Your close friends Charles and Ebony know that you are learning about economics and personal finance, so they have come to you for advice about their family budget. They want to know what you think about how their budget has changed from the previous year.

Charles and Ebony are life partners who share their finances. They have a 4-year-old son, Marcel. Charles has a full-time job at the local hospital, and Ebony is enrolled in college part-time and is the primary caregiver for Marcel. There's very strong demand for medical office workers in the area, and Ebony is studying to be a medical office assistant. After Ebony graduates at the end of the year, she plans to get a job at the hospital, and Charles plans to reduce his hours at work so he can go back to school to learn new skills and earn more income in the future.

Housing

Charles and Ebony rent an apartment in the neighborhood near where they grew up. This allows them to live close to their families, who help out with childcare. When rentals become available, they're snapped up right away. In January, their landlord notified them that their rent would be increasing when they renewed their lease. The climate in the area is hot in the summer and cold in the winter, and to keep it comfortable in their apartment, they use their air conditioning and heat.

Food

Food prices have been going up, and Charles and Ebony have made changes by cutting back on specialty foods and fast food and buying more generic foods, but they still feel like they need to devote more money in their budget to food until they can figure out other ways to reduce their food costs.

Transportation

Increases in the cost of gas have made it more expensive for Charles to commute to work every day in the car they own. To save money on transportation expenses, Charles has joined a carpool. By carpooling three days a week, Charles has been able to save money on transportation expenses and keep their transportation budget from rising despite the increasing cost of gas.

Healthcare

Charles, Ebony, and Marcel are in excellent health, and Charles's employer provides their health insurance. So far, they've been able to keep their healthcare costs low.

Other Spending

Charles and Ebony each have a cell phone, and they also have a personal hotspot for Internet access. Ebony needs the Internet access because her classes are online.

Savings and Debt

Saving money for emergencies and for the future is very important to Charles and Ebony. They always try to set aside money for savings even when money is tight. However, the interest rate on their savings account is very low, so they are considering other options.

Charles and Ebony don't have any debt, though they're considering taking out a small loan to pay for Ebony to attend classes during the summer. If they do that, she will be able to complete her studies sooner and start earning an income sooner.

STEP 3:In Chapter 2 of the webtext, you will use assignment templates to explain how an economic trend is affecting your friends' budget and also share with them how economic concepts apply to their situation.??/

last Year's Actual Budget and This Year's Planned Budget Last Year's Actual This Year's Planned Difference Spending (Budget 1) Budget (Budget 2) \"mm 325, 000 100% $25, 000 100% Total Wages After Taxes Last Year's Actual This Years Planned Expenditures Spending (BUdget 1) BMW" (BUdget 2) \"mm Housing $8,800 34% $9,700 38% 1$900 Food $4,200 17% $4,600 18% T$400 Health Care $1,500 6% $1,500 6% $0 Transportation $2,100 9% $2,100 9% $0 Utilities $1,500 6% $1,500 6% $0 Education $2,100 9% $2,100 9% $0 Cell Phone $1,500 6% $1,500 6% $0 33232; $1,000 4% $850 3% l$150 Entertainment $800 3% $400 2% 1$400 Savings $1,500 6% $750 3% 1$750 Total $25,000 100% $25,000 100% $25,000