Financial Capacity

Financial capacity refers to an individual’s or organization’s ability to manage, allocate, and utilize financial resources effectively. It encompasses aspects such as income, savings, creditworthiness, and assets. A strong financial capacity means one can meet current expenses, plan for future needs, and handle unexpected costs confidently. In contrast, limited financial capacity may lead to struggles in fulfilling obligations or achieving financial goals. Essentially, it reflects how well one can sustain and grow their financial health while navigating various financial responsibilities.