Monthly Archives: March 2026

Mar 28 2026

NET WORTH: A DIFFERENT APPROACH

In basic terms, net worth, the difference between a person’s assets (what they own, items of value) and liabilities (amounts owed), is viewed on a person’s personal balance sheet. Assets in the amount of $196,000 minus liabilities of $63,000 results in a net worth of $133,000. However, the amount of net worth may not truly reflect financial security.

When viewing net worth, remember, not all assets have the same financial benefit:

  • Productive wealth involves assets that are actively working for you generating income, dividends, interest and capital gains. These include savings accounts, retirement accounts, investment accounts, and rental property.
  • Sellable wealth includes assets with a market value that you could and would sell under certain circumstances. While these assets are not generating income, the value would be available if you needed the money.
  • Estate wealth includes assets with paper value but that you either can’t or are unwilling to sell. These include your primary home, car, business ownership, and sentimental assets such as family heirlooms and antique collectibles. Home equity and other estate items will usually not be viewed as available wealth.

While home equity and business ownership increase net worth, these have limited usable wealth due to illiquidity. When planning finances, emphasize productive or sellable assets for usable wealth; don’t just seek a larger net worth.

For additional information on net worth, go to:

https://clark.com/personal-finance-credit/a-better-way-to-think-about-your-net-worth/

Teaching Suggestions

  • Have students create a proposed future balance sheet that emphasizes productive and sellable wealth.
  • Have students use AI research to obtain suggestions for increasing a person’s productive and sellable wealth.

Discussion Questions 

  1. Why might a person overlook the value of productive and sellable wealth over estate wealth?
  2. Describe actions a person might take to emphasize productive and sellable wealth.   
Mar 14 2026

Shopping for life insurance

esent and future sources of income, other savings and income protection, group life insurance, pension benefits, Social Security, and, of course, the financial strength of the company.  Here are some tips in purchasing life insurance.

  • Make sure the agent and company are licensed to sell insurance. If you buy from an unlicensed company, your beneficiary might not get paid if the company fails. Licensed companies belong to a guaranty association that pays claims for failed companies.
  • Check a company’s financial rating and complaint history. To learn about a company’s financial rating and the number of complaints against it, call your state’s Consumer Help Line.
  • Shop for a low- or no-load policy. You might save money if you buy a policy with low commissions and fees, which are known as the load. Financial planners who are licensed insurance counselors often sell these policies. They usually charge clients a flat fee.
  • Get quotes from several companies. Rates vary by company.
  • Compare “apples to apples.” Be sure the policies you compare offer similar coverage. A less expensive policy could have fewer features or a lower death benefit. A more expensive policy might be a better value when you consider the amount of the death benefit per premium dollar. Don’t choose a policy on price alone.
  • Know how much coverage you’re buying. Talk to your agent about the coverages and amounts you need. Think about how much you’ll need to help your dependents after your death.
  • Know how much your policy will cost. Your company should tell you exactly how much your policy will cost. If you’re not OK with the cost, ask the company if they have a different policy.
  • Use your free-look period. Most policies have a free-look period of at least 10 to 20 days. During this time, you may cancel the policy for any reason and get a full refund. Use this time to be sure the coverage is right for you.
  • Review the information an agent gives you. Agents often use charts to show how a policy’s cash value might grow. These are usually projections and aren’t a promise of a policy’s performance. You could earn less than the projection. Ask for a history of the actual growth of cash values.
  • Watch out for illegal acts. Agents can’t offer you a gift or a discount on an investment or loan to encourage you to buy life insurance. If you think an agent has made an improper offer, call your states’ Consumer Help Line.

For more information, click here.

Teaching Suggestions:

  • Ask students why it is important to understand and know what your life insurance needs are before you make any purchase?  Also, why is it important to review the company to ensure they can meet your needs?
  • Ask students if they check their coverage periodically, or whenever their life situation changes, to ensure that it meets their current needs.

Discussion Questions:

  1.  Why is it important to know the ratings of the insurance company?

  2.  What should you do in examining a policy before and after the purchase?