FAMILY BUDGET

WORK EDUCATION PROJECT

2020-21
INTRODUCTION

◦ Name:
◦ Class/Sec :
◦ Roll no. :
 WHAT IS FAMILY BUDGET?

A family budget is a system that shows how your money (aka your income) is
distributed between different expenses, like rent, car payments, and credit card
payments.
 WHY TO PLAN A FAMILY BUDGET??
A family budget is essential to managing your money.That’s because a family budget helps you:

◦ spend your money wisely on the things you must have – these are your needs
◦ save money for the things you like but can live without – these are your wants
◦ set aside money for unforeseen expenses – for example, if your car breaks down and needs
repairs
◦ stop accidental overspending.

Working out how much money you need for everyday essentials like food, housing, utilities like gas,
electricity, phone and water, transport and medical services can help you make sure you have
enough for unexpected expenses and emergencies
HOW TO PLAN A FAMILY BUDGET??
◦ SUM UP YOUR TOTAL MONTHLY INCOME.
◦ LIST DOWN ALL THE MONTHLY EXPENSES.
◦ SAVE SOME MONEY FOR SAVINGS OR INVESTMENT.
◦ ALSO KEEP SOME AMOUNT FOR UNEXPECTED EMERGENCY.
 SAMPLE OF A FAMILY BUDGET PLAN
◦ A family of 4 members lives in a small apartment and their salary is Rs
50,000 per month.
◦ In order to manage their monthly expenses and savings the need to have
a plan or a family budget . Let us have a look upon the family budget of
them .
THE EXPENSES
The monthly expenses of the family are as follows
:-

Electricity Bill : Rs. 5,000

LPG Cylinder: Rs. 710
Grocery Expenses : Rs.10,000
School fees : Rs. 8,000
Home Loan : Rs. 5,000
House help : Rs. 2,500
Petrol : Rs. 2,000
Average Medical Expenses : Rs. 500
Mobile Expenses : Rs. 1,500
Cable Charges : Rs. 400
House Tax + Water tax : Rs. 300
Miscellaneous : Rs 3000
LET’S DO SOME CALCULATIONS:
Savings ( Disposable Income ) : Total Income –
Total Expenditures
Disposable Income : Rs. 50,000 – 38,910
= Rs. 11,090
The Disposable income is : Rs. 11,090.