X TMA 02: Question 2 521X Week 9: Expenditure: 3 Financial w Lionel is a council clerk living in Dundee, earning 20,500 a year after deductions for tax, National Insurance and pension contributions. He is about to move into a flat with his girlfriend Kirsty, who has a young child, Jimmy, aged 2. Kirsty is a taxi driver and earns 20,000 a year after tax and National Insurance. She also receives 21.15 a week in child benefit. No-one described above has any other source of income. 2.1a Using the Household income equivalence calculator, calculate the annual equivalised net income of Lionel and Kirsty's new household together. (2 marks) 2.1b With the aid of the same calculator, comment on how their individual living standards have changed compared to when they were living separately. (4 marks) 2.2 Draw up an average monthly cash flow statement using the expenditure information in Table 2 for Lionel and Kirsty in their new shared flat. Table 2 Expenses in new flat Amount () Period Expense item 1345 month Rent 115 week Food 225 quarter Council tax 180 week Leisure 60 month Phone 210 month Transport 150 month Credit card repayments 360 quarter Utility bills 100 month Clothes 125 month Other (4 marks) 2.3 Lionel and Kirsty want to save up to take Jimmy on his first holiday abroad in a year's time, and they estimate they will need 2,100. Comment on their current financial situation and consider potential adjustments they might make to their cash flow in order to save the 2,100 (5 marks) X TMA 02: Question 2 521X Week 9: Expenditure: 3 Financial w Lionel is a council clerk living in Dundee, earning 20,500 a year after deductions for tax, National Insurance and pension contributions. He is about to move into a flat with his girlfriend Kirsty, who has a young child, Jimmy, aged 2. Kirsty is a taxi driver and earns 20,000 a year after tax and National Insurance. She also receives 21.15 a week in child benefit. No-one described above has any other source of income. 2.1a Using the Household income equivalence calculator, calculate the annual equivalised net income of Lionel and Kirsty's new household together. (2 marks) 2.1b With the aid of the same calculator, comment on how their individual living standards have changed compared to when they were living separately. (4 marks) 2.2 Draw up an average monthly cash flow statement using the expenditure information in Table 2 for Lionel and Kirsty in their new shared flat. Table 2 Expenses in new flat Amount () Period Expense item 1345 month Rent 115 week Food 225 quarter Council tax 180 week Leisure 60 month Phone 210 month Transport 150 month Credit card repayments 360 quarter Utility bills 100 month Clothes 125 month Other (4 marks) 2.3 Lionel and Kirsty want to save up to take Jimmy on his first holiday abroad in a year's time, and they estimate they will need 2,100. Comment on their current financial situation and consider potential adjustments they might make to their cash flow in order to save the 2,100