Personal finance refers to the management of an individual’s financial activities, encompassing budgeting, saving, investing, and planning for future financial goals. It involves making informed decisions about income, expenses, debt, and assets to achieve financial stability and independence. Key components include understanding tax implications, retirement planning, insurance, and the effective use of credit. Personal finance aims to empower individuals to take control of their financial futures, ensuring they can meet both short-term needs and long-term aspirations.