Finance is the science and art of managing money. It answers the fundamental questions: How should individuals save and invest? How should companies fund their operations? How should governments manage public resources? Everything involving money — earning, spending, investing, borrowing, and saving — falls under finance.
Three branches: personal finance (budgeting, saving, investing for individuals), corporate finance (how businesses raise and use capital), and public finance (government revenue, spending, and debt). Modern finance theory rests on principles like the time value of money, risk-return tradeoff, diversification, and market efficiency.
The global financial system manages over $400 trillion in assets and employs millions. Finance careers span investment banking, asset management, insurance, fintech, and consulting. The field has been transformed by technology — algorithmic trading, blockchain, digital banking, and AI are reshaping how money moves around the world.