14.4 Figuring out a Net Worth statement

Vocabulary Asset Liability Net Worth Positive OR Negative value Assets are the things you own. They have a positive cash value. Examples of assets are goods that are paid for and owned, such as houses, cars or bicycles, positive bank accounts, and savings bonds. Positive value Liability Liabilities are the debts you owe. They have a negative cash value. Examples of liabilities are car loans, house mortgages, credit card debt, or student loans. Negative value Net Worth Positive OR Negative value

Tell whether each thing is an asset or a liability Saved money – belongs to you Liability Owe the bank money for loan Asset You own it Liability You pay this every month You have to pay the credit company back Liability You own the money in a bond – belongs to you Asset

Asset or Liability? Liability Asset George leases a car for $175 a month. Morgana pays cash for a new flat screen television. Liability Asset

Constructing Net Worth Net worth is the difference between assets and liabilities