1. Financial Literacy Class 2: Net Worth and Banking

2. Net Worth What does Net Worth mean?

3. Net Worth Definition: O The value of a person’s assets minus all liabilities. O The amount by which an individual’s assets exceed their liabilities is considered the net worth of that person.

4. Net Worth Assets Liabilities Net Worth

5. What is an asset? Definition: O Property owned by a person or company. O A resource with economic value that an individual owns. O Something you own that has value.

6. What is an asset? Examples: O House (that you own) O Money in the bank (Checking, Savings) O Car (that you own) O Investments O Collectibles

7. What is a liability? Definition: O Money that you owe to a company or to another person. O Debt or Loans O Money that you’ve borrowed from one else.

8. What is a liability? Examples: O Mortgage O Car Loan O Student Loans O Credit Card Balance

9. Net Worth Assets Liabilities Net Worth Assets: Checking$500 Savings$2,000 House$100,000 Car$10,000 Liabilities: Mortgage:-$70,000 Car Loan:-$3,000 _____________________ Net Worth:$39,500

10. Remember Antonio?

11. Banking Checking, Savings, etc.

12. Types of Bank Accounts O Checking: O A bank account designed for transactions of deposits and withdrawals O Very easy to access O Savings: O A deposit account held at a bank that provides security and a low interest rate O Easy to access

13. Types of Bank Accounts O Money Market: O A savings account that offers higher interest rates, but requires larger deposits O Easy to access O Certificates of Deposit (CD): O A savings certificate that offers higher interest rates, but limits the investors access to the money O Hard to access

14. Banking - Exercise

15. O 3 Groups O Checking O Savings O Money Market and CD’s O Research and Presentation O Research on computer, laptop, and iPad O Give a 5-10 minute presentation to the rest of the class