Household

A household encompasses a collective of individuals who share a common living space or dwelling, whether related or unrelated. The primary purpose of these households is to establish a residence where various activities are conducted to enhance productivity.

In a household, the designated head assumes responsibility for making collective decisions, making it a fundamental unit for analyzing production. Simultaneously, it serves as a means of providing shelter and meeting essential human needs. Nonetheless, it is important to note that the precise definition of a household may vary across different regions and nations.

• A household refers to a group of people or individuals living under the same roof and sharing common living arrangements.
• The number of members in it can vary and can be one or more than three.
• While there may be criteria for determining the head of a household in some contexts, it is not a universal requirement. However, the head may be responsible for fulfilling certain obligations, such as paying taxes, depending on a particular jurisdiction's legal and administrative regulations.
• It has various types, including one-person households, couples without children, couples with children, lone-parent households, and extended families. 

Household, in general terms, is a collective word for people who stay within the same roof. These individuals can be related to each other or may be from the same bloodline. At the same time, some residents could not relate to each other. But, still, they live beneath a dwelling. They only aim to share accommodation, domestic chores, and goods for a living. 

The head of the household has a major responsibility to claim and file the income tax for the year. This head can be related or unrelated but must fulfill the IRS (Internal Revenue Service) criteria. For tax filing, the head of the unit may be below 65 years or older. The gross household income must be $19,400 if they are under the prescribed age. Or else it must have been $21,150 in the previous year.

Besides, other criteria suggest the head be unmarried or until the last day of the year. Plus, they must pay more than half for the household's maintenance. But, if a person qualifies for the above, they must live in the residence for over six months. However, if the qualifying person is a dependent parent, they may not live with others. 

For others to qualify as a member has different requirements. If they fulfill one of the following, a person automatically becomes a member. They are as follows:

• Linear ancestor (that includes grandparents, great-grandparents, parents, or lineal ancestors).
• Brother or sister (even step-siblings or half-siblings).
• Lineal Descendent (like a grandchild, great-grandchildren, and stepchildren).
• Other relatives such as aunt, uncle, nephew, and niece. But it does not include relations from the marriage. Yet, if a person lives in the house (unrelated or unmarried to the head) for a year or more, they become a qualified member. 

Let us look at the types of households that influence its environment:

1. One-Person Households: In this type, there is only one person involved. In short, the head themselves handles the entire domestic unit. Therefore, they are also responsible for household chores and filing tax returns.
2. Households with only Couples: As the name suggests, this unit includes the head and the spouse. There is a collective union of both individuals to carry out production activity.
3. Households with Couples and their Children: Children are also included here in addition to type two. The total count of members is more than three. In this category, at least one child is a member. Also, there can be multiple children despite their age.
4. Lone-Parent Households: In this type, only one parent is involved. However, that person is the head of the unit. In addition, the household income earned is also filed by the householder. Other characteristics of the child are similar to the above type.
5. Extended Family: An extended or joint family includes couples, children, and relatives. Depending on their relationship, the latter can be related to them. In this case, at least one of them must be registered as the relative of the head. However, there are no extra-marital affairs involved.

Let us look at some examples to comprehend the concept in the easiest way possible:

Example #1

Suppose Shelly and James are two people living in one apartment for two years. Both share the relationship of husband and wife for more than three years. Among them, James pays all the bills and costs for household chores. In contrast, Shelly pampers their 8-month-old child "Kevin." As per the rules, the head (James) has to pay taxes as he contributes most of his earnings to house maintenance. And the rest can continue to be part of it and use household goods. 

Example #2

According to an article dated June 2023, the renthouse database "Canadian Rental Housing Index" has revealed an unusual rise in rental costs. And the major impact is visible in the household expenses. Out of 13 states, British Columbia (BC) and Ontario have the largest count for unaffordable rental houses. 

Example #3

Another article states that the cost of living in the United Kingdom is not compatible with low-income household groups. The Joseph Rowntree Foundation (JRF) survey states that the $900 yearly payments are made to poorer households. However, they still struggle with basic needs and fulfill shampoo to food. 

Households have a major influence on the circular flow of money. However, there are certain pros and cons attached to it. Let us look at them:

Although these systems seem similar, they have huge differences. Therefore, it is important to look at its characteristics:

This has been a guide to Household and its meaning. We explain its examples, comparison with family and house, types, advantages, and disadvantages. You can learn more about it from the following articles –

• Head of Household vs Single
• Monthly Household Budget Template
• Rebate