Material welfare can be viewed from various different perspectives. Firstly, we can focus on disposable incomes. Disposable income is defined as the monthly net income from the work of all the family members together with benefits, transfers and pensions, as well as income from capital and investments. The greater the disposable income, the more material welfare can be acquired. We can also look at expenditure, i.e. the total amount of money spent each month on goods and services such as food, housing, clothing and transport. This expenditure represents the quantity of goods and services consumed: the higher the level of consumption, the greater the material welfare.
