Margo is a college student who has student loans and a car loan. She currently works a part-time job at a clothing store, but most of this income goes toward her rent. Based on this scenario, Margo most likely has a(n) ________ net worth.

Question

Quizplus · Accepted Answer

Based on this scenario, Margo most likely has a negative net worth. This is common among students who are not yet earning enough to have accumulated significant assets, such as a house or stock portfolio. However, students are likely to have incurred various forms of debt, including student loans, car loans, and credit card debt. At this stage in life, negative net worth is not necessarily an indication of poor future financial prospects.

Margo Is a College Student Who Has Student Loans and a Car