Basic Concepts and Importance

of Financial Management

Question: Why do we need to manage our

finances?

we need to
manage our
.
finances to avoid
over spending

we need to
manage our
finances because
it helps us to set
our goals and
achieve it.

it can help us
during difficult
times.

this will increase

your financial
understanding.

financial
management
improves our
standard of
living.

it will improve
your health.

Question: What is financial literacy?

We can define financial literacy as the

possession of knowledge and
understanding of financial matters.

It can also be defined as having

knowledge, skills, and confidence to
make financial decisions.

Knowledge may refer to an understanding

of personal and broader financial matters.

Skills could refer to the ability to apply that

financial knowledge in everyday life.

Confidence is having the self-assurance to

make important decisions.

Responsible financial decisions mean the

ability of individuals to use the
knowledge, skills and confidence
they have gained to make choices
appropriate to their own circumstances.

Sources:
Some Importance of Financial Management
Why Is Financial Management So Important in Business? |
Chron.com. (n.d.). Retrieved from
http://smallbusiness.chron.com/financial-management-importantbusiness-57073.html

Financial Management for College Students:

A Web-Based Tool to Teach - Winter 2005 Student Affairs
Online. (n.d.). Retrieved from http://studentaffairs.com/ejournal/
Winter_2005/FinancialManagementforCollegeStudents.html
Ten reasons why financial planning is important | BlueShore
Financial. (n.d.). Retrieved from
http://www.blueshorefinancial.com/
ToolsAdvice/Articles/FinancialPlanning/
TenReasonsWhyFinancialPlanningIsImportant/

Reasons to Study Finance. (n.d.).

Retrieved from http://www.boundless.com/finance/
textbooks/boundless-finance-textbook/introduction-to-the-fieldand-goals-of-financial-management-1/introducing-finance22/reasons-to-study-finance-148-8366/

On Basic Concepts
WHAT IS FINANCIAL MANAGEMENT? MEANING,
IMPORTANCE / SIGNIFICANCE. (n.d.). Retrieved from
http://hubpages.com/money/financial-management-meaningimportance-and-significance
Financial Literacy. (n.d.). Retrieved from
http://www.fcacacfc.gc.ca/eng/financialLiteracy/Pages/homeaccueil.aspx

Financial Literacy Definition | Investopedia. (n.d.). Retrieved

from http://www.investopedia.com/terms/f/financial-literacy.asp

Thank you!