Personal Finance L4

Match the following

• The value of comparing someone's assets to their liabilities.

• Negative Net Worth

• Anything owned by someone

• Asset

• Liabilities are more than assets.

• Net Worth

• Assets are more than liabilities

• Positive Net Worth

DEFINE net income.

• The cap set on someone's yearly salary.

• What a person earns on a bi-monthly basis.

• What a person earns AFTER taxes and deductions are taken out.

• What a person earns BEFORE taxes and deductions are taken out.

Another word for net income would be...

• Paycheck

• Take-Home Pay

• Deductibles

• Assets

Net worth is calculated by ​ (a)   your ​ (b)   from your ​ (c)   .

• subtracting
• liabilities
• assets
• adding

Define liability.

• Tax(es) taken from your paycheck

• Financial debts or obligations

• The money that a company is required to provide you for your service.

• A prerequisite for receiving a credit card.

A car that is worth $5,000, but has a loan on it worth $6,500, would be considered more of a(n) ​ (a)   than a(n) ​ (b)  

• Liability
• Asset
• Investment
• net worth

Identify the top 3 financial concerns for teens, according to the textbook.

• Gas.

• Not being able to live on your own.

• Taxes.

• Paying for College.

• A profitable 401k

True or False: According to Dave, your financial goals MUST have a timeline, but do NOT have to have to be measurable.

• True

• False