When exploring things like this, taboo the phrase “really is”. No abstraction really is anything. You might ask “how can I use this model”, or “what predictions can I make based on this” or “what was that person trying to convey when they said that”.
Less philosophically, you’re exploring an uncommon use of the word “finance”. Much more commonly, it’s about choice of mechanism for the transfer, not about the transfer itself. What you describe is usually called “saving” as opposed to “consumption”. It’s not finance until you’re talking about the specific characteristics of the medium of transfer. Optimal savings means good choices of when to consume, regardless of when you earn. Optimal finance is good placement of that savings (or borrowing, in the case of reverse-transfer) in order to maximize the future consumption.
When exploring things like this, taboo the phrase “really is”. No abstraction really is anything. You might ask “how can I use this model”, or “what predictions can I make based on this” or “what was that person trying to convey when they said that”.
Less philosophically, you’re exploring an uncommon use of the word “finance”. Much more commonly, it’s about choice of mechanism for the transfer, not about the transfer itself. What you describe is usually called “saving” as opposed to “consumption”. It’s not finance until you’re talking about the specific characteristics of the medium of transfer. Optimal savings means good choices of when to consume, regardless of when you earn. Optimal finance is good placement of that savings (or borrowing, in the case of reverse-transfer) in order to maximize the future consumption.
Sure. In this case “what it really is” means “what does it optimize for, why did people invent it”