Okuzeka
Economics vocabulary · Core Concepts

Household

Meaning in economics, with examples

/ˈhaʊshəʊld/nounCore term

In economics, household means: All the people who live together in one home and share its income and spending; in economic models, households buy goods and services and supply labour.

In Turkish: hanehalkı, hane

How it is used

A basic unit in statistics and models: household income, household debt, household spending and household surveys. In the circular flow model, households and firms are the two main actors. Newspapers often write about pressure on household budgets.

Example sentences

  1. Household debt has grown faster than income over the past five years.

  2. Higher energy bills are squeezing household budgets across the country.

Common collocations

  • household income
  • household debt
  • household spending
  • household survey
  • low-income households
  • consumer spendingThe money that households spend on goods and services, from food and rent to cars and holidays; it is the largest part of GDP in most economies.
  • consumptionThe spending of households on goods and services such as food, clothes, rent and transport; it is usually the largest part of a country's GDP.
  • cost of livingThe amount of money people need to pay for basic needs such as housing, food, transport and energy in a particular place and time.
  • income distributionHow a country's total income is shared out among its people or households, from the poorest to the richest.

More terms: Core Concepts

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not financial advice.