![]() The family expenses also depend on several variables, like the number and age of the children, whether they need to go to day care, educational expenses if they are in school, and extracurricular expenses if they play music or sports. For example, if the person lives in a small city, the rent might be less than in a larger city. When a person makes up a budget, the expenses will depend on the local situation. However, we would still need to estimate Sally's federal and state income taxes and see how much she would need to save to pay her income taxes.
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