The economic essence of family relations

Modern economic thought considers the family or, more generally, the household as an important consumer and producer whose vital activity is carried out for the realization of the social, economic and spiritual needs of the individual, the family itself and society as a whole. Creating normal conditions for the production of the human factor requires not only effective housekeeping, but also the formation and use of the family budget.

Planning of expenditures assumes the availability of sufficient and stable monetary resources, contributes to their purposeful and effective use. Knowing what means can be available at least in the short term, makes consumer practice more predictable, allows you to compare the various options for spending and choose the most appropriate of them, meeting the needs of household members under existing restrictions. Budget planning is also carried out in families where incomes are very low. The actions that they take on the market can be characterized as extremely rational: they are justified by the desire to minimize costs.

One of the main means of "rationalizing" consumer behavior is planning. In accordance with the data obtained as a result of the research, in the field of daily food consumption, it is possible to include planning of purchases, allocation of monetary resources and formation of stocks.

So, the family economy (the economy of a household) is one of the elemental components of the economy as such. The possibility of interpreting the economy of the household and the family economy as synonyms is also confirmed by the fact that the main semantic content of the economy is reduced to the notion of "economy", one of the varieties of which are households (families).