finance

The word “finance” means the management of money, investments, and other assets. In plain terms, money matters in general — managing it, or arranging to borrow it for a purchase.

“Finance” is pronounced fih-NANS (/fɪˈnæns/ in IPA).

Here is “finance” used in a sentence: “She studied finance before working at an investment bank.”

Depending on how it is used, “finance” can be a noun and a verb.

The word “finance” comes from Latin. From Old French finance, originally meaning "payment" or "settlement of a debt," from finer ("to pay a ransom/settle a debt"), ultimately from Latin finis ("end").

“Finance” is a fairly common word in modern English, usually learned at around the B1 level.

“Finance” has 3 distinct senses listed in this dictionary. The most common is: the management of money, investments, and other assets.

Accounting records and reports what has already happened with money — tracking transactions, preparing statements, and ensuring the books are accurate. Finance is forward-looking: it uses that information to plan, raise funds, and decide how to invest or spend to grow value. In short, accounting looks back while finance looks ahead.

Finance is usually split into three areas. Personal finance covers individual budgeting, saving, and borrowing. Corporate finance deals with how companies raise capital and manage profits. Public finance concerns government income and spending, such as taxes and budgets. All three share the same core aim: managing money and assets wisely.

Finance turns money into a tool for reaching goals. For individuals it makes saving, borrowing, and planning for the future possible. For businesses and governments it decides which projects get funded and how risk is managed. Sound financial management keeps organisations solvent and helps resources flow to where they are most useful.

Economics is the broad study of how societies produce, distribute, and consume resources, looking at big patterns like inflation and employment. Finance is narrower and more practical, focusing on how individuals, companies, and institutions actually manage money, investments, and assets. Economics explains the system; finance operates within it.