PLANNING A

HOUSE
BUDGET
 Budget?
A budget is a plan of how the family income
should be spent. It is easier to control
spending if you have a budget. Planning and
preparing a budget are the essential
ingredients in good money management.
Experts in economics have formulated the
steps in preparing a budget.
 Family Budget ?

A family budget is much like a student budget.

Families, like students, will manage their money better
if they prepare a budget.
The family budget reflects the priorities of needs and
wants of a particular family .
Importance of household budget
A proper household budget is extremely important in our
lives and its absence could lead to many financial
problems. • A well-made, proper household budget has a
great impact on our financial lives. If we do not have one, we
may have to face financial problems of various kinds. A
household budget is all the more important in this consumer
era because it teaches members of the family the worth of
money. It is, indeed, an important cog in the wheel that runs
the house .
• Once a household budget is in place, it becomes much easier to bring things
under control. It can also teach younger members of the family the importance of
money, so that they stop wasting money on unnecessary things. They can utilize
this knowledge when they grow up and start their own families.
• Another important benefit of a household budget is that it can alert you against
possible cash flow problems in the future. For example, it will let you know if you
have more direct debits from your bank account than your wage can cover. And
once alerted, you can then take some necessary measures, such as seeking a
small loan or overdraft facility to cover the deficit or get in touch with the
concerned companies regarding the direct debits so that you can change your
payment plans. As a household budget also gives you a clear picture of the
money which is coming into the house, you can then try to increase it in various
ways that suit you - like finding a better job, seeking a pay rise, or starting a
small new business
 Things to consider when planning to do
Family Budgeting
1. Basic Needs

-it is the first thing we should consider in family budgeting. It is the things we
need in our daily life like Foods, Shelter, Clothes.

2. Allowance or Provisions

-A limited amount or portion of income for daily life like Provisions/Allowance for
Students/Parents that work. Use for buying foods, beverages and for things that
they need.

3. Bills or Utilities

-such as Electric Bills, Water Bills, Telephone Bills, Internet Bills, Gas which are
paid monthly
4. Savings -the money saved can be used in
emergency situations. Also it can grow in the
form of investments. It can also came from
excess money
from different things.
5. Education -Tuition Fees and school needs
such as textbooks and other supplies
constitute expenses that must be provided for,
especially the daily school
allowances.
6. Transportation -usually we don't have cars,
so we need to
also budget the transportation expenses
 How to make an Effective Family
Budgeting Plan

1. Know your income

2. Determine which expenses are needed to be record
3. Base the budget on a system of priorities
4. Have a record of expenses
5•Do the family budgeting planner. Use only the allotted
many for each expenses and as long as possible don't get
extra money from savings to fulfil a budget for a expense.
If there's an excess money it is advisable to put or to add
in the savings if not needed to use.
 Review your budget
regularly.
It’s wise to reevaluate your budget if you have new
financial goals, your income or expenses have
changed, or you’ve been hit with surprise costs. It’s
also good practice to check in on your budget
regularly to ensure that your spending and income
are aligned.
 Decide on a savings goal
After you've subtracted your necessary expenses, you should set a
target savings goal out of what's left. This is money you're going to
put aside for long-term financial goals like building your emergency
fund, saving up for your college expenses, and saving for retirement.
It's important to put your savings aside as soon as you get each
paycheck because otherwise it's very easy to spend everything and
not have any money left over. Once you decide on a savings target,
you may want to schedule automatic transfers to your investment or
savings accounts so you'll be sure to reach your monthly goals.
Manage debt
Debt plays a bit of a mixed role in a budget allocation. If your
accounts require minimum payments, you should consider these as
part of your necessary expenses. Missing minimum payments
damages your credit score and could lead to expensive penalties so
you really need to make these payments on time. From there, a
good strategy is to consider paying down your debt as one of the
financial goals to be paid out of your monthly savings. You may
consider paying off your mortgage. Paying extra on your mortgage
can take years off your loan and possibly save you tens of
thousands of dollars in interest.
50/30/20 BUDGET]
THE 50/30/20 BUDGET IS A SIMPLE PLAN THAT
SORTS PERSONAL EXPENSES INTO THREE
CATEGORIES:
"NEEDS" (BASIC NECESSITIES), "WANTS", AND
SAVINGS. 50% OF ONE'S NET INCOME THEN GOES
TOWARDS NEEDS, 30% TOWARDS WANTS, AND
20% towards savings .
 ZERO- BASED
BUDGETING
IN ZERO-BASED BUDGETING, ALL OF ONE'S NET INCOME MUST
BE ALLOCATED AHEAD OF SPENDING.'' ZERO-BASED
BUDGETING INVOLVES DIVIDING INCOME INTO DIFFERENT
EXPENSE CATEGORIES, ENSURING THAT ALL FUNDS HAVE
BEEN ASSIGNED A PURPOSE, AND AT THE END OF THE MONTH
THERE IS A ZERO BALANCE IN THE BUDGET.
I WOULD LIKE TO EXPRESS MY SINCERE GRATITUDE TO ALL
THESE INDIVIDUALS FOR MENTORING AND SUPPORTING ME IN
COMPLETING THIS PROTECT ON HOME BUDGET MY TEACHER
SIR MRS PARAMPREET KAUR FOR PROVIDING ME WITH
INVALUABLE INSIGHTS AND DIRECTION.
OUR ESTEEMED PRINCIPAL MRS VIJYA JEBA KUMAR, FOR
FOSTERING AN ENVIRONMENT OF LEARNING AND CREATIVITY
WITHIN OUR SCHOOL.
TO MY PARENTS, THEIR CONSTANT ENCOURAGEMENT,
PATIENCE, AND UNDERSTANDING HAVE BEEN THE PILLARS OF
MY SUCCESS.
I AM GRATEFUL TO MY FRIENDS WHO CONTRIBUTED IDEAS
AND PERSPECTIVES THAT ENRICHED THE PROJECT.
THANK YOU EVERYONE FOR SHAPING THIS PROJECT AND
ENHANCING MY LEARNING EXPERIENCE.
Bibliography :-
Images - [Link]
Definitions - [Link]
Ideas - [Link] ,
[Link]
Made by :-
Harsimran Kaur Bhullar
Xth QUARTZ
1052012
20

MATHS PROJECT