personal essay about financial management

Essay on Financial Management

Students are often asked to write an essay on Financial Management in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

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100 Words Essay on Financial Management

What is financial management.

Financial management is taking care of money. It’s like being smart with your allowance. You plan how to spend and save. Companies do this too. They decide where to use their money to grow and make more.

Why It’s Important

Good financial management helps you not run out of money. It’s like making sure you have enough lunch money for the whole week. For businesses, it means they can pay workers and buy what they need.

Making a Budget

A budget is a plan for your money. You write down what you earn and what you spend. It’s like planning your snacks so you don’t eat them all at once.

Saving and Investing

Saving money means keeping it for later. Investing is using your money to try to make more money, like buying a lemonade stand to earn more.

Being Careful with Debt

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250 Words Essay on Financial Management

Financial management is about how to handle money in a way that is smart and helps achieve goals. It’s like planning a budget for a family or figuring out how to save up for a big purchase. In businesses, it’s about making sure they have enough money to run smoothly and grow.

Creating a Budget

One part of financial management is making a budget. A budget is a plan that shows how much money you expect to get and how you plan to spend it. It’s like when you decide to save part of your allowance for a new bike. Companies do the same by setting aside money for new projects or to pay workers.

Saving money is another key point. It means keeping some money aside for later rather than spending it all. Investing is a step further, where you use your savings to make more money, like buying shares in a company or saving in a bank account that earns interest.

Making Smart Choices

Financial management also involves making decisions about what to buy and when. It’s important to think about if something is really worth the money or if there might be a better way to use it. This can help avoid wasting money and make sure there’s enough for important things.

500 Words Essay on Financial Management

Financial management is like being the boss of your money. Imagine you have a piggy bank; taking care of it, deciding when to put money in, and when to take some out is a bit like financial management. But for grown-ups, it’s more complex because they deal with things like budgets, savings, investments, and loans. It’s all about making sure that money is used wisely and that there’s enough for the things we need, both now and in the future.

The Importance of Budgeting

A budget is like a shopping list for your money. It helps you keep track of how much money you have, what you need to spend it on, like food and rent, and how much you can save for fun things, like toys or vacations. By making a budget, you can make sure you don’t spend too much and end up with no money when you need it. It’s like planning your spending so that you can always buy what you need and sometimes what you want.

Financial management also means making smart choices with your money. This means thinking carefully before you buy something. Ask yourself, do you really need it? Can you afford it? Sometimes, it’s better to wait and save more money before buying something big or expensive. This helps you avoid debts, which is money you owe to others.

Understanding Loans and Debts

Loans are like borrowing money from a friend, but you have to pay it back with a little extra, called interest. Debts are the total amount of money you owe others. Managing loans and debts is important because if you borrow too much, it can be hard to pay back. It’s like taking too much food on your plate and not being able to eat it all. You need to be careful and borrow only what you can pay back.

Planning for Surprises

Financial management is all about taking good care of your money. It helps you make smart choices, save for the future, and be ready for unexpected events. Just like you take care of your toys and belongings, taking care of your money is important too. It means you’ll always have enough for the things you need and some of the things you want. Remember, being the boss of your money is a big responsibility, but it can also be fun when you do it right!

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Personal Financial Management and Financial Literacy

Personal financial management is a useful method of controlling income and expenditures as well as planning future savings. By understanding the basic principles and minor aspects of money management such as the compound interest method, people can avoid bankruptcy and enhance their chances for the side income.

Since I did not have the opportunity to study personal financial matters in high school because there were no such classes and the school’s administration only started to consider the introduction of personal finance courses, I learned everything from my parents, the Internet, and my experience. Having analyzed my knowledge, I can conclude that I know only the basics: the main principle that says to spend less than earn, the second rule of searching for side business and income, and the third rule of money management. These principles are self-explanatory, and people know them intuitively. As a matter of fact, my experience shows that in most cases simple intuitive knowing in not enough. I read the articles on the Internet about the effective money management and successfully followed the tips that were written in them because the theory is quite simple: calculate the income, divide it into parts, assign on various needs, and do not forget to put some amount of money for savings. However, the theme of side income is rather complicated because it concerns a wide range of components: hobbies, investments, education, and even relationships with people. Personally, I am interested in smart investments and the compound interest method of earning income.

In the previous unit, we learned how to calculate the total amount of money in the investment account using the exponential equation that operates with variables of ending and principal amounts of money, the interest rate, a number of annual compoundings, and a number of investment years. I found out that with $250,000 deposited for ten years at 8% interest I will earn nearly $577,400. As it turns out, the compound interest method is a real instrument for earning money. The process implies two components: time and money, and its principle say that the more time is given to the investment, the more money will an investor receive in the future (Ryan, 2011). This principle allowed me to derive a simple, self-explanatory rule: the investing activity should start as soon as it is possible.

Following the idea that was expressed in the previous paragraph, I regret that I did not know the principle ‘more time – more money’ before. I would definitely start investing earlier. However, I cannot say that I learned this rule too late. For a young person that is only starting its personal finance management, I would advise to invest the money as soon as it is possible and to be an active investor. Active investors study the market and possibilities of deposits; they know the difference between bull and bear markets, understand the nature of market volatility, and avoid practicing market timing (Garman & Forgue, 2011). Personally, I contemplate the possibility of active investment. As opposed to passive investment activity that consists of depositing money in a bank and simply waiting several years to pass, active investment involves a constant analysis of the market, which helps to develop financial management thinking and to be in the course of current economic events. Consequentially, having become an expert that understands the nature of investments, a person has numerous chances to earn a significant income.

In conclusion, I may say that the course of finance helped me to learn certain interesting and beneficial aspects of personal money management such as investments. I realized that the compound interest method is a real instrument of earning income, and, moreover, our lessons made me involved in the theory of investment that studies various opportunities of earning money on the stock exchange market.

Garman, E. T., & Forgue, R. (2011). Personal finance . Boston, MA: Cengage Learning.

Ryan, J. (2011). Personal financial literacy . Boston, MA: Cengage Learning.

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Personal Finance, Essay Example

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One’s financial plan is an essential component for any prospective notions of personal wealth and readiness for retirement.  In a distinct set of areas, these personal goals in my plan of action are realized for financial independence.  In the matters of my personal budget, investments, and way of life these factors come together to create a harmonious financial plan for realizing my financial goals.  It is extremely important to examine one’s budget to gauge one’s financial abilities and leverage.  This will dictate the amount of money for investments, in accordance with one’s financial goals.  Finally, cutting down expenses and making other decisions about one’s way of life can provide additional financial relief.  These steps are important in being able to realize personal wealth and readiness for retirement. There are a number of things to consider from a personal standpoint in regards to one’s finances.  Planning for the future and for my retirement is something that requires a plan, along with establishing a plan to attain wealth.  There are a number of things that need to be in consideration in order to obtain wealth and plan for the future.

Before personally identifying numbers from which to work, my personal budget needs to be take in consideration.  One must work within his or her means, and this is of course true in my case as well.  My financial plan must take into consideration where I am right now in regards to my financial goals and in these dynamics.

The first step is identifying my expenses.  This is a process that will allow myself to examine whether my expenses are reasonable.  Furthermore, I will be better able to reduce my expenses after examining them in detail.

Cutting down on my expenses will do two things immediately.  Firstly, the immediate impact to my budget and financial comfort will be improved.  I will be better able to control how much money is spent in various areas, which will put me at better ease financially.  Secondly, there are important benefits in the long term for such efforts.  By cutting down on unnecessary expenses, I will be able to realize this lost money and invest it in my future, or at least a place that will benefit me financially.

Retirement Account

Once the expenses are identified in my budget, my retirement account should take on a high priority.  Even if I am unable to make the maximum allowed contributions to my retirement account, it is important that I establish a place for my retirement account in my budget.  If I keep these consistent payments going into my retirement account, I will put myself in a better financial stance for the future.

With regard to my budget, examining my income and expenses will allow me to decide how much I can afford to contribute to my retirement account.  This process will help me identify the level of financial flexibility I have.  Obviously, I will have to take other investments into account as well, in addition to my retirement account.

After identifying the constraints of my budget, I should make a plan in accordance with my retirement.  By identifying an amount to target for my retirement, I will be able to project interest for a certain number of years, in order to gauge how much I will need to contribute on a monthly basis.  Of course such calculations will not be exact, but by doing this I will be able to adjust my calculations based on differences in my contributions, or interest levels in my investments.

Another valuable aspect of my finances are other types of investments.  Investments are a great way to establish personal financial growth.  Identifying investments, such as CDs, stocks, and other types of investments will allow be to better realize personal wealth and growth in my financial goals.

Devoting part of my budget to investments is another important part of my financial plan.  I have identified a number of investment options that will work with the limitations and opportunities in my budget.  Separating short-term from long-term investments, I have allocated an amount to realize investments as part of my overall financial plan.  For me my budget, encompassing all aspects of future financial growth is important, from short, long, and retirement-based investment plans.  In my every person should allocate funds to each, regardless of the budgetary demands of one’s finances.

The Way of Life

Managing one’s finances is more of a way of life than anything, at least according to my perspective.  When all of these factors are considered, it is important to stay focused on one’s financial goals.  Even for someone who does not have many financial resources, it is important to have a plan of action and to stay committed on executing that financial plan to realize these financial goals.

Cutting down on expenses is a matter that is very important to one’s financial goals.  To a certain extent this becomes a way of life.  For instance, some households easily spend a hundred dollars a month on unnecessary groceries, such as expensive snacks and drinks.  However, if lower-cost replacements could be utilized, the savings and the potential investment return on such savings would be impressive.

Thus one should approach one’s budget with a positive approach.  One can easily cut down on expenses in many different ways, from eating out and buying cheaper groceries, to limiting one’s entertainment budget.  If these expenses can be cut on a regular basis, budgets would be much more easy to handle, and much more conducive to realizing the financial goals of many.

In identifying my plan of action, this is an approach that I am taking.  Even if I don’t have as much money to allocate to investments and a retirement account, it does not mean that I can’t cut spending.  Then, once I cut my spending, I can potentially see valuable returns in investments over time.  These potential returns will be able to go a long way to my financial goals, retirement-related goals, and my plan for obtaining personal wealth and financial freedom in both the short-term and long-term.

One important aspect that cannot be overstated is commitment.  In my opinion, if one is committed to his or her finances, he or she will be able to cut spending and obtain financial freedom.  Similar to my situation, even if one doesn’t fell as if though many financial assets can be allocated to investments, respectable returns can be seen on money saved through other means.  One doesn’t always have to have a large income to be financially successful.  It can easily be obtained with smart spending and planning as well.

My plan for realizing my financial goals starts with my budget.  Examining one’s budget is arguably the first crucial step for obtaining a plan of action in the face of financial goals.  By identifying both the income and expenses of one’s budget, one is able to gain awareness of the flexibility or lack thereof in one’s finances.

Allocating amounts of money to investments is a primary course of action in my financial goals.  In order to realize a level of personal wealth and readiness for retirement, investments must be a part of my financial plan of action.  This remains an important part of my budgetary considerations for realizing my financial goals.

In my plan for financial success from the short to long term, I have realized that much of this revolves around one’s commitment.  Even if one is unable to allocate even the smallest amount to an investment account, one could do so if he or she cuts down on unnecessary expenses.  With these goals in mind, anyone can realize financial independence and wealth with these basic steps.

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Essay Samples on Personal Finance

My personal financial goals in life: financial freedom.

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Being Smart With Your Money: the Importance of Financial Literacy

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Unlocking Financial Literacy: Exploring the World of Finance and Money Management

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Best topics on Personal Finance

1. My Personal Financial Goals in Life: Financial Freedom

2. The Importance of Saving Money for Students

3. Being Smart With Your Money: the Importance of Financial Literacy

4. Unlocking Financial Literacy: Exploring the World of Finance and Money Management

5. The Value of Understanding Personal Finance Management for Students

6. Why Personal Finance Should Be Taught in Modern Schools

7. General Purpose Financial Report

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5 reasons personal finance should be taught in school.

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Piggy bank with glasses and blackboard

Having basic personal financial skills is one of the most important things you can do to live a healthy, happy and secure life. Your level of understanding around the fundamentals of budgeting, saving, debt and investing will impact every part of your life and can mean the difference between prosperity or poverty.

With how important these basic life skills are, it's shocking that only 17 states require students to take a high school course in personal finance. High schools teach Geometry, Art, Latin, and Home Economics—all valuable to know for sure. But how often on a day to day basis do you need to calculate the area of a trapezoid? Personal finance is a necessary life skill that must be taught in schools. Here are five reasons why:

1 - Money touches everything.

At 18 years old, kids are thrust out into a world where every step they take from graduation to retirement will be directly impacted by their financial knowledge and money management skills. Career decisions, buying your first house, getting married, having children—finances all play a massive role in each of these life events. And it's not just the major ones; finance is a part of our everyday life. Whether it's where we eat, what we buy, traveling, going out with friends or negotiating prices, every day we are faced with financial decisions. Young adults lack the experience and education to make these decisions - big or small.

2 - The Majority of Americans want personal finance taught in schools.

When it comes to financial education in schools, many adults feel that more should be done to help students get a head start. A recent Credit Karma/Qualtrics survey found 63% of respondents think personal finance education should be taught in schools. Although nearly two-thirds of Americans are in agreement of the importance of finance in our schools, respondents were a bit divided over when this should happen. 

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• 30% believe it should start in elementary school (Author included!) 
• 33% believe it should start in middle school
• 32% believe it should start in high school
• Only 5% believe it should start in college

Despite some debate over just how young is too young when it comes to learning about personal finance, or where that education should occur, the study shows many Americans are aligned on putting school-sponsored personal finance education on the political agenda. More than three-quarters (77%) of those surveyed believe politicians should push to add financial education in schools, and 67% of those surveyed would prefer to vote for a candidate who prioritizes adding mandatory personal finance education to the public school curriculum. 

Additionally, there’s a lot that Americans would be willing to give up to receive better financial education, including happy hour (35%), dating apps (29%), morning coffee (24%), vacation days (12%) and even their sex lives (8%). 

3 - Lack of financial knowledge has painful consequences

Finances are understandably one of the major causes of stress for adults. Everyone can relate to this stress; even the wealthiest people have felt financial pains at one time or another. Debt and/or a lack of savings can cause considerable hardship on a person’s life. And it doesn’t just cause daily stress. Financial problems can lead to divorce, poor health, depression, and bankruptcy.

The statistics below show that plenty of adults are feeling the pressure of financial issues. Many of these could be avoided with some basic knowledge.

●     Nearly half of Americans don’t have enough cash available to cover a $400 emergency . Getting fired or having a medical emergency without any savings would be devastating. Understanding the importance of an emergency fund could prevent this.

●     Millennials are starting their careers with a combined $1.52 trillion in debt . Students coming out of college have more crippling student loans than ever. They are spending years trying to pay them off, which means they are saving less than they could. Being taught about debt, the different ways to pay for colleges, and the importance of not borrowing more than you can afford could help to prevent these massive numbers.

●      38% of U.S. households have credit card debt . On average, they owe $16,048 with an APR of 16.47%. While some debt, like mortgages or student loans, can be considered “good” debt, credit cards are most definitely not. Learning the dangers of credit cards and high interest rates are critical, as well as the importance of paying them off.

●      33% of American adults have $0 saved for retirement. Considering the fact that most will need at least $1 million to retire (for 30 years of living), a lack of savings is a major problem. The most important rule in saving for retirement is to start early. However, seldom do because they weren’t taught the important of compound interest and time.

4 - Financial literacy leads to a healthier life

More than half (51%) of millennial respondents surveyed answered that they feel their level of personal finance knowledge is holding them back from making financial progress, compared with just 43% of Gen Z and 26% of Gen X and older. And, they are right - it is holding them back from their full potential. The positives that come with having a financial education are undeniable, such as:

• Promotes good savings habits. Just imagine if your child came out of college and started immediately saving for their future. Imagine if we all had.
• Budgeting teaches awareness and responsibility. If someone has a budget that they actively manage, it forces them to look at their spending. They are aware of how much they have available, and this leads to making better spending decisions.
• Smart financial decisions positively affect one’s credit score which impacts their entire life: getting a job, applying for a credit card, renting an apartment, buying a home or car, getting insurance, even signing up for their power bill. Having an excellent credit score means saving thousands and thousands of dollars in interest payments over their lifetime.
• More jobs, more money, and less debt are good for the economy as a whole.
• Understanding money management leads to financial health and positive attitudes around money. People’s attitudes around money can be instrumental in shaping their character, plus promotes the desire to give back.

5 - Where else will they learn it?

The study showed that in lieu of school-sponsored personal finance lessons, many Americans turn to alternative sources of money advice and information. For example, 41% of respondents said they’re self-taught, while 37% said their parents taught them about finances. Just 12% said they learned about personal finance from teachers.

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Essay on Financial Literacy for Students and Children

Importance of financial literacy, an introduction to financial literacy.

We go to schools, colleges, universities to complete our educated and start earning our livelihood. We take up jobs, practise professions or start our own businesses so that we can earn money to make our living. But which of these institutions make us capable of managing our own hard-earned money? Probably a very few of them. 

Our ability to effectively manage our money by drawing systematic budgets, paying off our debts, making buying and selling decisions and ultimately becoming financially self-sustainable is known as financial literacy. 

Financial literacy is knowing the basic financial management principles and applying them in our day-to-day life. 

Financial Literacy – What does it Involve? 

From simple practices like keeping a track of our expenses and understanding the need to spend money if we like a product to striking a balance between the value of time saved and money lost, paying our taxes and filing of tax returns, finalizing the property deals, etc – everything becomes a part of financial literacy. 

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As human beings, we are not expected to know the nitty-gritty of financial management. But managing our own money in a way that it does not affect us and our family in a negative way is important. We certainly do not want to end up having a day with no money at hand and hunger in our stomach. 

Why is Financial Literacy so Important?

Financial literacy can enable an individual to build up a budgetary guide to distinguish what he buys, what he spends, and what he owes. This subject additionally influences entrepreneurs, who incredibly add to financial development and strength of our economy. 

Financial literacy helps people in becoming independent and self-sufficient. It empowers you with basic knowledge of investment options, financial markets, capital budgeting, etc.

Understanding your money mitigates the danger of facing a fraud-like situation. A few strategies are anything but difficult to accept, particularly when they’re originating from somebody who is by all accounts learned and planned. Basic knowledge of financial literacy will help people with foreseeing the risks and argue/justify with anyone learned and well-informed.

What should you read on / get informed about in Financial Literacy?

• Budgeting and techniques of budgeting
• Direct and indirect taxation system
• Direct tax slabs
• Income and expense tracking 
• Loans and debt – EMI management 
• Interest rate systems: fixed versus floating
• Business and organisational transaction studies
• Elementary Book-keeping and Accountancy
• Cash in-flow and out-flow Statements
• Investment & personal finance management
• Asset management:
• Business negotiation skills and techniques
• Make or buy decision-making
• Financial markets 
• Capital structure – owner’s funds and borrowed funds
• Fundamentals of Risk Management
• Microeconomics and Macroeconomics fundamentals

While there are various media to learn about financial literacy, we recommend that you join a short-term, weekend programme which helps you get financially literate.

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Finance Personal Statement: Personal Experiences Essay

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My name is Mohamed, and I am 19 years old and interested in studying finance. The significance of money and banking in today’s society is apparent, particularly in the post-pandemic age. The world economy was already environmentally, technically, and socially unstable when the epidemic hit. However, the future of money is still on the threshold of a revolution that has the potential to alter the very fabric of civilization. More noticeably, the use of cash as a medium of exchange is dwindling, especially in emerging economies, and the era of digital currencies has started. Therefore, studying finance at university would enable me to understand global events and prepare me to assume a leadership position in major financial organizations, which is my primary professional objective.

Coming from a family in the finance business for years, money and banking has been a major part of my life. Working in my father’s business was inevitable as a family tradition. Looking back, I see how working with my father significantly changed my thoughts about money and debt management. I recall my father constantly emphasizing the need to stay out of excessive debt, whether he was discussing his company or his finances. The gist of the advice was the same irrespective of the context: Do not be so short-sighted if putting in a little bit more time, energy, or money will pay off in dividends that are larger than the extra investment. Due to my father’s influence, I have focused my studies on finance and economics. This will enable me to become a financial expert and put me in a prime position to take over the family business and become CEO.

However, my ambitions go beyond merely running the family business. I have decided to major in finance because I am interested in learning more about how different economic models may be used to improve how businesses and people generate and handle wealth. Similarly, I want to hone my problem-solving and decision-making skills by applying mathematical ideas, statistical analysis, and analytic methods. I anticipate expanding my knowledge of financial management, investing, problem-solving, and accounting so that I may better assist companies in streamlining their operations (Follman, 2019). Accordingly, a degree in finance will equip me not just to be proficient with statistics but also to engage with customers, communicate well, and draw conclusions based on research. Eventually, a degree in finance will equip me for careers as a financial consultant, financial planner, corporate banker, and investment manager, among others.

More importantly, a finance course will teach me to be more diverse because I will interact with people from different places. Racism underlies many of our society’s definitions of diversity. I have never used that term because I believe it is what is inside a person that defines who they are and not their color, attire, ethnicity, or physical appearance. When we stop judging individuals by their outward appearance, the collective wisdom of the group begins to speak for itself to our and society’s advantage. Therefore, I will promote diversity and inclusively in the university by participating in awareness campaigns and programs that improve the experience of minority students.

I anticipate learning a great deal in university, theoretically, and through my interactions with others. A finance major will prepare me for the workforce and transform me into an asset to the family company when I take over from my father. It will also make me an expert in the business sector with attractive employability attributes. In the future, I hope to further my education by enrolling in a graduate program.

Follman, A. (2019). What You Need to Know About Becoming a Finance and Financial Management Services Major . US News & World Report. Web.

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What Is Personal Finance Management (PFM), How Is It Used?

Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate.

What Is Personal Financial Management (PFM)?

While the moniker “personal financial management” is often used to refer to ways of managing your personal finances , it is also an actual term often known by its acronym, PFM, and refers to the type of software used for personal finance apps. PFM has been around since 1983 when Intuit co-founder Scott Cook grew tired of watching his wife struggle with all the paperwork involved in paying bills by hand.

He started to explore how to simplify, or automate, the process. On his way to hang a notice seeking a programmer at Stanford University, he fortuitously ran into Tom Proulx, who had done some programming and agreed to write a simple check-balancing program for Cook that became an early version of the personal finance software program Quicken.

And that’s how Intuit ( INTU ) was born. The company started by building out Quicken, but it was a crowded field. Cook and Proulx weren’t the only ones seeking a solution to the frustration of juggling all that bill-paying paperwork. When Quicken launched, there were already 46 other personal finance products out there, but many were clunky and not easy to use.

Quicken’s biggest selling point was its ease of use. Because it literally mimicked a paper check, the software became widely accessible to anyone who ever had to pay a bill by check. What finally pushed Quicken to the front of the pack was a combination of positive reviews of its Apple version, a direct marketing approach, and stellar customer service.

Key Takeaways

• Personal financial management, or PFM, is the term used to describe the software that powers many different personal finance and mobile banking tools.
• Since it first took off in 1983, the software has evolved and expanded beyond its initial purpose to declutter and simplify bill paying.
• As customer behavior and customer needs evolve, so will PFM software and the apps that it powers.

Understanding Personal Financial Management (PFM)

Creating a software product that mimicked a hard-copy product allowed Quicken to draw in customers, and tuning into other ways that customers were using the product allowed it to keep evolving. That was a critical key to its success.

For example, once the company found that a third of its customers were using the software for business expenses, Intuit pushed out what has become today’s Quickbooks —a version of Quicken that focuses on tracking those expenses. It also created a feature that allowed customers to download their brokerage statements and incorporate them into financial planning .

That set the stage for other PFM products to become part of a growing abundance of personal finance tools available today. They include ones focused on tracking credit scores (think Credit Karma), ones that allow individual investors to trade for their own account (think Robinhood), and ones focused on tracking spending and bill paying (think Prism). PFM is the software that powers these apps, as well as many mobile banking tools.

Quickbooks integrates with TurboTax, allowing those who are self-employed to import their financial information to file their taxes.

Special Considerations

Banking and finance apps may share PFM software, but they are not all built the same. It’s important to define what your needs are to ensure that you are using the right system. Some of these apps have free versions, although many have subscriptions to access more advanced features. Some are built for Windows, some are built for Macs, and some live in the cloud.

While mobile banking can help with bill paying, tracking deposits/withdrawals, and transferring funds between accounts, personal finance apps are often built with more comprehensive money management tools and a greater ability to personalize features. Many not only allow you to pay bills and track deposits/withdrawals but also include broader options that give you the flexibility to take more control of your financial management goals .

Personal finance apps have evolved to become much more user friendly and targeted to customers’ needs. Overall, these apps will allow you to be more organized with your finances. At the simplest level, they will help you track your budget/spending and ensure that you pay your bills on time. If you have broader needs, then there are most likely apps for them, too—or soon will be.

This list is by no means exhaustive, but it provides an overview of the top seven personal finance apps as ranked by Investopedia sister site The Balance.

• Best Overall: Quicken
• Best for Habit Building:  YNAB
• Best for Zero-Based Budgeting:  Mvelopes
• Best for Taxes:  TurboTax
• Best for Investing:  FutureAdvisor
• Best for Investment Advice:  Empower (Formerly Personal Capital)
• Best for Spreadsheet Management:  Tiller Money

Harvard Business School, Alumni. " Making Finance Personal ."

Youtube. " The Origin of Intuit | Intuit Founders Scott Cook & Tom Proulx ," June 13, 2015. (Video.)

Intuit. " Intuit’s 47th Mover Advantage: Why Being First, Doesn’t Always Mean Best ."

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5 Easy Ways to Take Control of Your Personal Finances

• Kiara Taylor

Managing your money doesn’t have to be overwhelming.

Don’t let your finances stress you out to the point of inaction. Instead, take back control by following the steps below:

• Start budgeting. But here’s the key: Don’t use your budget to set unrealistic goals about how much you are going to save and how much extra money you will earn. Instead, aim to make it an accurate description of how your finances work. See where you could be spending more or spending less.
• Create an emergency fund. Putting aside $50 a month can really add up. You should aim to have at least $1,000 in your fund until you are out of debt.
• Be honest with yourself. The financial gap resulting in your debt might be caused by a number of factors – you may not be earning enough, or you may be spending too much. You need to name the problem to figure out the right long term solution.
• Ask for help. There are plenty of services out there that can help you take back control — from financial planning services to debt management advisors to credit counseling services.

The last year has been a very difficult one. Not only have we had to deal with travel restrictions, lockdown orders, and fears of getting sick — many of us have also been struggling financially.  In fact, research suggests that financial stress is at an all-time high in America, a phenomenon explained by the numerous hiring freezes and layoffs brought on by the pandemic. 

• KT Kiara Taylor has more than 10 years of experience in finance, ranging from fixed income to emerging markets. She enjoys writing on the impact of both micro and macro trends on global finance, and has contributed to Investopedia , The Balance , and Crunchbase .

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