Personal Finance and Planning

• Refers to the management of money, encompassing activities such as investment, borrowing, budgeting, saving, and forecasting.
• Applies to individuals, businesses, and governments.

Finanzas Personales

• Involves planning and managing an individual's or family's financial resources.
• Aims to achieve financial goals like buying a house, retirement, or children's education.
• Includes managing income, expenses, savings, investments, and debts.
• Requires a basic understanding of financial concepts.

Planificación Financiera

• The process of setting financial goals and developing strategies to achieve them.
• Involves assessing the current financial situation, defining short-, medium-, and long-term objectives, and creating a plan to achieve them.
• Should be flexible and adaptable to changes in life and the economic environment.

Presupuesto

• A key tool for managing personal finances.
• Involves estimating income and expenses over a specific period.
• Allows identifying areas where one can save and control spending.
• Helps ensure living within means and achieving savings goals.

Ahorro

• The portion of income that is not spent and is reserved for the future.
• Fundamental for achieving long-term financial goals.
• Can be deposited in savings accounts, investment funds, or other financial instruments.
• Regular saving allows building an emergency fund to cover unexpected expenses.

Inversión

• The use of money to generate additional income or profits.
• Involves assuming a certain level of risk in exchange for the possibility of obtaining a return.
• Diverse investment options exist, such as stocks, bonds, mutual funds, real estate, and other assets.
• Diversification is an important strategy to reduce risk in investments.

Deuda

• Money owed to another person or entity.
• Can be useful for financing major purchases but can also be costly if not managed properly.
• It is important to avoid accumulating unnecessary debts and pay debts on time to avoid interest charges and surcharges.
• Responsible borrowing involves understanding the terms and conditions of loans and ensuring that payments can be met.

Seguros

• Contracts that protect against financial losses in the event of unexpected events.
• Different types of insurance exist, such as health insurance, life insurance, car insurance, and home insurance.
• Allow transferring financial risk to an insurance company in exchange for paying a premium.
• An important tool to protect assets and financial stability.

Jubilación

• The period of life when one stops working and relies on savings and investments to cover expenses.
• Requires advance planning to ensure sufficient resources to maintain the desired standard of living.
• It is important to consider the needs and expenses that will be incurred during retirement when planning personal finances.
• Different options exist for saving for retirement, such as pension plans, individual retirement accounts, and other financial instruments.