Allocates budget for basic and social

Lesson 2
needs

Learning Competencies: Allocates budget for basic and social

needs such as:
1.3.1 food and clothing
1.3.2 shelter and education
1.3.3 social needs: social and moral obligations (birthdays,
baptisms, etc.), family activities, school affairs
1.3.4 savings/emergency budget (health, house repair)
1.4 Prepares feasible and practical budget
1.4.1 manages family resources efficiently
1.4.2 prioritizes needs over wants

What I Know

Budget Allocation of P 18,000 Monthly Family Income

1. what is the graph all about?

2. How much is allotted for food?

3. How much is allotted for education?

4. Which has the higher amount

allocated?
5. Which has the least amount allocated?

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 What’s In

let’s identify the following if they are basic or social needs.

___________1. Family outings ___________4. Watching movies

___________2. Food ___________5. Clothing

___________3. Shelter ___________6. Education

What Is It

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.

The Components or elements of a family budget are:

 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.
 Savings – the amount set aside or deposited in the bank.

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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.

Here is a sample of monthly budget with a monthly income of Php 25, 000.00 for
family members of four.

Item % of Budget Amount

Allotted
Food 40 10,000
Education 16 4,000
Shelter 15 3,750
Utilities 12 3,000
Household operation 6 1500
Clothing 3 750
Recreation 3 750
Savings 5 1250
Total 100 25,000

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Factors affecting the family budget The following are some factors that can affect a
personal or family budget.

What’s More

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 A. How can you help in the effective implementation of your family budget?
Draw happy face if the statement shows proper allocation of budget and sad face if it is
not .

_____ 1. I save a part of my daily allowance for future use.

_____ 2. I buy things even they are not allotted in the 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 always buy new clothes.
_____ 6. I avoid buying unnecessary things, like toys, if they’re out of the budget.
_____ 7. I buy unlabeled 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.

B. Identify the components of a family budget.

______1. Underwears, jackets, t-shirts
______ 2. House repair, house rental, amortization
______ 3. Rice , coffee, bread
______ 4. Salary of workers, water bills telephone bill
______ 5. Deposits, investments, insurance
______ 6. Tuition fees, notebooks, school bag
______ 7. Fruits, vegetables, fish
______ 8. Field trip, swimming, outing
______ 9. Electric fan, dining set, kitchen wares
______ 10. Doctor’s fee, medicines, laboratory tests

C. Write TRUE if the statement is correct about managing family resources

efficiently and FALSE if it is not correct.
_______1. Teach the children to spend their allowance wisely.
_______2. Inform all the members of the family about the budget.
_______3. Buy all the things that you want.

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_______4. Recycle or reuse materials.
_______5. Throw away all the appliances and furniture that are broken and buy a
new one.
_______6. Don’t follow a shopping and marketing schedule.
_______7. Avoid making unscheduled, unplanned purchases especially at a store
you are not familiar with.
_______8. Buy products that are of good quality and reasonable price.
_______9. Don’t conserve energy and other utilities.
______10. Take good care of your belongings.

D. Interview your parent, about your family budget. Fill in the chart with the data
collected. Make sure to solve for the percentage of the budget allotment.

What I Can Do

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Arrange the following according to your needs. Arrange them from the highest to the
lowest amount of family budget .
1. Utilities
2. Savings
3. Clothing
4. Recreation
5. Household Operations
6. Food
7. Health
8. Education
9. Shelter

ASSESSMENT

A. Identify what is described in the statement.

_________1. It refers to medicines and check-ups.
_________2. It is the amount of money set aside for planned expenses .
_________3. It refers to electric, water, and telephone bills, gas, salaries of helpers
_________4. It refers to uniforms, clothes, and accessories .
_________5. It refers to the amount set aside or deposited in the bank.
_________6. It refers to wise use of family resources.
_________7. It refers to family outings, outside dining, watching movies.
_________8. It refers to tuition fees, books, daily food, transportation allowance of
children.
_________9. It refers to groceries, raw and cooked food, staples, condiments, and
spices.
________10. It refers to things needed in the house, beddings, curtains, furniture, and
other paraphernalia to make members comfortable.

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 B. Prepare a monthly family budget using 20,000 as the total income

REFERENCE
Books
Gloria A. Peralta, Ed.D., et.al., Life Skills Through TLE 6,

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Vibal Group, Inc., 2016.
Juanito S. Dela Rosa, et.al., Technology and Livelihood
Education 6, The Library Publishing House Inc., 2017.
Lory C. Balaoing, et.al., Fun with HELE 6, Abiva Publishing
House, Inc.,