Finance is the study and management of money, investments, and other financial instruments. It’s all about how individuals, businesses, and governments manage their money—how they earn it, spend it, save it, invest it, and borrow it.
There are three main types of finance:
- Personal Finance – Deals with individual or household financial decisions like budgeting, saving, investing, insurance, and retirement planning.
- Corporate Finance – Focuses on how businesses handle their financial activities—raising capital, managing assets, analyzing investments, and maximizing shareholder value.
- Public (or Government) Finance – Involves how governments manage revenue (like taxes) and expenditures to influence the economy.
