Oct 21, 2025

Financial management

• The planning, organizing, controlling, and monitoring of financial resources with the aim of achieving an organization’s goals.

How do I remember it?

• Think of Financial Management as "Managing Money Wisely."

Real world example

• Let’s say you open a coffee shop 

Planning: Estimating how much money you need to start and run the café.

Organizing: Getting funds (your savings, a loan, or investors).

Controlling: Setting a budget for rent, coffee supplies, staff salaries, etc.

Monitoring: Checking sales and expenses weekly/monthly to see if you’re making a profit.

If you spend too much on fancy furniture and not enough on quality coffee beans, your business might suffer. (Poor Financial Management!)