Personal finance describes all monetary decisions a family or an individual takes to get, budget, save and spend monetary resources over a period of time. These decisions factor in futuristic life events and several financial risks. An individual plans personal finances after considering his requirement of banking products, insurance and investment products, social security benefits, retirement plans and income tax management. Most individuals subject to age group have similar expenses and financial planning elements to consider.
Financial planning is hence the vital element of personal finance. This dynamic process mandates consistent monitoring and reviews. The Financial Planning Standards Board suggests six pivotal areas of personal finance planning: ascertainment of financial position, determining adequate protection, managing taxes, planning investment goals, designing retirement plans and finally estate planning involving disposition of assets after death.