Financial Literacy for Everyone
Follow Us
FacebookTwitterYouTube
Summit 2014

SAVE THE DATE
For the 2015 Financial Literacy Summit on April 15 in Chicago.
Register now

Money game on the go

Play and learn
Who says learning about money can't be fun? Try one of our money skills games today.
Play now

social media

Connect with us!
For daily money tips, quips and pics, follow us on social media.
Like us on Facebook
Follow us on Twitter

What Are You Worth?

To gauge your financial health, itís a good idea to keep close track of your net worth. This doesnít mean what youíre worth as a person. Net worth is the value of your personal finances.

One way to understand it is to imagine yourself as a business. To figure out how much a business is worth, you would add up everything the company owns and subtract from that total everything that the company owes.

Net Worth = Assets - Liabilities

Assets
Your assets are everything that you own. They may include your house, car, furniture, motorcycles, trail bikes, camping gear Ė anything thatís worth money. Assets also include all savings, cash on hand, and investments. Even the stuff you still owe money on is included.

To determine your total assets, figure the appropriate market value of everything you own. Consider how much an item might fetch if you were to sell it online. Be honest and realistic.

You can even go a step further and figure out future assets. If you have money in an interest bearing account, or in investments, you can calculate how much your money will grow.

Liabilities
Your liabilities are everything that you owe. Theyíre the total amount you would need to pay off your mortgage, credit cards, student loans and loans from family and friends. Be sure to include any interest and finance charges. This information is typically included on your monthly statements.

As with assets, you can also track liabilities into the future by calculating your repayment rate and projecting when your debts will be paid off.

Building Wealth
Ideally, you will have more assets than liabilities. As you grow older and advance in your career, youíll earn more, reduce debt and increase savings.

Age Median Net Worth
Less than 35 $9,300
35-44 $42,100
45-54 $117,900
55-64 $179,400
65-74 $206,700
75 and older $216,800

*Source, Federal Reserve 2010 Survey of Consumer Finance.Ē

Saving money is the most powerful tool for generating personal wealth. And itís even more powerful when youíre young. Thatís because the more time you have to earn interest, the more wealth youíll acquire.

Email to a friend

Your Name:
Your Email:
Recipient's Email:
Message:
Enter code:


The information that you provide through this e-mail feature will not be stored by Visa for any other purposes. Please refer to Visa's privacy policy for details.