Yes of course public finance is meant to help the people. Public finance deals with public authorities rather than private finance. It is the most popular finance system all around the world. Public finance includes the bank. Banks are legally approved and acceptable. It is the safest place where we can save our money. Public finance is the sector that deals with the savings, spending, and investment of a public sector. It focuses to satisfy the public needs. That’s why people choose public finances as safety.
What are the major areas in the private finance system?
The major area in the private finance includes the income, savings, spending, investment, and protection. Let us see them one by one.
Income is the process of getting a monthly income for our work from any recognized company or institution. Income is necessarily needed for our life. Nowadays without income, it is impossible to run our life in this competitive world. At least one in a family should have an income for running a smooth life. If we want to lead a sophisticated life then both partners should have an income. There are lots of ways we can earn. There are many legally approved institutions and companies, where we can work there and started earning.
Spending means by using our income we can start buying any things which we needed in our day-to-day life. Spending is also necessarily needed for our life. Spending for our loved ones makes our relationship very strong. We can start buying vegetables, fruits, groceries, cosmetics, etc. We can also recharge our mobile phones, TV, etc., by using our income.
Savings are the surplus of money we have after our spending. Savings make our future brighter and more colorful. Without saving our life cannot be smooth and soft. So saving is an important part of our life. There are lots of ways we can save our money. One of the best ways of savings is keeping our amount in the bank. It is the safest place in the world. The banks are not involved in any kind of cheating and fraud. Parents save their income for their kids.
Investment means investing our money in any recognized institute to get a monthly interest. The investment makes our savings double. Some may invest the amount in the bank, while some others may invest in the business. Some may tie up with other people to begin a startup.
Protection is the way of safeguarding our money for unexpected events in the future. Protecting our money is also needed. All these five factors are act as a pillar in the private finance system.
What is the difference between the public and private finance systems?
The main difference is that public finance is aimed at doing welfare for the society and many people will get benefits through it whereas private finance is dealing with an individual point of view and only interested can get loan from it.