Management Of Family Resources

Lesson 34 : System For Money Management By Families

Formulating A Plan Of Action

Once the desired life style and goals of a family are established and the current financial resources have been evaluated, the approach will need to be formulated. This is one of the most exciting and challenging steps of success­ful management. It is also one of the most difficult.

Controlling and successfully using financial resources takes planning Families use two types of plans---an annual plan or budget that identifies classifications of expenditures and estimates the proportion of income to be de­voted to each category, and a general overall financial plan that describes a spending pattern for lifetime goals.