Financial management refers to the management of finance (property and debt) for the purpose of maintaining and increasing the value of finance. Financial management is divided into corporate financial management, institutional financial management, personal financial management and family financial management. Human survival, life and other activities are inseparable from the material foundation and are closely related to financial management.

Wealth management income should be taxed, but wealth management income such as national debt, local debt, and non-guaranteed income wealth management products is exempt from taxation. Stock dividend income from stock purchase belongs to "interest, dividend and bonus" in personal income tax. According to relevant regulations, personal income tax needs to be withheld and remitted at the rate of 20%.

The significance of financial management

1. Preservation and appreciation of existing assets

Asset appreciation is the common goal of every investor. Different age groups have different investment needs. For example, young people who have just graduated are in the stage of wealth accumulation, and the biggest investment should be their own investment. For some people with strong economic strength and investment ability, a specific figure should be determined for asset appreciation.

2. Ensure the safety of funds

The security of funds includes two meanings: one is to ensure the integrity of the amount of funds; The second is to ensure that the value of funds does not decrease. That is, to ensure that funds will not suffer losses due to losses and depreciation. Real investors should have a moderate mentality, not the more they earn, the better, but be clear about the risks and benefits of investing in products.

3. Ensure a sense of security for the elderly

It is a common problem for modern people to make an appropriate investment plan as soon as possible to ensure their independence and prosperity in their later years. Retirement age, estimated annual living expenses after retirement, estimated inflation rate and estimated annual return on investment after retirement should be considered in the pension plan.

Resist an accident

A correct investment plan can help us minimize losses when risks come, such as accidental injury, which refers to serious physical trauma caused by unintentional, foreign and unpredictable reasons.