Disposable household and per capita income

Okay kiddo, today we're going to talk about two important topics: disposable household income and per capita income.

First, let's talk about disposable household income. This is how much money a family has left over after they pay for all of their necessary expenses like rent or mortgage, food, utilities, and other bills. Think of it like money that they can use to buy things they want or save for the future.

Now, let's talk about per capita income. A "per capita" means "per person." So per capita income is how much money, on average, each person in a certain area or country makes. For example, if a country had a per capita income of $50,000, that means on average each person in that country makes $50,000 a year.

These two concepts are related because if a family has more disposable household income, that means they have more money to spend on things they want, which could help increase the per capita income in their area or country. Likewise, if the per capita income in an area or country is high, that often means families have more disposable household income because they make more money overall.

So basically, disposable household income is about how much money a family has left over after all their bills are paid, while per capita income is how much money, on average, each person in a certain area or country makes. Does that make sense?