The most important financial statement is the Balance Sheet – it is the center of all decisions for people wanting to invest in a company as it is the document that determines the value of the company.
Just imaging if you could construct your own balance sheet and track it’s progress over time.
This could be per month or per year – it is very important that you do this as it will focus your efforts on building a strong balance sheet which is a snapshot or photograph of your financial position at a point in time.
I have been teaching my two children over the last few years and getting them to build their own balance sheets and increasing their financial vocabulary.
I have added a few of these slides below from my sessions with them – it has been a lot of fun and we are busy building our balance sheets.
So let me take you on the journey on how to build your own balance sheet and increase your financial vocabulary.
Increase your financial vocabulary
Assets and Liabilities – what are they
What you owe and what you own