It is a field that covers managing money - saving as well as investing.

It is about meeting personal or household's financial goals, whether it is short-term like buying house, car, or long term like retirement planning, saving for child's college expenses.

Few advance schools teach personal finance as a course. This subject is much more essential because at younger age what we learn changes our financial habits like saving, wise investment decision and credit card use, practicality of compounding effect of money in real life and more.

Being financially disciplined is as import as developing smart strategies like budgeting, creating emergency funds, retirement planning and more.

Risk management is the process of identifying, assessing and controlling threats to an personal or organization's capital and earnings. 

These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters. 

Knowledge of type of risk we can face is important so that we can diversify that risk. Because not all risk can be diversified, so for those we hedge our risk.

Sometimes we take more risk without our knowledge for the same return like in MF investment or new business projects.