Financial Literacy Assignment

Household Income and Expenditure

50-30-20 Rule of Budget

As per this rule 50% of the income should go towards necessary expenses such as health, groceries, education etc. 30%of the income
should go towards the wants such as dining out, entertainment, recreational activities etc. And the last 20% of the income should be
saved for the future long term goals and investments.

Family Income
Member Source Amount
Father Salary 145000
Other Sources 35000
Total Income (A) 180000

Expenditure Actual Division of Income Ideal vs. Actual Expenditures with Percentage Breakdown
S. No. Items Amount Items Type Amount Type Ideal Actual Deviation Deviation %
1 House Rent 35000 House Rent Necessity 35000 Necessity 90000 106000 16000 17.77%
2 Food & Grocery 25000 Food & Grocery Necessity 25000 Want 54000 9000 -45000 -83.33%
3 Utility Bills Utility Bills Necessity 3500 Savings 36000 65000 29000 80.55%
(i) - Electricity 2000 Transportation Necessity 2000
(ii) - Gas 750 House keeping & Maintenance Necessity 1500
(iii) - Water 250 Maintenance Necessity 1000 Type Ideal Actual
(iv) - Phone & Internet 500 Education Necessity 30000 Necessity 50% 58%
4 Transportation 2000 Clothing Necessity 5000 Want 30% 5%
5 House keeping 1500 Medical Necessity 3000 Savings 20% 36%
6 Maintenance 1000 Total Necessity 106000
7 Education 30000
8 Clothing 5000 Entertainment Want 7000
9 Medical 3000 Misc. Want 2000
10 Entertainment Total Want 9000
(i) - Movies 3000
(ii) - Eating Out 4000 Total Expenditure (B) 115000
11 Misc. 2000
Fixed Deposit Savings 40000
PPF Savings 20000
LIC Savings 5000
Total Savings 65000