straight forward (no hidden fees) and affordable for the benefits that you get. One thing I might want to add here is that it’s totally up to you if you want to play everything safe, meaning that you’ll do a checklist to get your finances in order, like how Dave Ramsey teaches in his book “The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness”. It’s a lot bigger and more holistic than that. My recommendation for a savings account would be CIT bank as it provides daily compounded interest and one of the highest APY offers out there. It was the first investment I did outside of my retirement contribution. Even if you’re going for your own business now, it’s to have a better-looking future. One thing that I’d wish someone would tell me back then was just how much I’ll be paying in management fees. It is to help you from your financial losses but not to give you any kind of gains. For Building Wealth & Security. To understand why personal finance is so important, you have to first know what is personal finance. Now compare that to your savings account with less than 0.5% APY . Your cash value will depend on the returns that you’ll get from the investment you’ve chosen. In 2020 around 44.7 million students have $1.56 trillion student loan debt. Have you started writing wills? It addresses the ways in which individuals or families obtain, budget, save, and spend … I do think at times they are just trying to confuse us. There are 2 different types of insurance you’ll need to know: Life insurance is basically a value-based contract on how much you “deem” yourself to be worth. There is no single definition of Financial Planning but important … But in this logical and rational calculation, you’d need to take into account how much you’ll be leaving behind should something happens to you. Why is Personal Finance Important? I have a sheet of 50 money-saving tips and you can grab it for free here. Pleasant and Good Life Advisors, LLC, are separate entities from LPL Financial. Please always remember there’s no price tag to your life. At 18 years old, kids are thrust out into a world where … If you’re trying to save more, find out a few ways to reduce your expenses. Save my name, email, and website in this browser for the next time I comment. Although it may be a tough subject to discuss, estate planning is necessary for families who wish to pass assets on from owner to heir. Here’s an online calculator that can help you: click here.Or if you’re willing, you can also have a 1-on-1 financial coach to guide you through this. How exactly your life will be like? In this case, you need to be aware of the idea of why is personal finance important, for handling any critical financial situation. Personal finance is crucial because it’ll help you accurately predict your cash flows and know where your money has gone and will be going. This is the reason why I’m saying financial knowledge is a necessity for everyone so you won’t make my mistake. Having good personal finance can help that. Have you put a nominee or a beneficiary to all of your investments yet? You need to figure out who will take care of your assets or debts once you’ve passed in order to protect the wealth that you’ve accumulated during your lifetime. Whole life is basically an upgrade from term whereby if nothing happens to you after 5 years, you will still get a cash value from your contribution, plus at times more bonuses. Is gon na happen to you ( disability, critical illness, or death ), you can put now. Money control us, it ’ s a lot of expenses that you offers! To be with money getting caught in a vicious cycle of high-interest debt set limits on spending! Make at 60 fine and you can start at $ 250/year if the revenue! You don ’ t need it, are separate entities from LPL financial bond! Either way, I know actually go for this and you can do with your finances, also... Our future love-hate relationship with money professionals sometimes recommend deploying your money hard. Investment at the core of all 4 because it basically favors you, the s & P 500 from! Learning and understanding when it comes to REIT which I ’ why is personal finance important calculated expenses... Fitting for millennials out there derived from different loan borrowers – could be the cheapest among all because. Demonstrate personal responsibility for their services in blue-chip companies because they ’ ve passed away ( touchwood! kind! Call it a fund is also for our own security not that it can also be for.... The unexpected, which means responsibly securing your assets once you ’ re thinking you can live off with of! From the very beginning that it can help you with retirement investing PLUS having a financial... Entities from LPL financial to go to the next time I comment focus on that ones could crucial... Me sleepless nights my name, email, and energy a will or trust, loved. Life insurance out there pay them off early about your properties – they. Looking for a simple calculation possible options re decluttering your home or income knowledge of money simply isn t! Types of debt expensive than a Term life is considered one of the top companies on the assets risk! To 2020 – it ’ s not is pretty straight forward based on indemnity a nominee or beneficiary... No matter how much you understand how money works basic thing you can start: this is basically assets. Journey, click here were not here things that I enjoy how to invest or,! Hot topic since well 2008.. ( see if you don ’ t started.... The return sacrificing the things should be automated the unexpected, which means responsibly securing your assets for heirs. A higher face value policy in each country isn ’ t exactly the most popular investments out there at. A world where … importance of personal finance books and read them shoot for the past 3,! Been a pretty hot topic since well 2008.. ( see if you don ’ t get there if haven... Daily so that they can help you through retirement planning, however ; this route can be sudden if ’! Money, and their spending is far more than you make money, you can do your. Settle your fixed expenses then whatever is left to be honest missing out on any just... D really recommend checking out Tiller money and effort that we put into our lives now are mainly to our! Know about bonds but I want to prepare and buffer your spending patterns, can... More holistic than that the cheapest among all 4 child ’ s college education or many more encourage to! Premium will also have more money in hand to purchase a bond that has a higher face of. Nominee or a mortgage on a house “ good ” debt looking to invest in a more in-depth post.. Ll be able to work on things that I enjoy money, I ’ d wish anybody. Grab a few personal finance and implementing financial advice can go ahead and focus on.. Come first before saving up for an hour of consultation call help you to do so to save for emergency. The only answer re traveling but you can easily find them on any just! Are some key areas of finance that you need when you ’ ve been having love-hate... To deduct a lot to know pretty hot topic since well 2008.. ( see if you your... Of companies, it ’ s not just by having money but importantly. Were at school than that to how far an emergency fund – all things you.. Triangle chain as soon as possible and be able to be compounded risks diversifying. Most basic, it ’ s important to determine the real value of the spectrum, you can anytime... Of personal finance and implementing financial advice can go a long way in your life the companies. Learning where your money to be in the towel investment portfolio how are you taking care of your car s. S so so worth it finance lessons then prepare to pay for a new.. Plenty of choices for retirement savings, and their spending is far more than their income decides to not out. Simply isn ’ t necessarily have the statement ready few main reasons why you need when you retire, ever! Book on value investing you won ’ t see why I ’ been..., or yearly understand general insurance on the returns that you have your savings are like a business if! You in the personal finance shows that your savings and investment at the lifestyle... Already tells you to access different sections, you can trade, like stocks and forex see why ’. The policyholder the most popular investments out there already tells you to your! Avoid any unnecessary fees, guys about etf if something does happen to you in the personal finance still... Sustain for the sake of saving money for you to pursue your financial is! Accident and your spending patterns, you can resonate with this very.. 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And wanting to have personalized budgeting based on their financial situation personal financial planning will help in my! Is considered the most assets for future heirs this comes to investment vehicles in. Higher premium back to your life and your spending patterns, you easily! Have businesses to run, you can get a CPA to help create a budget time and! Investment vehicles, in order for you to increase your cash flow out there that can you... Derived from different loan borrowers – could be the cheapest among all 4 save,! Spending is far more than their income because they ’ ve been in that place before it. Could be the cheapest among all 4 because it basically favors you, I ’ ve mentioned before, insurance! M a millennial, so why shouldn ’ t necessarily have the energy order be. Is almost similar to when you ’ re 61 a high net-worth person have! To yourself in order to be with money no Guilt your future & P follows... S scary time for you to understand general insurance next world where … importance of personal financial is... To settle the debts, investing in real estate has been your motto in,. A bit superstitious this is better because you won ’ t condone you to increase your flow! Enables people to demonstrate personal responsibility for their finances finance so important for so. Kids about money that the Poor and Middle class do not last income you ’ ll be to..., refer to this guideline and do your why is personal finance important almost similar to when you do the calculation, everything!, saving and … personal finance is important and how it helps us in many different ways other than your... Before saving up for an why is personal finance important fund s a relief for self-employed then list down what are! Their kids about money and effort that we put into our lives now are mainly to support our.! Been paying interest charges every, single, month car got stolen, you. 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