Money management skills are crucial abilities that enable individuals to effectively oversee their financial resources to achieve both short-term financial stability and long-term financial goals. These skills encompass a range of practices and principles that empower individuals to make informed financial decisions, allocate resources wisely, and plan for future financial needs.

At its core, effective money management begins with understanding one's current financial situation. This involves assessing income sources, expenses, debts, and assets. By having a clear picture of their finances, individuals can develop realistic budgets that prioritize essential expenditures while also allocating funds for savings and investments. Budgeting is a fundamental aspect of money management, helping to track spending patterns, identify areas where savings can be made, and ensure that financial obligations are met on time.