Explain personal finance software.
What will be an ideal response?
Student responses will vary, but should be drawn from the following information from the text.
Personal finance software is a simplified accounting application that helps home users and small/home office users balance their checkbooks, pay bills, track personal income and expenses, verify account balances, transfer funds, track investments, and evaluate financial plans. Personal finance software helps determine where, and for what purpose, you are spending money so that you can manage your finances.
Most personal finance software includes financial planning features, such as analyzing home and personal loans, preparing income taxes, and managing retirement savings. Other features include managing home inventory and setting up budgets. Most of these applications also offer a variety of online services, such as online banking and online investing.
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