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 120000
Other Sources 30000
Total Income (A) 150000

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 30000 House Rent Necessity 30000 Necessity 75000 95450 20450 27.27%
2 Food & Grocery 25000 Food & Grocery Necessity 25000 Want 45000 2400 -42600 -94.67%
3 Utility Bills Utility Bills Necessity 1950 Savings 30000 52150 22150 73.83%
(i) - Electricity 1000 Transportation Necessity 5000
(ii) - Gas 500 House keeping & Maintenance Necessity 4000
(iii) - Water 150 Maintenance Necessity 500 Type Ideal Actual
(iv) - Phone & Internet 300 Education Necessity 20000 Necessity 50% 64%
4 Transportation 5000 Clothing Necessity 6000 Want 30% 2%
5 House keeping 4000 Medical Necessity 3000 Savings 20% 35%
6 Maintenance 500 Total Necessity 95450
7 Education 20000
8 Clothing 6000 Entertainment Want 1400
9 Medical 3000 Misc. Want 1000
10 Entertainment Total Want 2400
(i) - Movies 600
(ii) - Eating Out 800 Total Expenditure (B) 97850
11 Misc. 1500
Fixed Deposit Savings 30000
PPF Savings 15000
LIC Savings 7150
Total Savings 52150