Your parents tell you that they must create a personal balance sheet. Explain what a personal balance sheet is and explain the three steps they must use in its creation.

A personal balance sheet is a financial statement of your personal assets and liabilities.

to create it you would have to record your:

Assets (what you have)

Your liabilities (what you owe)

Then calculate your networth (what you have after you deduct your liabilities from your assets)