Learning objective: Discuss the components (basic & social needs) of the budget

Review
Classify the following pictures as
NEEDS or WANTS
 Crossword Puzzle
C C
O O
N M
T P
E X P E N D I T U R E O
N L N
G I E A R N I N G S
E F N
I N V E S T M E N T
C S S
Y T
Y
L
E
Components of Family Budget

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.
Components of Family Budget

1. FOOD

This component is the most priority in the household budget.

Approximately 50% to 60% of the budget goes to the food.
Components of Family Budget

2. SHELTER & OTHER RELATED NEEDS

This include rentals and electric bills such as electricity, water,

telephone, and other services that contribute to the physical
comfort of one’s home.
Components of Family Budget

3. EDUCATION

This component includes tuition fees, books, school supplies,

school projects, textbooks, and allowances.
Components of Family Budget
4. HEALTH NEEDS

This is considered one of the most important items that need

to be prioritized. This include periodic medical and dental
examination and hospitalization. The budget should be set
aside whether it is spent or not in a given period of time. This
can be accumulated and set aside as savings to meet the
expenses for emergencies in the future.
Components of Family Budget

5. CLOTHING

Today’s clothing needs have become only secondary to food

and other needs, like education and health, more so if the
budget is limited. Clothing need is more or less dictated by the
nature of one’s occupation, the type of social circle one moves
in, and the status symbol that goes with it.
Components of Family Budget
6. TRANSPORTATION & OTHER
MISCELLANEOUS EXPENSES
Cost of transportation today has become expensive, more so,
when the family commutes everyday from home to school or
place of work. If the family owns a car, the cost of operation
and maintenance becomes part of the family budget.
Miscellaneous expenses are those which are not included in
other needs. These includes taxes, insurance, appliances, and
other related needs.
Components of Family Budget
7. SOCIAL &
RECREATIONAL
NEEDS
Provisions for social and recreational needs serve to balance
work and play. A family that enjoys together, stays together.
Weekly outings, strolling in parks, picnics, going to movies,
dinners, visit to relatives, attending parties, and other social
occasions are instances of keeping family members together
through sharing and enjoying each other’s company.
Components of Family Budget

CONTINGENCY FUND
A small percent of the family income has to be set aside for
needs that may unexpectedly arise. To some families, savings
that are deposited in banks can meet contingency needs. The
accumulated savings can later be converted to the realization
of some long-term goals such as buying a house and lot, a car,
or such other expensive items which can be part of a family’s
investment. The need of savings and investments is important
to ensure the family’s future.
 What are the components
of family budget?
1. Food
2. Shelter an other related needs
3. Education
4. Health needs
5. Clothing
6. Transportation & other miscellaneous expenses
7. Social & other recreational needs
8. CONTINGENCY FUND
 References:

 Learning &Living in the 21st Century (Worktext in HELE) – p. 191

 Management of Family Resources, TG - p.9
 https://www.puzzle-maker.com/crossword_Entry.cgi
(for the crossword puzzle)
 https://www.google.com.ph/ (for the images)