Financial planning: meaning and definition

The definition at a glance

The process of setting goals and organizing how money will be used to reach them over time.

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A plan for expected income and expenses over a period. It helps allocate money to needs, commitments and goals.

An amount or financial obligation that a person or family still needs to pay to another person, company or institution.

An expense that is not essential to meet basic needs and can be reduced or postponed according to the budget.