Net Worth

Front

What is the formula to calculate net worth?

Back

Net Worth = Assets - Liabilities

Front

What are assets?

Back

Monetary assets you own, such as cash, property, and investments.

Front

Which of the following is NOT an asset? Bank Loan, Mortgage, Debit Card, Savings Account

Back

Bank Loan, Mortgage, and Debit Card are not assets; Savings Account is an asset.

Front

What does a negative net worth indicate?

Back

It indicates that liabilities exceed assets.

Front

If you have $10,000 in assets and $4,000 in liabilities, what is your net worth?

Back

$6,000

Front

What are liabilities?

Back

Financial debts and obligations for which you owe money.

Front

How can you improve your net worth?

Back

By increasing assets or decreasing liabilities.

Front

What is an example of a liquid asset?

Back

Cash or money in a checking account.

Front

If your assets total $50,000 and your liabilities total $30,000, what is your net worth?

Back

$20,000

Front

What is the significance of net worth?

Back

It provides a snapshot of financial health and stability.