Finances refer to the management of money and other assets. This includes budgeting, saving, investing, and spending. Individuals and organizations track their finances to ensure they can meet their needs and goals. Good financial management helps in making informed decisions about how to allocate resources effectively. In personal finance, people often create a budget to monitor their income and expenses. This helps them save for future needs, such as buying a home or planning for retirement. Businesses also manage their finances to maintain profitability and ensure they can invest in growth opportunities.