LESSON 3

ALLOCATION OF
BUDGET FOR BASIC
AND SOCIAL NEEDS
PREPARED BY;
KAY ALIZA TRISHA L. BULAO
MARICALUM ELEMENTARY SCHOOL
Budget
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.
Budgeting is related to the wise use of
family resources. It is based on the
system by which wages or salaries are
received and how these are to be spent by
itemizing the needs of the family and
how much money is needed to meet such
needs.
Components or elements of a family
budget
Food – groceries, raw and cooked food,
staples, condiments, and spices
Shelter – if not renting, includes taxes,
repair, and maintenance
Clothing – uniforms, clothes, and
accessories
Components or elements of a family budget
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
Components or elements of a family budget
Utilities – electric, water, and telephone
bills, gas, salaries of helpers
Health – medicine, check-up
Recreation – family outings, outside dining,
watching movies.
Savings – the amount set aside or deposited
in the bank
Allocation of Family Budget
A family budget may differ from one family size
and composition, family values and standards of
living. Some families may spend more on food,
others on clothing and still others on education.
The values of the family influence its priorities.
Sample of Monthly Budget
Monthly Income: Php 25, 000.00
Family Members : 4
Item % of Budget Allotted Amount
Food 40 10,000.00
Education 16 4,000.00
Shelter 15 3,750.00
Utilities 12 3,000.00
Household Operation 6 1,500.00
Clothing 3 750.00
Recreation 3 750.00
Savings 5 1,250.00
Total 100 25,000.00
How to manage family resources
efficiently
Inform all the members of the family
about the budget.
Make adjustments to your budget as
necessary. Keep within the amount
allocated for budget items.
How to manage family resources
efficiently
Choose a simple lifestyle that you can
sustain with your earnings.
Buy only things that are needed.
Schedule your expenses.
How to manage family resources
efficiently
Follow a shopping and marketing
schedule.
Avoid making unscheduled, unplanned
purchases especially at a store you are not
familiar with.
How to manage family resources
efficiently
Teach the children to spend their
allowance wisely.
Conserve energy and other utilities.
Recycle or reuse materials.
How to manage family resources efficiently
Repair appliances and furniture as needed.
Take good care of your belongings.
Buy products that are of good quality and
reasonable price.
Develop the habit of walking short
distances.
Factors affecting the family budget
1.Amount of Income – the higher the
income of the family, the greater the
amount that the family members can
spend for their needs and wants.
Factors affecting the family budget
2.Size and Composition of the family –
the more family members are there, the
bigger amount of income is spent on
food, schooling, clothing, and for their
other basic needs.
Factors affecting the family budget
3.Values of the family – different
families and different individuals have
different values so they have different
priorities on how to spend their money.
Factors affecting the family budget

4.Needs and wants of the family –

needs are materials which the family
members need to survive on a day to
day basis.
Needs and Wants
Our needs and wants motivate us to
work hard. They encourage and inspire
us to get involved in productive
endeavors that will help our families
live better.
It is important for family members to
distinguish clearly their needs from
their wants. In family budgeting, we
must prioritize our needs and not
wants.
LET’S CHECK YOUR PRACTICES
How can you help in the effective
implementation of your family budget? Put a
check on the blank before each number.
_____ 1. I save a part of my daily allowance for
future use.
_____ 2. I buy only the things which is needed
and within the allotted budget.
_____ 3. I stick to my market list when
buying.
_____ 4. I recycle my used notebooks, pens,
etc. so that I can use it again.
_____ 5. I mend tears on my clothes right
away to avoid buying a new one.
_____ 6. I avoid buying unnecessary things, like
toys, if they’re out of the budget.
_____ 7. I buy unlabelled canned goods with
dents and scratches to save money.
_____ 8. I always wash my hands before and
after eating to avoid sickness and buying
expensive medicine.
_____9. I switch off the lights, TV, and
electric fan if it is not being used.
_____10. I find some income-generating
activity like selling bottles of ketchup, soy
sauce, old newspaper, etc.,in junk shop.