The arithmetic average of the total money income received by all families in a specific geographic area, calculated by summing all family incomes and dividing by the total number of families.
While more susceptible to being skewed by very high or very low incomes within families, mean family income represents the total economic activity generated by families divided among them. It can indicate the overall wealth concentrated within the family units of an area.
Specific Relevance for Professionals:
Marketers
Useful when targeting high-net-worth families or when understanding the total potential spending power generated by families in an area, especially for luxury family goods or services. It provides a complementary perspective to median family income.
Researchers
Used in conjunction with median family income to understand the shape of income distribution among families. A significant difference between the mean and median can signal income inequality or wealth concentration within family units, prompting deeper investigation.
Consultants
Employed when assessing the aggregate purchasing power or total economic output contributed by family units in a region. It can help clients understand the full economic scale of a family market, which might be relevant for large-scale investment or specialized high-end family services.
Public Policy Workers
Provides another metric for economic analysis related to family units. While median family income focuses on the typical family, mean family income contributes to understanding the total economic resources within a community, informing tax policies or overall economic development strategies related to families.