By the end of this lesson, you'll solve:
"Two families earn the same salary. One always has savings; the other is always short. What is the difference? A budget!"
Types of Family Income
Family income is not just the salary from a job. It includes every source of money and goods that flows into the family. Knowing all your income sources is the first step to managing them.
Key Points
- 1Money income: salary, wages, profit from business, rent received, pension
- 2Real income: goods and services received instead of money — free school meals (mid-day meal scheme), subsidised ration (PDS), free government healthcare
- 3Psychic income: satisfaction and happiness from non-monetary sources — growing vegetables at home, handmade gifts, family support
- 4Total family income = money income + real income + psychic income
Pro Tip
A family receiving PDS ration at subsidised rates has higher real income than a family earning the same money but buying everything at market price!
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