Serena and her husband Steve have both taken on a lot of financial debt to earn Bachelor's degrees.They live a pretty comfortable lifestyle, having the money to spend on the extras they enjoy in life.Between the two of them, they earn $160,000 annually, but they also owe $120,000 in student loans.Their monthly student loan payments eat up much of their earnings that would otherwise go into savings, and retirement savings.Serena has been unhappy in her work and wants to go back to school to earn a masters degree in an area that will promise a better job and salary.Apply what you have learned about critical thinking and managing financial resources to offer Serena and Steve sound advice toward increasing their savings and retirement accounts.

Serena and Steve are in a tough financial situation with their student loan debt eating up a large portion of their earnings. Before Serena goes back to school for her master's degree, they need to focus on paying off their existing debt and increasing their savings and retirement accounts.

First, they should create a budget to track their expenses and identify areas where they can cut back on spending. This could include reducing discretionary spending on extras and finding ways to lower their monthly bills.

Next, they should prioritize paying off their student loans. They could consider consolidating their loans or refinancing them to potentially lower their interest rates and monthly payments. They should also explore options for loan forgiveness or income-driven repayment plans.

Once they have a plan in place to pay off their debt, they can start focusing on increasing their savings and retirement accounts. They should aim to contribute a portion of their income to a retirement account, such as a 401(k) or IRA, and build an emergency fund to cover unexpected expenses.

Serena should also carefully consider the return on investment for her master's degree. Will the potential increase in salary outweigh the cost of additional student loan debt? It's important for her to research job prospects and salary potential in her desired field before making a decision.

Overall, Serena and Steve need to prioritize paying off their debt, cutting back on expenses, and increasing their savings and retirement contributions before taking on additional financial obligations. With careful planning and discipline, they can work towards a more secure financial future.