Everything You Needed To Know About Finances

Finances are a huge part of our lives. They are involved everywhere we go and in nearly everything we do. But many people are not aware of exactly what finances are and how to navigate through them. Today we take a look at finances and give a breakdown on them that even a child could understand

What are finances

Finance is the management of money primarily by individuals, governments, and large companies. Finance, of financing, is the process of raising funds or capital for any kind of expenditure. It is the process of channeling various funds in the form of credit, loans, or invested capital to those economic entities that most need them or can put them to the most productive use.

Tips to manage finances

• Track your spending

If you don’t know what and where you’re spending each month, there’s a good chance your personal spending habits have room for improvement. Better money management starts with spending awareness.

• Create a realistic monthly budget

Use your monthly spending habits, as well as your monthly take-home pay, to set a budget you know you can keep. There’s no use setting a strict budget based on drastic changes, such as never eating out when you’re currently ordering takeout four times a week. Create a budget that works with your lifestyle and spending habits. You should see a budget as a way to encourage better habits, such as cooking at home more often, but give yourself a realistic shot at meeting this budget. That’s the only way this money management method will work.

• Build your Savings

Create emergency funds that you can dip into when unforeseen circumstances strike. Even if your contributions are small, this fund can save you from risky situations in which you’re forced to borrow money at high-interest rates or possibly find yourself unable to pay your bills on time. You should also make general savings contributions to strengthen your financial security in the event of a job loss.

• Cut back on recurring charges

Do you subscribe to services you never use? It’s easy to forget about monthly subscriptions to streaming services and mobile apps that charge your bank account even when you don’t regularly use these services. Review your spending for charges like these, and consider canceling unnecessary subscriptions to hold onto more money each month.

• Start an Investment strategy

Even if your ability to invest is limited, small contributions to investment accounts can help you use your earned money to generate more income. Find out if your employer offers a 401k which essentially serves as free money. Consider opening a retirement account or other investment account. The path to better finances starts with changing your own habits. Some of these changes will be easier than others, but if you stay committed to this transformation, you’ll end up with great money management skills that will serve you throughout your life—and in the meantime, you’ll have more money in your pocket.

Apps to help you better understand and manage finances

1.) Mint

2.) You Need A Budget

3.) Personal Capital

4.) Acorns

5.) Goodbudget

6.) Everydollar

7.) Mvelopes

8.) Qapital

9.) Clarity Money

10.) Expensify

11.) Spendee

12.) Honeydue

13.) Prism

14.) Robinhood

15.) Quicken

16.) Credit Karma ( creditkarma.com )

17.) ZETA

18.) Truebill budget and bill tracker

19.) Quikbooks

20.) Dollarbird

21.) Ibotta

22.) Simplifi

23.) PocketSmith

24.) Splitwise

Finances In AMERICA

According to Value Penguin, the average consumer balance is $5,315 , and the median debt per family is $2,700. As of 2022, Americans owe $807 billion across almost 506 million card accounts. In August 2021, about 64 million people with a credit record (about 28% of Americans) had debt in collections on their credit report, down from 68 million in 2019. In fact our very own country is in debt over $1 trillion dollars, with most money being owed to China.

A few fun facts about finances

~ If you invest $10,000 dollars it can compound to $175,000 in 30 years, so it’s important to start investing early.

~When making an investment, the “Rule of 72” can help you understand the amount of time it will take for it to double: you divide 72 by the expected rate of return to estimate how many years it’ll take to double the original amount.

~If you earn money from investing, you only have to pay taxes on the capital gains, or the amount that you earned, not what you started with.

~Warren Buffet started investing at only 11, and his current net worth is over 100 billion.

~The name for Wall Street was based on a legend of a Dutch defensive wall in Manhattan to ward off pirates and British threats in the 17th century.

~The Dow Jones industrial average stock index (or group of stocks meeting certain criteria) was named after Charles Dow and Edward Jones.

~ Alexander Hamilton believed, “A national debt, if not excessive, will be to us a national blessing. It will be a powerful cement of our Union.” This was because he knew if other countries had a vested interest in the U.S., it would help protect our interests in foreign policy.

~There’s more money printed for the board game Monopoly than actual cash every year! 

~ 92% of the world’s currency is digital, such as in checking and savings accounts.

~ In August 1966, the $2 note, with Thomas Jefferson on it, was discontinued.

~ Ironesha Johnson (;