Couple #3 is white. He is a high school dropout, and she graduated for high school, and
Question:
Couple #3 is white. He is a high school dropout, and she graduated for high school, and went to one-year community college, before getting pregnant with their first child.( they now have two kids). They are also in their early thirties, just like the first two couples. He is a Union Electrician, making about $70,000 per year, while she is a part-time Server, making about $20,000 per year. She is also attending the local Community College and plans to get her Occupational Therapy Assistant license in about two more years, which should raise her annual income to about $40,000, but will also mean that she will have less time to take care of the kids. They own a small home, and would like to buy a bigger one, but the housing market is so tough right now, that they don’t see any way to do it. They have managed to save $30,000 so far, but they think they’ll need at least $30,000 more to buy a new home. You’ll notice that he has a new truck, with high monthly payments, but as he puts it, “I need it for my job.” (But does he really?) Their Net Worth is below:
Assets
Home $100,000
One 14-year-old Jeep Cherokee valued at $3,000 and one brand-new Dodge Ram pickup, with King Cab, bed liner, etc. Truck value = $72,000
His Union Pension plan has a current value of $70,000
Jewelry $200
Cash $30,000
Liabilities
Mortgage $40,000 Monthly payments (including taxes and insurance) $1,000
Her Jeep has no payments, but his truck is $1,200 per month. The loan is 5 years. The current balance on the truck is $67,200.
Student loans none
Credit cards $2,000 balance, (She has been putting some of her tuition/books/fees on credit cards minimum payment = $100/mo
List three tactics this couple can undertake to increase their Net Worth ASAP
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Economics
ISBN: 978-0073375694
18th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn