Net Worth Financial Literacy The Fundamentals Of Net

Net Worth Financial Literacy

The Fundamentals Of Net Worth § Net Worth- representation of your financial position at one point in time § Net Worth = Assets – Liabilities § What is an asset? § What is a liability?

The Fundamentals of Net Worth § Assets- Something that you own that has a positive economical value. § Liquid asset- can be easily turned into cash § Savings Accounts § Examples of Assets? ? ? § Car § House § Investments

The Fundamentals of Net Worth § Liabilities§ Something you owe. § Has a negative economical value § Detract from your worth/financial status § Examples of Liabilities? ? ? § Credit card or loan debt § Mortgage Payment § Student Loan § Car Payment

The Fundamentals of Net Worth § What increases your net worth? § What decreases your net worth? § REVENUES § EXPENSES § § Job Birthday Money Allowance Interest in Savings accounts § § Monthly bills (phone) Insurance Trips to Wawa Anything you spend $ on

The Fundamentals of Net Worth § Lets sum it up…… § Net Worth = Assets - Liabilities § Revenues can turn into assets § Expenses can turn into liabilities § How can you increase your net worth? ? ?

The Fundamentals of Net Worth To Increase your net worth…. Bring in/Save more money than you spend!!!!

Example - Buy a Car § The purchase of a car can be all three: an expense, an asset and a liability. EXPENSE § A single car payment is a(n) _________. EXPENSE § Filling the car with gas is a(n) _________. ASSET § A car is a(n) ___________, if you could sell it for more than you owe on it. LIABILITY § A car loan is a(n) _____________. § A repair that you will eventually make on the car is also a(n) ___________. LIABILITY

Are you ready for some…. . § Financial Football