Answer This: 1. Help Noelle figure out if Eugene's being paid fairly. Which data on the website led Noelle to the answer? Noelle: OK, now that we've got some insight on your annual income, let's tackle your insurance costs. I'm going to visit the site where you found this data, A Breakdown of the Average American Spending, and let's take a look at the data from 2018 (also shown in Exhibit 1). These charts are fun to look at, but when I think critically about what they're telling me, we can get some real answers. Answer This: 2. Noelle suggests they divide the Insurance and Pensions cost by 12 to determine the average monthly expenditure for an American. How much would this be? 3. Noelle reminds Eugene that, as an early career professional, he's only making a fraction of the average American household income. 50, she recommends Eugene calculate what his monthly Pension 8: Personal Insurance cost would be if it was in proportion to the salary he's making. How much would this be? Eugene: ARGH! My car insurance alone is more than that! Noelle: Whoa! Not so fast. What I think you're not understanding is that the Pensions 8: Personal Insurance category is a measure of how much you're paying into Social Security, any pensions your job might have [not likely as you're not a government or unionized employee), and personal insurance policies, like life insurance. We're not talking about car insurance here. Eugene: What? I don't even have life insurance! I'm 23! But can we look at my car insurance payments anyway? I pay $400 per month to insure my car. The whole thing's probably worth about $2000, and I'm spending that much every five months just to insure it! Noelle: Whoa! That does sound pretty steep; I'm sure NoRisk Insurance Co could offer you better rates, though you may have a few factors working against you. Let's review our W to figure it out! Answer This: 4. What assumptions might Noelle make about why Eugene's auto premiums are so high? Exhibit 1 A Breakdown of the Average American Spending Average Consumer Unit Expenses in 2018 % $9,032 Federal Income Taxes $11,394 $2,285 State and $78 Other taxes Taxes $4,464 Food at Home $3,459 Food Away from Home $7,923 $11,747 Food Shelter Housing $4,049 Utilities Income Before Taxes $78,635 Income $20,091 Average $2.025 After Annual $2,270 Other Housing Expenses Taxes Expenditures $3,975 Vehicle Purchases Transportation $67,241 $61,224 $9,76 $2.109 Gasoline $2,859 Other Vehicle Expenses Healthcare 4 968 + $818 Other Transportation Insurance and Pensions $3,405 Health Insurance $7.296 $909 Medical Services $483 Drugs Other $172 Medical Supplies Goods and Services $6,831 Savings Pensions $11,185 $465 Life Insurance $1.866 $3,226 Entertainment $6.017 $768 Personal Care $1.888 Cash Contributions $2.030 Noelle: Let's figure this out for you. First, how old are you, what kind of work do you do, and, if you don't mind sharing, what is your annual pretax income? Eugene: I'm 23 years old, I'm in my second year as an accountant at a midsize company, and I only make $47,500 per year! Noelle: Let's tackle your income concerns first by checking out Dice Salary Calculator for an accountant using the following information: . Location: National Average Years of Experience: 1 www.ngpf.org Last updated: 11/17/20 2III 6? m'