Stanley Marsh and Wendy Testaburger of South Park, Colorado, have two young children. They both work and earn a substantial income, over $100,000 annually. Their monthly budget is illustrated in Table 3-5 on page 96 as the “married couple with two young children.” Every month they save quite a bit of money for retirement, and they are paying off their student loans ahead of schedule. They live well but Wendy and Stanley are nervous about not having started an educational savings plan for their children. They have decided that they want to save $200 per month for the children’s education.
(a) Review the family’s budget and make suggestions about how to modify various budget estimates so that they could save $200 per month for the education fund.
(b) Briefly describe the effect of your recommended changes on the Marsh-Testaburgers’ lifestyle.