Have you discussed the family budget within the family? A family budget helps to encourage savings by reducing wasteful spending. It is also important to prepare a family budget to understand the income and expenditure trends of the family.

As soon as you hear the word budget, it is understood that the statement of income and expenditure of the government is announced by the finance minister on June 15 every year. This understanding is only partially true. Because the budget is the estimated statement of income and expenditure. A budget is an estimate of where to spend at a certain time (sources of expenditure) and where to raise that amount (sources of income). Therefore, the budget belongs to individuals, families, institutions, and governments.

The family budget is the estimated statement of the family's income and expenses. A family budget helps to keep a good account of the sources of income and make the expenses organized, disciplined and prioritized. 

Why create a family budget?

– To determine the family's financial goals 

– To spend available financial resources in a disciplined manner 

– to control wasteful spending and encourage savings

– to assess if/not spent in appropriate areas  

– to make family income and expenses transparent  

– to see family income and expenditure trends  

How to make a family budget?

– Determining the family's financial goals 

– determining all sources of income  

– preparing a list of expenses  

– classifying expenditure headings  

– identifying areas of expenditure and prioritizing