Finansies

Finansies refers to the management of money, assets and liabilities, and the planning and control of financial resources across individuals, organizations and governments. In Afrikaans usage the term broadly covers budgeting, saving, lending, investing, taxation and risk management.

At the personal level, finansies focus on cash flow, debt management and saving for goals such as education or retirement. In business, finansies encompass capital structure, profitability, liquidity and financial reporting. Public finansies involve government revenue, spending, budgeting and debt issuance.

Key activities include preparing budgets, maintaining records, producing financial statements (balance sheet, income statement, cash flow statement) and performing financial analysis. Principles such as the time value of money, inflation, and the risk–return trade-off guide decisions. Financial planning often uses forecasts and scenarios to manage uncertainty.

Institutions and instruments that support finansies include banks, credit unions, insurance companies, pension funds and capital markets. Common tools are loans, mortgages, stocks, bonds, and derivatives. Good finansies management emphasizes liquidity, solvency, ethical practice and transparency.