Allocating Budget For

Basic And Social

Needs
Review:
•What are the
sources of income
of the family?
 Motivation
•Budgeting is like dieting: You can’t escape the
feelings of deprivation and restriction, but
you do it anyway because you know it’s good
for you. In both cases, it’s tough to find the
formula that’s right, and tougher still to stay
on track. Developing percentage guidelines
for your family income is vital to a family
budget.
•This allows you to spend what is needed
without going over the allotted amount that
you have set for each category of expenses.
After you have listed your income and variable
and fixed expenses, make sure that the
expenses do not exceed the percentage you
have set for that category. Some professionals
suggest limiting the necessities to 60 percent of
your income.
 Presentation
Present a sample budgeting:
•The Category Average Percentages
•National Average Budget Category Percentages of
Net Income
•Category Percent of Overall Spending
•Housing (mortgage/rent, Real estate taxes) 24%
•Utilities (water, power, garbage collection, 8%
•Food 14%
•Clothing 4%
•Medical/Healthcare 6%
•Donations/Gifts to Charity 4%
•Savings and Insurance 9%
•Entertainment and Recreation 5%
•Transportation (car payments, gas, service) 14%
•Personal/Debt Payments/Misc 12%
•Do your parents do the
budgeting? What category do
you think the family has the
most percentage of spending?
Application
•Have each group
dramatize how the family
should budget the
family’s income.
Generalization
•What is budgeting?
•Why is it important?
• Budgeting (noun)
• 1.an estimate, often itemized, of expectedincome and ex
pense for a given period in the
• future.
• 2. a plan of operations based on such an estimate.
• 3. an itemized allotment of funds, time, etc., for a
given period.
• 4. the total sum of money set aside or needed for
a purpose:
Evaluation:
•If you are given the chance
to allocate the income of the
family, what will it be?