You have just gotten a new job in a new city. You make $$50,000$ a year and your take home pay per year

is $$40,000$ after taxes. a month$)$

Your monthly expenses for rent and food and utilities and transportation are $$2333$ a month.

Your employer offers a $401K$ plan and matches $6\%$

Your employer offers a credit union and a U$.$S$.$ Saving Bond purchase program.

You are trying to save up to buy a new car in two years $($a deposit on a $$30,000$ car$)$ and want to save up

money for a rainy day or emergency fund.

You have inherited $$3000$ also of late. Go$!$

Please utilize all information $($like the Credit union and $401K$ matching$)$

Select a bank or credit union you would use and what accounts you would establish?

What would you consider in setting up a checking and$/$or savings account?

How much will you save for emergency fund and where will you keep this money keeping in

mind options from the readings this week on Banking and Savings and Credit. Also, you have

narrowed your savings account choices to

a$.$ Checking account paying $1\mathrm{.}25\%$

b$.$ A MMDA paying $3$ percent and

c$.$ A MMMF earning $3\mathrm{.}75$ percent.

Which one of the three above would you use for paying your monthly expenses and which for

saving the car down payment and for the $$3000$ inheritance if not used for something else.

Explain the advantages and disadvantages of each.

You are going to buy some sort of treasury securities for your goals. Which one would you select

and why. What is the present rate on this? Use may use

ww$.$treasurydirect.gov website for this.

What else should you consider for the criteria above such as the $401K$ and credit union at your

employer as well as savings bonds?