This is part of a collection of definitions on Financial Literacy. This defines the term net worth.
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Algebra >> Expressions, Equations, and Inequalities >> Numerical and Algebraic Expressions

Definition--Financial Literacy--Net Worth

Net Worth

Net Worth

Topic

Financial Literacy

Definition

Net worth is the total assets minus total liabilities of an individual or organization, representing financial health.

Description

Net worth is a key indicator of financial health, reflecting the value of what one owns versus what one owes. Understanding net worth is crucial for personal financial planning and wealth management. In real-world applications, net worth helps individuals and businesses assess financial progress and set financial goals. Algebraically, it is calculated by subtracting total liabilities from total assets. In math education, net worth introduces students to concepts of balance sheets, asset management, and financial analysis. A teacher might explain, "Net worth is like a financial scorecard that shows how much you really own after paying off all your debts."

Net Worth
The value of all cash and assets go 
into the calculation of net worth.

For a complete collection of terms related to Financial Literacy click on this link: Financial Literacy Collection.

Common Core Standards CCSS.MATH.CONTENT.HSA.CED.A.1
Grade Range 8 - 10
Curriculum Nodes Algebra
    • Expressions, Equations, and Inequalities
        • Numerical and Algebraic Expressions
Copyright Year 2023
Keywords financial literacy, assets, liabilities, net worth