Personal financial literacy · TEKS 7.13B, 7.13C, 7.13D
Budgets & net worth
A budget plans income and expenses. Net worth measures what you own minus what you owe.
Key steps
- Fixed expenses stay the same (rent). Variable expenses change (groceries, gas).
- Percent of budget = expense ÷ income.
- Assets = what you own. Liabilities = what you owe.
- Net worth = assets − liabilities.
- Hourly wage needed = yearly budget ÷ 2,080 (40 hours × 52 weeks).
Worked example
Assets $9,000. Liabilities $5,400. Net worth?
- 9,000 − 5,400 = 3,600.
- Answer: $3,600
Watch out: A car you own is an asset; the car LOAN is a liability. They are separate lines.
Practice
5 questions with new numbers every set. Get 4 of 5 to mark this topic as practiced.