Finance Definition

The management of money.

What is Finance?

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

 

What is Finance? - Definition

 

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.

Finance 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 People at Work

 

Finance Topics

There is a wide range of topics 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.

Finance topics:

 

Sources of Information

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

 

Additional Resources

Thank you for reading this quick guide that answers the question: what is finance? CFI is on a mission to help anyone become a world-class financial analyst by creating the Financial Modeling & Valuation Analyst (FMVA)™ certification program. To continue developing and preparing for a career in the field, these additional materials will be helpful:

Example Excel Model

Below is a screenshot from one of CFI’s online analyst training and certification courses, offered 100% online.

To learn How to Build an Excel Model step-by-step, click on the image below.

financial modeling questions and answers

Additional Questions and Answers

CFI is the official global provider of financial modeling and valuation analyst FMVA Designation. CFI's mission is to help anyone become a world-class financial analyst and has a wide range of resources to help you along the way. In order to become a great financial analyst, below are some additional questions and answers for you to explore further:

Analyst Certification Program