Meaning of Household/ Family Economics

We often talk about national and international economics. However, we rarely pay attention to our own household. Unless the economic situation of the household improves, the improvement in the national or international economic situation does not hold much significance for that household.

Therefore, the study of household economics is extremely important. Without proper management of family resources and sources, it is impossible to achieve high family welfare, living standards, and satisfaction. 

Hence, the study of family economics is extremely important to make the family happy, prosperous, and satisfied.

In this context, in Household Economics, we discuss the meaning of household economics, household management, the qualities, duties, and responsibilities of family managers, family resources, sources and their management, family budget and its importance, the tasks performed in the family, family technology and its use, and family welfare, living standards, and satisfaction.

Definition of Household Economics

Before the beginning of the twentieth century in the United States, women who desired education and social change began the study of family economics. They wanted to improve daily life by using science and observation. 

Women who were deprived of opportunities and oppressed or neglected by men met in the New York City area and studied the multi-faceted nature of work and created occupations. This is how family economics was born. 

Simultaneously, from this meeting, they formed the 'Home Economic Association' and published a journal called 'Journal of Home Economics,' contributing to the development and expansion of family economics. Its main objective was to make families successful in their occupations and increase family welfare.

According to E. R. A. Seligman (1911), "Household economics is the study of the principles, the operations, and the management of the domestic establishment. It involves the systematic study of all family activities and decisions that contribute to the well-being of its members, such as consumption, savings, and allocation of time and resources."

Household/ Family economics is the economic analysis of all decisions made by a household. In other words, family economics is the study of the efficient and proper management of household resources and sources, and a successful life journey with health and happiness. 

Therefore, household economics includes the following:

(a) Household consumption and savings 

(b) Household labor supply 

(c) Allocation of time to production and leisure 

(d) Expenditures made by parents for the welfare of children and their effectiveness 

(e) Government subsidies and insurance policies for low-income households 

(f) Study of issues such as marriage, divorce, etc.

(g) Care and treatment of the elderly and sick 

(h) Family budget (household expenses and income) 

(i) Household resource sources and their circulation 

(j) Household welfare, living standards, and satisfaction, etc.