Understanding Net Worth and Assets

Front

What is net worth?

Back

Net worth is the difference between what you own (assets) and what you owe (liabilities). It represents your financial position.

Front

How do you calculate net worth?

Back

Net worth = Total Assets - Total Liabilities.

Front

What are assets?

Back

Assets are anything of value that you own, such as cash, property, and investments.

Front

What are liabilities?

Back

Liabilities are debts or obligations that you owe to others, such as loans and credit card balances.

Front

If Isadora has a car worth $14,700 and a savings account of $4,750, what is the total value of her assets?

Back

Total Assets = $14,700 (car) + $4,750 (savings) = $19,450.

Front

If Isadora has a credit card balance of $825, what is her net worth?

Back

Net Worth = Total Assets ($19,450) - Liabilities ($825) = $18,625.

Front

What is percent change?

Back

Percent change is a way to express how much a value has increased or decreased relative to its original value.

Front

How do you calculate percent change?

Back

Percent Change = ((New Value - Original Value) / Original Value) x 100.

Front

If a pair of jeans originally costs $30 and is now $15, what is the percent change?

Back

Percent Change = ((15 - 30) / 30) x 100 = -50% (decrease).

Front

If Jane's total assets are $8,794 and her liabilities are $6,292, what is her net worth?

Back

Net Worth = $8,794 - $6,292 = $2,502.