The awareness of the importance of the inkling or knowledge of finance and the usage and benefits from being financially literate is far understated in a typical economy.
Every major sphere, they say has an imperative contribution to an aggregate economy-which isn’t a disputable fact, but there still exists a smattering number of aspects of an economy that majorly determines the overall functionality of the whole economy.
Finance in its several branches and theories: Personal finance, Corporate finance-financial services, Public finance etc.; is an important foundation for both a developed and developing economy because its assist in the formation of business, economic agendas and contributes to a larger extent the basis for major government decisions and spending that intrinsically determine the nature of economic productivity both on a macro and micro level.
The financial system of any economy is very critical to the functioning of the economy as a whole, and forms the elixir in the formation of new opportunities for economic growth through new business and allows an accountability of the contributing sectors that yield economic growth in a country-in a tentative strategies to protect and stimulate revenue from these sectors to both public sectors and the private sectors (government, firms/industries, individual consumers).
The strategic use of financial policies and instruments, as well as financial trends helps to define the state of an economy on a global level, so central banks and/or government can plan appropriate monetary and fiscal policies in accordance to the intermittent global trends that shape the growth prospects/reduction of an economy.
In truth, the explanation of the importance of finance with the limitation of 300 words is almost impossible, because complexities of this very imperative aspect of any economy are far too engrossing.
I hope I was able to provide a more that surface explanation.