Understanding Net Worth
This worksheet helps grade 7 students understand and calculate net worth by identifying assets and liabilities.
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Understanding Net Worth
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Read each question carefully and answer to the best of your ability. This worksheet will help you understand assets, liabilities, and how to calculate net worth.
Net worth is a measure of your financial health. It's calculated by subtracting what you owe (liabilities) from what you own (assets).
Formula: Assets - Liabilities = Net Worth
1. Which of the following is considered an ASSET?
Credit card debt
Money in a savings account
Student loan
Mortgage payment
2. Which of the following is considered a LIABILITY?
A house you own
A car loan
Investments in stocks
Cash in your wallet
For each item below, write whether it is an ASSET or a LIABILITY.
3. Your gaming console:
4. Money you owe your friend:
5. Money in your piggy bank:
6. A loan from the bank for a new bike:
7. Sarah has $500 in her savings account and owns a bicycle worth $150. She owes her brother $50. Calculate Sarah's net worth.
8. David has a collection of comic books worth $300 and $100 in cash. He has a cell phone bill of $75 that he needs to pay. What is David's net worth?
9. A high net worth always means a person has a lot of cash on hand.
True
False
10. If your liabilities are greater than your assets, you have a negative net worth.
True
False