Family Economics And Consumer Education 3 (2+1)

Lesson 05 : Guidelines in Income Management

Introduction

Income management like other management processes involves planning, controlling and evaluation. The effective management of income involves two types of plans – Family’s financial plan and Family’s spending plan.
The family’s financial plan includes the entire financing of all needs of the family members, where as spending plan is preferred for a specific period. Both of these are interrelated. The main purpose of these is to achieve the desired quality of life, through effective income management practices. The main objectives of income management are all round development of the family members, enhancing their happiness and health by making the best use of the income of the family.