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Family Budget Changes Over a Decade

The family budget has evolved significantly over the past decade, with income increasing from ₹30,000 to ₹75,000 per month and savings rising from 10% to 30%. Changes in consumption patterns are attributed to inflation, increased household expenses, and a shift in focus towards children's higher education. Overall, while income has grown, expenses have also escalated, reflecting a complex interplay of economic factors and family dynamics.

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18 views9 pages

Family Budget Changes Over a Decade

The family budget has evolved significantly over the past decade, with income increasing from ₹30,000 to ₹75,000 per month and savings rising from 10% to 30%. Changes in consumption patterns are attributed to inflation, increased household expenses, and a shift in focus towards children's higher education. Overall, while income has grown, expenses have also escalated, reflecting a complex interplay of economic factors and family dynamics.

Uploaded by

navyanavelijha10a.jssp
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Economics

Assignment
Family
Budget
Family budget changes with change in income and
consumption patterns. And , changes in consumption
pattern of households may occur due to various reasons
such as inflation , varying needs of family , changes in
income or economic policies.

My family budget and consumption behaviour also


changed severely over the past ten years.
My family income in 2014 was ₹30000 per month. Out of
which most was spent and very less was saved.
Out of that ₹30,000 only around 10% was saved every
month.

The Main reasons for such low savings were :

1. Little knowledge about savings.


2. Only one earning member.
3. Heavy expenses of the family.
If we look into the scenario in 2024, The family income
has now increased to ₹75,000 per month. Now there are
two earning members in the family.
The savings has also increased . Around 30% Of the
current income is now saved.

Though, the income has increased but the expenses have


also increased due to inflation and changing needs.
Therefore , the overall situation is almost the same
except for the savings that has been deliberately
increased.
201 202
4 4
Now lets look into the changes in the consumption pattern
and the reasons for those changes.
Following are the changes that can be seen in the
consumption behaviour of the family :

1. Earlier most of the income was spent on household


expenses and treatment of the old family members.
Expenditure on the children was proportionately less as
compared to other expenses as the children were in
primary schools at that time.
But Now, a major portion of the income is spent on the
higher education of the children and their expenses of
living in another city.
2. The household day- to – day expenses has also
increased , majorly due to inflation.

3. As people earn more, they tend to spend more to


improve their standard of living . A major expense in the
past few years have also been a Car which the family
purchased on EMI . The installments of the vehicle have
been a constant expense.

4. Amount spent on the treatment and medicine of the


elderly has also increased as they have been diagnosed
with serious health issue.
5. The load on income has decreased slightly as two of the
members have moved out of the house and are no more
dependent on the family income. This shows that improvement
in employment has led to a decrease of pressure on the
income.

6. The government taxes have also affected the consumption


time to time. In the years where taxes were high, consumption
was decreased by the family.

7. The interest rate of loans has also affected the consumption


pattern as higher interest rate discourages the family from
borrowing loans and therefore they have to decrease the
consumption.
8. The savings have been deliberately increased by
the family as the importance of savings can been
understood.

Overall , it can be said that the family has


seen a shift in the consumption pattern due to
various reasons such as employment,
inflation, economic policies like taxes ,
evolving family needs and various other
factors.

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