What is the Meaning of: Finance | Concept and Definition of: Finance
The term finance which is of French origin refers to the commitment that a person assumes to be able to meet its obligations towards someone else. The concept is also wealth, property and public Treasury.
In everyday language, finance means the study of the circulation of money among individuals, companies, or several States. However, the finances are a branch of the economy devoted to analyze how the funds are and managed. In other words, finance are responsible for the administration of money.
The notion of personal finance has to do with the money that households (families) need to survive. People should analyze how to get this money and how to store it to deal with unforeseen situations (as, for example, dismissal or unemployment). Other personal finance applications are possible such as the ability to make savings, expenses, and investments.
Corporate finance, on the other hand, are based on the capacities of companies to create values while using financial resources. Investment (placement), financing, profit and dividend are some of the concepts related to this field.
Finally, there's place to say that public finances are the fiscal policy of a State. Government receives funding through taxes and then reinvest that money in society with public spending (construction of hospitals and schools, health care and health, etc.).