Plan to Save You will need to spend money to achieve most of the long-term goals you set in your life. It could be money to pay for your education, buy a house, raise a family, travel, start a business, and so on. Because you need money to achieve your most valued long-term goals, you also need to create a savings plan as a part of your overall financial plan. Saving is not something that just happens for most people. It is the result of careful planning and controlled spending. Consider Walter, who would like to save $300 per month toward the purchase of a home. Walter's income and spending in the past month are shown below. Use this information to answer the questions that follow. Walter's Income Income Spending Net (after tax) Wages $2,850.00 Rent/Utilities 5751.76 Interest Earned S64.07 Food $348.32 Stock Dividends $120.00 $239.42 Clothing Transportation $499.61 Loan Payments $299.00 Entertainment $454.92 Insurance $231.42 Other S273.45 4. Which types of spending could Walter adjust in the short run? Which types could he not adjust? 5. What would you recommend Walter do to reach his savings goal?
Plan to Save You will need to spend money to achieve most of the long-term goals you set in your life. It could be money to pay for your education, buy a house, raise a family, travel, start a business, and so on. Because you need money to achieve your most valued long-term goals, you also need to create a savings plan as a part of your overall financial plan. Saving is not something that just happens for most people. It is the result of careful planning and controlled spending. Consider Walter, who would like to save $300 per month toward the purchase of a home. Walter's income and spending in the past month are shown below. Use this information to answer the questions that follow. Walter's Income Income Spending Net (after tax) Wages $2,850.00 Rent/Utilities 5751.76 Interest Earned S64.07 Food $348.32 Stock Dividends $120.00 $239.42 Clothing Transportation $499.61 Loan Payments $299.00 Entertainment $454.92 Insurance $231.42 Other S273.45 4. Which types of spending could Walter adjust in the short run? Which types could he not adjust? 5. What would you recommend Walter do to reach his savings goal?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Plan to Save
You will need to spend money to achieve most of the long-term goals you set in your life. It could be money to pay for your education, buy a house,
raise a family, travel, start a business, and so on. Because you need money to achieve your most valued long-term goals, you also need to create a
savings plan as a part of your overall financial plan. Saving is not something that just happens for most people. It is the result of careful planning and
controlled spending. Consider Walter, who would like to save $300 per month toward the purchase of a home. Walter's income and spending in the
past month are shown below. Use this information to answer the questions that follow.
Walter's Income
Income
Spending
Net (after tax) Wages
$2,850.00 Rent/Utilities
S751.76
Interest Earned
$64.07
Food
$348.32
Stock Dividends
$120.00
$239.42
Clothing
Transportation $499.61
Loan Payments S299.00
Entertainment $454.92
Insurance
$231.42
Other
$273.45
4. Which types of spending could Walter adjust in the short run? Which types could he not adjust?
5. What would you recommend Walter do to reach his savings goal?
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