Family Economics and Consumer Education

Family Economics And Consumer Education 3 (2+1)

Lesson 07 : Planning Of Family Budget

Steps in making budget

The following steps are involved in developing a budget plan.

1. Estimation of Income: The total income of the family must be estimated before developing a budget. The total income includes income from sources like salaries, wages, interest, rent, dividend etc.
2. Listing out items for buying needed for the family and also list out the services needed by the family members throughout the budget period.
3. Finding out the prices of the concerned items from shops, friend etc/estimate the cost of desired items, total each classification and strike the total for the budget, past records are helpful in this connection (Bills, Cheques, Receipts etc).
4. Listing of items of fixed costs like rent or taxes etc.
5. Priority list of items and anticipated items to be prepared.
6. Keeping aside a definite amount for saving to meet emergency expenditure or for future benefit.
7. Bring expected income and expenditure in balance.