Calculating Net Worth

What is net worth?

• The value of all assets minus liabilities.

• The value of all liabilities minus assets.

• The value of all assets plus liabilities.

• The value of all assets multiplied by liabilities.

How is net worth calculated?

• Divide liabilities by assets.

• Subtract liabilities from assets.

• Multiply liabilities by assets.

• Add liabilities to assets.

If someone has $50,000 in assets and $20,000 in liabilities, what is their net worth?

• $30,000

• $50,000

• $10,000

• $70,000

True or False: Net worth represents a person's financial health.

• Net worth represents a person's emotional well-being.

• Net worth represents a person's physical health.

• True

• False

What are some examples of assets that can be included when calculating net worth?

• cash, investments, real estate, vehicles, valuable personal belongings

• salary, income, expenses, liabilities

• jewelry, artwork, collectibles, furniture

• stocks, bonds, retirement accounts, credit card debt

What are some examples of liabilities that can be included when calculating net worth?

• Salary, income from investments, and inheritance.

• Real estate properties, vehicles, and jewelry.

• Mortgages, car loans, credit card debt, student loans, and personal loans.

• Savings accounts, retirement funds, and investment portfolios.

If someone has $10,000 in assets and $5,000 in liabilities, what is their net worth?

• $10,000

• $15,000

• $0

• $5,000

What are some strategies to increase net worth?

• saving and investing money, reducing expenses, increasing income through additional sources of revenue, paying off debts, and making smart financial decisions

• relying solely on one source of income

• taking on more debt to increase net worth

• spending all income, not saving or investing money

If someone has a negative net worth, what does that mean?

• Their total liabilities exceed their total assets.

• Their total assets and liabilities are equal.

• They have more assets than liabilities.

• Their total assets exceed their total liabilities.

True or False: Net worth can only be positive.

• Net worth can be zero

• Net worth can be negative

• False

• True