The Importance Of Financial Management On Personal Finance

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The aim of this chapter is to interpret the findings from previous research done regarding the impact that financial management has on personal finances, by discussing how the understanding of the Financial Management module may influence an individual’s personal finances and why the results they observed are expected to influence student’s personal finances.

4.2 The relevance of the subject financial management in assisting students to manage their finances.
Students can use the Financial Management module to assist them in handling their personal finances. As discussed in the literature review, Shange (2015) stated that students are unable to save or invest because of instant gratification. The students are more focused on spending their money now instead of saving and investing. Yin (2013) stated a few components which are dealt with, within personal financial planning which are budgeting, financing car, education or house, protecting your income and personal investing and record keeping. These components cover situations that students face at a University. Without personal financial planning, students will not be equipped with the knowledge needed in order to deal with the situations addressed by the components stated. The students will also not have a guideline on having control over their personal finances. …show more content…

This shows that the skills obtained from the Financial Management module can be used by students in University to enhance their financial literacy. The topics addressed in the chapters of long term financing decisions and long term investment decisions are relevant to budgeting and risks related thereof and also the understanding of cashflows, therefore financial literacy is obtained by the students through learning the contents taught by the Financial Management

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