Money Management


DEFINITION of 'Money Management'

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.

  1. Trading Capital

    The amount of money allotted to buying and selling various securities. ...
  2. Assets Under Management - AUM

    The market value of assets that an investment company manages ...
  3. Wrap Account

    An account in which a brokerage manages an investor's portfolio ...
  4. Portfolio Management

    Portfolio Management is the art and science of making decisions ...
  5. Money Manager

    A business or bank responsible for managing the securities portfolio ...
  6. Investment Advisor

    As defined by the Investment Advisors Act of 1940, any person ...
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