What is Finance?

Finance is defined as the management of money and includes activities such as investing, borrowing, lending, budgeting, saving, and forecasting. There are three main types of finance: (1) personal, (2) corporate, and (3) public/government. This guide will unpack the question: what is finance?

 

Examples

The easiest way to define finance is by providing examples of the activities it includes. There are many different career paths and jobs that perform a wide range of finance activities. Below is a list of the most common examples:

  • Investing personal money in stocks, bonds, or guaranteed investment certificates (GICs)
  • Borrowing money from institutional investors by issuing bonds on behalf of a public company
  • Lending money to people by providing them a mortgage to buy a house with
  • Using Excel spreadsheets to build a budget and financial model for a corporation
  • Saving personal money in a high-interest savings account
  • Developing a forecast for government spending and revenue collection.

 

Finance Topics

There is a wide range of topics that people in the financial industry are concerned with. Below is a list of some of the most common topics you should expect to encounter in the industry.

 

Sources of Financial Information

To learn more about the industry, here are some of the most popular and helpful resources:

 

Finance Careers

A definition of finance would not be complete without exploring the career options associated with the industry. Below are some of the most popular career paths: