Wealth Lesson Slides
Unit 1: Money Basics • Lesson 4
How to Create and Use a Balance Sheet
Bell Ringer
START-UP ROUTINE
- 1 Grab your spiral from the class tray.
- 2 Check the paper tray for handouts.
- 3 Check the Turn-It-In Bin for graded papers.
- 4 In your spiral, write today's date; Unit 1, Lesson 4; How to Create and Use a Balance Sheet.
5 Complete the Bell Ringer below.
Answer In Spiral
CAN YOU ACTUALLY TELL WHETHER SOMEONE IS WEALTHY JUST BY LOOKING AT WHAT THEY HAVE?
Think about someone who drives an expensive car, wears designer clothes, and has a new phone. Does that prove wealth? Why or why not?
Timer Classroom startup
10:00
Unit 1: Money Basics
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Personal Financial Literacy Unit 1 • Lesson 4
How to Create
and Use a
Balance Sheet
DOES LOOKING RICH MEAN YOU ARE RICH?
What People See
New Premium Car
Newest Phone
Designer Clothes
What They Don't See
Car Loan Debt
Credit Card Balance
Almost Zero Savings
Unit 1: Money Basics
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Unit 1: Money Basics • Lesson 4
Goals & Core Concepts
Overview
LESSON TARGET
I can identify assets and liabilities, calculate net worth, and use a balance sheet to understand someone's financial position.
ESSENTIAL QUESTION
“How can someone LOOK rich but actually have very little wealth?”
TODAY'S LESSON JOURNEY
OWN Assets
→
OWE Liabilities
→
COMPARE Net Worth
Goal: Your Money Snapshot
Learn to track these three factors on a balance sheet to see someone's true wealth!
Unit 1: Money Basics
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Unit 1: Money Basics • Lesson 4
Why Does This Actually Matter?
Why It Matters
A Balance Sheet Helps You Answer:
Am I actually getting ahead?
Do I own more than I owe?
Am I building wealth—or just buying stuff?
Is my financial situation getting better or worse?
The Golden Rule of Wealth
To see your true wealth, we compare these three states:
WHAT I OWN (Assets)
→
WHAT I OWE (Liabilities)
→
WHAT'S LEFT Net Worth
A balance sheet puts the whole money picture in one place.
Unit 1: Money Basics
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Unit 1: Money Basics • Lesson 4
What Do You OWN? What Do You OWE?
Core Concepts
Real Situation
🚗
Your Car Value:
$8,000
🧾
Your Car Loan:
$11,000
"Did owning the $8,000 car automatically make you $8,000 wealthier?"
Not exactly. The car is an ASSET worth $8,000—but the $11,000 car loan is a separate LIABILITY.
ASSET
Something you OWN that has actual financial value.
PLAIN ENGLISH: Stuff or money you have that is worth cash.
LIABILITY
Any money or debt that you OWE to others.
PLAIN ENGLISH: Money you still owe.
Check Yourself
Decide: Asset or Liability?
-
$500 in savings
-
Credit card balance
-
Paid-off car
-
Amount owed on car loan
Write down your 4 answers in your spiral!
Unit 1: Money Basics
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Unit 1: Money Basics • Lesson 4
7-Day Money Reality Check
Reflection
IN YOUR SPIRAL
Use your completed Expense Tracker
1
TOTAL SPENT
Add all 7 days altogether.
Total: $_____
2
NEEDS
Add everything you identified as a need.
Needs: $_____
3
WANTS
Add everything you identified as a want.
Wants: $_____
4
COMPARE
Which was higher?
NEEDS / WANTS / ABOUT THE SAME
5
NOTICE
Write one sentence in your spiral:
What did you notice about where your money went?
Reflect Timer
08:00
Calculators Allowed!
You just looked at where your money WENT.
→
Next: Let's look at what you OWN and OWE.
Unit 1: Money Basics
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Unit 1: Money Basics • Lesson 4
So... What's Jordan's Net Worth?
Net Worth
Jordan's Situation
Jordan owns $12,000 in assets.
IS JORDAN WORTH $12,000?
Make a prediction in your head!
Jordan owes $9,000 in liabilities.
Net Worth Formula
Assets (Own): $12,000
Liabilities (Owe): − $9,000
NET WORTH: $3,000
REAL TALK
Net worth compares the value of everything you own with everything you owe. It is NOT just the money in your bank account.
Possible Outcomes
Subtracting liabilities can lead to:
Positive
Own > Owe
Zero
Own = Owe
Negative
Own < Owe
REAL TALK
Net worth compares the value of everything you own with everything you owe. It is NOT just the money in your bank account.
⚠️ Note: Net worth has absolutely nothing to do with your value as a human being!
Unit 1: Money Basics
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Unit 1: Money Basics • Lesson 4
A Balance Sheet: Your Money Snapshot
Snapshot Concept
🙋♂️
“Why would I ever do this?”
Money can look perfectly fine when you look at individual separate pieces:
- Your bank account balance
- The market value of your car
- Your credit card statements
A BALANCE SHEET takes all these separate pieces and fits them together!
FANCY TERM. SIMPLE IDEA.
A BALANCE SHEET IS A MONEY SNAPSHOT.
ASSETS What do I own?
→
LIABILITIES What do I owe?
→
NET WORTH What's left?
Worksheet Connection: You'll build snapshots like this today!
Unit 1: Money Basics
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Unit 1: Money Basics • Lesson 4
Let's Build One: Maya's Snapshot
Worked Example
Maya's Raw Numbers
Organize these messy figures into a clear snapshot:
• Cash: $250
• Savings: $1,200
• Car Value: $8,000
• Car Loan: $5,000
• Credit Card: $600
ORGANIZING RAW DATA
1 & 2 — Assets vs Liabilities
Assets (Own): $250 + $1,200 + $8,000 = $9,450
Liabilities (Owe): $5,000 + $600 = $5,600
3 & 4 — Total & Subtract
$9,450 Assets − $5,600 Liabilities
Maya's Net Worth = $3,850
5 — What it Means
The car is an asset and the car loan is a liability. When all of Maya's assets and liabilities are compared, her net worth is $3,850.
Worksheet Bridge:
You will complete these exact sorting steps on your worksheet!
Unit 1: Money Basics
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Unit 1: Money Basics • Lesson 4
Not All Assets Act the Same
Asset Behavior
📉 Depreciating Asset (Loses value)
YOUR PHONE IS RUDE:
NEW PHONE: $1,000+ → LATER: Worth much less
Still an asset. Just a depreciating one. (Cars act the same way!)
📈 Wealth-Creating Asset (Grows value)
An asset that can increase in value or help your money grow over time.
Examples:
Money in investments, Retirement accounts, A home that gains value.
CORE TERM: EQUITY
The part of an asset's value that you actually own after subtracting what you still owe on it.
Example: Car worth $10,000 − $6,000 car loan = $4,000 equity
CORE TERM: EMERGENCY FUND
Money saved for unexpected necessary expenses, such as a car repair or medical bill.
Saved in cash, checking, or savings accounts for quick access!
Unit 1: Money Basics
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Unit 1: Money Basics • Lesson 4
Looks Rich vs. Builds Wealth
Comparison
Person A
EXPENSIVE STUFF + MORE DEBT
- Has high-looking material assets
- Owes heavy loans and credit cards
High Liabilities = Lower Net Worth
REVEAL Person B
Person B
FEWER FLASHY THINGS + STRONGER FINANCIAL POSITION
- Prioritizes savings over flashy stuff
- Has zero or very little outstanding debt
Fewer Liabilities + More Assets = Stronger Net Worth
YOU CAN'T CALCULATE WEALTH BY LOOKING AT SOMEONE'S STUFF!
You need the whole money picture to understand their actual position.
Unit 1: Money Basics
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Unit 1: Money Basics • Lesson 4
Balance Sheet Handout
Handout Practice
YOUR JOB
Complete the balance sheets for:
1. JOHN 2. GWEN 3. SAM
For EACH Person:
1
SORT IT — Put under Assets or Liabilities.
2
TOTAL IT — Add dollar amounts in each column.
3
CALCULATE IT — Net Worth = Assets − Liabilities.
4
QUICK CHECK — Complete 3 questions on Page 2.
VOICE LEVEL 1 • INDEPENDENT WORK
STUCK?
Use Slides 5–10 and your spiral notes for help.
SORT → TOTAL → CALC → CHECK
20 MINUTES
20:00
Work Time Remaining
Unit 1: Money Basics
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Unit 1: Money Basics • Lesson 4
Vocabulary Task
Spiral Task
Lesson 4 Terms
Asset Liability Net Worth Balance Sheet Wealth-Creating Asset Depreciating Asset Equity Emergency Fund
CHOOSE 4
Spiral Work
- • Pick any 4 vocabulary words from the left box.
- • Write those 4 words in your class spiral.
- • Use the FINAL GLOSSARY SLIDE of this presentation to copy the student-friendly definitions.
Vocabulary Time
10:00
Unit 1: Money Basics
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Unit 1: Money Basics • Lesson 4
Ready to Exit?
End of Lesson
Lesson Checklist — Make sure you did it all:
☐
VOCABULARY: Show your spiral with 4 vocabulary words + definitions to Ms. Cummings for checking.
☐
WORKSHEET: Turn in your completed balance-sheet worksheet.
☐
Return your spiral to the class tray.
📥 Return spiral to tray.
🧹 Clean up your area.
Required To Exit
EXIT KEY:
WORKSHEET TURNED IN
Ready to Exit?
Unit 1: Money Basics
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Unit 1: Money Basics • Lesson 4
Lesson 4 Glossary
Glossary
Asset — Something you own that has financial value.
Liability — Money or debt you owe to others.
Net Worth — The value of total assets minus total liabilities.
Balance Sheet — A financial snapshot of assets, liabilities, and net worth.
Wealth-Creating Asset — An asset that can grow in value over time.
Depreciating Asset — An asset that loses value over time.
Equity — Part of an asset's value owned after subtracting what is owed.
Emergency Fund — Cash saved specifically for unexpected emergencies.
Unit 1: Money Basics
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