Life Situation Financial Data Recently Married Pam, 26 Josh, 28 Renting an Apartment Monthly income $5,840 Living expenses $3,900 Assets $13,500 Liabilities $7,800 Emergency fund $1,000 Pam Jenkins recently married Josh Brock. Pam continues to work as a sales representative for a clothing manufacturer, and her monthly income has averaged $2,840 a month over the past year. Josh is employed as a computer programmer and earns $3,000 a month. Their combined monthly income allows them to live comfortably. Yet they have been unable to save any money for emergencies. According to Josh, "It's hard to believe, but we don't even have a savings account because we spend almost everything we make." Every month, they deposit each of their paychecks in separate checking accounts. Josh pays the rent and makes the car payment. Pam buys the groceries and pays the utilities. They use the money left over to purchase new clothes and the other "necessities" for enjoying life. To make matters worse, they often resort to using their seven credit cards for everyday purchases when they both run out of money at the end of the month. As a result, they have credit card debts totaling $2,800.

1. Pamela and Josh have separate chequing accounts. Do you think they should give up their separate chequing accounts and open a joing chequing account?

2. What would you recomment to the Brocks regarding their future use of credit?