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Let's break down the problem and solve it.

**Given:**
- Monthly income after taxes: $4,090
- Monthly expenses:
  - Housing and utilities: $1,336
  - Auto loans: $690
  - Food: $294
  - Clothing and other variable expenses: $1,212

First, we will calculate their total monthly expenses:
\[
\text{Total Expenses} = 1,336 + 690 + 294 + 1,212
\]
\[
\text{Total Expenses} = 3,532
\]

Next, to find the amount of income available for savings and investment, subtract the total expenses from their income:
\[
\text{Income Available} = 4,090 - 3,532 = 558
\]

So, **Ed and Marta's income available for savings and investment is $558**.

Would you like further details or clarification?

Here are some follow-up questions to extend this problem:
1. What percentage of Ed and Marta's income is spent on housing and utilities?
2. How much would Ed and Marta save in a year at this rate of savings?
3. If their auto loan payment increased by 10%, how much would their savings decrease?
4. How much of their total expenses goes toward variable costs (like food, clothing, etc.)?
5. What is their savings ratio (savings divided by total income)?

**Tip:** Tracking your expenses closely can help identify areas where savings can be improved!

Ed and Marta are paid $4,090 after taxes every month. Monthly expenses include $1,336 on housing and utilities, $690 for auto loans, $294 on food, and an average of $1,212 on clothing and other variable expenses. Assuming that they save excess funds, calculate and interpret their savings ratio. Hint: Prepare an income statement, and then compute the ratio.

Learn how to calculate the income available for savings and investments for Ed and Marta. With a monthly income of $4,090 and detailed expenses, this solution walks through budgeting concepts and savings ratio calculations. Suitable for high school and early college students.

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