What is Finance? Finance refers to the management of money and includes activities like investing, borrowing, lending, budgeting, and saving. It is broadly categorized into three types: 1. Personal Finance – Managing individual or family finances, including expenses, savings, and investments. 2. Corporate Finance – Managing a company’s financial activities such as funding, capital structuring, and resource allocation. 3. Public Finance – Government-related financial management, including taxation, expenditure, and bud geting. Key Concepts in Finance. 1. Budgeting Budgeting is the process of creating a plan to spend your money. It ensures that you have enough resources for essential expenses and future savings. The 50/30/20 rule is a popular budgeting method: 50% for necessities (rent, groceries, utilities). 30% for wants (entertainment, dining out). 20% for savings and debt repayment. 2. Saving. Savings involve setting aside money for future needs. Building an e...