Household

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21 Aug, 2024

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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.

Household Meaning

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 Explained

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.

Types

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

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.
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.
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.
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.
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.

Examples

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.

Advantages And Disadvantages

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:

Advantages	Disadvantages
There is a sense of belief and security among the members.	Here, the financial responsibility may be burdened on the head.
It offers independence as well as personal space to each member.	There is a constant need for repair and maintenance required for the household.
Owning a household arises a feeling of accomplishment for the head member.	In case of decisions, each member's opinion is necessary.
A similar group of households can lead to the development of communities.	Additional disadvantages could include the cost of living, potential conflicts within the household, and the responsibilities and time required for managing household tasks.

Household vs Family vs House

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

Basis	Household	Family	House
Meaning	It refers to a group of people living together in a single dwelling or under a common roof.	The family members live together under a common roof and share emotional bonds, responsibilities, and activities.	A house refers to a physical structure, such as a building or dwelling, that provides shelter and protection for individuals or families.
Purpose	One of the main purposes of a household is to share living expenses, make joint decisions, and often share responsibilities related to managing the household.	Families are characterized by love, care, and support among the members, and they often engage in daily routines and activities together.	To provide shelter to the family or individual residing in it. It can be owned or rented and serves as a residence place.
Location	They can migrate to new places.	The establishment of a family does not get influenced by the location.	The physical structure of the house is limited to one location.

Frequently Asked Questions (FAQs)

1. What is the definition of a household in the UK?

In the UK, it is defined by the government as a group of people living together under the same roof and sharing common living arrangements. The UK definition does not specifically include the requirement of daily sharing of meals, and such compulsion is not necessary in the United States.

2. Is household production included in GDP?

No, household production is not included in GDP (Gross Domestic Product) calculation. GDP measures the value of goods and services produced within a country's borders for the purpose of final consumption or investment. Household production, which refers to goods or services produced by individuals for their own personal use or consumption, is not considered as it does not enter the market or contribute to the national economy.

3. Do household structure influence household functions?

Yes, the structure can influence household functions. The structure of a household refers to the organization and arrangement of its members, roles, and relationships. Different structures can impact how household tasks, responsibilities, and decision-making are distributed.