Finance as the Most Vital Component of Human Development

Finance is a term which can be defined in either of the two ways; one is, in the study of money and wealth management and another is the method of optimum allocation of the resources. As everything that is run by human, any individual, business house or even the government, all need proper finance to run their functions effectively. In basic term, finance is said to be the study of money and management of wealth and resources. However finance can be classified into different aspects based on their different uses and implications. Like Personal finance, public finance and corporate finance, all being distinct in their respective forms and importance.

Untitled 300x214 Finance as the Most Vital Component of Human Development
Finance Is the Foundation of Human Civilization

  1. Personal finance– personal finance is often termed as the individual finance. The money required by individual household to perform various activities, such as personal loans, education, health, marriage, travel, ceremonial activities and many more. These are termed as the personal finance.
  2. Public finance– Public finance is termed as money required by the government, to perform various function, social and political which are defined as the activities and work taken up by the government for the development of the society and the nation.
  3. Corporate finance– Corporate finance can be described as, the money needed by various private organizations and bodies, for their various activities , like funding new ventures, managing salaries and perks of the employees, investing in various projects, and their overall growth and development, all can be termed as corporate finance.

Importance of Finance

Origin of Finance is said to be as old as the human civilization. The word finance is a popular French word of the eighteenth century, which means the optimum use of money and resources. Later on it has evolved, not only in the arena of practicality and academic importance, but also it is held completely as a different section of study, being regarded as one of the main branch of economics. It is not necessary that finance has to do always with the money, even the system of barter can also be termed as finance. Thus finance can be said to be the management of various available resources efficiently. Importance of finance at the present world is unimaginable; no productive work or activities can be done or carried away without the proper implication of finance, it has become the heart and soul of human progress. From the individual household activities, to development and growth in business, to internal and external development of a country, finance is vastly needed in each and every sphere.  However there are various sources of generating finance and the main sources are stakeholders, banks, and creditors.

Conclusion

Finance is an inseparable part of human life and is very important in day to day cores and activities; it has vast area of use and implication. Apart from providing funds for various activities to be carried out, it also helps in management and the allocation of money and resources efficiently.  Finance is so much important that, human world just cannot exist without it. To start up a new business, providing funds for various projects and even performing simple household work, we all need finance and without it human world just cannot exist.

Author’s Bio: Alisa Martin, is a regular blogger, and have been authoring articles on various finance topics for the past decade. She is a regular contributor to Güvenli ukash siteleri-IdealKash.

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