Allocating Budget

For Basic And

Social Needs
JULIE P. CASTONES
Review:

• What are the

sources of income
of the family?
 Motivation
•Budgeting is like dieting: You can’t escape
the feelings of deprivation and restriction,
but you do it anyway because you know
it’s good for you. In both cases, it’s tough
to find the formula that’s right, and
tougher still to stay on track. Developing
percentage guidelines for your family
income is vital to a family budget.
•This allows you to spend what is needed
without going over the allotted amount that
you have set for each category of expenses.
After you have listed your income and
variable and fixed expenses, make sure that
the expenses do not exceed the percentage
you have set for that category. Some
professionals suggest limiting the
necessities to 60 percent of your income.
 Presentation
Present a sample budgeting:
•The Category Average Percentages
•National Average Budget Category
Percentages of Net Income
•Category Percent of Overall Spending
•Housing (mortgage/rent, Real estate taxes)
24%
•Utilities (water, power, garbage collection,
8%
•Food14%
•Clothing 4%
•Medical/Healthcare 6%
•Donations/Gifts to Charity 4%
•Savings and Insurance 9%
•Entertainment and Recreation 5%
•Transportation (car payments, gas,
service) 14%
•Personal/Debt Payments/Misc 12%
•Do your parents do the
budgeting? What
category do you think the
family has the most
percentage of spending?
Application
•Have each group
dramatize how the
family should budget
the family’s income.
Generalization
•What is
budgeting?
•Why is it
important?
•Budgeting (noun)
•1.an estimate, often itemized, of expectedincome
 and expense for a given period in the
•future.
•2. a plan of operations based on such an
estimate.
•3. an itemized allotment of funds, time, etc., for a
given period.
•4. the total sum of money set aside or needed for
a purpose:
Evaluation:
•If you are given the
chance to allocate the
income of the family,
what will it be?