Consider the situation where Martin has been told by his boss that due to the ongoing pandemic and consequent lower sales, the company is anticipating layoffs. After getting the word Martin came home and talked to his wife and the kids.

They decided to make up a list of 3 things.(1) bills they have to pay each month (2) areas where they can reduce the spending and (3) sources of funds to help them pay current expenses. Each family member has several ideas on how to cope with the impending financial situation.

Currently the Marcottes monthly take-home pay is $3165. Each month, the money broadly goes for the following items:

Rent $880

Utilities $180

Food $560

Auto Expenses $480

Clothing $300

Insurance $280

Savings $250

Personal Items $225

After Martin is laid off, the monthly income will drop to $1550 from his wifes income and his unemployment benefits. The Marcottes have $10,000 in various savings and investments accounts for the childrens education. Besides this they have about $15,000 in their retirement accounts and investments.

Question: What items might the Marcottes family consider reducing to cope with their financial difficulties and why? Explain it in detail in about 300 words.