Financial concepts apply across the economy in many venues. Let’s explore the three main types of finance:

• Personal Finance: You intuitively understand the world of personal finance. Personal finance is the management of individual or household money decisions, ranging from deciding what budget to use to where to store an emergency fund.

There is a large degree of crossover between personal and corporate finance when it comes to investing. Individuals can save for retirement or try to boost their net worth by learning to invest in stocks, bonds, real estate, and other assets. Companies can do the same to improve their financial outlook and balance sheet.

• Corporate Finance: Corporate finance is the management of a company’s financial resources. The Finance Department of a company handles all the capital decisions within the company. You will need to learn corporate finance if you want to start your own business.

Starting a successful business takes work. Not only do you have to master the art of business, but you must choose the right entity structure. Learn more about how to set up a C Corp, Limited Liability Company, or Nonprofit.

• Government Finance: Public finance, as it is often called, is the management of local, state, and federal revenues and expenses. Government finances deal with collecting revenues through various taxes and fees. Additionally, it handles the expenses of implementing government programs and issues municipal bonds to pay for projects.

Influential entities like the U.S. Federal Reserve and the Securities and Exchange Commission (SEC) are government entities that help shape both personal and corporate financial decisions. For example, the Federal Reserve sets monetary policy and establishes the federal funds rate, affecting interest rates that banks charge individuals and businesses. The SEC sets rules and regulations for how companies can issue stocks, bonds, and other securities that individuals and companies purchase. Read more about Initial Public Offerings (IPO).