Instructions: Talk to the person who prepares the household budget for the family, it could be your

mother or father. Make a pie chart of all basic expenses for one month. Then ask the budget in
percentage for each of these expenses. Below the pie chart, answer the following questions about
scarcity.

Place your pie chart here.

Openda's family budget

13% 7% 9%

24%

14%

17% 15%

School-Related Fees Wi-Fi/Internet Utility Bill Food Allowance Savings Transportation Others

The Pie chart shows the percentage of my family’s household income distributed into some categories.
These are School-Related Fees, Wi-Fi/Internet, Utility Bill, Food Allowance, Transportation, Savings, and
Others.

1. Based on your pie chart, explain the allocation of the limited budget to your monthly expenses.

- Based on my pie chart, my family’s highest expenditure is on school-related fees, and it is 24% of
the total budget. The lowest expenditure is on transportation which is 7%. However, my family
spends 17% of its budget for utility bill, 14% for food allowance, and 15% for the Wi-Fi/Internet.
Besides the above, my family spends 10% of its budget in some other purposes which have been
shown as “others”. After spending money in all these categories, my family saves some money,
and this is 13% of the total budget. From the pie chart, it is clear that my family’s total expenditure
is 87% of its budget, and the savings is 13%. If we make a list of the categories of expenditure
from the highest to the lowest, we find this serial: School-Related Fees, Utility Bill, Wi-Fi/Internet,
Food Allowance, Savings, Other expenses, and Transportation. I have two siblings and they’re
also both studying in a public school. My parents are paying a high cost of fees for school monthly
including the fees for exams, modules, and other miscellaneous fees of me and my siblings that’s
why it had the highest percentage among the others. Second is the utility bill which is 17%. It
includes our water and electric bill that is paid every month. Considering that we’re in the midst of
pandemic, it is expected that we’re frequently utilizing every appliance in our house but we also
know our limits in terms of using it that’s why school-related fees are still the most expensive.
Fourth one, the food allowance which is 14%. Saving money on our food allowance means more
 than understanding what foods are wallet-friendly and waist-friendly. It also means understanding
how to make the most of our time at the grocery store so we don’t overspend. Going at a grocery
store with a list keeps us from buying things we don’t need and that are likely to throw our budget
off balance. Using a list also makes us less likely to forget an item we need, which means we’re
less likely to have to return to the store. The fewer times we have to go to the grocery store, the
less temptation there will be to spend. We also have a limit in terms of choosing and eating our
foods because we’re encouraging everyone to have a healthy lifestyle. Fifth is the savings which is
13%, Sparing cash is vital since it helps to secure us within the event of a budgetary crisis.
Additionally, saving cash can help us pay for expansive purchases, maintain a strategic distance
from debt, decrease our money related stress, leave a monetary bequest, and give us with a more
prominent sense of budgetary freedom. Second to the last one is the others that belongs to our pet
dogs in our house. And last one is the transportation which is 7%, although we don’t have cars nor
motors in our house. We all need to commute but not necessarily always.

2. If you were to prepare the budget for the month, would you do the same? If no, how would you
allocate the limited budget? Explain and elaborate your answer.

- If I were to prepare the budget for the month, I would also do the same thing considering the
basis on the budgeting of my parents, they tend to choose to pay on what is more vital and
worthwhile and that will guide and help me know how to budget properly and enables me to be
flexible, manage my cash flow and identify what needs to be achieved in the next budgeting
period.

3. How would you apply the basic principles of applied economics in the preparation of your
monthly household budget?

- In the preparation of my monthly household budget, I can apply the basic principles of applied
economics through simply knowing and following it in all concepts and terms about budgeting.