Question

Justin is married with one child. He works 40 hours each week at a rate of $16 per hour. His wife began working part time after their daughter was born, but still contributes about $350 to the cash inflow each month. Their monthly cash outflow is generally about $3,000. They have a balance of  $2,000 in their savings account. Justin has retirement contributions taken out of his paycheck at work. They have renter’s, car and life insurance coverage. Based on this information, what part of their financial plan should Justin and his wife work on? a. managing income b. managing liquidity c. protecting assets d. retirement

Answer 1

B on edge2020

Explanation:

I took the test

Answer 2

Justin monthly income = 4 × 40 × $16 = $ 2560

Amount that justin wife gives to justin for house expenses = $ 350

Total income generated = $ 2560 + $ 350 = $ 2910

Monthly cash outflow= $ 3,000

So, they have to borrow $ 90 from rent or from savings.

So, Amount got from rent = $ 2,000 -$ 90 =$ 1910

As Justin has retirement contributions taken out of his paycheck at work as well as he has renter, car and life insurance coverage.So, their financial plan should be Protecting assets →Option (C) then Managing Liquidity.