Finance terms for beginners: A short guide to Financial Technology Terminology


Some finance terms for beginners are a must know especially if you are looking for a career in finance. The Financial terminology you need to know especially related to business is vast. However, the following finance terms for beginners are easy to understand and can be a nice starting point. Net Income is the term every individual should know. It is the difference between revenue and expenses. Net Income can be increased by raising the revenue or decreasing the expenses. Net worth is another financial term very similar to net income. Net worth means the worth of Assets minus the worth of liabilities. You can simply look at a balance sheet and find out the Net worth. Cash in hand is another important financial term. It shows the liquidity position of a company. The ideal cash in hand is one-tenth of the total money owed by the company(debt). One financial term that we use in daily life is depreciation. It is the decrease in value of assets over time. There are many more financial terms and the best way is to try the internet which is a library with unlimited resources.