The Family Budget
Quickly evaluate your financial situation, and start saving with these easy tips to set up a family budget today.
The following is a brief description of each budget item and the restrictions and/or working assumptions employed for basic family budget calculations:
According to Wells Fargo, most people need an emergency fund equivalent to three to six months of expenses. You may feel more comfortable saving even more when you're planning for a family. Self-employed parents may also require more to account for the possible loss of a client or a downturn in business.
If you're new to budgeting, we recommend divvying up your income with the 50/30/20 approach: 50% for needs such as household bills, minimum loan payments and expenses such as child care, diapers and formula. 30% for financial wants.
A sample budget is a budget from another family that you can look over to help you create your own budget. This isn't something that is discussed often, even amongst friends, so it's really hard to see specifics of how others spend their money.
According to a recent Gallup survey, most American families believe a family of four would need at least $58,000 per year to “get by” in their communities. That's more than the median household income, which came in at $55,775 a year in 2015.
Socio-Economic Status of the family
Socio economic status of the family has a bearing on the family budget. The factors influencing the socio-economic status of the family include income, education level and occupation of the members.
A family budget is essential to managing your money. That's because a family budget helps you: spend your money wisely on the things you must have – these are your needs. save money for the things you like but can live without – these are your wants.
The Most Common & Highest Expenses in the Family Budget
But the dilemma over the best age to start a family has finally been solved: women should aim for 34. The biological clock may be ticking for thousands of women. But the dilemma over the best age to start a family has finally been solved: women should aim for 34.
The average age of first-time mothers in America is now up from 21 to 26, while for fathers, it's increased from 27 to 31. This isn't just within America; women in other developed countries are waiting too with the average first birth happening for new mothers at age 31.
You can save half a million dollars if you don't have kids.
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