Factors the contribute to varying patterns of household expenditure

Question 1

What are the main four factors that contribute to varying patterns of household expenditure?

Answer 1

Socio-economic status
Family size/stage
Location
Beliefs/values

Question 2

How does socio-economic status contribute to varying patterns of household expenditure?
(2 points)

Answer 2

High economic status families have more discretionary income for personal spending

Low economic status families have less discretionary income and instead have to focus spending on essential family needs such as mortgage/rent and food

Question 3

How does family size/stage contribute to varying patterns of household expenditure?
(3 points)

Answer 3

The larger the family the greater the household expenditure, as more money is required for essential items such as food

Household costs are more expensive as larger homes are required, incurring greater costs

The stage of the family also impacts on expenditure, as extra money is required for childcare, school and college

Question 4

How does location contribute to varying patterns of household expenditure?
(2 points)

Answer 4

Families living in urban homes generally incur a higher cost of living e.g. higher rents, increasing household expenditure

In urban areas, travel costs are generally more expensive for rural families as they have to commute to work

Question 5

How do beliefs and values contribute to varying patterns of household expenditure?

Answer 5

Each household has its own set of beliefs or values that impact on household expenditure e.g. value for private education resulting in school fees