Definition
Everything you own minus everything you owe.
The story
Add up savings, investments, retirement accounts and the value of a home or car, then subtract mortgages, loans and card balances. If you have $40,000 in assets and $25,000 in debt, your net worth is $15,000. It can be negative, especially early on with student loans.
Why markets watch it
Tracking it over time shows whether your finances are moving in the right direction.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms