Section 2.1 Your Personal Financial Landscape 43
‘ odqrnm‘k rodmchmf ch‘qx- Hsdlhyd xntq dwodmrdr ‘mc qdbnqc dw‘bskx gnv
much money came in. Keep these records until you reach the end of your
budget period. You will find that recording cash inflows and outflows leads
to more accurate budgeting. Once you finish the cash flow statement, you can
oqdo‘qdsgdatcfdsenqsgdmdwslnmsglnqdpthbjkx-
Net Worth Statement
Dwodqsr‘cuhrddu‘kt‘shmfxntqsns‘kehm‘mbh‘krhst‘shnm‘skd‘rs‘mmt‘kkx-@
financial or net worth statement can help you do this accurately. A net worth
statement is a written record of an individual’s current financial situation.
Your net worth is the difference between what you own and what you owe.
It measures your financial standing at a particular point in time. A net worth
statement is shown in Figure 2-9.
This may not seem necessary now, but as you move into the adult world,
your circumstances can change rapidly. Tracking your finances can become
more complicated and more important. The net worth statement helps you
chart your financial future.
÷ − + ×
You Do the Math
Word problems are exercises in which the problem is set up in text, rather
than presented in mathematical notation. Many word problems tell a story. You
must identify the elements of the math problem and solve it.
There are many strategies for solving word problems. Some of the common
strategies include making a list or table; working backward; guessing, checking,
and revising; and substituting simpler numbers to solve the problem.
Complete the Following Problem
Lena Chang, 23, lives alone in a rented apartment. She earns $2,300 a
month after taxes and payroll deductions. She has a savings account containing
$1,500. She also owns $2,000 in stocks and some jewelry worth about $1,000.
Her largest asset is a car that could sell today for $10,000. She still owes
$15,000 on a student loan. Her monthly expenses include:
¶ #1//r‘uhmfr
¶ #64/qdms
¶ #14/rstcdmskn‘mo‘xldms
¶ #14/tshkhshdr
¶ #1//f‘r+b‘qhmrtq‘mbd+‘mcqdfhrsq‘shnm
¶ #12/fqnbdqhdr
¶ #4/cnm‘shnmrsn‘bg‘qhsx
¶ #24/dwsq‘rrtbg‘rdmsdqs‘hmldms+d‘shmfnts+‘mcbknsghmf
Is her net worth statement positive or negative?