Households

discuss the influences on the spending,

saving and borrowing of households
identify
in a person’s life when they might be:

- earning less than they spend;

- earning more than they spend;

- not earning but spending

 Disposable income: income after income tax has
been deducted and state benefits received.
The main
influence on the
Wealth: a stock of assets including money held in
amount spent bank accounts, shares in companies, government
bonds, cars and property.
by a person or
household? rate of interest

technological advancements
Income and
consumption
Average propensity to consume (APC):
the proportion of household disposable income which is spent.

Consumption/disposable income
GRAPH WORK
Pattern of expenditure
Different income groups tend to have different
patterns of spending.

Poor vs Rich
Saving
Contractual vs non contractual
Reasons for saving

target savers

retirement

increase their current income

Research 5 factors:

What influences your saving?

Average propensity to save (APS): as
savings ratio, it is the proportion of
household disposable
income that is saved.
GRAPH WORK