Financial management is a process of managing assets and liabilities through various means, such as savings, insurance, securities, foreign exchange, collection and housing investment. On the basis of analyzing and sorting out data such as income, assets and liabilities, according to risk preference and tolerance, reasonably arrange funds to maximize asset appreciation within acceptable risk range.

Personal financial management refers to how to make rational use of financial resources to achieve personal life goals. Financial management is a process of making, arranging, implementing and managing an overall and coordinated financial plan in order to realize one's life goals and ideals.

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 to manage the wealth for a lifetime, not to solve the problem of urgent need for money.

2 Financial management is cash flow management. Everyone needs to use money (cash outflow) when he is born, and earn money to generate cash inflow. Therefore, no matter whether you have money now 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).