Management Of Family Resources

Lesson 35 : Family Income Management

Classification Of Family Income

Money Income:

It includes all monitory gains, gross receipts of money of all members of the family and the frequency and pattern of its flow. It is the purchasing power in the form of currency that goes into the family treasury in a given period of time. It may be accrued (accumulated) to the family in the form of wages, salary, dividends, interest, rent, gifts, pensions, royalties, bonus etc. Money income is converted into goods and services required for daily living and a part of it is diverted into savings fund for delayed used or for investment purpose.

Occupational choice affects the regularity and characteristic flow of income. The quality of living that can be exchanged for financial resources is depends not only on how much income is available, but more importantly on the regularity and stability of income. For salaried workers with regular employment money income is predictable.