Net Worth

Front

What is net worth?

Back

Net worth is the difference between total assets and total liabilities. It represents the value of an individual's or entity's financial position.

Front

What is an asset?

Back

An asset is anything of value or a resource owned by an individual or entity, such as cash, real estate, or personal property.

Front

What is a liability?

Back

A liability is a financial obligation or debt that an individual or entity owes to another party, such as loans, mortgages, or credit card debt.

Front

If you have a car worth $22,000, what is it classified as?

Back

It is classified as an asset.

Front

If you have a mortgage of $25,000, what is it classified as?

Back

It is classified as a liability.

Front

How do you calculate net worth?

Back

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

Front

What is an example of a liability?

Back

An example of a liability is a school loan.

Front

What is an example of an asset?

Back

An example of an asset is jewelry.

Front

If your total assets are $300,000 and total liabilities are $400,000, what is your net worth?

Back

Your net worth is -$100,000.

Front

What does it mean if your net worth is negative?

Back

A negative net worth means that your liabilities exceed your assets, indicating financial instability.