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 LESSON 2
SOURCES OF FAMILY
INCOME

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INCOME - Is money that an individual or business
receives in exchange for providing goods or services.
FAMILY INCOME – is the total income earned by
all the members of the household.
Sources Of Family Income
•Salary Earned For Services Rendered
•Bonuses, Commissions, Or Honoraria Given By An
Employer To Employees
•Profits Earned From Business
•Rentals From Owned Properties
•Dividends From Stock Holdings
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 TYPES OF FAMILY INCOME

•Money Income
•Real Income
•Psychic Income
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 MONEY income maybe in
the following forms:
Salary
Monthly salary of all the members
who are doing government or private
services.
Wages
Daily, Weekly Or Monthly Wages
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Rent
Rent of the house and real estate.
Interest
Interest Of The Capital
Deposited In Banks, Post Offices
Or From Lending Money.
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 Sick Benefits
Medical allowances
Pensions
Money received by retired persons, old
age widow and other pensioners .
Gift, dividends, securities, royalties
etc
Money income which provides
additional comforts enjoyed by the family.
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 The REAL INCOME of
the family consists of:
 

• Inherited landed property, which yields

crops for the family.
• Food furnished by a kitchen garden.
• Dairy farming and poultry farming.
• Durable goods and commodities owned by
the family.
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•  

•Kneading, embroidery, tailoring, pickling, baking

and activities carried out in home.
•All types of knowledge and services (household
activities) provided by the members of the family.
•Community facilities like parks, markets, hospitals,
roads, schools, colleges, libraries, dispensaries, fire
and police protection, community entertainments,
social centres etc. Proper utilization of all these can
increase the real income of the family.
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PSYCHIC INCOME:
This income is the flow of
satisfaction derived by the family from
the use of money income and real
income.

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 Tips in wise spending
of your income:
•Make a lists of all the things needed at home and
their specification.
•Compare the prices of the products to be bought.
Avoid buying things with higher prices than usual.
•Buy in bulk the things that are needed everyday.
•Buy fruits and vegetables in season .
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• Know the substitute ingredients for
expensive items.
• Be familiar with the stores offering
lowest prices.
• Go to a store where you can be
assured of good quality and
standard price.
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 LESSON 3
ALLOCATION OF BUDGET
FOR BASIC AND SOCIAL
NEEDS

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 BUDGET
A budget is the amount of money set
aside for planned expenses. It is a
plan specifying how much money will
be spent or allocated during a
particular period.

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 BUDGETING
Is related to the wise use of family
resources. It is based on the system by which
wages or salaries are received and how these are to
be spent by itemizing the needs of the family and
how much money is needed to meet such needs.
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 COMPONENTS OR
ELEMENTS OF A FAMILY
•
BUDGET
Food Health
•Shelter Recreation
•Clothing Savings
•Education
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 HOW TO MANAGE
FAMILY RESOURCES
EFFICIENTLY
•Inform all the members of the family
about the budget.
•Choose a simple lifestyle
•Buy only things needed
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• Schedule your expenses.
• Follow a shopping and marketing schedule.
• Avoid making unscheduled, unplanned
purchases especially at a store you are not
familiar with.
• Teach the children to spend their
allowance wisely.
• Conserve energy and other utilities.
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• Recycle or reuse materials.
• Repair appliances and furniture as
needed.
• Take good care of your belongings.
• Buy products that are of good quality
and reasonable price.
• Develop the habit of walking short
distances.
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