Wealth & Net Worth

Wealth -
Net Worth

Multiple Choice

TRUE of FALSE

• TRUE

• FALSE

Multiple Choice

TRUE of FALSE

• TRUE

• FALSE

Multiple Choice

TRUE of FALSE

• TRUE

• FALSE

Multiple Choice

TRUE of FALSE

• TRUE

• FALSE

Multiple Choice

TRUE of FALSE

• TRUE

• FALSE

Multiple Choice

TRUE of FALSE

• TRUE

• FALSE

Multiple Choice

TRUE of FALSE

• TRUE

• FALSE

Open Ended

What does the term wealth mean to you?

Do you think this person is wealthy?

Why?

Answer on the next slide.

Open Ended

What do you think about the previous slide? Wealthy? Why?

The young man in the car makes $55,000 a year. He has a loan on his car with $46,000 left to pay on it. He also has credit card debt of $13,000 from buying cloths he didn't have cash for.

Do you think this person is wealthy?

Why?

Answer on the next slide.

Open Ended

What do you think about the previous slide? Wealthy? Why?

The young man on the car is a professional football player with over 10 million dollars in his bank accounts. The car he bought in college and chooses to still drive is paid for and he lives in a $800,000 home. He also purchased a home for his mother.

Do you think these people are wealthy?

Why?

Answer on the next slide.

Open Ended

What do you think about the previous slide? Wealthy? Why?

This couple filed for bankruptcy after taking out 30 million dollars in loans to buy homes, cars and other luxury items and not having the money to pay back the loans. They are going to prison after the banks found out they used false information to get the loans and because the federal government said they did not pay their taxes.

Moral of the story...

You CAN'T LOOK AT SOMEONE AND TELL IF THEY ARE WEALTHY OR NOT!

YOU MUST KNOW THEIR NET WORTH!!!!!!!!!!!!!!!!! This is personal information and not everyone is wiling to share it.

You will learn about that today :)

Multiple Choice

An asset is money or something worth money. Is a signed Tom Brady jersey an asset?

• Yes

• No

Fill in the Blank

Will wealth building assets increase or decrease in value over time.

Fill in the Blank

Will depreciating assets increase or decrease in value over time.

Multiple Choice

An example of a wealth building asset in a...

• land

• car

Multiple Choice

An example of a depreciating asset in a...

• lawn mower

• savings account

Multiple Choice

Liability is...

• money you owe

• money in the bank

• cash in your pocket

Multiple Select

Which of the following are liabilities?

• Hulu streaming account

• Cell phone payment plan

• Credit Card payments

• House

Multiple Choice

How do we determine our net worth?

• What we OWN minus what we OWE.

• Count how many name brand items you own.

• Calculating the amount of cash in your checking account.

• What we know m

Poll

Is Jose's condo an asset of liability?

• Asset

• Liability

Poll

Is Jose's new car an asset of liability?

• Asset

• Liability

Multiple Choice

Is Jose's copyrighted mobile app an asset?

• Yes

• No

Multiple Choice

Is Maria's home mortgage an asset or liability?

• asset

• liability

Multiple Choice

Is Maria's student loan an asset or liability?

• asset

• liability

Multiple Choice

Is Andrea's bobblehead collection an asset or liability?

• asset

• liability

Multiple Choice

Turn to page 4 and complete the needs and wants activity in your packet.

• OK

• NO