Financial Basics

How to calculate your net worth

Net worth is one number that gives you an honest snapshot of where your finances actually stand today. It isn't a grade, and it isn't something to compare against anyone else's — it's just a starting point you can track over time.

What counts as an asset

Anything you own that has value: cash, checking and savings balances, investment and retirement accounts, the equity in a home or vehicle you own, and similar items.

What counts as a liability

Anything you owe: credit card balances, student loans, auto loans, a mortgage balance, and any other outstanding debt.

Why it's worth tracking

A single net worth number won't tell you everything, but watching it over months and years shows you whether your overall financial picture is moving in the direction you want — regardless of what any one account is doing.

Want to go deeper?

If the assets-vs-liabilities framing above clicked for you, Financial Literacy for All builds an entire wealth-building mindset around that same distinction — worth a read once you've got your own numbers down.