Financial management refers to the management of finance (property and debt) for the purpose of maintaining and increasing the value of finance.
Financial management can be divided into corporate financial management, institutional financial management, personal financial management and family financial management. Financing channels include bank financing, securities company financing, insurance financing and investment company financing. And investment channels include speculation, funds and stocks.
The word "financial management" first appeared in newspapers in the early 1990s. With the expansion of China's stock and bond markets, the enrichment of commercial banks and retail businesses, and the increase of citizens' overall income year by year, the concept of "financial management" has gradually become popular. Personal financial management can be roughly divided into personal assets and personal liabilities, including funds, stocks, bonds, deposits, life insurance, gold and other personal assets; Personal housing mortgage loan and personal consumption credit belong to personal liabilities.
Specific content
Financial management, as its name implies, refers to financial management. When people talk about financial management, they think of either investing or making money. In fact, the scope of financial management is very wide. Financial management is to manage the wealth of a lifetime, that is, the cash flow and risk management of an individual's life. Contains the following meanings:
Financial management is a lifetime wealth, not just to solve the problem of urgent need for money.
2 Financial management is cash flow management. Everyone needs money (cash outflow) when he is born, and he also needs to make money to generate cash inflow. Therefore, whether you have money or not, everyone needs to manage money.
③ Financial management also includes risk management. Because more flows in the future are uncertain, including personal risk, property risk and market risk, which will affect cash inflow (income interruption risk) or cash outflow (cost increase risk).
Financial management method
Domestic institutions that can provide financial services to customers mainly include banks, securities companies and investment companies.
1. Bank investment
The wealth management products provided by commercial banks in China are generally certificates of deposit and asset management products. However, funds with hairstyles sold by brokers or fund companies do not belong to financial management.
2. Financial management of securities companies
Securities financing generally includes securities income certificates, asset management products and so on.
3. Insurance financing
Insurance financing tends to be long-term, focusing on solving education planning and pension planning after a long time, and solving security problems such as accidents and medical care.
4. Investment company financing
Financial management of investment companies generally includes trust funds, gold investment, jade, jewelry, diamonds and third-party financial management. With high initial capital requirements, it is suitable for high-end financial managers.
5. E-commerce financial management
2 1 century, in addition to online banking, financial search engines on the internet can also be used to search for financial products, compare risks and benefits, and then make investments.