Finance is a system or field that is related to the management of money, investments, and financial resources. Its basic purpose is to understand how to earn, spend, save, or invest money so as to achieve financial goals. Finance is equally important for individuals, businesses, and governments.
Type of Finance:
1. Personal Finance:
Understands the financial decisions and planning of an individual or family. Ex: Budgeting, savings, loans, retirement planning, investments.
2. Corporate Finance (Business Finance):
Manages the financial resources of businesses. Ex: Company's investments, profit distribution, fund raising, mergers.
3.Public Finance:
Management of government income and expenditures. Ex: Taxes, public expenditure, national budget.
Role of Finance in Daily Life:
- Savings Account: Saving money for your future goals.
- Credit Cards: A method of loans or borrowing.
- Investments: To grow wealth through stocks or mutual funds.
- Insurance: Keeping health and property secure.
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