Family budgeting involves creating a plan for how family income will be spent to meet needs without going into debt. It is important as it helps reduce financial problems, teaches family members the value of money, and controls spending. When creating a budget, factors to consider include basic needs, allowances, bills, savings, education, and transportation. Proper budgeting requires knowing your income, determining and recording expenses, budgeting based on priorities, keeping expense records, using a budget planner, and saving excess funds. Budgeting is especially important for planning for health and illness by building savings buffers, deciding savings goals, setting deadlines, and using low-cost preventative health services.
Family budgeting involves creating a plan for how family income will be spent to meet needs without going into debt. It is important as it helps reduce financial problems, teaches family members the value of money, and controls spending. When creating a budget, factors to consider include basic needs, allowances, bills, savings, education, and transportation. Proper budgeting requires knowing your income, determining and recording expenses, budgeting based on priorities, keeping expense records, using a budget planner, and saving excess funds. Budgeting is especially important for planning for health and illness by building savings buffers, deciding savings goals, setting deadlines, and using low-cost preventative health services.
Family budgeting involves creating a plan for how family income will be spent to meet needs without going into debt. It is important as it helps reduce financial problems, teaches family members the value of money, and controls spending. When creating a budget, factors to consider include basic needs, allowances, bills, savings, education, and transportation. Proper budgeting requires knowing your income, determining and recording expenses, budgeting based on priorities, keeping expense records, using a budget planner, and saving excess funds. Budgeting is especially important for planning for health and illness by building savings buffers, deciding savings goals, setting deadlines, and using low-cost preventative health services.
Family budgeting involves creating a plan for how family income will be spent to meet needs without going into debt. It is important as it helps reduce financial problems, teaches family members the value of money, and controls spending. When creating a budget, factors to consider include basic needs, allowances, bills, savings, education, and transportation. Proper budgeting requires knowing your income, determining and recording expenses, budgeting based on priorities, keeping expense records, using a budget planner, and saving excess funds. Budgeting is especially important for planning for health and illness by building savings buffers, deciding savings goals, setting deadlines, and using low-cost preventative health services.
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FAMILY BUDGETTING
DEFINITION
Family budgeting is a plan on how family income should be spend to provide
for family needs with out incurring debts or deficits
Importance of family budgeting
1. Reduce financial problems
2. It teaches the members of the family the worth of money
3. It control the use of money
4. Helps the members of the family to become more alert against the future cash flow
Things to consider for while family budgeting
1. Basic needs
2. Allowances or provisions
3. Bills or Utilities
4. Savings
5. Education
6. Transportation
HOW TO PLAN FAMILY BUDGET
1. KNOW YOUR INCOME
2. DETERMINE THE EPENSES AND RECORD IT 3. BUDGET BASED ON PRIORITY 4. HAVE A RECORD OF EXPENSES 5. DO THE FAMILY BUDGETING PLANNER 6. EXCESS MONEY SHOULD BE ADDED TO SAVINGS
TERMINOLOGIES
What Is Income? Income is money (or some equivalent value) that an individual or business receives, usually in exchange for providing a good or service or through investing capital.
Income is used to fund day-to-day expenditures. Investments, pensions, and Social
Security are primary sources of income for retirees. For individuals, income is most often received in the form of wages or salary. Business income can refer to a company's remaining revenues after paying all expenses and taxes. In this case, income is referred to as "earnings.” Most forms of income are subject to taxation.
What Is Expenditure?
An expenditure represents a payment with either cash or credit to purchase goods
or services. An expenditure is recorded at a single point in time (the time of purchase), compared to an expense Usually, the goal is to anticipate profits.
What Is an Investment? An investment is an asset or item acquired with the goal of generating income or appreciation. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.
MONEY MANAGEMENT
One of the hardest things about making a budget and managing money can be keeping track of what you spend.
Spending can be regular (fixed expenses) or irregular or once-off (variable
expenses).
Here are some of the fixed expenses you might want to include in your family’s budget: house repayments or rent utilities – gas, electricity, water, phone and internet council fees and land taxes school or tertiary study fees health, car and household insurance credit card and personal loan repayments.
Here are some of the variable expenses you might want to include in your family’s budget:
food home maintenance and household goods school uniforms, textbooks and stationery medical and dental fees car repairs and petrol public transport personal items like clothing and haircuts holidays entertainment other things like gifts and special treats for you and your family.
If your income allows, deliberately overestimating the money you need for bills might help you find extra spending money.
FAMILY BUDGETING IN HEALTH AND ILLNES
Build a savings buffer. Before you start saving for your wants, you could keep extra savings for financial emergencies. For example, you could aim to keep some money in a separate savings account. You can use this money for unexpected or emergency expenses, which can help you avoid going into debt. Decide what you’re saving for. What are your goals? Give yourself plenty of time – saving can seem to take forever. Set a deadline for your goal. But be realistic, and you’ll avoid feeling pressure. Open a fee-free bank account, which is separate from your main account. You can use this account only for saving towards your goal. You can set up a direct debit from your main account to regularly transfer a set savings amount. Look into other options, like asking your employer to split your salary payment, so some of it goes into your separate savings account. Speak to your bank, financial institution or financial adviser if you want more advice,incase of health insurances and all Planning and prevention Use clinicals and health centre services for minor ailments,rather than going for hospital based services. Be a knowledgeable consumer Keep on networking
