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International Journal of Trend in Scientific Research and Development (IJTSRD)
Special Issue on Innovative Development of Modern Research
Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470

Household Finance and its Effective

Organization of Financial Resources

Nazarova Gulrukh Umarjonovna

Assistant of “Finance” Department, Karshi Engineering Economics Institute, Karshi, Uzbekistan

ABSTRACT In some cases, the Uzbek economic literature allows the term
This article provides information on the effective “household” to be replaced by the term “household” or
organization of household finance, its main functions, the “family”. Accordingly, the terms “household finance” and
balance of income and expenses. The article also examines “family finance” are used interchangeably or as synonyms
the composition of household financial resources and its instead of “household finance”. However, the concept of
important aspects. “family” or “household” is different from the concept of

“household”. First of all, it should be noted that the level of
KEYWORDS: household, family, household finance, function of accuracy of the “household” is less clear than the concept of
household finance, household income and spending, financial “family”. For example, an elderly parent who lives in a place
resources of households and etc or in a house which belongs to their son cannot be a family
member, even if they are members of the household.
One of the integral parts of the public financial system is Similarly, a student who rents a room is part of the landlord’s
undoubtedly the household system. It is known that in a household, but cannot be part of his or her family, and so on.
system of market relations, the financial importance of a In other words, the household may include non-relatives or
household is determined by what it is used for economically. may consist of one person.
Clearly, on the one hand, households are private owners of
factors of production (labor, land, capital, entrepreneurial Summarizing the above, it can be said that households are
ability, etc.) and form their own sources of income on the one of the main actors in economic activity, as the outcome
same basis, on the other hand, households consumer goods of this activity affects the well-being of not only one family,
and services in the economy emerges as buyers and on this but the entire population of the country. A household is a
basis determines market demand. At the same time, household that is run by one or more people who live
households accumulate a portion of society’s gross income, together and have a common budget. Depending on the type
participate in the creation of financial reserves through the of activity, households perform both production and non-
purchase of real and financial assets, and also play a key role production functions. The former involves engaging in some
in the formation of centralized financial funds of the state kind of business activity, while the latter involves engaging
through tax payments. in a variety of securities, banking, or leasing transactions.
Typically, the term “household” is used in national statistics Every business or organization has its own finances, that is, a
to refer to an institutional unit consisting of a population or a system that regulates the movement of cash. Similarly,
group of citizens. According to the modern international households have their own finances. Household finance is
standard of the System of National Accounts (SNA) one of the most important elements of the financial system.
recommended by the United Nations (UN), “households - a As an economic category, it consists of a set of economic
small group of people who live together in a single living space relations related to the formation, distribution and use of
(area), fully or partially transfer their income and wealth to funds in households for consumption purposes and savings.
the common fund, and consume certain goods and services, Therefore, household finance consists of a set of activities.
especially housing and consumer goods, in general”. These include: spending, savings (or investments), earnings
and borrowings. (Figure 1)
(Figure 1)

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