Reference no: EM133023223
The Brocks now have two preschool-age children. Their household income has declined with Pam leaving the workforce to provide full-time care for the children. To compensate for their lower monthly income, Pam and Josh have cut back to spend money on basics only. As a result of this action, the Brocks have managed to pay down their liabilities over the past four years.
The Brocks are considering purchasing a second automobile. Currently, Pam must drive Josh to the train station (creating many inconveniences for her and the children) if she wants to use the car for various business and education activities.
Housing needs are changing for the Brocks as their family increases in size. At present, they pay $750 in rent for a two-bedroom apartment. To purchase a home for a comparable monthly payment, the Brocks would have to relocate farther from Josh's place of employment. With a second car and public transportation as available options, Pam and Josh are starting to consider this home purchase.
Life Situation
Financial Data
Young Married Couple
Pam, 30
Josh, 32
Two Children, ages 1 and 3
Monthly income$3,600
Living expenses$3,125
Assets$33,850
Liabilities$1,520
What strategies and research should the Brocks' use to save on transportation costs while fulfilling family transportation needs? What is your recommendation on how they should proceed?
Pull information form the Reference below to answer the question
Kapoor, J. R. (2021). Focus on Personal Finance (7th Edition). McGraw-Hill Higher Education (US)