The Importance of Money Management


Money management is a skill that everyone must learn in life. Although you may not be financially savvy, plenty of help is available for you to better understand your finances.

The Reality

  • According to a 2007 survey from MSN Money, the average American household has an average of $8,000 in consumer debt. High consumer debt is usually a sign of poor money management and can lead to difficult financial situations for families.


  • Creating a budget for all household income is the most important part of personal money management. Budgeting helps individuals and families to understand their cash inflows and outflows, giving them an understanding of their current financial situation.

Debt Management

  • Because most people have debt, proper financial education includes understanding consumer debt and how it works. National financial advisers and credit counselors provide advice on reviewing debt amounts, loan terms, and how to effectively pay off loans quickly.

Financial Advice

  • Reviewing information from popular financial advisers, such as Dave Ramsey or Clark Howard, will help educate individuals on proper money management skills. These advisers provide information on budgets, how to live without credit cards, and reveal consumer scams related to debt consolidation companies.

Credit Counseling

  • Credit counseling can aid individuals with large amounts of consumer debt. The LSS Financial Counseling Service and National Foundation for Credit Counseling are two reputable sources for consumer debt information. Reputable debt counselors help people choose which debt management firms can help their needs.

Related Searches


Promoted By Zergnet


You May Also Like

  • The Importance of Quality Management

    Quality management is a business principle that ensures excellence in a company's products, services and internal processes. Companies that implement quality management...

  • The Importance of Environmental Management

    It's easy to take for the granted the importance of environmental management. However, its economic and intrinsic value can not be overstated....

  • Importance of Project Risk Management

    A company's top executives chart a project risk management strategy to ensure a timely and successful task completion in short-term initiatives or...

  • The Importance of Personnel Management

    Personnel management is something that many companies focus on, while other companies tend to spread out personnel management responsibilities to various executives...

Related Searches

Check It Out

4 Credit Myths That Are Absolutely False

Is DIY in your DNA? Become part of our maker community.
Submit Your Work!