What is the definition of personal finance?

The definition of personal finance encompasses the management of an individual's financial activities, which includes budgeting, saving, investing, and planning for future financial needs. This broad perspective covers all aspects of handling personal money matters, such as managing income, expenses, debt, and savings for goals like education, retirement, and major purchases.

While other options touch on specific components or aspects of personal finance, they do not capture the full scope of what personal finance entails. For instance, focusing solely on investment in stocks and bonds or saving for retirement excludes vital aspects like budgeting and managing daily expenses. Similarly, making consumer purchases represents just one part of financial decision-making rather than a comprehensive definition of personal finance. Therefore, the correct answer accurately reflects the comprehensive nature of personal finance as it relates to an individual's overall financial management.