TLE 6

Budget Allocation for

Basic and Social Needs
 EXPECTATIONS
This is your self-instructional module in TLE 6-Home Economics. All the
activities provided in this lesson will help you to:

❖ allocate budget for basic need such as:

• food and clothing
• shelter and education
❖ allocate budget for social needs such as:
• social and moral obligations (birthdays, baptisms, etc.)
▪ family activities
▪ school affairs
▪ savings/emergency budget (health, house repair)

PRETEST
Directions: Identify the following. Choose your answer in the box and write
your answer on the space provided.

family income budget food

expenses recreation savings

_________ 1. It is a plan for spending.

_________ 2. It is the money that you spend for something.
_________ 3. One example of basic item that we need from day to day.
_________ 4. The combined earning of the father, mother and other members
of the family.
_________ 5. It is the money you keep with specific purpose such as health,
house repair or can be an emergency fund.
 RECAP

Directions: Group the words in the box according to its source of family
income.

lease of property profit

baking cakes bonuses
plumbing painting
drawing doing repairs

Money Goods & Services

LESSON
A budget is the amount of money set aside for planned expenses. It is
a plan specifying how much money will be spent or allocated during a
particular period. On the other hand, budgeting is related to the wise use of
family resources. It is based on the system by itemizing the needs and how
much money is needed to meet such needs.

COMPONENTS OR ELEMENTS OF A FAMILY BUDGET

Before a family prepare their budget for a week, month or a year, here are the
components or elements every family budget has:

• Food – groceries, raw and cooked food, staples, condiments, and spices
• Shelter – if not renting, includes taxes, repair, and maintenance
• Clothing – uniforms, clothes, and accessories
• Education – tuition fees, books, daily food, transportation allowance of
children
 • Household operations – things needed in the house, beddings,
curtains, furniture, and other paraphernalia to make members
comfortable
• Utilities – electric, water, and telephone bills, gas, salaries of helpers
• Health – medicine, check-up
• Recreation – family outings, outside dining, watching movies,
celebrations
• Savings – the amount set aside or deposited in the bank

PREPARING THE FAMILY BUDGET

Every family prepares budget according to their needs and other

expenses. Expenses refers to the money you spend for something. There are
two types of expenses – the fixed and flexible expenses.

Fixed expenses are things that paid regularly such as house rental or
amortization, utilities and loans if they have. While Flexible expenses are
those that may come irregularly and amount may vary. It includes as food,
medicines and other social and moral obligations (birthday gifts and
recreational activities).

Note that one family’s budget is different from another family’s budget.
It depends on the size of the family, total family income, and other
considerations such as location and kind of residence if owned or renting.

Below is a sample budget of a family of four (parents and two children) who’s
renting:

Monthly Income = P40,000.00

In a pie graph view, you will notice that the food has the biggest share in the
sample family budget and the lowest is recreations.

ACTIVITIES

Activity 1
Directions: Identify what is asked in each statement. Choose your answer in
the box and write your answer on the space provided.

fixed expenses budget food

flexible expenses expense savings

____________1. It refers to the money you spend for something.

____________2. It has the biggest allocation in the family’s budget.

____________3. It is the amount of money set aside for planned expenses.

____________4. This type of expenses are paid regularly that can be monthly,
quarterly, semi-annual or annually.

____________5. This type of expenses are those that may come irregularly
and amount may vary such allocation for food, medicines and
other contingencies.
Activity 2
Directions: Analyze the pie graph below and answer the questions that follow.

Weekly Allowance: P500.00

Recreations
(Computer Shop,
Electronic Gaming)
15%

Savings
5%

Food
50%

Transportation
30%

Questions:

1. How much is allocated for the food if it is budgeted as 50% of the weekly
allowance?

_______________________________________________________________________
2. How much will be the total savings for 3 weeks?

_______________________________________________________________________
3. How much is allocated for the transportation every week?

_______________________________________________________________________
4. How much is spent for recreations weekly?

_______________________________________________________________________
5. How much is your total expenses per week?

_______________________________________________________________________
 WRAP-UP

To wrap up everything that we have discussed about the allocation of

budget to basic and social needs. Answer the questions below:

Give at least 5 of components/elements of family budget.

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

How do you spend your budget/allowance for a week?

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

VALUING
Every member must also know how the family income is budgeted and
should know how to prioritize their needs.

Do you think allocating budget for basic needs and social needs is
important? Why?

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________
 POSTTEST

Directions: Study the chart below. Answer the questions that follow.

List of Income and Expenditures

Monthly Family Income: P15,000.00 Amount
Monthly Expenses
Food P4,000.00
Education P2,500.00
Clothes P400.00
Utilities (Water, electricity etc.) P1,600.00
House Rental P4,000.00
Leisure P600.00
Transportation P500.00
Total Expenditure
Monthly Savings

Questions:

1. Which one gets the biggest share of the budget and how much?

_______________________________________________________________________
2. How much was allocated for education?

_______________________________________________________________________
3. How much is the total expenditure for one month?

_______________________________________________________________________
4. How much will the family spend for 5 months?

_______________________________________________________________________
5. How much will be the savings of the family?

_______________________________________________________________________