Final answer:
Financial management involves making informed decisions about budgeting, investing, using credit, and managing risk to achieve financial goals.
Step-by-step explanation:
Financial management refers to the discipline and practice of managing an individual's or organization's financial resources. It involves making informed decisions about budgeting, investing, using credit, and managing risk to achieve financial goals.
For example, budgeting is a key aspect of financial management, as it helps individuals and organizations allocate their income and expenses effectively. Investing early in life allows for the growth of a financial nest egg over time. Understanding credit and its costs and benefits helps in making wise borrowing decisions.
Overall, by acquiring knowledge and skills in financial management, individuals can become informed decision-makers in our economy and effectively manage their own financial well-being.