Financial models are mathematical representations of real-world financial systems. They provide a visual representation of how money and assets flow through an economy, enabling informed decisions to be made based on assumptions about economic conditions. Financial models can take many forms, including predictive models, optimization models, and decision models. They are essential tools that financial professionals use to assess the value of investments and businesses, evaluate risk, and make projections about the future. By taking the complexity of the world economy and breaking it down into understandable terms, financial models give investors greater insight into where their money should go – and better control over their financial future.