John and Mary Murphy are aged 75 and 74. They receive a contributory pension of £150 per week between them. They own their home. They have a vegetable garden and a small orchard. They have a dog called Shep and a cat called Fluffy. Their daughter lives in a village ten miles away. She has two children.
Here is a typical weekly shopping list for John and Mary:
- 5 litres of low-fat milk and 14 cartons of low-fat yogurt
- Olive oil for cooking: one small bottle
- 3 loaves of wholemeal bread and 1 small packet of porridge
- Chicken and fish, including fresh and tinned fish
- Fruit and some vegetables, biscuits for visitors
- Flour and margarine to make pastry for apple pies
- Cat and dog food: 14 tins
Of course, John and Mary have other expenses:
- Electricity, oil for central heating, coal and briquettes for open fires
- Leisure: Newspapers, books and an outing every now and then.
- Clothes: They spend about £500 per year, mainly on coats and shoes.
- Taxis: They can't afford to buy a car; they qualify for free travel, but the public bus does not go through the village where they live.
- Presents for birthdays, Christmas, and other occasions. They save up for these presents, but also they arrange for their grandchildren to stay overnight, which is a very special treat. But it can be difficult, especially with their youngest grandchild who doesn't understand how much things cost and always wants the latest toys.
Questions
- Do Mary and John have enough money to live on? Why?
- Where do they get their money from?
- What other emergencies might cause them to use their savings?
- What could they do to increase their income?
- What could be done to give them more money?
- What do you think about their diet? Is it healthy?
- Mary and John's daughter is forty - what should she do now to plan for her retirement/old age to ensure that she has adequate income?
Find out
- Find out how much each of the items on the shopping list costs. What is the total cost of buying everything on that list?
- Find out what other financial help Mary and John are entitled to, for example, do they qualify for medical cards or help with bills?
