Definitions of financial models

Wikipedia considers a financial model to be a mathematical model that represents the performance of a financial asset, project, or other investment in abstract form.

Corporate Finance Institute believes that a financial model facilitates the forecasting of future financial performance by utilizing certain variables to estimate the outcome of specific financial decisions.

BusinessDictionary agrees with the notion of a mathematical model in that it comprises sets of equations. The model analyzes how an entity will react to different economic situations with a focus on the outcome of financial decisions. It goes on to list some of the statements and schedules you would expect to find in a financial model. Additionally, the publication considers that a model could estimate the financial impact of a company's policies and restrictions put in place by investors and lenders. It goes on to give the example of a cash budget as a simple financial model.

eFinance Management considers a financial model to be a tool with which the financial analyst attempts to predict the earnings and performance of future years. It considers the completed model to be a mathematical representation of business transactions. The publication names Excel as the primary tool for modeling.

Here's my personal definition:

A mathematical model created to resolve a financial decision making situation. The model facilitates decision making by presenting preferred courses of action and their consequences, based on the results of the calculations performed by the model.

This definition mentions financial decision making and a mathematical model. It goes on to explain the relationship between them, which is to facilitate decision making. Importantly, it notes that the model presents preferred courses of action from which the decision maker can make a choice, taking into consideration the consequences of each option.