Personal finance textbook question

Life Situation Single Age 21 No dependents College student

Financial Data Monthly Income $1,750 Living Expenses $1,210 Personal property $7,300 Savings $1,000 Student loan $3,000 Credit card debt $2,400

Shelby Johnson has been working at a local pet store, trying to save money so that she can open up her own business some day. She is nearing graduation; however, she recently lost some of her savings due to an unexpected illness and medical expenses. She knows that this may affect when she will be able to open her Pet Salon. She and her parents, Matt and Madison Johnson (ages 49 and 47), are close and Shelby frequently seeks out their financial advice. They warn her that she may need to make some life changes in order to build back up her savings. They also advise her to establish an emergency fund so that she can avoid having to dip into her savings in case something happens in the future.

Questions 1. Given her current situation, list some suggestions on what Shelby should do to increase her emergency fund. 2. Based on her current and future life situation, what other money management and financial planning activities would you recommend for Shelby? 3. Describe how Shelby might use the Personal Financial Planner sheets 26 and 28 (Payment Account Comparison and Checking Account Reconciliation).

Sheet 26 and 28 go to http://imgur.com/a/8H2zS