B. Define the following: 1. Income 2. Family income 3. Sources of family income ...

Questions

November 2022 1 1 Report

B. Define the following:
1. Income
2. Family income
3. Sources of family income
4. types of family income
5. Budget
6. Budgeting
7. Components or elements of family budget.

Answers & Comments

sakurayamamoto14

Answer:

Definition of income

• revenue received for goods or services, or from other sources, as rents or investments:

• the money, or amount of money, received from one’s employment:

• something that comes in as an addition or increase, especially by chance

• Archaic. a coming in

OTHER WORDS FOR INCOME

1. interest, annuity, gains, return.

2. salary, wages, earnings.

OPPOSITES FOR INCOME

outgo, expenditure

Definition of Family income

Family income is generally considered a primary measure of a nation's financial prosperity. In the United States, political parties perennially disagree over which economic policies are more likely to increase family income. The party in power often takes the credit for any significant changes in family income.

Sources of family income

Family income is the income from all sources like salary of family members, rents, and interest received from banks and savings from using skill of family members. Money can also be saved by using free facilities like medical facilities, free education for children or rent free accommodation.

For example, at the most detailed level, the income sources are combined into five components: wages and salaries, self-employment income (farm and non-farm), government transfer payments, investment income and other income

nasa comment Ang iba

sakurayamamoto14 The potential quantity of Real income available for any family is impressive. The way families make use of all forms of real income is important. It depends upon the managerial ability of the home maker.

The real income may be of two types:

(i) Direct Income:

It means a family receives different facilities without paying for them. For example, free well furnished house, telephone at residence, vehicle for private use, hospital facilities etc.

sakurayamamoto14 (ii) Indirect Income:

It refers to the commodities and services received by the family members on payment. For example, vegetables from the kitchen garden, milk from the diary farm etc. These things can be used by the family or may be sold in the market.

sakurayamamoto14 3. Psychic Income::

This income is the flow of satisfaction derived by the family from the use of money income and real income. This income is intangible and qualitative or subjective. This income is also called as Enjoyment income, experienced over a given period of time by the proper utilization of money income and real income. We must maximize psychic income, because our ultimate goal is to derive maximum satisfaction and peace from life.

sakurayamamoto14 As Real income is directly utilized, it is called as direct income. Money income cannot be directly utilized, but it is used as a medium of exchange for obtaining goods and services. So it is called as Indirect income of the family. Money income is mainly based on the earning capacity of the members, but the real and psychic income depends on the skill that is exercised in management of everyday living.

sakurayamamoto14 Total income consists of money income received over a certain period of time and the real income received during the same period from other sources without spending one’s own money income. The family utilizes this total income to obtain goods and services for the satisfaction of its needs and saves some unused money income for future use, gifts to other persons or payment of taxes.

sakurayamamoto14 A budget is an estimation of revenue and expenses over a specified future period of time and is usually compiled and re-evaluated on a periodic basis. Budgets can be made for a person, a group of people, a business, a government, or just about anything else that makes and spends money

sakurayamamoto14 Budgeting is the process of creating a plan to spend your money. This spending plan is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do. Budgeting is simply balancing your expenses with your income.

sakurayamamoto14 Components of a Family Budget

There are a number of monthly expenses that your parents may have to pay including:

Housing (rent or mortgage costs)

Household expenses (groceries; clothing)

Transportation (car payments, gas for the car, public transit)

Insurance (for the house, the car and life insurance)

Medical and health (prescriptions; doctor's appointments)

sakurayamamoto14 Communications (cell phone, cable or satellite TV, Internet)

Financial (loans; credit card payments)

Taxes (personal income tax and state taxes)

sakurayamamoto14 In order to pay for all of these items, there has to be some money coming into the household. For most families, this amount will include the income that your parents earn from their jobs. When preparing a budget, the amount of income should be higher than the amount that is being spent on a monthly basis. If your family is spending more money than they have, this is not a situation that can continue long-term.