I can define Financial Management as an activity that helps in managing the finances of an individual or organization in a well manner to allow smooth completion of goals and objectives. Financial management also gives basic knowledge of finances, and it also necessitates the utilization of management principles to the financial aspects of an organization. It enables a student like me to understand how to control and manage our finances, thus allowing us to have a financially healthy life. With this, it can also prepare me for my future work.
The following are the situations wherein a student like me can apply financial management.
As a student, I can apply financial management to make simple financial decisions on my day-to-day life, such as how I can adequately manage my allowance. It will help me to make wise budgeting decisions, which means that it will allow me to observe my finances' inflows and outflows and avoid misuse of my allowance.
One more way of applying financial management is to have a contingency fund. In this way, I am not only following the importance of managing finances; it can also help me avoid finding myself in a financial crisis.
I can also apply financial management if I want to invest something, such as by trading stocks. Financial management will enable a student like me to understand if something is worth investing in by computing its returns and the estimated value. This will also allow me to discern if I am in the right situation to invest financially.