Households

Household: those who dwell under the same roof and compose

a family.
  Discuss
the influences on the
Learning spending, ❷saving, and
outcome borrowing of households.
 1. Disposable income
Influences on
2. Wealth
spending
(what factors 3. Interest rate
determines 4. Distribution of income
spending) 5. Technological advancements

next
Source: https://www.tutor2u.net/economics/reference/income-and-wealth back
How does wealth affect spending?

Wealth generates Wealth can be cashed Wealth can serve as Wealth offers
income security confidence
Your disposable income will turn into:

consumption
saving
 The relationship between
disposable income and consumption
consumption As income rises people are able to
Y
both spend and save more. As
people become richer they buy
C
more and better quality products.

However, while the total amount

dissaving spent rises with income, the
proportion spent tends to fall. (p
137)

0 Z
Disposable income
 Pattern of expenditure

p138

 Read the article:

https://www.theguardian.com/business/2016/may/06/the-way-we-shop-now-the-revolution-in-british-spending-habits
 1. Interest rate
2. Income
3. Wealth
Determinants of
4. The range and quality of financial
saving
institutions
5. Age
6. Social attitudes
Influences on borrowing

 The availability of loans and overdrafts

 Interest rate
 Confidence
 Social attitudes
 The end