Final answer:
Net worth is the sum of all assets and is a measure of financial health.
Step-by-step explanation:
Your net worth is the sum of all of your assets.
Net worth is a measure of an individual's or company's financial health. It is calculated by subtracting total liabilities from total assets. Assets can include money in bank accounts, financial investments, a pension fund, and the value of a home.
For example, if you have $100,000 in the bank, $50,000 in stocks, and a home worth $200,000, your total assets would be $350,000. If you have $50,000 in student loans and a $200,000 mortgage, your total liabilities would be $250,000. Therefore, your net worth would be $350,000 - $250,000 = $100,000.