Family income: types, sources and ways to increase it
Family income is of three types: money, real and psychic income. It can be raised by earning more, stretching real income at home, and using community facilities.
Types of family income
| Type | Meaning | Example |
|---|---|---|
| Money income | The flow of money coming to the family over a period, such as a month or a year | Salary, wages, rent received, interest, pension, business profit |
| Real income | The flow of goods and services available to the family over a period | Everything the family actually gets to use: food, housing, services |
| Direct real income | Goods and services obtained without spending money | Vegetables from the kitchen garden, the homemaker's cooking and stitching, a public park, library or government school |
| Indirect real income | Goods and services obtained by exchanging money income | Rice bought from the shop, a doctor's fee, a bus fare |
| Psychic income | The satisfaction that comes from using money and real income; personal and hard to measure | The pleasure of a family meal; pride in a well-kept home |
Sources of family income
- Salaries and wages from employment.
- Business, trade or a profession: a shop, a clinic, a tailoring unit.
- Agriculture and allied work: crops, dairy, poultry.
- Rent from a house, shop or land.
- Interest and dividends from savings and investments.
- Pension and retirement benefits.
- Part-time or home-based work, gifts, and money sent home by members working elsewhere.
Methods of augmenting family income
Real income is often raised fastest through the homemaker's skills, without any new money coming in.
A homemaker's skills raise real income through food: a kitchen garden of greens and drumstick, home-made ragi malt and snacks instead of costly packaged ones, and wise use of the ration shop all stretch the food budget. A home-based tiffin or catering service turns nutrition knowledge into money income.
2 marks: “What is real income?” The flow of goods and services available to the family over a period. It is direct (obtained without money) or indirect (bought with money income).
5 marks: “Explain the types of family income.” Define money, real (direct and indirect) and psychic income, each with an Indian home example. A small table works well.
10 marks: “Explain the sources of family income and the methods of augmenting it.” Define the three types briefly, list the sources, then explain ways to increase money, real and psychic income with examples.
M-R-P: Money is what comes in, Real is what you get to use, Psychic is how happy it makes you.