Ellie and Vince are a married couple, both with college degrees and jobs.

How would you expect each of the following events to affect the amount they save each month? Explain your answers in terms of the basic motivations for saving. (LO3)

a. Ellie learns she is pregnant.

b. Vince reads in the paper about possible layoffs in his industry.

c. Vince had hoped that his parents would lend financial assistance toward the couple’s planned purchase of a house, but he learns that they can’t afford it.

d. Ellie announces that she would like to go to law school in the next few years.

e. A boom in the stock market greatly increases the value of the couple’s retirement funds.

f. Vince and Ellie agree that they would like to leave a substantial amount to local charities in their wills.