Abstract
The world is currently experiencing a dramatic crisis that has not yet reached bottom. In Mexico, in the second quarter of 2020, there was a drop in the gross domestic product of 18.9% compared to the same quarter of 2019. In this context, the objective is to identify types of personal expenses in households located in Culiacán, Sinaloa, Mexico as of July 15, 2020. The main results were that most of the respondents' budgets spend according to their income, have had no problem paying their bank loans on time, would consider a fund for future contingencies, have not purchased health insurance, have not bought a computer or cell phone, among other issues analyzed. The main findings are oriented to the fact that the studied population has not acquired additional medical insurance despite the pandemic. It is also concluded that the population under study has become aware of having savings for contingency funds and that digital life still shows resistance in making personal financial decisions.
TopLiterature Review
Finance is defined as the art and science of managing scarce financial resources, by individuals or legal entities with the objective of making decisions about income generation and application of cash expenses; and the percentage of expenses with respect to their income, the percentage of savings, and investment, framed these in the principle of maximization of wealth. Likewise, the purpose of personal finances is to achieve the well-being of the individual and for companies it is the generation of profits, how they are applied in the same business or if they are distributed among the partners. Finance management is mainly directed to the analysis and control of cash flows, considering the inflows and outflows of money, to generate solvency and face credit obligations and acquire assets to meet the established goals (Gilman & Sutter, 2016).
The purpose of personal finances is to analyze weekly, biweekly, or monthly consumption habits that allows establishing an action plan on these habits according to the priorities that are been set up. This is achieved with a “budget that determines how much you have and how much you can spend and save while maintaining balance” (Rodríguez-Raga, 2017, p. 7). Personal finances are also known as family finances, that is, it deals with the way in which money is earned to acquire their assets, how they save and interact in the financial system. The purpose is to support families to achieve financial security, some contextual issues are financial education, ability, and well-being. (Dew, 2016). For Chiodi in 2020, he asserts that what can be more controlled in personal finances are the outflows of money or expenses, compared to the inflows of cash. He recommends that each spending decision be taken long enough to evaluate.