After graduating from high school, Estrella plans to work for two years while living at home. She will work 50 weeks a year. Develop a plan that will enable her to save $26,000 for a two-year program at a community college.
To develop a plan for Estrella to save $26,000 for a two-year program at a community college, we need to consider her expenses and income during those two years.
1. Determine her expenses:
- Calculate her total expenses for two years of community college. Let's assume the total expenses amount to $20,000, including tuition, books, supplies, and miscellaneous fees.
- Add any other personal expenses Estrella might have during the two years. For example, if Estrella estimates that she will spend an additional $5,000 for personal expenses, add it to the total expenses.
Total expenses = $20,000 + $5,000 = $25,000
2. Determine her income:
- Estrella plans to work for two years while living at home. Let's assume she earns $15 per hour and works 40 hours per week.
- Calculate her income per week: $15 x 40 = $600.
- Multiply her weekly income by the number of working weeks in a year: $600 x 50 = $30,000.
- However, Estrella has some expenses to cover during the two years, so let's subtract the total expenses from her total income: $30,000 - $25,000 = $5,000.
3. Create a savings plan:
- Since Estrella will have $5,000 left after covering her expenses during the two years, she needs to save an additional $21,000 to reach her goal of $26,000.
- Divide the total savings goal by the number of weeks in two years: $21,000 รท 100 = $210 per week.
- Estrella needs to save an average of $210 per week for two years.
This savings plan will enable Estrella to save $26,000 for her two-year program at a community college.