$6$ Question

Kath and Kim are a couple, both with university 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 basic motivations for saving.

a$)$ Kath learns she is pregnant.

b$)$ Kim reads in the paper about possible lay$-$offs in their industry.

c$)$ Kim had hoped that their parents would lend financial assistance towards the

couple's planned purchase of a house, but Kim now realises that the two cannot

afford it$.$

d$)$ Kath announces that she would like to go to law school in the new few years.

e$)$ A boom in the stockmarket greatly increases the value of the couple's retirement

funds.

f$)$ Kath and Kim agree that they would like to leave a substantial amount to local

charities in their wills.