Chart of the Week: How does net worth vary by age?
Net Worth is an important concept for your students to grasp. It is basically calculated as assets (think savings accounts, investment accounts, a home, a car) minus liabilities (car loan, mortgage, credit card debt).
This chart from Flowing Data introduces this concept of net worth and shows how it varies by age:
- What are examples of financial assets?
- When does debt (red bars) hit its peak? Can you explain why?
- When do assets peak (green bars) for individuals? Can you explain how assets grow over one's lifetime?
- Between what ages do assets seem to have the largest increase?
- At what age does the median amount asset value exceed $100,000?
- Why do you think that assets seem to remain steady after the age of 65?
Want your students to analyze more graphs with a personal finance angle? Better check out the NGPF Data Crunch.
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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