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 and Spending Income Spending Gross Wages $3,500 Rent Utilities $728.86 Тахes (830.00) Food 338.32 Interest Earned 60.00 Clothing 175.42 Stock Dividends 120.00 Transportation 425.61 Net Income 2,850 Loan Payments 299.00 Entertainment 400.92 Insurance 231.42 Other 250.45 1. How much was Walter's income? 2. How much did Walter spend? 3. What change was there in Walter's savings? 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?

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 and Spending Income Spending Gross Wages $3,500 Rent Utilities $728.86 Тахes (830.00) Food 338.32 Interest Earned 60.00 Clothing 175.42 Stock Dividends 120.00 Transportation 425.61 Net Income 2,850 Loan Payments 299.00 Entertainment 400.92 Insurance 231.42 Other 250.45 1. How much was Walter's income? 2. How much did Walter spend? 3. What change was there in Walter's savings? 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?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.

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Worksheet B-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 and Spending
Income
Spending
Gross Wages
$3,500
Rent/Utilities
$728.86
Таxes
(830.00)
Food
338.32
Interest Earned
60.00
Clothing
175.42
Stock Dividends
120.00
Transportation
425.61
Net Income
2,850
Loan Payments
299.00
Entertainment
400.92
Insurance
231.42
Other
250.45
1. How much was Walter's income?
2. How much did Walter spend?
3. What change was there in Walter's savings?
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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