Learning Objectives
- Demonstrate how to calculate a person’s net worth using their current financial position.
- Explain how to research and evaluate the services offered by a Financial Service Provider (FSP).
Assignment BUU4.5
- Make a copy of this Google Document (Espanol).
- Name the file Calculating Your Net Worth-(Your Initials).
- Move it into your Lesson 4 folder.
- Then complete the task using the directions below and the document.
Directions: Use the information below to fill out a consumer equity form for each family, and answer the questions. A person’s net worth can be a useful tool to measure one’s financial progress from year to year. An individual’s net worth is a grand total of all assets (things of value that you own) minus your liabilities (debts). It is important to understand that a person’s income does not alone determine their wealth.
Family A
- Occupation: Nurse and Sales
- Income: $105,000 combined
- Property: Owns a house appraised at $224,000 with a mortgage balance of $202,000 Two vehicles: New truck with blue book value of $32,000; owes $35,000
- Used SUV with a retail value of $17,500; owes $14,500
- Emergency Fund: $1,000
- Retirement: $35,000
- Credit Card Debt: $13,000
- Antiques: $5,000
- Checking Account: $2,500
Family B
- Occupation: Teacher
- Income: $45,000
- Property: Owns a house appraised at $139,000 with a mortgage balance of $85,000 One vehicle: Used sedan with retail value of $9,500
- Emergency Fund: $5,000
- Retirement: $22,000
- Electronics: $3,500
- Checking Account: $650
Assignment BUU4.6
- Create a copy of this Google Document (Espanol), rename it Characteristics of FSP-(Your Initials), and move it into your Lesson 4 folder.
- Use the internet to research each type of financial institution to find out what they are and what services they offer.
Assignment BUU4.7
- After completing the assigned tasks in Lesson 4 above, share your Lesson 4 folder with your teacher. Your folder should have the following files in it:
- Types of Expenses
- Purchase Calculations (Google Form)
- Budget for College
- Creating a Budget
- Calculating Your Net Worth
- Characteristics of FSP
Lesson 4 Quiz-BUU
- Complete the Lesson 4 Quiz for the Budget Unit.