Financial terms are specific words or phrases used in the field of finance to describe various concepts, processes, and instruments. These terms help individuals and businesses communicate effectively about money management, investments, and economic activities. Examples include interest rates, assets, and liabilities, which are essential for understanding personal and corporate finance. Understanding financial terms is crucial for making informed decisions regarding budgeting, investing, and saving. Familiarity with terms like stocks, bonds, and dividends can empower individuals to navigate the financial landscape, whether they are managing their own finances or engaging with financial professionals.