ELI5: Explain Like I'm 5

Financial capital

Financial capital is the money that you have to use to buy things or to invest. To use financial capital, you can put it in an account at a bank, or use it to buy things like a house or a car. Investing is when you use your financial capital to buy something that you think will make more money for you in the future. For example, if you had $5,000 in financial capital, you could invest it in stocks so that the stocks you have bought go up in value and you make money from the investments.