How do you calculate expected funeral expenses and emergency fund needed ( 6 months living expenses) based on the information given. Surprise! Jamie Lee and Ross were stunned to find that their family of two has grown to a family of five! They were expecting twins, but when the babies were born, they discovered that they were actually the parents of triplets!

Ross immediately had worries of being able to provide for the growing family: diapers, formula, college expenses times three! What if something happened to him or Jamie Lee? How would the surviving parent be able to provide for such a large family?

Jamie Lee and Ross decided to purchase life insurance for Ross because his is the higher income at this time and because it would be more devastating if his income was lost due to his death. They have allowed $8,000.00 for funeral costs.

Calculate their living expenses to include mortgage (plus taxes and insurance), car loan, food, and monthly utilities for six months. Note that Ross's mother lives close and will be providing childcare to their triplets once Jamie Lee goes back to work at the bakery for half days. His mom will have a hired nanny to assist, which will cost them $500 a week. Use the table below to determine the amount Jamie Lee and Ross should use when shopping for life insurance.

Current Financial Situation

Assets:Income:Checking account$3,600Gross income (Jamie Lee)$56,000Savings account$17,100Net income after taxes (Jamie Lee)$39,200Emergency fund savings account$20,200Gross income (Ross)$80,000IRA balance$26,100Net income after taxes (Ross)$66,400Car (Jamie Lee)$12,600Monthly Expenses:Car (Ross)$20,100Mortgage$1,390Liabilities:Property taxes$510Student loan balance$0Homeowners insurance$310Credit card balance$4,600Utilities$215Car loans$8,100Food$555Gas/maintenance$330Credit card payment$330Car loan payment$300Entertainment$180