Finance is a broad term encompassing various things about the science, invention, and management of financial resources and securities. All human action and activity can be described in finance and accounting. Finance has a central position in all economic activity. The key function of finance is to provide information about financial sources and short-term liabilities. Finance has many other roles such as establishing the value of assets, analyzing the performance of the financial system, setting standards for financial reporting, and providing advice to managers and investors on a variety of subjects.
There are various fields of study that deal with personal finance. Within each field there are various subspecialties such as: investment banking, corporate finance, personal credit, mortgage banking, estate planning, financial consulting, and personal financial planning. The primary objective of all of these areas of personal finance is to provide you with the means to handle your personal finances effectively.
Finance is broken down into two major categories: personal finance and business finance. Personal finance refers to how you manage your money. It includes expenses for education, housing, medical care, taxes, etc. Business finance describes the process by which companies obtain finance. This may include borrowing money from banks, using credit cards, issuing loans, using collateral in the form of property, or obtaining financed through the stock market.
You may be interested in obtaining financing for a number of reasons including buying a home, purchasing a car, starting a new business, or paying off debt. Whatever your reason, understanding how the financial process works will help you make better financial decisions. A finance degree provides you with the knowledge and skills necessary to analyze and execute effective financial strategies. Finance graduates can also specialize in particular areas of the financial market such as savings, bonds, credit, investment, estate, insurance, and mortgages. You can choose to work in a number of different fields depending on which area interests you most.
Finance degrees are accredited by the U.S. Department of Education’s Office of Accreditation for Financial Training and Regulation. Before applying for a degree, however, you should be sure that your chosen field has established itself as a credible and reputable organization. There are four different licenses required for students pursuing a degree in finance at an accredited college or university. These are the Certified Fraud Examiner (CFE), Certified Management Accountant (CMA), Certified Public Accountant (CPA), and the Master of Science in Financial Administration (MSA).
When it comes to job prospects, those working in finance tend to enjoy higher salaries than other professionals in similar professions. Finance professionals who have additional certification from their bachelor’s degree often find a higher income level and more attractive job options. Salaries and job opportunities vary widely depending on the field you choose to focus on, the size of your bank, your experience, and the area of finance you are specializing in. Finance graduates can expect to start making money within five years after graduation, but the earning potential continues to increase over the long term.