Title: Examine components and purposes of a personal net worth statement.
Course: Economics and Personal Finance (19262-36) > Section: Demonstrating Knowledge of Personal Financial Planning

Examination should include

- definition of net worth statement and identification of its components (a statement showing one’s financial position, calculated as follows: assets − liabilities = net worth)
- discussion of the purposes of a net worth statement (usefulness as an analytical tool; usefulness to creditors, investors, lenders, financial advisers)
- identification of assets (e.g., checking and savings account balances, car value, personal property value)
- identification of liabilities (e.g., car loan, mortgage loan, bank loan, credit card balances).

Examination should also incorporate the concept of a personal property inventory, to include

- definition of personal property inventory (a list of all one’s personal property)
- discussion of the purpose of a personal property inventory (e.g., its usefulness in the event of fire, theft, or property damage; a record of personal property value, useful in preparing a personal net worth statement)
- identification of components of a current personal property inventory (digital photographs or videos of personal property, along with an electronic database inventory)
- description of safe storage of the inventory records.