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8. (1 pt) Al Easton recently lost his job. Before unemployment occurred, the Easton household (Al; wife, Barb; 2 kids, ages 13 & 8)
8. (1 pt) Al Easton recently lost his job. Before unemployment occurred, the Easton household (Al; wife, Barb; 2 kids, ages 13 & 8) had a monthly take-home income of $4,000. Each month, the money went for the following items: $1,200 for rent, $250 for utilities, $600 for food, $500 for car expenses, $400 for clothing, $350 for insurance, $400 for savings, and $300 for personal and other items. After the loss of Al's job, the household's monthly income is $2,100 from his wife's wages and his unemployment benefits. The Eastons also have savings accounts, investments, and retirement funds of $35,000. a. What budget items might the Eastons consider reducing to cope with their financial difficulties? b. How should the Eastons use their savings and retirement funds during this financial crisis?
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