CORE AREA 2 RESOURCE MANAGEMENT AND CONSUMER STUDIES
MANAGEMENT OF HOUSEHOLD FINANCIAL RESOURCES
What you will learn:
• The role of the household as a financial unit within the economy
• Social factors affecting household income
• Sources of household income • Deductions taken from pay
• Social welfare payments • Types of household expenditure
• Factors that contribute to varying patterns of household expenditure
• Ways to reduce household expenditure
The role of the household as a financial unit within the economy
• Individuals in paid employment contribute to the country’s economy by paying statutory taxes. These provide revenue that the government uses to maintain state services, e.g. An Garda Síochána and the Health Service Executive (HSE).
• Individuals and families contribute to the economy by spending wages on goods and services, generating wealth and employment in the country.
• Many households have mortgages and loans that contribute to the profits of financial institutions, e.g. banks and building societies.
• Many families are financially self-sufficient, using income earned from employment. Others depend on social welfare payments, e.g. Jobseeker’s Allowance. If high numbers of families are relying on these payments it puts pressure on the economy.
• Money management skills, e.g. saving or budgeting, should be passed on to children within the family unit. Teaching children these skills benefits the economy, as it reduces the risk of children falling into debt or relying on social welfare benefits in the future.
? Outline the role of the household/family as a financial unit within the economy. (10) HL 268 Complete Home Economics
