Family Income and Expenditure

1Uwase's mother and the notebook

Uwase's mother sells bananas, avocados and tomatoes at Kimironko market. Every evening she writes two lists in a small notebook: on the left, the money that came in; on the right, the money that went out. "Why do you write everything down?" asks Uwase. "Because money that is not counted," says her mother, "disappears like water in sand."

2Income: money coming in

Income is the money (or goods) a family receives. Families in Rwanda earn income from:

• Wages and salaries: pay for work, for example as a teacher, nurse, builder or moto driver.
• Farming: selling crops such as beans, coffee or bananas, or selling milk and eggs.
• Business and trade: running a shop, a market stall or a tailoring business.
• Rent: money paid by someone who uses the family's house or land.
• Gifts and support: money sent by relatives, or a pension for older people.

Food that a family grows and eats itself is also a kind of income, even though no money changes hands.

3Expenditure: money going out

Expenditure is the money a family spends. It is useful to sort it into two groups:

Some costs stay the same every month, such as rent. These are fixed costs. Others change, such as food and transport. These are changing (variable) costs.

4Look at real families

On Dollar Street, a free website made by Gapminder, you can see photos of real families in Rwanda and other countries, sorted by how much money they earn each month. Look at how each family cooks, where they get water and what light they use. Families with more income can spend on more than just their needs.

Try it yourself