Financial prudence is the practice of managing one's finances in a responsible and wise manner. It involves making decisions that are mindful of both short-term and long-term financial goals. Two words that are often associated with financial prudence are ECONOMY and FRUGALITY. ECONOMY is the practice of being careful with money, while FRUGALITY is the practice of being thrifty and avoiding unnecessary spending. Financial prudence is an important part of personal finance and can help individuals achieve their financial goals.