The Dwyers who had no children had a monthly disposable income of $2,500 and we're budgeting $350 per month for food. They recently adopted two children. How much should they budget according to the recommended budget now that they have a family of four? How much each month should the Dwyers have been budgeting for savings? How much should they budget now? Will the decrease in savings compensate for the increase in food costs?

To answer these questions, we can approach them step by step, starting with the Dwyers' food budget, savings budget, and the effect of the adoption on their overall financial situation.

### Step 1: Adjusting the Food Budget
The Dwyers originally budgeted **$350 per month** for food as a household of two adults. After adopting two children, they now have a family of four. We need to determine the recommended adjustment to the food budget. A common approach is to assume the food budget increases proportionally with the number of family members.

- Original family size: 2
- New family size: 4

Since their family size has doubled, it's reasonable to double their food budget:

\[
\text{New Food Budget} = 350 \times \left(\frac{4}{2}\right) = 350 \times 2 = 700
\]

Thus, the recommended **new food budget is $700 per month**.

### Step 2: Budgeting for Savings
Let’s assume the Dwyers followed the general financial recommendation that suggests saving **20% of their disposable income**.

1. **Savings with no children**:
   \[
   \text{Savings} = 0.20 \times 2500 = 500 \, \text{per month}
   \]
   Before adopting children, they should have been saving **$500 per month**.

2. **Savings with two children**:
   Typically, the advice to save 20% of income remains unchanged, even with children. So, after adopting the two children, the savings recommendation would still be:
   \[
   \text{Savings} = 0.20 \times 2500 = 500 \, \text{per month}
   \]
   Thus, they should continue to budget **$500 per month** for savings.

### Step 3: Comparing the Change in Food Budget and Savings
To understand if the Dwyers can compensate for the increased food budget by adjusting their savings:

- **Original food budget**: $350
- **New food budget**: $700
- **Increase in food cost**: 
   \[
   700 - 350 = 350
   \]

Thus, their food costs increase by **$350 per month**.

- **Original savings**: $500
- **New savings**: $500

Since their savings budget remains the same at $500, the increase in food costs will **not be offset** by reducing their savings. Instead, the increase in their total budget will be directly reflected in the additional $350 being allocated to food.

### Conclusion
- **New food budget**: $700 per month.
- **Recommended savings budget (before and after adoption)**: $500 per month.
- **The increase in food costs** ($350 per month) will **not be offset by changes in the savings budget**; the Dwyers will need to adjust their overall budget accordingly.

---

Do you want further details on any of these calculations? 

Here are five related questions to consider:
1. How can the Dwyers optimize their budget with the increased expenses?
2. What other costs might increase with the adoption of two children?
3. Should the Dwyers consider adjusting their savings rate to accommodate the increased food cost?
4. What percentage of their income would the Dwyers now be spending on food?
5. How can they plan for future financial changes (e.g., education costs) as their children grow?

**Tip**: Always review your budget regularly, especially after major life changes, to ensure it aligns with your financial goals.

The Dwyers who had no children had a monthly disposable income of $2,500 and were budgeting $350 per month for food. They recently adopted two children. How much should they budget according to the recommended budget now that they have a family of four? How much each month should the Dwyers have been budgeting for savings? How much should they budget now? Will the decrease in savings compensate for the increase in food costs?

Learn how the Dwyers should adjust their food and savings budget after adopting two children. This problem involves proportionate adjustments for household size and calculating savings as a percentage of disposable income. Suitable for students in Grades 10-12.

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