Management Of Family Resources

Lesson 35 : Family Income Management

Classification Of Family Income

Most families, when asked about the amount of their income, would state their annual/ monthly salary or the average weekly wage in terms of only money. Money and income are synonymous terms. However, in its real term, money is only one of the aspects of income: It is an important financial aspect with which the families receive their goods and services. 1t provides' the purchasing power to the home maker. It is an indicator of economic and social status of families. As streams of water may be stored behind a dam and sent on through dynamos to generate power, so may this stream of inc01l1e be controlled and directed to creative ends in a family's living by the process of management.

According to Gross and Crandall, Income is classified in the following types.

• Money Income
• Real Income
• Psychic Income
• Total Income