Home Economics Budget and Finances

1. BUDGET AND
FINANCES

2. LEARNING OUTCOMES
At the end of this lesson, students are expected to:
Identify the factors affecting the family budget,
Recognize the relevance of budgeting in our daily life; and
Create a budget plan with the allowance you get. GRAPHIC DESIGNER

3. BUDGET
A budget is the amount of money
set aside for planned expenses. It
is a plan specifying how much
money will be spent or allocated
during a particular period.

4. It is related to the wise use of family
resources. It is based on the system by
which wages or salaries are received
and how these are to be spent by
itemizing the needs of the family and
how much money is needed to meet
such needs.
BUDGETING

5. WHY IS BUDGETING
IMPORTANT?
If your expenditure is greater than
your income, you end up in debt. If
your income is greater than your
expenditure, then you have savings.
Balance your income and your
expenditures.

6. WHY IS BUDGETING
IMPORTANT?
Give a feeling of comfort and
satisfaction knowing that your
income is enough for the
expenses of the family.

7. WHY IS BUDGETING
IMPORTANT?
Enable the family to list down
their needs and wants and to
prioritize the needs more than
their wants.

8. WHY IS BUDGETING
IMPORTANT?
Give the family a full and better
life knowing that the needs are
satisfied first before the wants.

9. WHY IS BUDGETING
IMPORTANT?
Have a constant reminder that
you are in control of the family
finances, thus, reducing worries,
tension and stress.

10. Just like budgeting it should
be equally distributed but
there is a factors to be
considered.

11. WHAT ARE THE THINGS NEED TO BE
CONSIDERED IN BUDGETING FAMILY
INCOME?

12. FACTORS AFFECTING THE FAMILY
BUDGET
1. Amount of Income – The higher the income of the family, the greater the amount that the
family members can spend for their needs and wants.
2. Size and Composition of the Family – The more the family members are there, the bigger the
amount of income is spent on food, schooling, clothing and for their basic needs.
3. Values of the Family – Different families and different individuals have different values so
they have different priorities on what to spend their money for.
4. Needs and Wants of the Family - Needs are materials which the family members need to
survive on a day-to-day basis.

13. FACTORS AFFECTING THE
FAMILY BUDGET
BASIC NEEDS CONSIDERED NEEDS WANTS
Food
Shelter
Clothing
Water
Transportation
Electricity
Education
Materials that the
family members
desire to have.
They can postpone
if the budget is not
enough but can be
purchased if the
budget allows it.

14. STEPS IN MAKING A
BUDGET
1. Know your income or
allowances for a definite
period of time – monthly,
weekly, twice a month.

15. STEPS IN MAKING A
BUDGET
2. Make a list of expenses. Expenses can be classified as:
This is an amount set
aside regularly for the
daily expenses of the
family like food,
transportation,
children’s allowances
and others.
FIXED FLEXIBLE
This amount
may be
increased or
decreased
depending on
the money
available.
OCCASSIONAL AND
EMERGENCY EXPENSES
This amount may be
considered a form of
savings.
Emergency expenses
include health and
medical expenses,
special occasions like
birthday, fiesta, visiting
a sick or dead relative

16. STEPS IN MAKING A
BUDGET
3. Determine the amount
to be spent on fixed and
flexible expenses.

17. STEPS IN MAKING A
BUDGET
4. Check on the figures
to find out if you are
spending the right
amount where you need
to.

18. HOW TO MANAGE FAMILY RESOURCES
EFFICIENTLY
• Inform all the members of the family about the budget.
• Make adjustments to your budget as necessary. Keep within
the amount allocated for budget items.
• Choose a simple lifestyle that you can sustain with your
earnings.

19. HOW TO MANAGE FAMILY RESOURCES
EFFICIENTLY
• Buy only things that are needed.
• Schedule your expenses.
• Follow a shopping and marketing schedule.
• Avoid making unscheduled, unplanned purchases especially
at a store you are not familiar with.

20. HOW TO MANAGE FAMILY RESOURCES
EFFICIENTLY
Teach the children to spend their allowance wisely.
Conserve energy and other utilities.
Recycle or reuse materials.
Repair appliances and furniture as needed.

21. HOW TO MANAGE FAMILY RESOURCES
EFFICIENTLY
Take good care of your belongings.
Buy products that are of good quality and reasonable
price.
Develop the habit of walking short distances.

22. What is the importance
of budgeting in our
daily life?

23. BUDGET PLAN
Budget Components - 5 points
Knowing how to adjust your budget - 5 points
Budget Summary - 5 points
Create a budget with the allowance you get.
Criteria: