Warm-up

• List everything you own (assets) that could be sold for cash? List the estimated value.– Examples: car value, savings accounts, checking

accounts, etc.• List everything you owe (liabilities) that need to

be paid today. Do not include monthly bills like cell phones, insurance, etc. (unless they are passed due)– Total of remaining car payments, debt to parents, a

friend, loans, etc.

Lesson Three: Net Worth and Cash Flow

• Organize and then determine your net worth using a net worth worksheet and a monthly cash flow worksheet

Teens and MoneyBudget Worksheet

• Student centered activity: Cash Flow worksheet• List your total income (estimate)• List your total expenditures (estimate)• Find your monthly Surplus or Deficit• Question: What term is used to describe a cash

flow worksheet that has a deficit at the end of the month

• Answer: Negative Cash Flow

Budget Project

• Teacher review and assessment at the quarter point……

Article: “What is going On?”

• Review• Read sections 1, 2, 3, 4• What is causing the price to go up?• What can we as consumers do to cut costs?• What is the effect on the overall economy?• Record answers on paper…..

Net Worth

• An important step in gaining financial control is to calculate your net worth

• Assets – Liabilities = Net Worth• Own - owe = what your worth• Complete sheet to the best of your ability.• Due Tomorrow: 10 points• Net worth calculator-- Median age comparison

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QUICK AND HANDY CHART (from CNN Money)So if you want to have a quick (very simple) comparison chart of what you are worth compared to others in your age and income, here it is!

                                                                                                                                                                                

If you want to really get down and dirty with the numbers, go to the CNN calculator and type in your age and income to get something more customized.I couldn’t show everything here, there are too many variables.

Closure– Net Worth is just a number

• What is the difference between a cash flow statement and a net worth statement?

• Answers

• Why is this information important?