“...The SEC has suggested for presentation purposes that an item representing at least 5% of total assets should be separately disclosed in the balance sheet. However, much smaller items may be considered material. For example, if a minor item would have changed a net profit to a net loss, then it could be considered material, no matter how small it might be. Similarly, a transaction would be considered material if its inclusion in the financial statements would change a ratio sufficiently to bring an entity out of compliance with its lender covenants. ...”
SO if my bank loan is contingent on my salary, 5% could be material to me. If my household balance sheet gots from net profit to net loss with 5%, that’s material to me.