You might have encountered some financial terms that got you thinking about their meaning and application in the financial domain. That is why you should know about money terms; whether it is how money is spent, saved, or invested, money matters are best communicated using financial terms. 
Knowing financial terms can help you understand economic concepts and apply them to your financial life. In this article, you'll understand why the knowledge of these financial terms is important and some financial terms you should know.
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Why is the Knowledge of Financial Terms Important?
Here's why the knowledge of financial terms is important:

1. A clear understanding of financial terms will help you make the right financial decisions, such as taking out loans, investing, renting or buying property, and retiring.
2. To sustainably manage your finance and financial situations.
3. Knowledge of financial terms gives you an edge and is up-to-date on economic happenings.
4. If you are a business owner, you need the knowledge of financial terms to manage your business and make financial decisions.
5. It also helps you make both short-term and long-term financial goals and rate your performance at the end of a financial year.

Here Are Lists of Some Financial Terms You Should Know
Credit, debit, cashflow, income, investment, interest rate, loan, refinance, net worth, mutual funds, balance sheet, bond, stock, bankruptcy, collateral, crowdfunding, equity, revenue, income statement, liquidity capital market, depreciation, recession, asset and liability, and many others.

Liability is the money you owe. Liabilities include bank loans, accounts payable, credit card debts, mortgages, taxes, etc. There are current liabilities (debts due within a year) and non-current liabilities (debts due more than a year).