Podcast
Questions and Answers
What is considered non-financial income?
What is considered non-financial income?
Which income group is most likely to spend primarily on basic necessities?
Which income group is most likely to spend primarily on basic necessities?
How does the age of individuals affect their expenditure patterns?
How does the age of individuals affect their expenditure patterns?
What can influence a household's expenditure patterns?
What can influence a household's expenditure patterns?
Signup and view all the answers
Which demographic is likely to spend more on vacations?
Which demographic is likely to spend more on vacations?
Signup and view all the answers
What is likely to happen to spending patterns during periods of high inflation?
What is likely to happen to spending patterns during periods of high inflation?
Signup and view all the answers
How does residential area affect household spending?
How does residential area affect household spending?
Signup and view all the answers
Which factor is least likely to influence expenditure patterns of individuals?
Which factor is least likely to influence expenditure patterns of individuals?
Signup and view all the answers
Study Notes
Income Types
-
Non-financial income: Refers to goods or services a household receives without exchanging money. Examples include self-performed tasks (e.g., home repairs), self-produced goods (e.g., vegetables), and received benefits (e.g., free food, accommodation).
-
Financial income: Refers to the money (in South African Rand) a person or household receives within a specific period (e.g., monthly, weekly).
Expenditure Patterns
-
Factors influencing expenditure patterns:
-
Socio-economic Position:
- Low income groups primarily spend on basic necessities.
- Middle income groups have more disposable income for food, education, housing, and lifestyle improvements.
- Middle-high income groups allocate more spending to luxury goods and services.
- **High income groups ** indulge in wants and ultra-luxury items.
-
Household Type and Family Cycle:
- Families with children dedicate a significant portion of their income to school fees, coaching, transport, and activities.
- Families with grown children have more discretionary income for personal interests, like travel and hobbies.
- Young independent individuals prioritize spending on entertainment and hobbies.
-
Age:
- Individuals aged 20-24 may spend more on electronics, home appliances, and entertainment.
- Individuals aged 45-48 might allocate more funds for vacations.
-
Peer Pressure and Media Influence:
- Both peer groups and media exert an influence on how different age groups spend their money.
-
Other Factors:
- Cultural/Population Groups: Cultural and religious practices affect the types of products and services people choose.
- Residential Area: The cost of living in a specific area influences spending patterns. For instance, expensive areas have higher costs for property tax, home insurance, and maintenance.
- Inflation: Rising inflation reduces purchasing power, leading to decreased spending on luxury items.
-
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Explore the differences between non-financial and financial income, and understand how socio-economic position and household type influence expenditure patterns. This quiz covers key concepts related to household income and spending behaviors.
