Statement_of_Financial_Position_Note_Taking_Guide_2.2.3.L1 (2).pdf - Page|13 2.2.3.L1 TotalPointsEarned TotalPointsPossible Percentage Name Grace Benson

Statement_of_Financial_Position_Note_Taking_Guide_2.2.3.L1 (2).pdf

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Unformatted text preview: Page | 13 2.2.3.L1 Statement of Financial Position Note Taking Guide Total Points Earned Total Points Possible Percentage Name Grace Benson 9/20/18 Date 3rd period Class Statement of Financial Position for: Date: Assets Monetary assets Cash on hand Value of checking account and savings account Other: Subtotal of monetary assets Tangible Assets Market value of home Market value of household furnishings Market value of automobile Market value of electronics Market value of clothing Other: Subtotal of tangible assets Investment Assets Value of investments Other: Subtotal of investment assets Total Assets Liabilities Home mortgage balance Installment loan balance for automobile Student loan balance Credit card balance Money owed to others Other: Total Liabilities Net Worth = Total Assets ‐ Total Liabilities $ $ $ $ $ $ What is net worth? The measure of financial wealth What is wealth? Indicates the monetary value of all possessions that a person or household owns, minus the tota lamounts owed to others Circle where assets are located on the Statement of Financial Position. What is an asset? Everything a person owns with monetary value What is the Statement of Financial Position? Financial statement that describes an individual or family's financial condition on a specified date by showing assets, liabilities, and net worth Place a star next to where monetary assets are located on the Statement of Financial Position. What is a monetary asset? Can quickly and easily converted into cash Place a star next to where tangible assets are located on the Statement of Financial Position. What is a tangible asset? Place a star next to where investment assets are located on the Statement of Financial Position. What is an investment asset? Personal property that was purchased to create a lifestyle or improve your life (also known use or lifestyle assets) Financial assets purchased with the hope that they will generate income and appreciate in value to make it possible to sell art a higher price in the future Circle where liabilities are located on the Statement of Financial Position. What is a liability? Circle where net worth is located on the Statement of Financial Position. How is net worth calculated? A debt or obligation you owe to others assets - liabilities = net worth © Take Charge Today – August 2013 – Statement of Financial Position Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 14 2.2.3.L1 Net Worth How can you increase net worth? 1. __________ ____________ 2. __________ 3. __________ ____________ ____________ What three money management tools work together to help you manage your money, and therefore, increase net worth? Why should you keep your net worth in mind when making financial decisions? What is my financial position ____________? How have I managed my money in the __________? What is my _____________ money management plan? The Statement of Financial Position How often is it recommended to create a Statement of Financial Position? What are the benefits of writing down a Statement of Financial Position versus only "thinking" about it? © Take Charge Today – August 2013 – Statement of Financial Position Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona ...
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