Bateev Kazbek, Serko Evgeniy

Second year students of the Faculty of Accounting and Economics,

 Petrova Yulia Andreevna

Senior lector, PhD in philosophy, the chair of foreign languages for graduates in Economics 

Rostov State University of Economics (RIPE)

 

THE COST ANALYSIS OF HOUSEHOLD CONSUMPTION FOR EDUCATION

At the present stage of development, education in the Russian Federation has a great importance for economic growth and the quality of labor resources.  Scientific and technological advances never stop and consequently, the complexity of consumer goods production and services increases, which causes the need to improve the education, involving more well-educated people in these spheres.

Table 1

The dynamics of household expenses, rub. per month per child[1]

Year

Household consumption for children under the age of 16 years old:

One child, rub.

Two children, rub.

Three children, rub.

Four or more, rub.

2004

3454,3

2571,9

1782,3

1139,4

2005

4424,4

3332,3

2224,7

1327,2

2006

5136,7

3910,9

2694

1847,6

2007

6895,8

5159,6

3656,8

2143,3

2008

8064,5

6492,1

5399,7

3237,6

2009

8316,6

6856,3

5999

3286,6

2010

9249,4

7458,3

5724,5

2977,4

2011

10815

8972,3

6030,6

4666,1

2012

12326,4

10356,3

6480,9

3949,1

2013

13281,6

11173,1

9618

4909,1

Figure 1. Diagram of the dynamics of household expenses for 1 child.

         Analyzing the data of the Table 1, we may come to the conclusion that the costs of household consumption made up 13281.6 rubles per child per month in 2013 in families with one child, which was more than in the previous year - 955.2 rubles, or 7.75% and in comparison with 2004, these expenses increased by 9,827.3 rubles, or 384.5%. In large families with four or more children, the total cost per child per month in 2013 made up 4,909.1 rubles, which is more than in the previous year to 960 rubles, or 24.31%, as compared with 2004, these expenses increased by 3,769.7 rubles, or 430.8%.

         In spite of growing expenditures of the Russian population per child in 2013 in families with different number of children, statistics shows the reduction of consumption required to the child, depending on family size.

         The reduction in expenditures for a child regards not only overall consumptions, but expenses for education.

 

 

 

 

Table 2

The dynamics of household expenses for education, rub. per month per child[2]

Year

Household consumption for children under the age of 16 years old:

One child, rub.

Two children, rub.

Three children, rub.

Four or more, rub.

2004

51,2

58,5

19,5

6,3

2005

82,7

59,6

22,3

6,6

2006

93,3

49,6

36,8

11,5

2007

115,7

82,2

44,3

14,5

2008

134,4

81

62,3

29,1

2009

151,9

82

58,6

17,2

2010

142,4

79,3

34

15,6

2011

144,5

156,7

45,5

36,5

2012

158,6

195,8

39,7

45,4

2013

167,3

125

54,4

34,1

Figure 2. Diagram of the dynamics of household expenses for education for 1 child

      Analyzing the data in Table 2, we come to the conclusion that household expenses for education per month in 2013 in family with one child made up 167.3 rubles, which is more than in the previous year by 8.7 rubles, or 5, 49%, compared with 2004, these expenses increased by 116.1 rubles, or 326.76%. In large families with four or more children, the total cost per child in 2013 made up 34.1 rubles, which is less compared to the previous year by 11.3 rubles, or 33.14%, compared with 2004, these expenses increased by 27.8 rubles, or 541.3%.

     Using the data from the first and the second table, we can calculate the current consumption for education from total household costs:

       Intensity-of-use coefficient =

Table 3

The share of consumption spending out of total household for education per child

Year

Households with children under the age of 16 years, which are:

One child,%

Two children, %

Three children, %

Four or more,%

2004

                              1,12  

                      2,27  

                     1,09  

                              0,55  

2005

                              1,87  

                      1,79  

                     1,00  

                              0,50  

2006

                              1,82  

                      1,27  

                     1,37  

                              0,62  

2007

                              1,68  

                      1,59  

                     1,21  

                              0,68  

2008

                              1,67  

                      1,25  

                     1,15  

                              0,90  

2009

                              1,83  

                      1,20  

                     0,98  

                              0,52  

2010

                              1,54  

                      1,06  

                     0,59  

                              0,52  

2011

                              1,34  

                      1,75  

                     0,75  

                              0,78  

2012

                              1,29  

                      1,89  

                     0,61  

                              1,15  

2013

                              1,26  

                      1,12  

                     0,57  

                              0,69  

Figure 3. Diagram of changes in the share of consumption spending out of total household for education per child

 

    According to the Table 3, we may calculate how the share of expenses has changed out of total household for education per child. In families with one child in 2013, the share of costs was 1.26%, less than 0.03% compared with 2012, and in comparison with 2004, the share of consumption spending for education increased by 0.14%. In large families with four or more children, the share of spending for education was 0.69% in 2013, less than 0.46% compared with 2012, and in comparison with 2004, the share of spending for education increased by 0,14%.

      According to the date of the Table 3, the share of consumption spending for education depends on the number of children in the family. But strange to say, the more children in the family, the lower the share of consumption spending for education.

       In the beginning of 90-s of the XX century, the Russian Federation faced a serious demographic crisis, rapidly fell the production of goods and services, per capita income, birth rate. The reason was that "harsh" conditions which occurred as the consequence of the post-Soviet situation. In our article, we've looked at how the most important socio-economic indicator has changed in the share of consumption spending out of total household for education per child up to 16 years old, in families with different numbers of children. The main reason of such changes was that the government assumed a task to increase the population not only due to migratory flows, but also due to the natural increase. The population growth is a very important problem, but at the same time the level of education of children may not be the less decisive. Go for quantity, not quality, is not the best variant if we want to get highly intelligent and educated generation. The main goal of economic development means improving the well-being of the nation, so, now during the  economic slack, it is the best variant to invest in education of our children, for further stability and effective improvement of our country's wealth.

 

References:

1.     http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/ru/statistics/publications/catalog/doc_1140096812812

2.     http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/ru/statistics/publications/catalog/doc_1140096812812

 

 



[1]http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/ru/statistics/publications/catalog/doc_1140096812812

[2]http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/ru/statistics/publications/catalog/doc_1140096812812