ACCOUNTING AND PERSONAL FINANCE MANAGEMENT

Abstract

In childhood ,we learn to associate personal finance with the coins in the piggy bank. In adulthood, personal finance means much more. If an individual's money stays in the checking account without any financial activity, its value decreases in relation to inflation or other types of financial factors. Throughout history, people have tried to accumulate their financial assets. Bad decisions from the point of view of personal financial management can lead to serious problems and even bankruptcy. The objective of this work was to discuss the importance of accounting in the management of personal finances. To carry out this research it was used a qualitative approach, a descriptive method, and an integrative literature review, in which sources of conceptualized authors were prioritized. Personal finances are activities that involve the financial planning and organization of a person, as well as his or her family, covering all individual financial decisions, which include budgeting, saving, insurance, and mortgages. When a person plans their personal finances, they need to take into consideration a number of financial aspects and personal factors. Personal finances have a huge influence on an individual's life and future.