What does personal finance encompass?

Personal finance encompasses decisions related to money for individuals or families because it involves a broad range of financial activities that people engage in to manage their economic well-being. This includes budgeting, saving, investing, borrowing, and planning for future financial goals, such as retirement or education.

The focus of personal finance is on making informed choices that affect one's financial situation, ensuring that individuals or families can achieve financial stability and a desired quality of life. These decisions are deeply personal and can vary widely based on individual circumstances, goals, and values.

In contrast, the other options provided lack the comprehensive scope that defines personal finance. While budgeting skills are a critical component of personal finance, they represent only one aspect of the broader financial picture. Similarly, while investment strategies are crucial for building wealth, they are part of the decision-making process rather than the entirety of personal finance. Government financial policies may influence individuals' finances but do not directly pertain to personal financial decision-making at the individual or family level.