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Money is a token that functions as a medium of exchange that is commonly accepted as payment for services or commodities, including repayment of debts. Another property of money, that distinguishes it from other medium of exchange, is that it has the mark of an authority (or the mark of anyone who is generally accepted) that coins it.

Money comprises of both currency, specially the numerous distributed currencies having legal tender status, as well as other kinds of financial deposit accounts, like savings accounts, certificates of deposit and demand deposits. In contemporary economies, currency is the most basic part of the money supply.

Money is not the same as value, the latter being the basic element in economics. Money is central to the study of economics and forms its most cogent link to finance. The absence of money causes a market economy to be inefficient because it requires a coincidence of wants between traders, and an agreement that these needs are of equal value, before a barter exchange can occur. The use of money is thought to encourage trade and the division of labour.
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Finance pertains to the creation, management and study of money, credit, banking, investments, taxation, assets, and liabilities. These financial transactions occur in public, private, as well as government financial systems.

The three general divisions of finance are commonly made: public finance, corporate finance and personal finance. These three consist of many sub-categories.

Concerns in personal finance center around

Understanding how credit damage or build a person’s financial status.
Best way a family assets be transferred upon generations inheritance and bequests).
Planning for a secure financial future in an environment of economic instability.
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Personal Finance is the practical application of the guidelines of finance to all monetary activities of a person or the whole family. It deals with the methods in which a person or family gain, budget, save, and spend money on a certain period of time, taking into consideration a variety of financial risks along with future life events. There are plenty of financial products a person might look into when planning for personal finances : among them are banking products savings accounts, checking account, credit cards and personal loans), investment (bonds, stock market, mutual funds) and insurance products (health insurance, life insurance, disability insurance). There is also contribution and tracking social security benefits or retirement plans of a person or sponsored by employer, and income tax management.

Personal financial planning

Financial planning is the main aspect of personal finance, which is an engaging process that needs routine monitoring and reevaluation. Generally, this calls for five stages:What Is Personal Finance by PracticalFinancialTips

The assessment: A person’s financial condition can be assessed by putting together his or her financial statements which includes income statements and balance sheets. An individual balance sheet details the valuations of personal assets such as vehicle, real estate property, jewelry, stock and bank account, together with personal liabilities such as mortgage, bank loan or credit card debt. An individual income statement details personal income and expenses.
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