Finance is the monetary relations resulting from distribution and redistribution of cost of a gross public product and part of national wealth in connection with formation of the monetary income and accumulation at subjects of managing and the state, and also their use on expanded reproduction, material stimulation working, and satisfaction of requirements of society. A condition of their functioning is existence of money, and as the reason of their emergence the need of subjects of managing for the resources providing their activity serves.

So, finance is an integral part of the monetary relations therefore their role and value depend on what place the monetary relations take in the economic relations. However not any monetary relations express the financial relations. Finance differs from money, both according to the contents, and on the carried-out functions. Money is a universal equivalent by means of which expenses of work of the associated producers are measured, and finance is an economic instrument of distribution and redistribution of gross domestic product and the national income, the tool of control of education and use of funds of money. Their main appointment consists in that by formation of the monetary income and funds to provide not only needs of the subject of managing for money, but also control of an expenditure of these financial resources. [8, page 25]

As a part of the general finance allocate finance of households. The modern economy can't exist without them. Finance of households reflects a level of development of production forces in the certain countries and possibility of their impact on macroeconomic processes in economic life. State of the economy of the country defines a condition of finance of households. In the conditions of continuous economic growth, increase in GDP and the national income finance of households is characterized by stability; stimulate development of production of life of citizens of the country.

Finance of households according to concepts of some economists is an element or a link of a financial system. The concept "household" covers in common living people conducting the general economy. As a rule, it is a family. However, the household can include also the persons who aren't relatives (in common living domestic servant, the worker of a country farm, etc.), but contributing the share of the income (regarding food and accommodation) in the general budget of a household. [18]

The essence of finance of households finds the manifestation in functions. Now they carry out two basic functions:

1) Ensuring vital needs of a household (in particular families) is an initial and main function of finance of a household, it creates real living conditions of members of this economy. Development of the market relations significantly affected a form of manifestation of this function - so, in the period of a subsistence economy production created by members of economy satisfied their requirements, and the exchange of a production surplus arose seldom, in a small amount and in the neighborhood. [15, page 36]

As a result of the commodity-money relations, emergence, and then and expansion of the market occurred: expansion of material, social, cultural and other requirements of households; creation and growth of funds of households; emergence of monetary fund - the budget of the household intended for providing with material benefits.

2) The economic essence of finance of households is shown through their functions. The most important function of finance of households is distributive function. Finance of households, as well as public finance, are objectively caused instrument of cost distribution. But if specific purpose of public finance consists in distributing and redistributing the cost of a gross national product expressed in a monetary form between various subjects of the market and in the directions of target use, finance of households provides further distribution of this cost between all participants of a household. Thus, they play the predominating role at the last stage of distributive process.

Minor children, the full age, but not working for various reasons family members are among participants of a household. The part of a national income which fell to the share of a separate household, in this or that proportion is distributed between all its participants within distributive function.

Carrying out distributive function, finance of households provides with material resources a continuity of process of reproduction of labor - as one of production factors. Through this function of finance of households there is a providing each person with the resources necessary for it for maintenance of life. [21]

Distributive function is an initial distribution of the national income and formation of primary income of economy when primary income in a type of a salary, pensions, and grants is created. In the same time, means in a household are distributed between members of economy through formation, distribution and use of monetary funds. The income created during such redistribution has to provide compliance between material and financial resources of economy and, first of all between the sizes of monetary funds both their structure, on the one hand, and the volume and structure of means of production and consumer goods - with another. This function includes three consecutive steps: formation, distribution and use of monetary funds.

Both functions of finance of a household are interconnected and work at the same time, supplementing each other. It should be noted that the financial relations of a household include two groups:

1) the relations between this economic unit and other links of a financial system (public finances, budgets both off-budget funds, and finance of the commercial organizations), creating primary income in a type of a salary, pensions, grants, etc.;

2) the relations between members of a household when means are distributed and stand apart, forming the isolated monetary funds. Isolation of means in a household doesn't change the owner.

One more function of finance of households is control function. The household in the conditions of market economy is independent subject of the market, i. e. the level of living of members of a household completely depends on the size of the income falling to its share. This size is influenced by a number of factors. Under their influence it can change both towards increase, and towards reduction. Therefore, aiming at maintenance of usual consumption level, the household cannot simply do without control of distribution of the gained income on various funds, and also behind target use of means of these funds.

The economy of a household leans on rather difficult complex of the relations between its various participants. These relations are defined by distinctions aged, traits of character, habits of people, various level of their requirements and the income. At the same time normal development of a household is possible only in case its participants find mutual understanding at adoption of economic decisions. Coordination of economic interests of various participants of a household is provided with their regulation which is understood as possible change of part of the located income falling on one member of a household. Therefore, finance of a household carries out one more important function - regulating which keeps the balanced development of a household as a whole. It is reached by redistribution of financial resources. At the level of a household regulation of its development happens generally by means of self-regulation. Freedom of participants of a household in this process cannot be limited to the state. [21]

Chapter II. Analysis of finance of households in Kazakhstan

II.I. Gross revenue of households

Table 2. Nominal and real monetary income of the population

Ratio of the average per capita nominal monetary income of the population

with the size of a subsistence minimum in 2013 is shown in schedule 1.

The ratio between the average per capital nominal monetary income of the population and size of a subsistence minimum in 2013 made 3,2 times (in 2012 - 3,1 times).

Table 3. Ratio of the average per capital nominal monetary income of the population on regions with national average level

Championship in the sizes of the average per capital nominal monetary income of the population in 2013 still kept Atyrau oblast, Almaty and Astana where this indicator exceeded national average level by 2,1-1,8 times. Regions with the lowest income are Southern Kazakhstan, Zhambul and Almaty oblast, the size of which income of the population is 21-37% lower than republican level. The difference between maximum and minimum values of the average per capital nominal monetary income of the population among regions in 2013 made 3,3 times. [23]

In August 2014 the Southern Kazakhstan, Zhambul and Almaty oblast were among the most low-profitable regions, the size of which income of the population is 23-39% lower than republican level.

The ratio between the maximum and minimum sizes of the nominal monetary income on regions in August, 2014 made 3,6 times (in August, 2013 - 3,5 times). [24]

Average nominal monetary income per capital of the population in September 2014 according to preliminary data, made 61 345 tenge, having increased in comparison with the corresponding period of 2013 by 9,8%. The real monetary income grew by 2,2%.

The ratio between the maximum and minimum sizes of the nominal monetary income on regions in September, 2014 made 3,3 times (in September, 2013 - 3,3 times).

The leading positions on the sizes of the average per capital monetary income in August, 2014 are taken Atyrau, Astana and Almaty. Here the given indicator exceeded national average level by 2,2 - 1,8 times. [http://www.fin. zakon. kz]

In structure of expenses of households of nearly 93% make consumer expenses, from them a half is spent for foodstuff (nearly 45% of all expenses go on foodstuff, about 27% - on nonfoods, about 21% - on paid services). In general, households spend about 63% of the gross income. According to researches of Fund "Lady" limit tendency of the population to consumption in Kazakhstan makes 88% of the located income that in turn, speaks about low tendency of the population to savings (12%) as to a source of investments.

At the macrolevel in Kazakhstan 65% of the gross located income are spent for final consumption on average and only other 35% goes for savings. According to an external assessment where final consumption and savings calculate as a share from GDP, but not from the located gross income, the norm of saving is considered high. So in 2011 54% of GDP were spent for final consumption by households (the 54th place in IMD rating) and the government (51 places in IMD rating), 46% made gross domestic savings (the 5th place in IMD rating). However from these savings for accumulation of fixed capital there is less than a half. So, in 2011 gross domestic savings made 85,9 billion dollars of the USA (the 33rd place in IMD rating), and gross accumulation of fixed capital of only 41,72 billion dollars of the USA (the 45th place in IMD rating). [25]

Cash expenditures of a household (family) are the actual costs of acquisition of material and cultural wealth necessary for continuation of human life which include the consumer expenses and expenses which aren't connected directly with consumption. They carry out very important role on reproduction of labor of certain members of a household. In modern conditions in Kazakhstan there is a decrease in real expenses because of reduction of profitability of certain groups of the population. It leads to high-quality changes in society: to deterioration of health of the population, life expectancy reduction, falling of level of birth rate.

Expenses of a household can be classified by different signs:

1) On regularity degree:

constant expenses (on food, utilities, etc.);

regular expenses (on clothes, transport, etc.);

single expenses (on treatment, durable goods).

2) On need degree:

prime (necessary) expenses - on food, clothes, medicine;

secondary (desirable) expenses - education, insurance premiums;

other expenses (others).

3) On use purposes:

consumer expenses (on purchase of goods and fee);

payment of obligatory payments;

accumulation and savings in deposits and securities;

purchase of foreign currency;

a gain of money on the population hands. [12, page 225].

So, expenses of households represent the actual costs of acquisition of the material and cultural wealth necessary for life.

Consumer expenses it is expenses on personal consumption. They can be subdivided into expenses on goods of short-term use (food, drinks, tobacco products, etc.); expenses on consumer goods of long use, for example cars and furniture; expenses on services, for example tourism and entertainments; and the expenses on housing acting in the form of a rent or conditionally added rent of residents - owners of housing. [20]

In structure of expenses on purchase of goods expenses on food prevail, and there are distinctions in the rural and city district. In rural areas nearly 1/3 part of expenses is provided at the expense of a subsistence economy (in the city ? 7%). Nonindustrial goods (clothes, footwear, furniture, household appliances) make in the city almost 1/3, and in the village - 1/5 part.

The share of expenses on services constantly increases. Especially expenses of families in the city increased by housing, housing and communal services, drugs, and also to public transport. Separate types of service so rose in price that simply dropped out of the budget of the ordinary citizen (cleaning of clothes, public washing, a bath). However there were new types of paid services (health care, education) which began to occupy a big share of expenses of a family.

The quantitative structure of a household (family) also has impact on structure of expenses of final consumption. In more advantageous position there are households consisting of one person. With growth of number of households situation worsens - the share of expenses on food decreases and the share of natural production from personal subsidiary farm raises.

The structure of consumer expenses sharply differs in families with the different level of a per capita income. At poor families purchase of goods concentrates on cheap foodstuff, costs of services - on what badly give in to reduction (transport, housing and communal services). In families with high prosperity - the big share of expenses goes on expensive subjects of long use, on personal motor transport, on housing, on various services.

The second group of cash expenditures of households is obligatory and voluntary payments. Taxes, collecting, duties, assignments which are raised by executive authorities in budgets of different level and in off-budget funds belong to obligatory payments. Voluntary payments are made by certain members of households on own initiative in insurance companies at insurance upon various risks, non-state pension funds, charity foundations, etc. [16, page 17]

Obligatory and voluntary payments occupy a small share in the family budget, nevertheless in the conditions of the low level of the real income they hit significantly the pocket the taxpayer. It is a little opportunities for reduction of this item of expenditure, especially if taxes are withheld from a pay. The main thing is the accurate knowledge of the existing tax law here. Knowledge of the rights and duties as taxpayer, correctness of the obligatory payments withheld from it will help each citizen to control, in due time to carry out the financial duties before the state that prevents emergence of additional expenses in the form of penal tax sanctions. [19]

As it was already told above, financial resources of a household form the budget of a household (family). For descriptive reasons it is necessary to consider the budget of a family with middle-income (see table 4), it unites the cumulative income of family members and expenses providing them personal needs. Turarbaev's family: the husband - works as the driver, the wife - works as the accountant in bank, the daughter of 15 years - studies at school, the son of 5 years - goes to kindergarten.

Table 4. The approximate budget of a family of Turarbaev on average in a month.

By results of the provided table it is possible to tell that the budget of this family is made systematically and without deficiency. So cumulative monthly income of a family of Turarbaev makes 220 000 tg., its main sources are - a salary of the husband and wife 160 000 tg., income from property of 50 000 tg, and other sources of the income of 10 000 tg. Thus the sum of expenses makes 205 000 tg., where the considerable part is occupied by consumer expenses, their sum reaches 165 000 tg., an other expenses makes 20 000 tg., and the savings of a family of Turarbaev postponed for the bank account make 20 000 tg.

So, free money at Turarbaev' family remains 15 000 tg

For increase in the sum of free money family of Turarbaev should revise items of expenditure, due to their possible reduction that will allow to save money and to increase surplus of the budget. Expenses on personal consumption, perhaps to reduce as follows:

to buy food not in supermarkets, and in usual shop, on wholesale base where the prices are much lower (that can save to 3000 tg.);

to buy clothes and footwear not in firm specialized shops, and in the market (it can save to 5000 tg);

to move more on public transport but not by car (it will allow to save to 4000 tg in a month);

It is also possible to cut down also expenses on services:

to use medical services not in commercial specialized clinics, in usual hospital (it will save near 3000tg. in a month);

to exclude expenses on a sunbed, beauty shop (it will save 5000 tg.);

to reduce consumption by other services and the sum of the saved money.

Total surplus (free money) of the budget can make about 35 000 tg that will be a sufficient reserve for a family (see table 5).

Table 5. The Corrected Budget of a family of Turarbaev on average in a month.

II.III. Financial resources of households