Review of Economics of the Household
Imagine you have a piggy bank at home where you keep all the money you have. Your family also has a piggy bank where they keep the money they earn. Now, the economics of the household is all about how you and your family decide to spend the money you have in your piggy banks.
Let's say you want to buy a toy that costs a few dollars. You would have to ask your parents if they can give you the money from their piggy bank to buy the toy. But, your parents would also have to think about whether they have enough money in their piggy bank to give you, while also making sure they have enough money for other important things like food, clothes, and bills.
This is where economics of the household comes in. Your parents would have to make decisions on how much money they can spend on different things while also saving some money for emergencies or future expenses. They might decide to spend less money on eating out or buying expensive clothes to make sure they have enough for other important things.
Just like your family's piggy bank, the economy of a country works in the same way. Governments and businesses have to decide how to spend money on different things like infrastructure, healthcare, education, and more while also thinking about saving for emergencies or future expenses.
So, economics of the household is all about making smart decisions on how to spend money wisely while also saving appropriately for the future.
Let's say you want to buy a toy that costs a few dollars. You would have to ask your parents if they can give you the money from their piggy bank to buy the toy. But, your parents would also have to think about whether they have enough money in their piggy bank to give you, while also making sure they have enough money for other important things like food, clothes, and bills.
This is where economics of the household comes in. Your parents would have to make decisions on how much money they can spend on different things while also saving some money for emergencies or future expenses. They might decide to spend less money on eating out or buying expensive clothes to make sure they have enough for other important things.
Just like your family's piggy bank, the economy of a country works in the same way. Governments and businesses have to decide how to spend money on different things like infrastructure, healthcare, education, and more while also thinking about saving for emergencies or future expenses.
So, economics of the household is all about making smart decisions on how to spend money wisely while also saving appropriately for the future.