1. 14.4 Figuring out a Net Worth statement

2. 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

3. 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

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

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