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Ages 10+ · Money · Saving and budgets
Net worth: what you own and owe
List what youown: 40List what youowe: 5Take owe fromownNet worth: 35coins
Finding net worth.
The big ideaNet worth is what you own minus what you owe. It is a snapshot that changes.

How it works

Net worth is what you own minus what you owe. It is a snapshot of one day, and it changes.

Mina lists what she owns: a bike worth 20 coins, 15 coins in her jar and books worth 5. Then she lists what she owes: 5 coins to Dad for a kite.

Owing a little is ordinary. What she owns minus what she owes is her net worth: 40 − 5 = 35 coins.

Saving makes net worth grow, and not everything holds its worth: an old bike's worth slowly falls. Net worth is not about being rich.

What Mina owns0510152020Bike15Jar5Bookscoins
What Mina owns, 40 coins in all.
I own• A bike worth 20 coins• 15 coins in the jar• Books worth 5 coinsI owe• 5 coins to Dad for a kite
Two lists.

Example 1: What she owns

  1. A bike worth 20 coins, 15 coins in the jar and books worth 5.
  2. 20 + 15 + 5 = 40 coins owned.

Example 2: Net worth

  1. Mina owns 40 coins and owes 5.
  2. 40 − 5 = 35 coins.
  3. Her net worth is 35 coins on this day.

Example 3: Paying back

  1. Mina pays Dad the 5 coins from her jar, so she owns 40 − 5 = 35 and owes nothing.
  2. Her net worth is still 35 coins.
  3. Both lists fell by 5, so the difference stayed the same.

Example 4: Saving more

  1. Mina saves 4 more coins and owes nothing.
  2. 35 + 4 = 39 coins owned.
  3. Her net worth grew to 39 coins.

Words to know

net worth
What you own minus what you owe.
own
Things that are yours and worth coins.
owe
Coins you must pay back.
snapshot
How things stand on one day.

Watch out

Try it

  1. Mina owns 40 coins and owes 5. What is her net worth?
  2. Five coins borrowed from Dad: do you own them or owe them?
  3. Another child owns 50 coins and owes 15. What is their net worth?
  4. Mina saves 4 more coins. Does her net worth go up or down?
Answers: 1. 35 coins · 2. You owe them · 3. 35 coins · 4. Up
Try at homeWith a grown-up, list what you own and what you owe, in pretend coins. Subtract to find a net worth.
For grown-upsMake two lists together, what you own and what you owe, in pretend coins, then subtract. Use pretend numbers: there is no need to share your family's own.
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