Financial mismanagement

Financial mismanagement is management that, deliberately or not, is handled in a way that can be characterized as "wrong, bad, careless, inefficient or incompetent" and that will reflect negatively upon the financial standing of a business or individual. There are many ways of how financial mismanagement is carried out. For example, the wrong distribution of responsibility, to be remiss with payments, bills and taxes and neglecting responsibility, financial problems and economical standing can cause great financial mismanagement and further on devastate your economy. By looking to various cases where the financial management has gone wrong we will be able to comprehend the effect financial mismanagement can have and how crucial it is for an economy's success to carry out well working financial management.
History.
Financial management has always been key to a successful business, and is crucial for an economy to function. There are not only companies and individuals that have economies that rely on financial management but also entire societies and countries.
Examples.
Throughout the years there have been infinite companies, persons and also countries that have been declared bankrupt, caused by financial mismanagement. By taking a look at some of the world's largest economies we can find cases where the financial management has somehow gone wrong and will depict how severe the effect of financial mismanagement can actually lead out to be. 
There are numerous examples of where finances are not managed right and where companies, individuals and even countries are liquidated, and even more examples where there has been episodes of financial mismanagement but the situation was still able to be escaped.
Prevention.
Financial mismanagement will always be a possible problem, for businesses, individuals and also entire countries. To prevent personal financial mismanagement it is important to have financial education from an early age. For a business to succeed in their finances it is crucial to employ people with the right qualifications and experiences and to continuously appraise the financial state within the business.