FAMILY BUDGET
Learning Objectives: To be able to
Say the meaning of budget.
State the importance of family
budget.
List factors to consider in preparing a
family budget.
List the things to budget for in a
family.
Keywords:
occupation
income
budget
expenditure
education
spending
Family budget: is the allocation
of actual family income to
various aspects of family needs
such as food, clothing,
education, health and utilities.
Budgeting: this involves planning ahead
on how to spend the total money or income that
one earns.
Expenditure: is the total money that is
spent from all sources out of a family’s income to
meet their needs.
Importance of family budget
Good budgeting assists the family in spending the
available money wisely.
It helps the family to reduce unplanned spending, that is
impulse buying.
It reminds a homemaker of the need to compare prices
in the markets or shops before deciding on what to buy
in order to keep within the budget.
It helps the family to plan for the future in forms of
savings.
It helps the family to care for their priorities first.
Factors that influence family budget
Occupation
Income
Composition of the family
Locality
Season
Things to budget for in a family
Primary needs
 Food
 Clothing
 Housing
Secondary Needs
 Education
 Transport
 Medical expenses
 Incidentals
 Savings and personal insurance
Ways of saving
NIPOST Savings
Bank accounts – Current, savings or
fixed account
Building societies
Daily, weekly or monthly contribution
schemes
Endowment policies
Procedure for making a family budget
Put together the income of the family for the
month.
List the needs of the family.
List those items that the family can obtain
without buying.
Set family priorities
Set some money aside
Add the amount in the expenditure column
together.
Balance your account
Sample of a family budget for a month
Draw the table on page 125 of the
textbook.
Homework
Prepare a monthly budget for a
family whose income is
N500,000.00