Income - PERSONAL FINANCE - Lecture 3 notes

Module: Personal Finance


Lecture 3 – Income


Income
 Income flows from assets
- Assets (wealth) are a stock of capital – what an individual owns and that
has a monetary value.

 Assets can take different forms:
- Property
- Shares, bonds, jewels, cash, artwork
- Pension fund
- You

 Income is also from different sources:
- Wages and salaries
- Income from self-employment
- Investment income (dividends, interest)
- Pensions
- Social security benefits and tax credits


Sources of Income
Family Resources Survey 2016/2017
Annual survey of about 20,000 households

Sources Percentage
Wages, salaries & self-employment 71%
Benefits & tax credits 15%
Private pensions 8%
Other 5%

Significantly more working people are employees rather than self-employed


State Benefits in the UK
 There are lots of different benefits available:
- Universal Credit (housing benefit, jobseekers’ allowance)
- Child Benefit
- Tax Credits