Finances refer to the management of money and other assets. This includes budgeting, saving, investing, and spending. Individuals and businesses track their finances to ensure they can meet their financial goals, such as buying a home or funding retirement. Understanding finances also involves knowledge of financial institutions, such as banks and credit unions, which provide services like loans and savings accounts. Additionally, concepts like interest rates and credit scores play a crucial role in determining how money is borrowed and managed. Proper financial planning can lead to greater financial stability and security.