DB123 TMA01 Part A The table below was taken from the Office for National Statistics’ 2008 General Lifestyle Survey. This table shows how dependent children are spread among different family types in Great Britain. Percentage of all dependent children (below the age of 16, or in full time education between the ages of 16-18) in each family type (%) | 1998| 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | Married/cohabiting couple with | dependent child | 17 | 17 | 17 | 18 | 18 | 18 | 18 | 19 | 19 | 20 | 2 or more dependent children | 61 | 58 | 60 | 57 | 58 | 60 | 57 | 57 | 58 | 59 | Lone mother with | 1 dependent child | 6 | 7 | 6 | 8 | 7 | 7 | 8 | 7 | 7 | 7 | 2 or more dependent children | 13 | 15 | 15 | 15 | 14 | 14 | 15 | 15 | 13 | 12 | Lone father with | 1 dependent child | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 or more dependent children | 1 | 2 | 1 | 1 | 2 | 1 | 1 | 1 | 1 | 1 | From the table above and the questions from the assessment booklet, I have outlined my findings below. a) The cells from the year 2000 column all add up to 100%. The reason for this is because the total percentage is always out of 100%. b) In 1998 the table shows there are 99% of dependent children in all the different types of families. c) In 2003, 74% of children live in families with 2 or more children. This compromises of Married/Cohabiting couple (58%), Lone Mother (14%) and Lone father (2%). e) When looking at the lone mother category, there is a trend that shows over a ten year period, it seems the percentage of 2+ children is on average double of the one dependent child.
I arrived at this statement by adding each percentage for the one dependent child for the period and dividing by the total amount of years in the table, I repeated this for the 2+ children. My answer was 7% and 14% respectively. f) The table doesn’t allow me to work out how the number of children in each household has been changing during the period; this is because it only states 2 or more children instead of stating the exact number of children per each household type. g) In Great Britain in 1972 the percentage of dependent children living with both parents was 92%.
By 2007 this percentage was a total of 77%. This is a decrease of 15% of dependent children living with both parents. h) In 2008 79% of all dependent children living with married/cohabiting couples is 10,270,000 out of a total of 13,000,000 that was stated in the social trends report 2009. I worked this out by using the following formula: 13,000,000 / 100 = 132,000 so 130,000 * 79 = 10,270,000 i) From the table above I find it interesting that there is no data for 1999. I believe this maybe because the figures haven’t changed much from 1998.
Another point that I found interesting was that the lone father column for one dependent child and 2+ dependent children hasn’t changed much in 10 years. How Money Flows Between Government, Corporations and Households In the economy there are three main sectors that play a key part, Households, Government and corporations. Each of all of these has an effect on one another, in terms of the flow of money and by “flows of goods and service” (Callaghan,G, Fribbance, I and Higginson, M (eds) Personal Finance, 2006 p. 6). This may possibly have a good or bad effect; it all depends on the economic climate at the time. Below under each heading I have outlined the way money flows between the different sectors. Households and Corporations Between households and Corporations there are a few ways in which the money flows in and out of them both: * Households often spend on goods and services these may include entertainment, food, clothes, paying rent and purchase of financial products. Purchasing of stock, Savings in building societies and ISA accounts like the above are all associated to the money flowing out of households and into corporations companies. On the other hand the money flow into households from the corporations could consist of: * Income from employment, loans, mortgages and credit cards. Households and Government Households and Government money flow is different from corporations, whereas there seems to be more of an equal amount flowing in and out.
The money flow out of households into the government includes Taxes from wages, national insurance deductions, council tax, road tax and several national saving services. Whereas the money flow in households from the government includes benefits (money) for the unemployed, people with disabilities who can’t work and towards families e. g. family tax credits. Corporations and Government The main money flow from corporations to the government compromises from majority of Taxes.
Corporations have to pay the governments tax, also the tax that is implemented on the goods they are purchasing or selling will go to the government. In regards to the money flow into the corporations from the governments it is very similar to the households and corporations, whereas the money flow is from purchasing of goods and services. “The money flow into corporations from the government mainly comprises of spending on goods and services, and subsidies. ” (Callaghan,G, Fribbance, I and Higginson, M (eds) Personal Finance, 2006 p. 28).
Different situations can change the money flow pattern as mentioned earlier, if the government was to withdraw benefits i. e. Income support, child benefit then the money flow into households would be decreased. This could affect the household not being able to spend as much money on essential things i. e. shopping, paying rent and clothing. The reduced household expenditure would also have a knock on affect in relation to the flow of money to corporations; this is due to them not being able to afford the goods as previously, which could decrease the corporation’s income/profits extremely.