EPP

• Resources refer to the things and qualities possessed by a family, including materials or properties used to produce goods and services for human needs and wants
• Good management of family resources involves using human and nonhuman resources to attain family goals, requiring the full cooperation of each family member in any worthwhile activity
• Three important elements in resource management are:

  • Values: principles guiding behavior and inspiration (e.g., honesty, cooperation, trust, love)
  • Goals: aspirations that can be short-term or long-term
  • Decisions: conclusions or judgments on an issue, involving choosing between options through a process from planning to evaluation
• Classifications of Family Resources:

  • Human resources: intangible qualities like education, skills, attitude, knowledge, energy, and time; time and energy are limited but valuable
  • Nonhuman or material resources: tangible possessions like money, goods, house, car, appliances, as well as community resources like water, electricity, hospitals, schools, and transport facilities
• Use of Resources to Achieve Goals:

  • Goals must be identified first before using resources wisely
  • Goals are classified into long-term goals (achieved after years of planning) and short-term goals (met in a short period)
• Expense refers to the money paid by the family for goods and services received
• Income for a family can come from sources like wage or salary, profit from business and investment, lease of property, pension, commission and bonus, and royalty and copyright
• Family finance refers to the management of income and expenses that affects the family.
• Income refers to the money received by the family for the good and services rendered.
• Physiological needs or basic needs are things for survival such as food, water, air, clothing, and shelter.
• Safety needs or security needs are also important for survival but not as demanding as the basic needs. Examples of these are employment, health care, property, and social stability.
• Psychological needs or social needs include belongingness, love, affection, friendship, attachment, and affliction from family, friends, colleagues, etc.
• Esteem needs include personal worth, social recognition, and accomplishments.
• Self-actualization or self-fulfillment needs are personal awareness, growth, and having less concern with the opinions of others.
• Wage or salary is the money earned for goods or services rendered that is paid to the father, mother, or any adult who works.
• Profit from business and investment is the dividend from shares of stocks and bonds. It also includes gain made from operating a business.
• Lease of property is the proceeds from rental of a family-owned real estate property like an apartment.
• Pension is the income of a retired family member.
• Commission and bonus are additional income that is over and above the regular salary or wage received as a reward or incentive.
• Royalty and copyright are additional income for a family member who has written a book, composed a song, or invented a thing.
• Food gets the biggest share in the allocation of your family budget.
• Utilities are paid on a monthly basis. These include electricity, water, telephone, and home cable bills.
• Shelter could be rented like an apartment where the family lives. If this is the case, a fixed monthly budget should be allocated.
• Education refers to the school fees that are paid either on a yearly or semestral basis.
• Savings is the money that is set aside for emergency purposes or allotted for the future.
• Illness or accident is the most common factor that eats up a family's savings. It should be a part of the operational budget, not to be taken from savings or other components.
• Household operations are an allocated budget for a family member who stays at home or your house helper. This is used when your stay-at-home family member or helper goes to the market or grocery to buy supplies and food.
• Medical and dental care are expenses for medical and dental appointment and the medicines needed by the family. These also include vaccinations, especially if there is a baby in the family.
• Clothing is a basic need of the family. It differs from the occassion, status, and development of the family members.
• Rest and recreation are the activities that provide relaxation and entertainment for the family. These can also include pursuing hobbies and interests, town trips, and vacations.
• Social and moral obligations include celebrations or events like birthdays, anniversaries, among others.
• Money is considered as the most important family resources.
• Fixed expenses are paid regularly on a more or less the same amount.
• Flexible expenses are paid in varying amounts.