Understanding Net Worth
This worksheet helps grade 9 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 provide your best answer. Show all your work for calculation questions.
Net worth is the value of all the assets, minus the total of all liabilities, of an individual or institution. It's a key indicator of financial health.
Net Worth = Assets - Liabilities
Identify whether each item below is an Asset (A) or a Liability (L) by writing A or L in the blank.
1. Savings Account:
2. Car Loan:
3. House (owned):
4. Credit Card Debt:
5. Investments (stocks, bonds):
6. Student Loan:
1. In your own words, what is an 'asset'?
2. In your own words, what is a 'liability'?
1. Which of the following would DECREASE a person's net worth?
Paying off a car loan
Receiving a bonus at work
Taking out a new student loan
The value of your house increases
1. Sarah has the following financial information:
Cash: $500 Savings Account: $2,000 Investments: $5,000 Credit Card Debt: $1,500 Student Loan: $8,000
Calculate Sarah's net worth. Show your work.
2. David owns a car worth $12,000 and has $3,000 in his checking account. He has a car loan of $7,000 and a personal loan of $2,000.
What is David's net worth? Show your work.
Determine if the following statements are True (T) or False (F).
1. A high net worth always means a person has a lot of cash on hand.
True
False
2. Net worth can be a negative number.
True
False