What should I learn before starting finance if I have never followed financial markets?
Before starting finance, build a foundation in basic algebra, percentages, ratios, graphs, and introductory statistics. Learn the essentials of economics, accounting, interest and inflation, and how financial markets, shares, bonds, funds, and risk work. Practise reading financial statements and using spreadsheets, while developing the habit of checking reliable financial information rather than relying on predictions or social media.
Key points
- You do not need prior experience following markets; curiosity and willingness to learn are more important.
- Useful early concepts include time value of money, diversification, liquidity, volatility, and risk versus return.
- Review the course description for any stated mathematics, statistics, accounting, or programming prerequisites.
Things to check
- The required preparation can vary by finance programme and level, so check the official course information for specific prerequisites.