Save income for a new purchase rather than use credit. A good starting point is to take inventory of the family financial assets and liabilities. This information is needed for a balance sheet, which is a basic measure of financial progress. Different names such as financial statement or a net worth state-ment are used to describe a balance sheet. The balance relates to the relationship between assets and liabilities.
Assets are properties having eco-nomic value.
They are what you own and include liquid assets such as cash, savings accounts, and money market and mutual funds. Vehicles, furniture, appliances, stocks, real property or real estate are other examples of personal and real proper-ties or assets. Liabilities are what is owed. These include bills, charge accounts, loans for a mortgage and educational vehicles. These obligations may be due within the year or for a longer time as with a mortgage loan.