The standard of living is the measure of the level of richness, comfort, ownership of material goods and necessities. It determines the socioeconomic class of an individual a demographic group, a region or a country. Economics utilizes this to define the prosperity of people in a country. The standard of living develops because of a composition of various factors that influence the quality of life.
The primary determinant is income. Household income determines the level of living as it determines the purchasing power and earning of a person. In the present monetary world, the productivity of an individual correlates with the quantity of necessaries, comforts, and luxuries that one affords and enjoys. Thus, a poor person is likely to have fewer luxuries or those cheaply acquired, thus putting their standards low. On the other hand, a wealthy person can afford expensive and more luxuries, which put their standard of living very high.
Life expectancy of individuals determines their level of living. Life expectancy refers to the projected average period a person will live. Expectancy is recorded from birth through an average calculation of individuals born in the similar year to determine it. Life expectancy varies in different countries due to the economic growth and standard of living. Countries, where the expected survival rate is high, has a prosperous economy that empowers the people to access proper housing, adequate medical care, healthy quality foods and entertainment. However, people in developing countries have a lower expectancy rate due to a struggling economy, lack of access to health care and poor quality food or drought. Thus, countries whose life expectancy is high have a higher standard of living.
Family planning is crucial in determining the standard of living of a family, which varies based on the size of the household. For instance, an individual with a large family and an average income cause an increased strain on the revenue as they try to meet the needs of all the family members. Thus, it lowers a family’s standards of living. However, the standard of living is higher for an individual with an average income and a small family.
Availability and value of housing tell a lot about the standard of living. A population’s income determines the conditions of housing present, the capability of payment and availability. On estimation, housing in developed countries is of average and high prices due to their high quality and condition. Contrary, in developing countries, most of the housing is of poor and average quality that in most cases are rental with a small percentage being of high quality. Thus, one can conclude through the different housing choices of a population, their standard of living as it projects what they can afford.
Education of an individual also affects the standard of living. Attaining an education increases an individual’s knowledge in making sound decisions, selecting a right path in life, for instance, making an informed choice on avoiding drugs and attaining higher levels of education. Additionally, education creates more opportunities through expanding the number of quality and well-paying jobs one can get, due to their increased skills. Thus, a person’s taste, inherited culture, the choice of lifestyle and purchasing power changes for the better, thereby raising their standard of living. For instance, an individual whose family culture dictates marrying of more than one spouse can change, as education enlightens them of the possible adverse effects such as strain in providing for a large family.
Economists recognize that education, life expectancy, income, the size of the family and quality of housing are vital to the living standards. Hence, individuals should strive to improve these factors to intensify their living standards.