Net worth

Front

What is net worth?

Back

Net worth is the difference between what you own (assets) and what you owe (liabilities).

Tags

CCSS.6.NS.C.5

Front

What is an asset?

Back

An asset is anything of value that you own, such as cash, property, or investments.

Front

What is a liability?

Back

A liability is a financial obligation or debt that you owe to someone else.

Front

What is a mortgage?

Back

A mortgage is a type of loan specifically used to purchase real estate, where the property serves as collateral.

Tags

CCSS.RI.6.3

CCSS.RI.7.3

CCSS.RI.7.5

CCSS.RI.8.3

CCSS.RI.8.5

Front

Can net worth be negative?

Back

Yes, net worth can be negative if liabilities exceed assets.

Tags

CCSS.6.NS.C.7C

Front

What is an example of an asset?

Back

Examples of assets include cash, real estate, stocks, and vehicles.

Front

What is an example of a liability?

Back

Examples of liabilities include loans, credit card debt, and mortgages.

Front

How do you calculate net worth?

Back

Net worth is calculated by subtracting total liabilities from total assets.

Tags

CCSS.7.NS.A.3

Front

What does it mean to have a high net worth?

Back

Having a high net worth means you have significantly more assets than liabilities, indicating financial stability.

Front

What does it mean to have a low net worth?

Back

Having a low net worth means your liabilities are close to or exceed your assets, which may indicate financial difficulties.