The Family allowances have been part of the French landscape for almost a century.
I am even today banal there are many recipients.
Photo copyright: Benjamin Rey.
There are, however, several ideologies as to the nature of that aid.
They are also found at the level of individuals alone institutions financial.
A fascinating but divisive topic
Almost everyone has an opinion on the matter.
As we will see there is no right or wrong answer.
This article idea came to me while talking to colleagues and relatives.
I was then struck by how much vision each other was different.
Then some time later I read very lively opinions on various forums.
On which I learned that the financial institutions not even agree.
The desire to write an article on the subject and totrade with you so it seemed relevant to me 🙂
So I propose a post in which I will share the different opinions on the subject.
Both from the point of view of an individual like you and me and from a bank.
And who knows, you might learn a couple of little nonsense from this post 😉
One thing is certain that this help is very helpful for parents for the duration of the payment.
Because it allows you to cope at least in part with many expenses …
And yes, if you doubted it, raising and caring for a baby’s needs is quite expensive.
But it is nothing compared to joy of being a parent and see her little happy.
If we try to respond quickly to the question of the article we will ask ourselves:
“But by the way, what is a source of income? “
So we will almost instantly think about the following explanation:
“One thing that gives you a inflow of money. “
Of course, if we literally rely on this definition, we immediately find the answer!
Yet even though it all sounds simple, it isn’t not that simple it seems.
Even for those who consider this check as an income …
An income like any other
Some will say it’s a cash flow like others.
Indeed, if we rely on it the accounting aspect things that are right.
Family allowances are good add to other revenue.
They can therefore be integrated into the overall family budget.
And they will indirectly serve the needs of their children.
This way of thinking can therefore very well function.
The icing on the cake, this allowance is not (yet) taxable.
But be careful because this is not the opinion of the majority of banks.
Although some establishments consider them as other revenue.
It will therefore be necessary to think about it check this point especially when buying real estate.
History of not having over or underestimated your borrowing capacity.
Help above all
Others will consider the sums paid as assistance.
If we look features of this service they are not wrong.
Family allowances are primarily an aid to parents.
They were in fact created to relieve families financially.
By giving them a little help, no matter how little, every month.
So that they can educate and raise their children the best conditions.
For these people, this aid is by no means seen as income.
Can be used for improve daily life of their children.
Going out, buying them toys or clothes for example.
Or it can be used in addition to reduce various expenses of the family.
Especially in complicated situations where every euro counts …
In reality, things are not that different
When we take the time to examine the subject more closely, we find out similarities.
And if we go even further, we see that the differences are gradually fading away.
In fact, it all depends on where you are and what you look at when you answer the question.
Photo copyright: half rain .
If we examine the result on your finances we notice that it is the same regardless of your view of things.
So, if we rely on this one point, then yes, there is no difference between two !
But not everything can be summed up in one and only question of money and luckily 🙂
What is behind the question of this article is actually more ideological what else.
We can consider family allowances as income or assistance depending on several things.
Starting with his beliefs and its lived on the subject and on personal finances in general.
But in the end it is above all the situation at time T which determines the approach we will take.
A couple who earn a very good living will not have the same reasoning as another who has little means.
The vision of the company
This is perhaps what the institutions do matters more…
In particular the state and financial institutions.
The state and the politicians that make it up have a role to play which shouldn’t be downplayed.
Because they can change both the characteristics and the content of these assignments.
Remember that a few years ago its amount was covered by means.
A previous government also had a plan to do this tax on the amounts paid.
By integrating them into the IRPP calculation as is already the case for other services.
Of which unemployment and sickness benefits are the best examples.
It can be argued that these two aids compensate for a loss of salary and therefore that this is normal.
While family allowances are not without problems indirectly from income from work.
As well as housing allowances such as APL, which are also not taxed.
As long as the income / aid ambiguity exists, the subject will have all the possibilities return to the table.
Note that some banks consider these benefits as income.
Which is a real plus when you want to take out a mortgage, for example.
You can therefore be lent more money than in other financial institutions.
Simply because with an equivalent debt ratio the monthly installments are higher.
A good thing for families
Whatever you think of the subject there is a point that makes it consent…
The family policy of our country is a very good thing.
It allows families to lighten the budget represented by a child.
And it is all the better for parents who can so better pamper their children 🙂
Buying things they wouldn’t have could not afford without this monthly help.
Or by allowing them to do more activities and go out all together.
So there are no right or wrong answers to the question posed by the article.
In fact, it can be said that the position to be adopted depends in part on external elements.
As per financial situation family or treatment by banking organizations.
But even more things subjective And ideological that will depend on each person.
It is therefore above all up to you to see how we want to characterize this allocation.
Is income that goes into your bank account like any other?
Or is it a help that you will dedicate exclusively to the education and well-being of your child?
I admit that even if financially everything is identical I much prefer the second approach …
And you, how do you consider family allowances?