Liability
GeneralAny financial obligation or debt you owe. Liabilities include mortgages, student loans, credit card balances, and money borrowed from family. Your net worth is your assets minus your liabilities.
Related terms
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Asset
Anything you own that has financial value. Assets include cash in the bank, a vehicle, investments, or property. Your total assets minus your total debts equals your net worth.
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Debt
Money you owe to someone else, whether a bank, credit card company, family member, or other lender. Not all debt is harmful — a mortgage or student loan can build toward something — but high-interest debt like credit cards can trap you.
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Net worth
The total value of everything you own minus everything you owe. It can be negative, and that is normal early in life. Tracking net worth over time is one of the clearest measures of financial progress.