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Can someone explain to me what "financial" and "capital" actually mean in a very understandable way, please? I am confused about those two... please don't copy-paste definitions from the web cos I want someone to clearly explain them to me.

User Bguiz
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1 Answer

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"Financial" refers to anything related to money or finances. This can include things like earning and managing income, budgeting, saving and investing, and managing debt.

"Capital" specifically refers to money or assets that are used to create or produce more wealth. This can include things like money that is invested in a business, property, or other venture, with the expectation that it will generate a return on investment (ROI). In other words, capital is a form of financial resources that are invested to generate income or profit in future.

In summary, financial is a broader term that encompasses all aspects of managing money, while capital specifically refers to the money or assets that are used to generate income or profit.

User Robustus
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