Unit 1: Financial Basics

In this unit, we’ll introduce basic personal and corporate finance concepts.

Finance Basic Outline

In this unit, we will discuss the following topics:

• Abstract assets are a theortectical model of an asset, i.e., an abstract asset is series of current and future cash flows. We’ll introduce the concept of an abstract asset, the idea of time value of money an a key concept to value assets called the net present value.

• Personal finance basics. We then continue by introducing key concepts such as budgets, balance sheets, and the idea of needs versus wants that we build upon for later.