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).

Front

How do you calculate Percent of Change?

Back

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

Front

What are Assets?

Back

Assets are items 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 debt.

Front

If your assets total $50,000 and your liabilities total $30,000, what is your net worth?

Back

Your net worth is $20,000.

Front

What does a negative net worth indicate?

Back

A negative net worth indicates that your liabilities exceed your assets.

Front

If the original cost of an item is $80 and the new cost is $100, what is the percent of increase?

Back

The percent of increase is 25%.

Front

What is the formula for calculating net worth?

Back

Net Worth = Total Assets - Total Liabilities.

Front

If you have $5,000 in assets and $7,000 in liabilities, what is your net worth?

Back

Your net worth is -$2,000.

Front

What is an example of an asset?

Back

An example of an asset is a house, car, or savings account.