Your Personal Net Worth

Have you ever looked at a directory of stores while you were at the mall? There is usually a big star or dot indicating your present location – “You are here.” In this topic, you will learn about the importance of a positive net worth. You need to know how you spend your money.

• Do you own more than you owe?
• Do you owe more than you own?

To answer these questions, you need to develop a personal net worth statement. A personal net worth statement will tell you where you are now in regards to your current financial health. Once you know your starting point, you will be able to set goals for your future and make a plan to get there. So, let’s get started!

Essential Question

• How is personal net worth calculated, and how is it used to determine financial health?