COMPONENTS OF A

FAMILY BUDGET
1. Food
-The biggest share of
expenditure of the family
goes to food. Preparation
of Meal Plan will help them
extend the budget for a
period of time.
-The size of the family or
the number of the family
members is the factor in
considering the budget.
2. Shelter
- may include the rent if
the house is not owned,
an allocation for
amortization, house repair,
house improvement and
tax (real estate)
3. Utilities
-The expenditure are paid
on a monthly basis. It
includes electricity, water,
telephone, internet
connection and home
cables.
4. Education
-Every family have a high
regard in sending children
to school. The school fees
are being paid either in
monthly or semestral
basis. It includes the
tuition fees, children’s
allowances, school
uniforms, books, learning
materials and other school
supplies.
5. Clothing
-are items that does not
need to buy always. But
there are some families
that allocates budget
monthly to buy clothes.
6. Contingencies
-Purchase of medicines,
expenses for medical and
dental appointment,
vaccination of babies and
children are part of
contingences.
 7. Household operation
-It involves the running of
a household such as
cleaning, cooking, home
maintenance and other
household chores.
The family employed a
housekeeper who stays at
home to help in doing the
household chores.
8. Savings
-is an amount of money to
set aside in order to
prepare for the
unexpected events or
emergencies because no
one knows what will
happen in the future. This
can be save through banks
or simply the coin bank.
9. Rest and Recreations
-This pertains the activities
that provide rest, comfort
and relaxation to the
family. It might be
hobbies, interests, outings
and vacations. There are
times that budget are
taken from the savings or
contingencies.
10. Social and Moral
Obligations
-This pertains the activities
that provide rest, comfort
and relaxation to the
family.
-It might be hobbies,
interests, outings and
vacations. There are times
that budget are taken from
the savings or
contingencies.
-Every family have its
social and moral
obligations. It is customary
that Filipinos celebrated
birthdays, anniversaries,
weddings and other
important occasions.
There are some families
that gives time and effort
on community outreach
like feeding program. This
kind of endeavour requires
budget.
The percentage
distribution of a family
budget varies from one
family to another. It
depends on their
priorities. Other families
choose not to include
some components in
family budget especially if
 is not applicable for
them.
Example
The combined total income
of Mr. and Mrs. Villanueva
is P40, 000.00
The family is renting a
house.They have 2 college
students.
Budget Distribution of
Villanueva Family
Food 32%
Shelter 10%
Utilities 15%
Education 20%
Clothing 6%
Contingencies 12%
Savings 3%
Social and Moral 2%
Obligations
Points to Remember:
To get the allotted budget
for each component, do
these:
Multiply the net income of
the family to the
percentage of allocation
for each component.
(Take note: To convert
from a percentage to a
decimal, remove the
the percent sign and move
the decimal point 2 places
to the left)
32 % = 0.32
Example:
Budget for Food = Total Income of the Family x
Percentage of Allocation

= P40, 000 x .32

= P12, 800 were allotted
to food
Task 1
The income of Villanueva
Family is P40, 000.00 in a
month. To help Mr.
Villanueva get the actual
amount of budget for each
component, Can you
compute and do the rest
for him? Component 1 was
already answered. Write
your answer on the table
given below.
 BUDGET ALLOCATION AMOUNT
COMPONENT
Food 32% P 12, 800
Shelter 10%
Utilities 15%
Education 20%
Clothing 6%
Contingencies 12%
Savings 3%
Social & Moral 2%
Obligations
TOTAL 100%
A. Enumerate the
different components
of allocating family
budget. Be able to give
examples.
B. Identify what is being
asked in each statement.
________1. A plan as to
how the family income
should be spent.
________2. This is a
budget component for
paying monthly bills like
electricity, water supply
and cable or internet.
________3. This is a
budget component for
paying a house or
apartment.
________4. This is a
budget components used
for celebration of different
occasions like birthdays,
wedding anniversaries and
other.
________5. A budget
components intended for
the family vacation,
relaxation or family outing.