Question

Tristan has found a good job as a bookkeeping clerk after finishing his associates degree at the local community college. He is making a beginning annual salary of $19,760. How can this increased income affect his financial decisions? Compare his previous budget when he worked part time while finishing his degree with his current budget after getting a full time job. Monthly Budget Previous Budget Current Budget Income Wages $786 $1646 Expenses Rent Utilities Groceries Savings Car Expenses Entertainment $300 $60 $130 $120 $150 $20 $600 $120 $200 $350 $150 $120 Net Income $6 $106 a. Tristan is spending too much money on groceries and entertainment. B. Tristan is earning quite a bit more in his full time job. He is spending more on rent, utilities, food, and entertainment, as well as saving $350 each month. C. Tristan is earning double his previous wages. He should double his expenses, as well. D. Tristan's increased income should have no effect on his financial decisions. Please select the best answer from the choices provided A B C D.

Answer 1

To solve the problem we need to calculate the budget of Tristian.

Given to us

• Monthly budget | Previous Budget | Current Budget
• income Wages | $786                      | $1646
• Expenses Rent | $300                      | $600
• Utilities              | $60                        | $120
• Groceries          | $130                       | $200
• Savings             | $120                       | $350
• Car Expenses   | $150                       | $150
• Entertainment   | $20                        | $120
• Net Income       | $6                           | $106

Though Tristian have been earning quite good, his expenses have also increased significantly,

Tristian expenses Before

Tristian expenses on rent, utilities, food, and entertainment before = $300 + $60 + $130 + $20 = $510

Savings = $120

Tristian expenses Afterwards

Tristian expenses on rent, utilities, food, and entertainment afterwards = $600 + $120 + $200 + $120 = $1040

Savings = $350

As we can see that the expenses of Tristian are increased almost twice also his savings have increased almost three times, therefore, we can say that statement B is correct.

"Tristan is earning quite a bit more in his full-time job. He is spending more on rent, utilities, food, and entertainment, as well as saving $350 each month."

Learn more about Expenses:

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