Financial charges refer to the costs associated with borrowing money or using financial services. These charges can include interest rates, fees for late payments, and service fees for maintaining accounts. They are typically expressed as a percentage of the amount borrowed or as a flat fee. Understanding financial charges is important for managing personal finances effectively. By being aware of these costs, individuals can make informed decisions about loans, credit cards, and other financial products. This knowledge helps in avoiding unnecessary expenses and maintaining a healthy financial status.