A Systematic Literature Review on Personal Financial Management Practices: Budgeting, Investment, Debt, and Saving

Abstract: Personal Financial Management (PFM) encompasses the practices of budgeting, saving, investing, and debt handling that directly influence individual financial well-being. This systematic literature review synthesizes findings from 47 peer-reviewed studies published between 2018 and 2024 across multiple countries and populations. The review highlights that financial literacy plays a pivotal role in enhancing individual financial behaviors, particularly in fostering saving habits, responsible investment choices, and effective debt management. Digital financial tools such as mobile banking and budgeting apps also emerge as significant enablers of financial discipline, especially among youth and urban consumers. However, behavioral and social factors such as peer influence, impulsivity, and media exposure continue to challenge the efficacy of financial education. The study underscores the importance of integrating financial literacy into educational curricula and leveraging digital innovations to enhance individual autonomy in managing personal finances. Overall, PFM is a multidimensional construct influenced by socio-economic, psychological, technological, and institutional factors that demand an interdisciplinary response in both policy and academic discourse.