Principles of household finance

Abstract

Household finance principles come from an understanding of the deficit of their financial resources. Limited means that the financial resources available to the household have the capacity to end, which causes the existence of such a state of affairs when it is unable to consume all the goods and services that its members wish to have. Households, like society as a whole, are not able to provide all their members with everything they want or a high standard of living. In such circumstances, the household is faced with the need to make a huge number of decisions: who to do what works in the first place, who will make money, and who to raise children, etc.