Shahrukh Momin

Roll no 25
Class : 12A
 INDEX
1. WHAT IS BUDGET ?
2. ADVANTAGES OF BUDGET
3. DISADVANTAGES OF BUDGET
4. TYPES OF BUDGET
5. FAMILY BUDGET
6. ADVANTAGES OF FAMILY BUDGET
7. FAMILY BUDGET FOR MONTH OF MAY
8. PIE CHART
9. MY LEARNINGS
 Budget:
A budget is generally a list of all
planned expenses and revenues.
It is a plan for saving and
spending for the near future.
The purpose of a budget,
generally speaking, is to:
a) provide a forecast of revenues
and expenditures, and
b) enable the actual financial
operation of the business to be
measured against the forecast. If
a detailed budget is created, it
f

makes it easier to follow up on

what had gone as expected and
what hadn’t.
Advantages:
 Improves managerial decision
making because emphasis is on
future events and associated
opportunities.
 Links objectives and resources.
 Communicates to managers what
is expected of them.
 Establishes guidelines in the form
of a road map to proceed in the
right direction.
 Provides an accurate analytical
technique.
 Fosters careful study before
making decisions.
Disadvantages:
 The major problem occurs when
budgets are applied
mechanically and rigidly.
 Budgets can demotivate
employees because of lack of
participation. If the budgets are
arbitrarily imposed top down,
employees will not understand
the reason for budgeted
expenditures, and will not be
committed to them.
 Budgets can cause perceptions
of unfairness.
 Budgets can create competition
for resources and politics
..
Types of budget
 Union Budget

 State Budget

 Plan Budget

 Performance Budget

 Supplementary
Budget

 Zero-Based Budget
Family budget:
 The standard of living of a people
is reflected in their family
budgets.
 A family budget is a statement
which shows how family income
is spent on various items of
expenditure on necessaries,
comforts, luxuries, and other
cultural wants.
 It shows the distribution of the
family income over the various
items of expenditure
 Tracks your income and expenses
for an entire month.
Advantages :
 Budgeting facilitates adjusting
irregular income to regular
expenditure.
 It helps to live within one’s own
income.
 By budget we can identify the
unnecessary and extravagant
expenditure.
 A budget determines how a family can
use all its resources
 Helps save for future.
 Keeps one free from financial worries
and anxieties
 Helps in proper distribution of family
income
Budget for May:
Members-14
Monthly income- 2,50,000
Adults-8, Children- 6

 Fruits and vegetables-8000

 Milk- 8000
 Grocery- 12000
 Clothing- 10000
 Education- 140000
 Medical expenses- 6000
 Travel and petrol- 5000
 Entertainment- 9000
 Extra expenses- 20000
 Savings- 320000
Pie chart showing
expenses:
8000

MILK

GROCERY

CLOTHING

EDUCATION

MEDICINE

TRAVEL

ENTERTAINMENT
My learnings:
Maintaining a family budget is really
advantageous. I think a budget helps
us keep a record of our unnecessary
expenses at the same time ensuring
that we save any surplus. This project
taught me the importance of money, so
that I stop wasting money on
unnecessary things. Having figures in
front keeps one alert of where they
should actually spend money. The
most essential thing to remember is
having money does not always mean
to spend it. I am sure this knowledge
will be worthwhile when I grow up.