Final answer:
Lucas saves $32.50 per month by saving 65% of his $50 allowance. Over a year, this amounts to $390 in savings. Understanding these savings is a step towards learning about compound interest and smart financial planning for the future.
Step-by-step explanation:
The question revolves around a simple calculation of savings over a period of time. Lucas receives a $50 allowance every month and saves 65% of it. To calculate how much he saves in a year, we multiply the monthly allowance by the percentage saved and then by the number of months in a year. The calculation is as follows:
- Multiply the monthly allowance by the savings percentage: $50 * 0.65.
- The result is the amount saved per month: $32.50.
- Multiply the monthly savings by 12 to find the annual savings: $32.50 * 12.
- The total amount saved in a year is $390.
Lucas is practicing good financial habits by starting to save money early in life, which will benefit him greatly over the long term, especially if he invests in options that yield compound interest. Although his current savings do not involve compound interest, he is laying down the foundation for smart financial decisions and wealth accumulation in the future.