![[_assets/carlosluengo/assets/img/2026/january/finanzsim2026_01.png]]
## Overview
FinanzSim is an interactive web-based financial management simulator designed for first-year business students. It functions as a sandbox where students can safely experiment with financial strategies, learn from their mistakes, and receive instant AI-generated feedback.
## Core Objectives
The project aims to achieve five primary goals:
1. Connect theoretical knowledge with practical application through hands-on exploration
2. Build strategic thinking by demonstrating how business decisions interconnect across financial systems
3. Deliver personalized, real-time AI analysis after each simulation year
4. Make complex financial metrics (ROA, ROE, liquidity ratios) more accessible and understandable
5. Create a consequence-free learning environment encouraging experimentation
## How It Operates
**Setup Phase:**
- Students select simulation duration (1-12 years)
- Companies begin with €100,000 in initial capital
**Annual Decisions:**
Students manage eight key variables annually: units sold, unit pricing, variable costs, fixed costs, new investments, loan financing, equity injections, and payment timing metrics.
**Analysis Delivered:**
The platform generates comprehensive financial statements, break-even analyses, key performance ratios, cash flow projections, and working capital cycle calculations after each year.
**AI Enhancement:**
An AI professor component provides performance commentary, risk identification, improvement suggestions, and benchmark comparisons. A final executive report includes NPV calculations and strategic recommendations.
## Technical Architecture
**Frontend:** React 19, TypeScript, Recharts visualization, and Vite build tool
**Backend & AI:** Cloudflare Workers for serverless computing, Cloudflare Pages for deployment, and Google Gemini API for financial analysis generation
## Background
FinanzSim emerged as a collaborative research project with Spain's University of Alcalá Faculty of Economics, Business and Tourism, exploring how AI-enhanced simulations can improve financial literacy among university students.
**Disclaimer:** The application is educational and non-commercial; AI-generated analyses are informational only and don't constitute professional financial advice.
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