Family Welfare

Family welfare depends on the goods and services consumed by the family members. A household that consumes good quality goods and services also has a high standard of living.

To consume good quality goods, a high or sufficient family income is required. The members of a family with a high or sufficient income obtain more family welfare and their standard of living is high.

Consequently, family satisfaction is also higher than in other households. Thus, family welfare, living standards, and satisfaction are interdependent. 

For example, in a family with a high income, all members obtain good food, good clothes, good education, etc. Therefore, their standard of living is also high, and family satisfaction is also high.

A person's standard of living depends on how their needs have been fulfilled. In other words, the quantity and quality of consumption of an individual or family determine their standard of living.

Therefore, individuals or families who consume more and better quality goods and services, or who obtain more family welfare, have a high standard of living and also greater family satisfaction or happiness.

The state or government also has a significant role in increasing family welfare, living standards, and satisfaction. If the state provides subsidies or free basic necessities such as food, clothing, education, health to low-income families, and provides allowances in the form of social security to the disabled, elderly, and unemployed who cannot work, family welfare, living standards, and satisfaction are likely to increase. 

In Europe and America, where the state provides social security to the people, the family welfare, living standards, and satisfaction of the people there are higher than those of families or people in other countries.

The welfare, living standards, and satisfaction of any family also depend on the economic decisions they make. Even if family income is used properly and unnecessary expenses are avoided, it is possible to provide high welfare, living standards, and satisfaction to the family.

Various Factors Affecting Family Welfare, Living Standards, and Satisfaction

There are various factors that affect family welfare, living standards, and satisfaction. The main factors among them are as follows:

(a) Family Income: Families with higher incomes have greater quantity and quality of consumption. Consequently, family welfare, living standards, and satisfaction are also higher.

(b) Family Size: Family size is another important factor affecting family welfare, living standards, and satisfaction. In a large family, even if the family income is high, it is difficult to fulfill the needs and desires of all family members. However, if the family size is small, even a small income can fulfill many family needs. Thus, family welfare, living standards, and satisfaction are higher in small families.

(c) Education: Education has a significant impact on family welfare, living standards, and satisfaction. The earning capacity of educated people is higher than that of uneducated people. Similarly, educated people spend thoughtfully and rationally. Therefore, the family welfare, living standards, and satisfaction of educated families are higher than those of uneducated families.

(d) Family Culture: The welfare, living standards, and satisfaction of any family also depend on its family culture. Some families consume more to show off to others even if their income is low. However, some families maintain a low standard of living even if they have high incomes. For example, the descendants of old kings and emperors have maintained a high standard of living due to cultural reasons even if their income is low.

(e) Other Factors: Other factors such as the price level of goods and services, social traditions, employment opportunities, housing, the behavior and thoughts of the household manager, the feeling of responsibility towards the family, social customs, the consumption and living standards of neighbors, the state of economic development of the country, and the availability of goods and services also affect family welfare, living standards, and satisfaction.

Family Technology and its Use

Family technology refers to the technology used to accomplish various household tasks. Technology is the application of science in practice. 

The family technology used in countries like Nepal, which are lagging behind technologically, is as follows:

(a) Technology Used for Cooking: In countries like Nepal that are lagging behind in development, the practice of using firewood as fuel for cooking is prevalent in rural families. Traditional types of utensils are also used. For cooking rice, pots are used; for cooking vegetables, pans and woks are used; for heating milk, pots and wooden ladles are used; and wooden containers are used for storing oil. The use of these items has been decreasing recently. Nowadays, the use of gas as cooking fuel has increased in both villages and cities. The use of cooking utensils like pressure cookers and ovens has also increased widely.

(b) Agricultural Technology: In Nepal, the practice of using plows and spades for plowing fields is prevalent. Similarly, there is a practice of using sickles for harvesting and hoes for leveling soil. Recently, some improvements have been seen in agricultural technology. Tractors have started to be used for plowing and leveling soil in some places in the Terai, inner Terai, and hills of Nepal.

(c) Communication Technology: In the past, households used letters to exchange information. However, nowadays, the practice of using mobile phones, radios, televisions, etc., for information exchange has increased widely in most families.

(d) Transportation Technology: In the past, people used to walk when traveling from one place to another. Similarly, goods were carried on backs or in baskets to transport them from one place to another. In some remote areas of Nepal, people are still forced to walk and carry goods on their backs due to the lack of transportation facilities. However, in places where transportation has developed, people have access to modern means of transportation like buses, cars, etc. Similarly, goods are transported using trucks, tractors, etc.

(e) Cleaning Technology: In rural households in Nepal, traditional cleaning technology is still widely used. In very remote areas, clothes are washed using ash, soap nuts, etc. Similarly, brooms are used for cleaning houses. However, modern cleaning technologies have penetrated urban markets and semi-urban rural areas. Households in these areas use modern cleaning technologies such as washing machines, dryers, vacuum cleaners (or vacuum technology instead of brooms), etc.

(f) House Construction Technology: Traditional technology-based houses are found in rural areas. Mud and stone are used in house construction. Houses are one or two stories high. Roofs are made using slate, tiles, wooden planks, etc. A traditional house has one room. All tasks such as cooking, sleeping, eating, etc., are done in the same room. However, the practice of constructing modern and permanent houses using cement has increased significantly in cities and even in rural areas.

(g) Drinking Water: In some rural areas of Nepal, the practice of carrying water from wells, streams, etc., in pots and using it at home is prevalent. However, nowadays, the practice of carrying water in pots has been decreasing as the government has built taps and made arrangements for drinking water in many places.

Meaning of Family Budget

Family budget refers to the estimated details of income and expenditure of any household for a specific period (one year or one month). It shows the total family income received from various sources and how the family income has been distributed among different headings.

It also reflects the living standard of the family. Therefore, it is also called a plan for family consumption or expenditure. Consumption refers to the expenditure made on food, clothing, housing, entertainment, etc., for family satisfaction.

Family budget is also similar to the government budget; the government budget includes the sources of income and expenditure for one year.

Rules for Budget Preparation or Things to Consider

The following things need to be considered when preparing a family budget:

(a) One must be aware of the family's monthly or annual income.
(b) One must know the needs and special requirements of the family members.
(c) One must identify the main areas of family expenditure, such as food, clothing, medicine, education, entertainment, savings, etc.
(d) One must decide how much to spend on which items.
(e) One must identify the most important needs of the family.
(f) The budget should be flexible. This means that there should be a provision to adjust the budget from one area to another based on needs.

Types of Budget

Family budget can be divided into the following three types:

(a) Balanced Budget: A budget in which family expenditure and income are equal is called a balanced budget. It is considered a good budget.

(b) Surplus Budget: A budget in which family income is more than expenditure is called a surplus budget.

(c) Deficit Budget: A budget in which expenditure is more than family income is called a deficit budget. This type of family budget is not considered good.

Process of Preparing a Family Budget

Before creating a family budget, the expenses and income for various goods and services required for a specific period (one month or one year) are estimated. 

A sample monthly family budget is prepared based on an assumed monthly income of NPR 40,000 for a middle-class family living in the city. 

The sample monthly family budget is as follows:

Sample Family Budget

Savings/Deficit: NPR 10,000
Economics, Grade XI
Fiscal Year: 2026, September

Income Details

Expense Details

Total Income: NPR 40,000
Total Expenses: NPR 30,000

A sample budget for a middle-class family is shown above. The family’s total monthly income is NPR 40,000, which is allocated across categories such as food, education, clothing, rent, medicine, treatment, electricity, water, phone/communication, transportation, entertainment, and miscellaneous expenses. 

The largest expenditure is on food, which accounts for one-third of the total income. In other words, 50% of the total expenses are spent on food.

Since the income exceeds the expenses in this sample budget, it results in savings. Here, the family saves NPR 10,000.

Importance of Family Budget

A family budget has great importance in running a household properly with limited income. The importance of a family budget can be explained as follows:

(a) Increases Awareness of Family Income and Expenditure: A budget increases awareness of family income and expenditure. When spending according to a budget, the family is aware of how much income is generated from where and, based on that, how much to spend on which items. It also helps to spend within one's capacity and control unnecessary expenses.

(b) Balances Family Income and Expenditure: Spending according to a budget helps people reduce or increase their spending according to their income. This also helps in balancing family income and expenditure.

(c) Fulfills Important Demands: A family has various needs and demands. When spending according to a family budget, it is possible to postpone less important demands and fulfill more important ones. For example, the budget itself reveals that buying books for students is more important than buying new fashionable clothes.

(d) Saves Time and Money: Since the budget specifies where to buy which goods and when, it saves time and money.

(e) Increases Family Savings: Spending according to a budget discourages unnecessary expenses. Savings are also a component of the budget. Therefore, the budget encourages every family to save.

(f) Increases Family Satisfaction and Welfare: A family budget is prepared by considering the demands and desires of all family members. Therefore, the budget plays an important role in increasing family satisfaction and welfare.

Tasks Performed in the Household

Various types of tasks are performed in the household. These are as follows:

(a) Child Rearing and Care: The most important task and responsibility of the household is child rearing and care. After the birth of a child, their rearing, care, education, treatment, etc., are extremely important tasks performed in the household.

(b) Elderly Care: Another important task of the household is elderly care. In developing countries like Nepal, where there is no provision for social security for the elderly, the task of caring for the elderly in the family is an important task and responsibility.

(c) Farming and Animal Husbandry: In less developed countries like Nepal, farming and animal husbandry are the main occupations of most households living in rural areas. Families in these areas engage in farming and animal husbandry due to the lack of alternative occupations. Tasks such as planting crops, caring for crops, grazing cattle, cutting grass, etc., are the main tasks of rural households.

(d) Cooking: Another very important task performed in the household is cooking. In less developed countries like Nepal, the task of cooking in the household is done by women.

(e) Cleaning: Another important task performed by the household is cleaning the house and clothes. Although less time and importance are given to cleaning houses and clothes in rural areas, this task is given more importance in urban markets.

(f) Celebrating Festivals: Another important task of the household is celebrating festivals. In Nepal, festivals such as Dashain, Tihar, Gaijatra, Teej, Chhath, Holi, Eid, Losar, etc., are celebrated.

Meaning of Family Resource Sources

In economics, resource sources refer to the things used to produce goods and services needed to fulfill or satisfy human wants. No goods or services can be produced without resource sources. For example, land, machinery, labor, etc., are resource sources.

The supply of all these resource sources is limited. This means that resource sources are less than what humans want. Therefore, it is not possible to produce goods and services in the quantity desired by humans from these resource sources.

Economics studies how to provide maximum satisfaction to humans by properly using and managing limited resources and sources. 

Family resource sources can be divided into two parts as follows:

(a) Human Resource Sources: 

All the qualities possessed by humans, such as health, education, knowledge, ability, intelligence, skills, awareness, etc., are human resource sources. The household earns income or produces goods by using these family human resource sources in activities such as farming, animal husbandry, business, employment, etc.

(b) Non-Human Resource Sources: 

Non-human resources refer to physical resources, such as land, machinery, houses, etc. These resources can be seen, touched, and have a definite form and value. Non-human resources can be divided into two parts: natural and human-made:

1. Natural Resource Sources: All resource sources created by nature itself, or natural gifts, are called natural resource sources. The land owned by the household is a natural resource source. In developing countries like Nepal, a large number of people are involved in agriculture, so land and forests are major sources of income.

2. Human-Made Resource Sources: All resource sources made or created by humans are called human-made resource sources. These resource sources are also called artificial resource sources. For example, machinery, houses, vehicles, computers, etc., are human-made resource sources. These resource sources are also owned by the household. The household earns income or achieves satisfaction by producing goods and services using these resources.

Management of Family Resource Sources

All family resource sources are available in limited quantities, but human wants are unlimited. Therefore, the process of achieving maximum satisfaction by properly using all resource sources is called the management of family resource sources. 

The main subject of family economics is how to maximize family satisfaction or fulfill the unlimited wants and needs of family members from limited resources. If resources were unlimited or human wants were limited, the issue of resource management would not arise, or economics would not develop as a subject. Therefore, the management of resource sources is the main subject of economics.

Not only is the supply of resource sources limited, but they also have alternative uses and are interconnected. Resources can also be substituted for each other. For example, wood is a natural resource source. 

It can be used for various alternative purposes, such as making furniture or building houses. With proper and efficient management of resource sources, desired things or goals and a high standard of living can be achieved even with less expenditure and fewer resources. 

The following steps are involved in the management of resource sources:

(a) Planning: Planning is the first step in household management. This includes how to use resources to achieve family goals. For example, suppose a family plans to build a new house. When building the house, the family needs to plan how much to spend, where to get the money, how many floors to build, when the work will be completed, etc.

(b) Organizing: Organizing is another important step in household management. This involves dividing the family work into small parts and assigning responsibilities to family members. For example, in a house being built by the family, responsibilities are assigned for who will bring the materials and who will take care of the house, etc.

(c) Controlling: After planning, gathering resources, and assigning responsibilities, control is necessary to ensure that the work is done according to the plan. For example, if the house construction is not completed within the time specified in the plan, those responsible need to be made to work according to the plan.

(d) Evaluating: After any family work or plan is completed, evaluation is necessary to see if the work was done according to the plan. This helps in eliminating weaknesses and errors in the work.

Introduction to Household Management

Generally, management refers to the process of using all available resources in a planned, efficient, and effective manner to achieve common goals. Therefore, household management refers to the process of using all the resources and sources available in a household in a planned, efficient, and effective manner to fulfill family objectives.

This is an administrative aspect of the family. The capacity, energy, and experience of the household manager depend on this.

Household management has been defined in various ways by different economists, among which the main definitions are as follows:

According to the famous family economist Nichel, "Home management is the administrative aspect of a family. To attain the desired family goals, home management helps in planning, assessing, integrating, and evaluating human and material resources and ensures their best use for the betterment of family members."

Family economists Gross and Crandall have tried to define household management in very simple terms. According to them, "Home management is using what you have to get what you want."

According to family economists Nickel and Dorsey, household management is the planning, controlling, and evaluating the use of family resources and sources for the purpose of attaining family goals.

Therefore, from the definitions of family economics mentioned above, it is clear that household management is related to how to properly use family resources and sources to make family members happy and prosperous.

Planning is extremely important for the proper management of resources and sources. Similarly, it is not enough to have adequate resources and sources to fulfill the wishes and aspirations of family members. For this, the ability to make appropriate decisions at the appropriate time is also necessary. 

In reality, household management is an intellectual process that fulfills the wishes and aspirations of the family by optimally using family resources and sources through proper planning, organization, control, and evaluation.

Key Aspects of Household Management

The important aspects of household management can be presented as follows:

(a) Household management is related to the proper use of resources owned by the household. 

(b) Household management discusses how to properly distribute family income among family members. 

(c) Human beings create their own households and try to manage them properly. 

(d) The household itself is the source from which people achieve all their happiness and peace. 

(e) The development of the entire nation is possible only through the development of the household.

Qualities, Duties, and Responsibilities of a Household Manager

The person who plays the main role in household management is the household manager. The household manager uses family resources, sources, or family income in a proper and rational manner to raise the living standards of the family, and also plays a major role in creating happiness, peace, and harmony in the family. 

Therefore, the household manager has a great importance in household management. Generally, the housewife plays the role of the household manager in the family.

Qualities of a Household Manager: 

Whether a household is happy or sad depends on the household manager. Therefore, the household manager should have the following qualities:

1. Intelligence: The household manager or housewife should be intelligent. They should have the ability to think, reason, and remember, and also have a desire to acquire knowledge or be eager for knowledge. In reality, a person's intelligence is not something that can be measured but is something that is experienced. Intelligence is necessary for a person to adapt to the times, make decisions, prepare a family budget, manage the house, provide proper care for children, and purchase necessary goods for the family, etc.

2. Enthusiasm: Enthusiasm is another important quality required to be a successful manager. Without enthusiasm, no one can achieve success in life. Similarly, for a successful family life, the household manager needs to be enthusiastic about learning new things and how to make the work they are doing even better. If parents are enthusiastic, its positive effect also falls on the children.

3. Ability to Understand Human Behavior: Every person is different from each other. Their speech, behavior, interests, desires, nature, etc., are different. Therefore, if the household manager understands the speech and behavior of the family members and works accordingly, peace, good order, and happiness are maintained in the family.

4. Creativity: Creativity is an indispensable quality in household management. A family where the manager is creative is organized and attractive. With this quality, the household manager achieves maximum satisfaction by purchasing good household items, such as furniture, decorative items, utensils, clothes, etc., at a lower cost. Therefore, imaginative ability and creativity are indispensable qualities for a household manager.

5. Decision-Making Ability: Another important quality of a household manager is decision-making ability. The decision-making ability of the household manager plays an important role in maintaining peace and harmony in the family. Only with good decision-making ability can one decide what is good or bad, right or wrong, beneficial or optimal, and it helps in resolving problems when they arise. For example, the decision about which school to enroll a child in should be based on the quality of the school, fees, distance from home to school, etc.

6. Self-Control: Various problems arise in the family. The household manager should resolve these problems by using their intelligence, discretion, and ability. Similarly, they should be able to control their emotions or mind and be patient while resolving these problems. Only with patience and self-control can the household manager, being calm and patient in a difficult situation, console other family members, and then the family members become united again.

7. Personality: The overall form of a person's qualities is called personality. The essence that impresses others at the very first meeting is a person's personality. A person's personality is influenced by their thoughts, ideas, speech, behavior, social relationships, etc. Similarly, a person should also pay proper attention to their health for personality development. A good personality is also necessary to be a household manager. A household manager with a good personality is respected by other family members, and they also follow or accept what they say.

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.