Management Of Family Resources

Lesson 38 : Importance Of Budgeting

Advantages Of Budgeting

1. Planning enables a family to take an overview of their use of income, thus seeing it in perspective. It is a valuable means of comparing various items.


2. Budgeting facilitates adjusting irregular income to regular expenditure.


3. It encourages conscious decision making which may help in reflecting long term goals in the budget. It forces one to decide what one wants most out of life.


4. Helps to live with in one’s income.


5. Can help in developing goods buymanship.


6. Can help to save.


7. Helps to identify wasteful expenditure.


8. Adjustments arising from increase or decrease in family side are more easily accomplished when the family operates on the budget.


9. Indirectly budget determines the use of other resources and the kinds of interest which the family is developing.