FAMILY BUDGETING

BUDGET
Taken from French word ‘bougette’ means purse

DEFINITION OF BUDGET
 Family/ individual / organizational plan stated in a monetary terms
 Planning the expenses based on the sources of income.
Family plan stated in monetary terms
 In family budget all sources of income are identified and expenses are
planned with the intent of making ends meet.
 It estimates family based specific cost s on different heads.
 It provides a more accurate and complete measure of economic
security.
 It should include all the expenses as well as income from all the
sources.
 It should be planned in a way that the expenditure should not exceed the income.
FAMILY HEALTH
BUDGET
Its an amount of money to support a
family’s identified health care and
well being needs, which is planned
and agreed between the family and
their representative(health insurance).
HEALTH INSURANCE
Most complex mechanism of
financing health care with an
objective to manage the revenues
equitably and efficiently allowing
for subsidies from healthy to
unhealthy, rich to poor and
productive workers to dependants.
MERITS OF FAMILY BUDGETING

Priority to basic needs of the family

Improvement in living standard
Control over unnecessary expenditure
Encouragement for saving
Family members get an idea about their
limitations.
MERITS OF FAMILY BUDGETING

* Freedom from financial mismanagements and tension

* Indicator of habits of the family members
* cordial relations in the family
*Useful for forming health policy of the family
* Enhancement of family health standard
PRINCIPLES OF
FAMILY BUDGETING

1. It should have a purpose or defined goal.

2. It should be simple
3. It should be flexible
ESSENTIAL ELEMENTS

OF FAMILY BUDGET
1. Family income: Salary or wages

earned by family members, income

from land, animals, rent, share, transportation, messing, medical or

any other facilities received free of cost, etc.
 2. Expenses of the family: Food, clothing, housing, electricity,
education, water, transportation, communication, health, recreation
and expenses for fulfilling other social obligations
 3. Future Savings: While making budget, every family should make
provision for saving for future needs, which can be utilized at times
of emergencies.
 ECONOMICS OF ILLNESS IN THE FAMILY

 Illness in the family: Delivery, chronic illness, epidemics, accidents

and injuries
 Risk: Nutrition, drugs, mental illness, occupation, maternal and infant
health, chronic illness
 Family Crisis: Disturbance in family coping, family dysfunction and
disorganisation
 FINANCING ASPECTS OF HOME
HEALTH
 Reimbursement mechanisms
 Medicare

 Medicaid

 Private insurance
 Payment by the individuals
PRECAUTIONS FOR FAMILY BUDGETING
 Family budget should always be a balanced and saving budget.
 A family budget should consider all sources of income and all items of usual
expenses.
 It should foresee extraordinary expense and provision must be made for
them.
 There should be a possibility for miscellaneous expenses in the budget.
 Budget should be made according to the needs, size and immediate and future
 Importance should be given to the views of all family members,
while making family budget.
 Budget should be evaluated for its merits or demerits.
 In budget, provision should be made for sick persons and health.
 NURSING RESPONSIBILITY IN HEALTH ECONOMICS
 The main focuses of the nurse is to:

1. Provide maximum benefits for the money invested in health care.

2. Prevent disease thereby reducing the burden of community and

improvement in people’s health and welfare.

3. Have adequate knowledge of goods and services with which economics

is concerned include medical, surgical, cold chain equipment, drugs,
vaccines, diagnostic and therapeutic services, environmental sanitation,
family planning, school health, reproductive and child health.
 Containment of cost so as to reduce health care cost.
 Should have knowledge about patient billing system like ESI
payment, private health insurance payment, charity payment, below
poverty line payment by government. This will help patient and
family to clear the hospital bill.
 Thorough knowledge of health policy and the funding of health care
services and budgeting.
NURSES ROLE IN HEALTH ECONOMICS
1. Knowledge of health care needs.

2. Knowledge about budget.

3. Understand the health care market.

4. Understand the fiscal responsibilities in health care.

5. Understand the economic status of health care.