Review Net Worth

The formula for net worth is...

• Assets - Liabilities

• Liabilities - Assets

• Assets + Liabilities

• Assets / Liabilities

Generally you want to have your net worth _____ over time

• increase

• decrease

• stay the same

Stocks, certificate of deposits, money market accounts, and 401k plans are all...

• assets

• liabilities

Cars, homes, cash, money in a checking account are all...

• assets

• liabilities

Student loans, mortgages, and auto loans are all...

• liabilities

• assets

You will have a negative net worth if...

• your liabilities add up to more than your assets

• you don't graduate college

• you are financially illiterate

• NEVER. You cannot have a negative net worth

A net worth statement shows your assets, liabilities, and total net worth. Banks may use this to determine if they will...

• loan you money

• let you open a checking account

• let you purchase stocks

• sell you insurance

Who is most likely to be approved for a loan?

• Someone with assets = $150,000 and liabilities = $300,000

• Someone with assets = $35,000 and liabilities = $35,000

• Someone with assets = $20,000 and liabilities = $1,000

• Anyone over the age of 30

Who is considered the best off financially based on their net worth?

• Someone with assets of $1,000,000 and liabilities of $2,000,000

• Someone with assets of $40,000 and liabilities of $40,000

• Someone with assets of $100,000 and liabilities of $50,000

• Someone with assets of $1,000 and liabilities of $0.

You should check your net worth once a...

• day

• week

• month

• year