Miguel is a 20 year old college student who works part-time and earns an annual income of $12,000. To smooth out his life cycle changes in income, Miguel can

Question

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Miguel can borrow money to pay for college, which he can later repay when his income rises. This will help him smooth out his income and expenses and avoid financial stress while in college. He can also consider setting aside some savings for emergencies and future expenses. Lending money to a friend or paying for college from his current earnings may not be the best choices as they may disrupt his income and savings plan.

Miguel Is a 20 Year Old College Student Who Works