1. Definition of personal finance

The International Association of Financial Planners (IAFP) first defined personal financial management, believing that personal financial management is "based on analyzing personal and financial situation and ability, providing them with specific plans and suggesting action strategies and schemes as paid services to achieve financial goals"; The definition of American Association of Certified Financial Planners (ICFP) is: "Personal financial planning is to organize financial and personal information, formulate a strategic plan, and constructively manage income, assets and debts, so as to achieve short-term and long-term goals. The key to the success of personal financial planning process is to pay attention to and regularly check the implementation of the plan to ensure the realization of customer goals. The American International Financial Planner Standards Committee believes that the key to personal financial management is "the process of determining whether and how to achieve personal life goals through scientific management of financial resources".

To sum up, personal financial management is a process of realizing financial management goals through comprehensive and effective management of assets, liabilities, income and expenditure on the basis of understanding and analyzing customers' situation and according to customers' life, financial management goals and risk preferences.

2. Wealth management and personal finance

(1) Investment and financial management

Investment or investment management is a process of asset allocation and investment tool selection to realize asset preservation, appreciation or current income, and wealth management covers a wide range, including wealth accumulation, wealth protection and wealth distribution in addition to asset allocation. Therefore, wealth management includes investment management.

(2) personal finance and wealth management

In the Interim Measures for the Administration of Personal Financial Services of Commercial Banks, CBRC defines personal financial services as professional services such as financial analysis, financial planning, investment consultancy and asset management provided by commercial banks to individual customers.

Wealth management has the same two meanings. First, it refers to the tools and methods of specialized services, including processes; The second refers to wealth management business. As far as the former is concerned, that is, in the tools and methods of professional services, it is difficult to distinguish between the two definitions of personal financial management and wealth management, and they are essentially the same.

(3) Personal finance business and wealth management business

Personal finance involves a wide range of markets, including money market, bond market, stock market, financial derivatives market, foreign exchange market, insurance market, precious metal market, real estate market, collectible market and so on. These markets have different operating characteristics and can meet the financial needs of different customers.