Household budget ha a plan for future expenditures of a given household. Budgeting is the process of preparing a budget. Good budgeting leads to wise management or use of family income. Family budgeting is necessary if family needs are to be met. Poor budgeting leads to wasteful expenditure of income. A family's needs are usually many, but the income is often limited. It therefore becomes necessary that each person knows hot to make good budget.
The income of a family include the money and other economic resources available to the family, for meeting their needs.
Money income of the family is the amount of money which the family has at a given period. It is the purchasing or buying power of the family at a given period.
Gross income is the total amount of money from a person's income.
Net income is the amount of money that remains after deductions such as tax, water rate and levies have been removed from the "gross income".
Budget is the plan of how to spend family income. The budget is normally prepared based in the net income.
Expenditures is the amount of money spent on the goods and services which the family needs.
Sources of family income:
There are sources from which families get their income. They include salaries, wages, gifts, assets or investments that yield interests; such as rents, dividends on shares, bonus from insurance policies, etc.