Use the "family need" method to complete 1. Yearly income x 5 2. Total approximate expenses above and beyond your daily living costs for you and your dependents (e.g. tutition, care for disabled child or parent) 3. Emergency fund needed (6 months of living expenses) 4. Expected funeral expenses 5. Total estimate of family's financial needs (sum of lines 1- 4) 6. Total liquid assets (e.g. savings account, CDs, money market funds, other life insurance, pension plan death benefits, and Social Security benefits) 7. Life insurance needs (total estimate of needs minus liquid assets)
Use the "family need" method to complete 1. Yearly income x 5 2. Total approximate expenses above and beyond your daily living costs for you and your dependents (e.g. tutition, care for disabled child or parent) 3. Emergency fund needed (6 months of living expenses) 4. Expected funeral expenses 5. Total estimate of family's financial needs (sum of lines 1- 4) 6. Total liquid assets (e.g. savings account, CDs, money market funds, other life insurance, pension plan death benefits, and Social Security benefits) 7. Life insurance needs (total estimate of needs minus liquid assets)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:es
Current Financial Situation
Assets:
Checking account
Savings account
Emergency fund savings account
IRA balance
Car (Jamie Lee)
Car (Ross)
Liabilities:
Student loan balance
Credit card balance
Car loans
Income:
$3,700 Gross income (Jamie Lee)
$57,000
$17,200
Net income after taxes (Jamie
Lee)
$39,900
$20,300 Gross income (Ross)
$81,000
$26,200 Net income after taxes (Ross)
$67,200
$12,700 Monthly Expenses:
$20,200 Mortgage
$1,405
Property taxes
$520
$0 Homeowners insurance
$320
$4,700 Utilities
$220
$8,200 Food
$560
Gas/maintenance
$335
Credit card payment
$335
Car loan payment
Entertainment
$301
$185
Use the "family need" method to complete
1. Yearly income x 5
2. Total approximate expenses above and beyond your daily
living costs for you and your dependents (e.g. tutition, care
for disabled child or parent)
3. Emergency fund needed (6 months of living expenses)
4. Expected funeral expenses
5. Total estimate of family's financial needs (sum of lines 1-
4)
6. Total liquid assets (e.g. savings account, CDs, money
market funds, other life insurance, pension plan death
benefits, and Social Security benefits)
7. Life insurance needs (total estimate of needs minus
liquid assets)
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