Household budgeting terms - JSS3 Home economics Lesson Note
- Family income: The income of a family include the money and other economic resources available to the family for meeting their need. Family income could either be gotten daily, weekly, monthly or yearly.
- Money income: This is the total amount of money which the family has at a given period. It is the purchasing or buying power of a family at a given period. If not used wisely, it will cost the family dearly.
- Gross income: This is the amount of money from a persons income.
- Net income: This is the amount of money that remains after deductions have been made, such as tax, water rate and levies. It can also be referred to as their disposable income.
- Budget: This is the plan made of how to spend the family income. The budget is normally prepared based on the net income.
- Expenditure: This is the amount of money spent on goods and services which the family needs or wants.