Know Your Worth
Autor: Jevan Ong • June 19, 2017 • Case Study • 422 Words (2 Pages) • 615 Views
Page 1 of 2
Know your worth
- This visual shows what family A and family B own. Then read the family
descriptions below.
- Family A owns a 3-bedroom house valued at $100,000 and one car.
- The home is furnished with modest furniture.
- The only valuable jewelry they own are wedding bands valued just under
$800.
- They have an emergency savings account, a college savings account and a retirement savings. They also have two credit cards.
- Family B owns a 5-bedroom house valued at $400,000, a car, and a SUV.
- The house is furnished with luxurious furniture.
- They also own a valuable piece of art and expensive jewelry.
- The family has a retirement savings and 6 credit cards.
- Have the students vote on which family they believe to be worth more (wealthier). Post the results on the board (Calculate use the net worth formula).
Item | Net Worth Worksheet | |||
Family A | Family B | |||
Assets | Liabilities | Assets | Liabilities | |
House | 100,000 | 18,000 | 400,000 | 350,000 |
Automobile | 22,000 | 0 | 35,000 44,000 | 22,000 15,000 |
Furniture | 25,000 | 450 | 100,000 | 43,000 |
Jewelry and artwork | 775 | 0 | 10,000 | 0 |
Savings | 15,000 4,500 | 0 | 0 | 0 |
retirement | 47,000 | 0 | 47,000 | 0 |
Credit card | 0 | 59 | 0 | 5,200 3,555 2,000 120 7,500 200 |
Checking account | 500 | 0 | 1,500 | 0 |
cash | 50 | 0 | 300 | 0 |
Child care | 0 | 500 | 0 | 0 |
gym | 0 | 0 | 0 | 75 |
Total | 214,825 | 19,009 | 637,800 | 448,650 |
Net worth | 195,816 | 189,150 |
I vote for family A because family A has more net worth than family B.
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