Scribd
Upload
551 views10 pages

Budgeting Family Resources

Family budgeting allocates income with the 70-20-10 principle: 70% for expenses, 20% for savings, and 10% for emergencies. Expenses include basic needs like food, housing, clothing, education, utilities, and miscellaneous items. Savings are meant for large purchases or investments while emergency funds cover unexpected costs. The document provides a sample family budget and activity calculating expenses based on a family's net income.

Uploaded by

King Justin Manansala
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
551 views10 pages

Budgeting Family Resources

Family budgeting allocates income with the 70-20-10 principle: 70% for expenses, 20% for savings, and 10% for emergencies. Expenses include basic needs like food, housing, clothing, education, utilities, and miscellaneous items. Savings are meant for large purchases or investments while emergency funds cover unexpected costs. The document provides a sample family budget and activity calculating expenses based on a family's net income.

Uploaded by

King Justin Manansala
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 10

Budgeting Family

Resources
Module 3 –Budgeting Family Resources and Sample Computation of a
Family Budget
Reporter: Justin Jhay E Manansala
Budgeting Family Resources
Family budgeting is a wise use of family resources. It is a practical skill
which everyone should know and apply in life. Wise budgeting
allocates primarily for basic needs. It also provides for emergency
funds. This may include the expenses when one gets sick or other
urgent needs. Every member should know how to prioritize their
needs. He or she should know if what he/she is buying really a need or
wants.

In budgeting, there is the 70 – 20 – 10 principle, where 70% of the


income goes to family expenses, 20% for savings or investments, and
10% for emergency purposes. This can be monthly depending on the
pay schedule of the members
Expenses – The cost of operations that a company incurs to
generate revenue. It is simply defined as the cost one is required
to spend on obtaining something. As the popular saying goes, “it
costs money to make money.”
Savings – The allotment for savings or investment should not be
touched, as much as possible. Later on, the savings may be spent
for bigger expenses like appliances, payment for children’s
tuition, special occasion to celebrate, and other similar purposes.
Emergency Fund - A cash reserve that’s specifically set aside for
unplanned expenses or financial emergencies. Some common
examples include car repairs, home repairs, medical bills, or a loss
of income.
The basic needs of the family include the
following:
• Food – The biggest portion of the family income is spent for
food, including the other needs/things bought in the
groceries and sari-sari store.
• Housing – It includes rental fee, real estate taxes, premium
on insurances, repair and maintenances.
• Clothing – This includes all kinds of clothing being used by
the family: shoes, socks, handkerchief and others.
• Education - It refers to tuition fees, books, school supplies
and allowances.
• Savings for Services – It refers to electricity, water, and
telephone bills and helper’s salary.
• Savings –It refers to the amount being set aside for
emergency expenses or future plans.
• Miscellaneous Expenses – It includes gifts, medicine and
contributions.
Sample Computation of a Family Budget:
• Mendoza family is composed of 4 members - the parents and
the 2 daughters. Their combined net income is ₱ 24,000.00.
Following the 70-20-10 principle of budgeting, their budget
can be presented as shown below:
Expenses of ₱16,800.00 are breakdown as follows:
• ₱11,300.00 – food allotment
• ₱3,500.00 – allowances or baon
• ₱500.00 – electric bill
• ₱300.00 – water consumption
• ₱1,200.00 – miscellaneous needs,
The family wishes to provide priorities to their needs,
thus, budget must be strictly observed.If the family
needs cannot be met by the allotted figures, a little
revision may be done. Expenditures may be
reconsidered, and adjustments must be made.
ACTIVITY 1
1. The biggest portion of the family income is spent for food, including the
other needs/things bought in the groceries and sari-sari store.
2. It includes rental fee, real estate taxes, premium on insurances, repair and
maintenances.
3. It includes gifts, medicine and contributions.
4. It refers to electricity, water, and telephone bills and helper’s salary.
5. It refers to the amount being set aside for emergency expenses or future
plans.
6. It refers to tuition fees, books, school supplies and allowances.
7. This includes all kinds of clothing being used by the family: shoes, socks,
handkerchief and others.
ACTIVITY 2
1) Astorga’s(with 8 family members)

Combined Net Family Income: ₱60,000.00 a month

Breakdown of Expenses:
Expenses: (70%) ____________________
Savings: (20%) ____________________
Emergency Fund: (10%) ____________________
ANSWER KEY : ACTIVITY 1

1)Food 5) Savings
2)Housing 6)Education
3)Miscellaneous Expenses 7)Clothing
4)Payment for Services
1. Astorga’s Family (with 8 family members)
Combined Net Family Income: ₱60,000.00 a month

Breakdown of Expenses:
Expenses: (70%) ₱42,000
Savings: (20%) ₱12,000
Emergency Fund: (10%) ₱6,000

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy