Presentation introducing the topic of household income to Business Studies Junior Cycle students

1. C
HOUSEHOLD
INCOME

2. Learning
Intentions
Outline the major sources of household incomeOutline
Distinguish between regular and irregular sources of
income
Distinguish
Illustrate the concept of ‘benefit in kind’ incomeIllustrate
Understand that income generates a taxation
responsibility (liability)
Understand

3. What is Income?
Income refers to all wealth received over a
period of time

4. Sources of Household Income
• Rental Income: income from rent received on investment properties.
Common sources of household income include:
• Wages and Salaries: income from employment. Received as a reward for work.
• Pensions: paid to those who have retired from work.
• Child Benefit: a payment made to parents of children.
• Jobseeker’s Benefit: a payment to those who are unable to find employment.
• Family Income Supplement: a supplement is a top-up payment made to households with low
levels of income.
• Interest on Savings: a reward to those who save money in banks, credit unions etc.
• Dividends on Shares: shareholders are the owners of a company. They may be rewarded for
their investment by receiving a portion of company profits called a dividend.

5. Benefit in Kind (BIK) Income
Benefit in Kind refers to all sources of non-money
income received by households and individuals. They
are sometimes called ‘perks’.

6. The household does not have to spend any of its other income to pay for these
items. In this way, the BIK income saves the household money.
Benefit in Kind (BIK) Income
A benefit in kind means that the household does not actually receive any cash but is
provided with goods and services which have a money value.
Examples include:
• Free Travel
• Medical cards
• Use of a company car
• Health insurance paid by employer

7. Regular vs Irregular Income
Examples include:
• Wages & salaries
• Pensions
• Jobseeker’s benefit
• Child benefit
Regular Income is received on an ongoing basis and the
timing and amounts involved tend to be predictable.

8. Regular vs Irregular Income
Examples include:
• Overtime payments for working extra hours
• Bonus payment for achieving certain targets
• Lottery wins
Irregular Income is far less predictable and will only be
received from time to time. There is also less certainty about
the amounts involved.

9. C
QUICK
QUIZ