Finance and money are closely related, and both are important to the functioning of any organization. Finance is concerned with the management of large and small amounts of money and the methods by which those decisions are made. It also encompasses the scientific and non-scientific elements that contribute to financial decisions. It is an important component of economics and business, and has many career opportunities.

The financial system is composed of flows of capital and consists of public, private, and corporate finance. Finance is the study of the channeling of capital from savers and investors to companies, governments, and individuals. The latter may borrow from other investors or issue bonds to raise funds. In many cases, these investments generate dividends and interest for the investors.

While many financial fundamentals can be mastered by the average person, advanced concepts like tax planning, estate planning, and investing require professional assistance. Many millionaires are not wealthy, and many of them have to work very hard to accumulate wealth. Financial planners can also teach people about the risks and rewards associated with different investments.

The earliest recorded example of finance and money involves the Babylonians. They governed banking operations in the Code of Hammurabi. They were used to paying 20 percent interest on loans. The Babylonians also used interest to indicate an increase in value. As a result, the Babylonians often incurred interest of around 20 percent a year.

Financial literacy includes the ability to set a realistic budget, manage credit responsibly, save for emergencies, and invest. Unfortunately, many people enter adulthood without having adequate financial education. World Bank figures show that only one third of the world's population is financially literate, and the numbers are even worse for low-income people, women, and people with lower education. The United States also ranks low on financial literacy, with only 57% of people financially literate.

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