Managing Personal Finance

Oleksandra Golovchenko
MANAGING PERSONAL FINANCE IN contemporary world

      In modern world we meet the term personal finance practically every day. But what does personal finance mean? It is the application of the principles of finance to the monetary decisions of an individual or family unit. It addresses the ways in which individuals or families obtain, budget, save, and spend monetary resources over time, taking into account various financial risks and future life events. Nowadays people manage their personal finance with the help of banks, financial institutions that provide banking and other financial services.
      The name bank derives from the Italian word banco "desk/bench", used during the Renaissance by Florentine bankers, who used to make their transactions above a desk covered by a green tablecloth.   A bank is a government-licensed financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money at differing maturities. It is an institution for receiving, keeping, and lending money at interest.
The main services of the bank include providing checking and savings accounts, lending money to companies and people, facilitating money transactions, online banking and many others. There are two main transactions – money deposits and withdrawals. The banking terms "deposit" and "withdrawal" tend to obscure the economic substance and legal essence of transactions in a deposit account. By opening an account, you receive a checkbook and a passbook with your account numbers listed on them. People can also deposit a check into an account, but then they must endorse the back of it. If you are making a transaction at the bank, you have to bring 2 form of identification with you.
      Today we have lots of different kinds of payments: we may pay in cash, check or with a credit card. When using a credit card for purchasing some goods, you should remember some rules. First of all every month you receive a...