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Financial management is a Chinese word, pinyin is lǐ cái, and English is Financing, which 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.
"Financial management" is often used with "investment and financial management" because "financial management" includes "investment" and "investment" includes "financial management". The so-called financial management is not only about investing in financial management, but also about being invested. If you don't know how to invest, you don't know how to manage money better.
Financial management, as its name implies, refers to financial management. When people talk about financial management, they think of either investing or making money. In fact, the scope of financial management is very wide. Financial management is to manage the wealth of a lifetime, that is, the cash flow and risk management of an individual's life. Financial management is to manage the wealth of a lifetime, not just to solve the problem of urgent need for money.
Financial management is cash flow management. Everyone needs money (cash outflow) when he is born, and he also needs to make money to generate cash inflow. Therefore, whether you have money or not, everyone needs to manage money.
Financial management also includes risk management. Because more flows in the future are uncertain, including personal risk, property risk and market risk, which will affect cash inflow (income interruption risk) or cash outflow (cost increase risk). The wealth management products provided by commercial banks in China are generally certificates of deposit and asset management products. Funds sold by brokers or fund companies are not financial management.
Securities financing generally includes securities income certificates, asset management products and so on. Insurance financing tends to be long-term, focusing on solving education planning and pension planning after a long time, and solving security problems such as accidents and medical care. Financial management of investment companies generally includes trust funds, gold investment, jade, jewelry, diamonds and third-party financial management. With high initial capital requirements, it is suitable for high-end financial managers.