What is 'Money Management'

Money management is the process of budgeting, saving, investing, spending or otherwise in overseeing the cash usage of an individual or group. The predominant use of the phrase in financial markets is that of an investment professional making investment decisions for large pools of funds, such as mutual funds or pension plans.

Also referred to as "investment management" and/or "portfolio management".

BREAKING DOWN 'Money Management'

While the term is usually used in reference to professional money managers, everyone practices some form of investment management with their personal finances. There are a wide range of money management services, from the operation of passively-managed mutual funds with low fees to in-depth estate planning and consulting.

RELATED TERMS
  1. Investment Management

    A generic term that most commonly refers to the buying and selling ...
  2. Managed Account

    An investment account that is owned by an individual investor ...
  3. Division Of Investment Management

    The Division of Investment Management is a branch of the U.S. ...
  4. Managed Money

    A means of investment where the investor, rather than buying ...
  5. Money Manager

    A business or bank responsible for managing the securities portfolio ...
  6. Manager Of Managers - MOM

    A class of financial intermediary that hires professional investment ...
Related Articles
  1. Investing

    Pooled Funds Minimize Risk and Reward

    Pooled funds combine money from many individuals to invest in vehicles like a mutual fund or a pension fund.
  2. Investing

    The Benefits of Picking Mutual Funds Over Individual Stocks

    Learn about the advantages of investing in mutual funds rather than individual stocks, including the benefits of affordability, oversight and diversification.
  3. Financial Advisor

    A Mutual Funds Guide for Young Investors

    Learn how mutual funds work, why they are so popular and how younger investors can get started by putting mutual funds in their IRAs or 401(k)s.
  4. Financial Advisor

    How to Rate Your Mutual Fund Manager

    What to really look for when you're deciding on a mutual fund.
  5. Retirement

    Should Retirees Invest in Mutual Funds?

    The pros and cons of using mutual funds as the investment vehicle of choice for your post-career portfolio.
  6. Financial Advisor

    This Is How Much Mutual Fund Managers Make

    Learn about the high-paying salaries of mutual fund managers and the low level of transparency in income reporting by mutual fund companies.
  7. Financial Advisor

    This is Where Most Pension Funds Invest

    Pension funds have moved beyond traditional investments in bonds and stocks. The new order includes private equity and alternative investment pools.
  8. Investing

    Scoring Fund Investment Quality

    Learn some background on mutual funds and what factors can be used to assess their investment quality.
RELATED FAQS
  1. Where does a hedge fund get its money?

    Learn how a hedge fund is structured and how the managing partner of the fund goes about the process of finding and soliciting ... Read Answer >>
  2. What is the difference between portfolio management and financial planning?

    Understand the difference between financial planning and portfolio management, and learn which financial professionals can ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment is made with the expectation of earning a return on it. This ...
  3. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
  4. Buyback

    The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies ...
  5. Tax Refund

    A tax refund is a refund on taxes paid to an individual or household when the actual tax liability is less than the amount ...
  6. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced within a country's borders in a specific time period, ...
Trading Center