Tristan has found a good job as a bookkeeping clerk after finishing his associate's degree at the local community college. He is making a beginning annual salary of [tex]$\$[/tex]19,760[tex]$. How can this increased income affect his financial decisions?

Compare his previous budget when he worked part-time while finishing his degree with his current budget after getting a full-time job.

\begin{tabular}{|l|r|r|}
\hline
\textbf{Monthly Budget} & \textbf{Previous Budget} & \textbf{Current Budget} \\
\hline
\textbf{Income} & $[/tex]\[tex]$786$[/tex] & [tex]$\$[/tex]1646[tex]$ \\
\hline
\textbf{Expenses} & $[/tex]\[tex]$300$[/tex] & [tex]$\$[/tex]600[tex]$ \\
\hline
Rent & $[/tex]\[tex]$60$[/tex] & [tex]$\$[/tex]120[tex]$ \\
Utilities & $[/tex]\[tex]$130$[/tex] & [tex]$\$[/tex]200[tex]$ \\
Groceries & $[/tex]\[tex]$120$[/tex] & [tex]$\$[/tex]350[tex]$ \\
Savings & $[/tex]\[tex]$150$[/tex] & [tex]$\$[/tex]150[tex]$ \\
Car Expenses & $[/tex]\[tex]$20$[/tex] & [tex]$\$[/tex]120[tex]$ \\
Entertainment & $[/tex]\[tex]$6$[/tex] & [tex]$\$[/tex]106$ \\
\hline
\textbf{Net Income} & & \\
\hline
\end{tabular}

Tristan is spending too much money on groceries and entertainment.



Answer :

To analyze how Tristan's increased income affects his financial decisions, let's compare his previous budget when he worked part-time with his current budget after getting a full-time job.

### Previous Budget
- Income: \[tex]$786 - Expenses: - Rent: \$[/tex]300
- Utilities: \[tex]$60 - Groceries: \$[/tex]130
- Savings: \[tex]$120 - Car Expenses: \$[/tex]150
- Entertainment: \[tex]$20 - Others: \$[/tex]6

### Calculation of Previous Expenses
Adding up all the previous expenses:

[tex]\[ 300 + 60 + 130 + 120 + 150 + 20 + 6 = 786 \][/tex]

Thus, his total previous expenses are \[tex]$786. ### Calculation of Previous Net Income Tristan's net income is calculated as: \[ \text{Net Income} = \text{Income} - \text{Expenses} \] For the previous budget: \[ 786 - 786 = 0 \] So, his previous net income was \$[/tex]0.

### Current Budget
- Income: \[tex]$1646 - Expenses: - Rent: \$[/tex]600
- Utilities: \[tex]$120 - Groceries: \$[/tex]200
- Savings: \[tex]$350 - Car Expenses: \$[/tex]150
- Entertainment: \[tex]$120 - Others: \$[/tex]106

### Calculation of Current Expenses
Adding up all the current expenses:

[tex]\[ 600 + 120 + 200 + 350 + 150 + 120 + 106 = 1646 \][/tex]

Thus, his total current expenses are \[tex]$1646. ### Calculation of Current Net Income For the current budget: \[ 1646 - 1646 = 0 \] So, his current net income is \$[/tex]0.

### Increment in Expenses
To determine how much more Tristan is spending now compared to before:

- Groceries:
- Previous: \[tex]$130 - Current: \$[/tex]350
- Increment: [tex]\(350 - 130 = 220\)[/tex]

- Entertainment:
- Previous: \[tex]$6 - Current: \$[/tex]106
- Increment: [tex]\(106 - 6 = 100\)[/tex]

### Conclusion
Tristan's increased income has resulted in a corresponding increase in his expenses, effectively leaving his net income unchanged at zero in both periods. However, his spending on groceries and entertainment has notably increased by \[tex]$220 and \$[/tex]100, respectively. This suggests that Tristan is allowing his higher income to significantly impact his spending habits in these categories.

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