1. What sources of income do households . . have? . . . . . . . . . . . . . . . . . . . . . 19
2. What expenditure do households have? . . 22 3. How should we manage our expenditure? . 23
Chapter Review . . . . . . . . . . . . . . . . 26 Case Study Family Income
Frank and Fiona Foley are married with three children - Jason, Lucy and Seán. The Foleys’ income is used to finance the running of their household. This means spending money on food and clothing, gas and electricity, diesel for the car, school books, repayments on the loan they used to purchase their house and many other items needed to finance the household.
I work as a manager running libraries for the local
County Council. As an employee, I earn a regular fixed income.
I own an outdoor sports shop and I pay myself a salary from the business. Profits can go up and down depending on how well the business is doing. When the business performs well, I may also pay myself a part of the profit at the end of the year (a dividend). If business is slow, then I don’t earn a dividend and I may have to reduce my salary.
