Topic 15 · finance
Household Budget
A budget is a plan: how much money comes in and where it goes, so there is enough and some left over.
Income and expenses
A budget brings together all the family income and all the expenses over a period (usually a month). Income should cover expenses, ideally with something left over.
The 50/30/20 rule
A simple guide: 50% of income for needs, 30% for wants, 20% into savings. The proportions are adjusted to the family.
Surplus and deficit
Income above expenses is a surplus (you save it); below — a deficit (you go into debt). The aim is a steady surplus.
🎯 Now possible
- build a simple family budget
- apply the 50/30/20 rule
- tell surplus from deficit
Cheat sheet
Budget = income against expenses for the month
50/30/20: needs / wants / savings
Income > expenses → surplus
Expenses > income → deficit → debt