What is family budget? Explain the types of family budget with examples?
Answers
A family budget is the main tool used to manage personal finances and save money. A family budget can be simple or detailed, depending on your needs. Track your income and expenses for an entire month to make a family budget.
examples:
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Budgeting
A budget for a family of four
A budget for a family of four
AlexJust so you can see how adults especially need to plan and budget, let’s take a look at a household budget for a family of four. In this example, the family takes home $3,500 a month in income.
Budget for a family of four
Total take-home income: $3,500
Expenses ,Amount ,Percentageof Income
Housing costs (mortgage payment and insurance) $1,050 30%
Food $700 20%
Clothing $350 10%
Transportation (car payment, insurance, bus fare) $420 12%
Medical $420 12%
Savings $350 10%
Entertainment $140 4%
“Just in case” funds $70 2%
The family also budgets 20% of their income each month for food — that’s another $700. As you can see, the money goes quickly with a family of four!
AlexThe chart here shows the family spends 30% on housing costs, which includes their monthly home payment, called a mortgage, and home insurance. That totals $1,050 a month.
Answer:
A family budget could be a plan for your household's incoming and outgoing money over a specific period of your time, like a month or year.
Types of family budget:
A. Deficit budget: When the expenditure exceeds income, it's called a deficit budget. it's not in any respect desirable. as an example, if a family income is Rs 100 and its expenditure is Rs 110, then this condition refers to a deficit budget.
B. Surplus budget: In this budget, the income is over the expenditure. The family is ready to save lots more during this budget. For example, if a family income is Rs 100 and expenditure is Rs 90 then this condition is a surplus budget.
C. Balanced budget: This could be a good budget. during this budget, income and expenditure are equal and also the estimated income meets the estimated expenditure. for instance, if a family's income and expenditure become equal, then this condition prevails in budget.
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