Net worth is a financial metric that represents a person's assets minus liabilities. It is a snapshot of a person's financial health and gives an idea of their wealth. Assets include items such as cash, savings, investments, and property, while liabilities include debt such as mortgages, credit card balances, and loans. The net worth calculation gives an overall picture of a person's financial position and helps to determine if they are in a positive or negative financial situation. A positive net worth indicates that a person's assets are worth more than their liabilities, while a negative net worth indicates that liabilities are greater than assets. Monitoring net worth can help individuals make informed financial decisions and work towards their financial goals.