Money management address the concepts of cash flow (a.k.a., budgeting), personal net worth and financial goal setting. Adults should be able to create a budget, analyze their net worth, and set short-term and long term financial goals.

Its all about managing cash flow. Generally speaking there are six components to a budget: Income, Taxes, fixed expenses, Varibale Exspenses, Periodic expenses and discretionary Expenses. Each part of the budget is essential to piecing together your entire financial picture. Leave one part out and there’s a gaping hole.

Budgeting includes three basic steps:

1. Listing income and expenses;
2. Evaluating where changes need to be made in the event the budget dosen’t balance.
3. Following through to maintain the budget.