A family is determined by its general economy. Each family purchases certain items, repairs its property. It happens, on the contrary, that he sells his very property in order to provide himself with financial resources. Also, senior family members get a job to earn those same resources. All this is done to maintain the overall family economy. This article will examine a financial resource. Family financial resources consist of income and expenses. Emphasis will be placed on family income, their types and examples.
Family budget
So, in order. Such a thing as a family budget is a certain financial plan of a cell of a society for a specific period of time. As a rule, the family budget is presented as income and expenses of the family.
Maintaining a family budget is necessary, first of all, in order to control where the money comes from and where then it goes. Otherwise, without tracking these things, you can become a hostage to the financial hole, because money, like any other resource, requires rational use.
The main task of the family budget is to correctly distribute income into expense items so that the expenses do not exceed family income.
General definition of family income
Family income represents all the money received by family members from various sources. As well as material values derived from any activity. Income, as a rule, is that part of the budget that should be in the black, that is, income should not be exceeded by expenses so that the family can continue its life without any difficulties. The family income is characterized by the following list of articles comprising it:
- prepaid expense;
- alimony;
- tax refund;
- grant;
- dividends;
- business income;
- salary;
- pension;
- presents;
- help from parents / spouse / children;
- Award
- break-in;
- interest on the deposit;
- social benefit;
- scholarship.
Family Income Types
The next question is varieties. Family income depending on the livelihoods, employment and working ability of family members can be represented by two types of income. This is a fixed and variable income. Depending on the type of income, the economic types of families differ. Their budgets are more or less vulnerable to various economic phenomena. Also, the type of family income determines how much their nominal income will differ from the real family income.
Variable income is defined as income, which varies depending on the scale of economic activity, and is also defined as random income that was not planned to be received initially. As a rule, families with variable income include those families whose members work in industries where payment is not made at fixed rates.
Or they are entrepreneurs, representatives of the creative intelligentsia. We can say that it is easier for families with a variable type of income to manage the size of their income, since it depends only on their labor activity, and nothing more. It’s easier for them to control their income.
Types of Variable Incomes
They can be called everything that does not have a fixed size and can carry a spontaneous character, differ in unplannedness and unexpectedness. For example:
- lottery winnings;
- dividends;
- interest on savings in the bank;
- profit from business.
Fixed income
A fixed family income is that income that does not depend on the level of labor involvement of family members.As a rule, these are family members such as people with disabilities, pensioners, and the unemployed. Fixed income is something that in any case always falls into the family budget. It is this part of the income that is defined as the very minimum budget that is allocated to the necessary expenses associated with primary needs in the first place.
It is also worth noting that it is this part that is most vulnerable to the phenomenon of inflation, which may affect the entire family budget as a whole. Fixed-income families, as a rule, are always at risk of becoming victims of the same inflation, since controlling the fall in their real incomes does not depend on the labor activity of family members.
Types of Fixed Income
Fixed income is the foundation of the budget of any family. Since these are the funds that in any case go to the budget. We can say that a fixed income lays a minimum of the family budget, while a variable income can supplement this minimum from time to time. Examples of fixed income include the following items:
- Scholarship.
- Salaries of workers in industries where their labor is paid strictly in accordance with fixed rates.
- Allowance.
- Social payments.
- Pension.
- Alimony.
That is, a fixed income is all that has a strictly designated amount of payment and is received regularly.
How fixed income works. His role in the budget
As mentioned above, a fixed income is what determines the minimum family budget, therefore, the share of the costs of satisfying the requests of family members depends on the size of the fixed income, their quality of life depends. And the negative impact of such a phenomenon as inflation is due to the fact that rising prices and, as a consequence, a drop in purchasing power depreciate these very fixed incomes of working family members. From this there can be a huge difference between nominal and real family income.
Besides. Here the statement is true that fixed income is nothing but a reflection of the general picture of the country's economy as a whole. Since if the satisfaction of the needs of families with a fixed income is limited to only one primitive material requests, such as the payment of utilities and food, in other words, requests that only contribute to maintaining one level of family life without a further prospect of raising it, but not about any spiritual and cultural needs of speech and can’t go, then the inflation rate is so high and strikes the affordability of citizens that they can hardly manage to reduce costs with real ohodami.