FAMILY BUDGET

Learning Objectives: To be able to

❑ Say the meaning of budget.
❑ State the importance of family budget.
❑ List factors to consider in preparing a family budget.
❑ List the things to budget for in a family.

Keywords: occupation, income, budget, expenditure, education, spending

Budgeting: this involves planning ahead on how to spend the total
money or income that one earns.

Expenditure: is the total money that is spent from all sources out of a
family’s income to meet their needs.

FAMILY BUDGET: IS THE ALLOCATION OF

ACTUAL FAMILY INCOME TO VARIOUS ASPECTS
OF FAMILY NEEDS SUCH AS FOOD, CLOTHING,
EDUCATION, HEALTH AND UTILITIES.
IMPORTANCE OF FAMILY BUDGET

❑ Good budgeting assists the family in spending the available

money wisely.
❑ It helps the family to reduce unplanned spending, that is impulse
buying.
❑ It reminds a homemaker of the need to compare prices in the
markets or shops before deciding on what to buy in order to keep
within the budget.
❑ It helps the family to plan for the future in forms of savings.
❑ It helps the family to care for their priorities first.
FACTORS THAT INFLUENCE FAMILY
BUDGET

❖ Occupation
❖ Income
❖ Composition of the family
❖ Locality
❖ Season
THINGS TO BUDGET FOR IN A FAMILY
Primary needs
Food
Clothings
Housing

Secondary Needs
Education
Transport
Medical expenses
Incidentals
Savings and personal insurance
WAYS OF SAVING

❖ NIPOST Savings
❖ Bank accounts – Current, savings or fixed account
❖ Building societies
❖ Daily, weekly or monthly contribution schemes
❖ Endowment policies
PROCEDURE FOR MAKING A FAMILY
BUDGET
❖ Put together the income of the family for the month.
❖ List the needs of the family.
❖ List those items that the family can obtain without buying.
❖ Set family priorities
❖ Set some money aside
❖ Add the amount in the expenditure column together.
❖ Balance your account