LESSON 2

Sources of Family Income

JUN ODONZO
TLE 6 Teacher

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LET’S BE INFORMED
Income - is money that an individual or
business receives in exchange for
providing goods or services.
Family income – is the total income
earned by all the members of the
household.

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Sources of family income
• Salary earned for services rendered
• Bonuses, commissions, or honoraria
given by an employer to employees
• Profits earned from business
• Rentals from owned properties
• Dividends from stock holdings

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Types of family income

1.Money Income
2.Real Income
3.Psychic Income

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Money income maybe in the following forms:
a. Salary
Monthly salary of all the members who are doing government or
private services.
b. Wages
Daily, weekly or monthly wages
c. Rent
Rent of the house and real estate
d. Interest
Interest of the capital deposited in banks, post offices or from
lending money. 5
The real income of the family consists of:
a. Inherited landed property, which yields crops for the family.
b. Food furnished by a kitchen garden.
c. Dairy farming and poultry farming.
d. Durable goods and commodities owned by the family.
e. Kneading, embroidery, tailoring, pickling, baking and activities carried out
in home.
f. All types of knowledge and services (Household activities) provided by the
members of the family.
g. Community facilities like parks, markets, hospitals, roads, schools, colleges,
libraries, dispensaries, fire and police protection, community
entertainments, social centers etc. 6
Psychic Income:
 This income is the flow of satisfaction derived by the family from the use
of money income and real income.
 This income is also called as enjoyment income, experienced over a given
period of time by the proper utilization of money income and real income.
 We must maximize psychic income, because our ultimate goal is to derive
maximum satisfaction and peace from life. It is in the form of rewards (as
in prestige, leisure, or pleasant surroundings) not measurable in terms of
money or goods but serving as an incentive to work in certain occupations
or situations a creative artist can reap a psychic income that money cannot
match.

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Total Income:
 Total income consists of money income received over a certain period of
time and the real income received during the same period from other
sources without spending one’s own money income.
 The family utilizes this total income to obtain goods and services for the
satisfaction of its needs and saves some unused money income for future
use, gifts to other persons or payment of taxes.

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Tips in Wise Spending of Your Income
 Make a lists of all the things needed at home and their specification.
 Compare the prices of the products to be bought. Avoid buying things with
higher prices than usual.
 Buy in bulk the things that are needed everyday.
 Buy fruits and vegetables in season.
 Know the substitute ingredients for expensive items.
 Be familiar with the stores offering lowest prices.
 Go to a store where you can be assured of good quality and standard price.

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 Reference:
Life Skills Through TLE
Gloria Peralta, EdD, et.al

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