Calculating Your Net Worth
CHAPTER 1, LESSON 4
NAME DATE
Raphael Boisvert 8/23/24
DIRECTIONS
Use the information below to fill out a consumer equity form and calculate the net worth for each family. Net
worth can be a useful tool to measure your financial progress from year to year. Your net worth is a grand total of
all assets (what you own) minus liabilities (what you owe; debts). It’s important to understand that your income
isn’t the only factor that determines your wealth.
FAMILY A FAMILY B
Occupation Nurse and Sales Appliance Installer
Annual Income $105,000 combined $45,000
Retirement Investments $35,000 $22,000
Real Estate Owns a house appraised at Owns a house appraised at
$224,000 with a mortgage $180,000 with a mortgage
balance of $202,000 balance of $126,000
Vehicles New truck with Blue Book value Used sedan with retail value
of $32,000; owes $35,000 of $9,500; paid for
Used SUV with a retail value
of $17,500; owes $14,500
Credit Card Debt $13,000 None
Emergency Fund $1,000 $5,000
Checking Account $2,500 $650
Household Items Antiques: $5,000 Electronics: $3,500
FO U NDATI O N S I N PERSONA L FI NA NCE PAGE 1 O F 4
Calculating Your Net Worth
CHAPTER 1, LESSON 4
Family A’s Consumer Equity
ITEM VALUE _ DEBT = EQUITY
Real Estate 224000 202000 22000
Vehicle 32000 35000 -3000
Vehicle 17500 14500 3000
Checking Account 2500 0 2500
Savings Account 1000 0 1000
Retirement Plan 35000 0 35000
Household Items 5000 0 5000
Credit Card Debt 13000 -13000
317000 _ 264500 = 52500
TOTAL
ASSETS LIABILITIES NET WORTH
FO U N DATI O NS I N PERSONA L FI NA NCE PAGE 2 O F 4
Calculating Your Net Worth
CHAPTER 1, LESSON 4
Family B’s Consumer Equity
ITEM VALUE _ DEBT = EQUITY
Real Estate 180000 126000 54000
Vehicle 9500 0 9500
Vehicle 0 0 0
Checking Account 650 0 650
Savings Account 5000 0 5000
Retirement Plan 22000 0 22000
Household Items 3500 0 3500
Credit Card Debt 0 0 0
220650 _ 126000 = 94650
TOTAL
ASSETS LIABILITIES NET WORTH
FO U N DATI O NS I N PERSONA L FI NA NCE PAGE 3 O F 4
Calculating Your Net Worth
CHAPTER 1, LESSON 4
DIRECTIONS
Answer the following questions and be ready to discuss your answers with the class.
1. Family A’s income is more than twice that of Family B, yet Family B has more equity, or
positive value, on the things that they own. How do you account for the difference?
you can account for the diffrence based of their dept sure fammily a makes more but it seems like
they seem to make worst changes wth their money and seems to have some what an equal
amount of dept to their assets
2. What advice would you give to Family A to improve their financial situation?
I would tell them to pay off some of their payments maybe first on the credit cards and then on the
cars which seem to be the big type of dept their in not talking about the morgage on the house
FO U N DAT I O N S I N P E R S O N A L F I N A N C E PAGE 4 OF 4
