Understanding Assets and Liabilities | Cash Course | PragerU Kids

@PragerUKids

From buying baseball cards to taking out a loan for school, every financial decision you make could be an asset or a liability. Watch this episode of Cash Course for youth and young adults to learn the differences between assets and liabilities and how to balance the two in order to properly manage your finances.

#personalfinance #financialeducation #loans

[violinhunter]

A friend told me long ago that if I ever experienced negative cash flow, the problem might not be my expenditures, but my income. That motivated me to get a better job. 🙂 He also told me that if I ever wanted to buy something on impulse, to first ask myself: "If I were buying this at a flea market, how much would it be worth to me"?

[brandonkenney]

I once did a project on this very topic of defining assets and liabilities. It really depends on who you ask.
For example, if you ask an accountant, they will tell you that there is an equation that must be followed: Assets = Liabilities + Equity. An asset is anything that has a potential economic value in the future, and includes items such as cash, equipment, prepayments, and accounts receivable (accounts receivable being the amount others owe you but have not paid yet.). Liabilities are any financial obligation or claim someone has on you including items such as notes payable, aka, bank loans.
Equity is the final piece of the equation, which is essentially where the owner/company decides what to do with the company's resources. Do they issue stock to get more cash? Do they issue owner draws so the owners receive money? Do they retain earnings to use in the future? There is more complexity to it, but it boils down to that 3 part equation.
If you ask Robert Kiyosaki, he would say an asset is something that puts money in your pocket, and a liability is something that takes money out of your pocket.

[az]

Our education system should consider to have a required course of assets and liabilities in middle and high schools. It could help to have a successful future financial wealth in kids' adult life instead owing thousands of credit cards and student loans debts.

[RiflemanReveiws]

I spent a term at UW grad school learning this same material which was presented by Prager U in 5 min lol

[sirellyn]

Also check out rich dad poor dad. Use his definition of Assets: - An item that will simply make money on it's own after you buy it.
And yeah buy those.

[stachowi]

Assets put money into your pocket each month (positive cashflow), liabilities take money out of your pocket (negative cashflow)...

The poor and middle class are "poor" because they buy liabilities THINKING they're assets (e.g. your home IS NOT AN ASSET).

If you use it, it's a liability, if you rent it, it's an asset.

[theparadigm]

A PragerU video that isn’t biased?! I never thought it was possible! ❤️