What is a Personal Finance Manager?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 24 March 2020
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A personal finance manager is a financial service or resource that aids in maintaining accurate personal financial records and managing available funds in the most responsible manner possible. When provided as a service by an accounting or other type of financial professional, a personal finance manager handles all financial transactions on behalf of a client, including the payment of household expenses. In recent decades, the term has also been applied to different types of personal finance software that simplifies the financial accounting process for households.

As a financial professional offering specific services to a client, the personal finance manager typically has some background in financial accounting and money management. A manager of this type often fills the role of a personal finance counselor to his or her clients, helping them to develop financial goals as well as learning how to live within their means. Individuals and households may seek the services of a personal finance manager after experiencing financial setbacks that have left their personal finances in disarray. The manager may also be hired to take care of day to day living expenses on behalf of the client, using a budget that is acceptable to the client.


Personal finance software is also identified as an electronic variation on the personal finance manager. With this application, the software application may be relatively simplistic in design, providing end users with the basic tools needed to draft a budget, schedule payments, and record credits and debits. Other software packages are somewhat more intuitive, and use a series of questions to help create the basic templates for financial accounting. This software may prompt users when the due date for an outstanding debt is approaching, provide resources to manage electronic funds transfers, and to import financial data from specified sources. In recent years the use of personal finance management software has expanded, as different software packages have been developed, with some available for free or at nominal prices.

Whether in the form of a financial professional who personally works with clients to balance budgets, or software that aids in tracking and scheduling transactions, a personal finance manager makes the task of keeping up with household finances a much simpler task. People who begin using services of this type often find it easier to save money and control their spending, two important events that ultimately improve their overall financial condition and make it easier to create financial resources for retirement, emergencies, and other worthy causes.



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