Chapter 15: Problem 30

What goods and services would you include in an estimate of the basic necessities for a family of four?

Short Answer

Expert verified

The basic necessities for a family of four include the following categories: 1. Housing: rent/mortgage, utilities, and property taxes or fees. 2. Food: groceries, including staple foods and occasional eating out. 3. Clothing: basic items for each person. 4. Healthcare: health insurance premiums, preventative care, and medications. 5. Transportation: public transit or personal vehicle expenses. 6. Education: schooling expenses, supplies, and extracurricular activities. 7. Communications: internet, telephone services, and cable/streaming subscriptions. 8. Basic Savings and Financial Protection: life insurance, retirement savings, and an emergency fund. These expenses may vary depending on the specific needs and circumstances of each family.

Step by step solution

1. Housing

A family of four needs a place to live. This would include rent or mortgage payments for a home or apartment, utility expenses (water, electricity, and gas), and property-related taxes or fees if applicable.

2. Food

An estimate of basic necessities should include food expenses for a family of four. This would entail costs for groceries, including staple foods such as grains, beans, vegetables, fruits, dairy products, and meats. Eating out or pre-prepared meals may also be included, to a limited extent.

3. Clothing

Clothing expenses would include basic items for each person: shirts, pants, shoes, undergarments, and seasonally appropriate outerwear. Costs for special occasion outfits or excessive wardrobe updates may not be considered basic necessities.

4. Healthcare

Healthcare is a vital necessity for a family of four. This would include costs for health insurance premiums, preventative care, routine check-ups, medications, and emergency medical expenses.

5. Transportation

Transportation expenses are necessary for a family of four to travel to work, school, and other essential activities. This category would involve costs for public transit or personal vehicle expenses like fuel, insurance, and maintenance.

6. Education

An estimate of basic necessities must include costs for education. This may incorporate expenses for public or private schooling, supplies (books, notebooks, and stationery), and extracurricular activities or tutoring services.

7. Communications

In this digital era, communication expenses are essential. A family of four would require expenses for the internet, telephone services, and possibly cable television or streaming subscriptions.

8. Basic Savings and Financial Protection

Financial protection is considered a basic necessity for a family. This includes life insurance premiums, savings for retirement, and an emergency fund. In summary, the basic necessities for a family of four would involve expenses for housing, food, clothing, healthcare, transportation, education, communications, and financial protection. It is important to note that individual family circumstances may require additional or specific expenses to be considered in their necessities.

Unlock Step-by-Step Solutions & Ace Your Exams!

Full Textbook Solutions
Get detailed explanations and key concepts
Unlimited Al creation
Al flashcards, explanations, exams and more...
Ads-free access
To over 500 millions flashcards
Money-back guarantee
We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!