Finance is a broad term encompassing several areas of study including: money and banking, investment, economic growth, government, the market and monetary systems. Finance is also the name given to many things regarding the science, development, management, and measurement of assets and liabilities. In particular, it mainly deals with the issues of how individuals, businesses or other governmental entities acquire the money necessary to run their activities and pay their debts-called capital in the business context. The process includes the allocation of capital between various uses and goals. This also forms the basis of the allocation of future wealth for the nation or other entity.
Finance is also intimately connected with economic growth and the management of its resources. Some areas of Finance that are vital to understanding are: personal and corporate finance, the banking industry, micro and macro economic considerations, asset allocation, and monetary policy. All of these require rigorous and detailed research and analysis. It is important for all of these fields to stay on top of current research and understand what is happening in the financial markets. In addition, good Finance majors learn the skills needed to assess risk and the importance of using financial instruments. Finance can be very lucrative and successful if proper attention is paid to the Finance curriculum.
The major area of study for those wishing to major in Finance is a personal and corporate finance. This is the science of building and managing the financial portfolio of an individual or business. While it often looks at the large scale and broad view of the economy and finance, personal and corporate finance includes many smaller but just as important areas. For example, in personal finance an individual looks at his or her own finances, setting and maintaining financial goals and objectives, managing money to achieve these goals, making purchases and borrowing, saving and budgeting, and planning for the future.
While all of these things are important, managing your money for the long-term, building a sound retirement plan, and being financially responsible and able to save for the future are also important aspects of personal and corporate finance. A financial portfolio is where you put your money over time to return a profit. By putting all of your assets into one solid investment such as a savings account or a corporate bond fund, you are diversifying your risk and effectively locking in a rate of interest that is guaranteed. While the risk may be lower than that of a stock market, the potential for significant gains greatly increases.
Another area of focus for students majoring in Finance are consumer credit and debt management. As consumer credit has increased and has become a major issue in today’s society, financial management has evolved to meet this new challenge. Credit management refers to the ability to understand and manage a company’s credit portfolios, insuring that the risk of default or other drastic consequences is minimized. Good consumer credit and debt management professionals are essential to ensuring a successful and fulfilling finance career.
When considering financing career paths, you have the opportunity to choose fields that will appeal to you. Areas of specialization within finance include investment banking, corporate finance, commercial lending, municipal finance, insurance, pension and health, real estate, and travel industry. Within each of these areas, there are many career paths available to you, allowing for flexibility and advancement. You can also opt for short-term internships to get a foot in the door of a particular field and gain valuable experience before making a decision on your long-term choice.