6

Management of Family Resources

Learner's Module in
Technology and Livelihood Education 6
Home Economics
Module 2

ELIZABETH C. TENG-EG
Developer

Department of Education. Cordillera Administrative Region

NAME: Republic of theGRADE AND SECTION:

Philippines
TEACHER: SCORE:
DEPARTMENT OF EDUCATION
Cordillera Administrative Region
 Republic of the Philippines
DEPARTMENT OF EDUCATION
Cordillera Administrative Region
SCHOOLS DIVISION OF BAGUIO CITY
Military Cut-off, Baguio City

Published by:
DepEd Schools Division of Baguio City
Curriculum Implementation Division

COPYRIGHT NOTICE
2020

Section 9 of Presidential Decree No. 49 provides:

“No copyright shall subsist in any work of the Government of the Philippines.
However, prior approval of the government agency of office wherein the work is
created shall be necessary for exploitation of such work for profit.”

This material has been developed for the implementation of K-12 Curriculum
through the DepEd Schools Division of Baguio City - Curriculum Implementation
Division (CID). It can be reproduced for educational purposes and the source must be
acknowledged. Derivatives of the work including creating an edited version, an
enhancement or a supplementary work are permitted provided all original work is
acknowledged and the copyright is attributed. No work may be derived from this
material for commercial purposes and profit.

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 PREFACE

This module is a project of the Curriculum Implementation Division particularly

the Learning Resource Management and Development Unit, Department of
Education, Schools Division of CAR which is in response to the implementation of the
K to 12 Curriculum.

This Learning Material is a property of the Department of Education- CID,

Schools Division of CAR. It aims to improve students’ performance specifically in
Technology and Livelihood Education.

Date of Development : April, 2020

Resource Location : DepEd Schools Division of Baguio City
Learning Area : Technology and Livelihood Education
Grade Level 6
Learning Resource Type : Module
Language : English
Quarter/Week : Quarter 1/2/3/4/ Week 2
Learning Competency/Code : Allocates budget for basic and social need
TLE6HE – 0b – 3
: Prepares feasible and practical budget
TLE6HE – 0b – 4

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 ACKNOWLEDGEMENT

The developer wishes to express her gratitude to those who help in the
development of this learning material. The fulfillment of this learning material would
not be possible without these people who gave their support, helping hand and
cooperation.
My sincerest gratitude to our school principal, Mr. Castro P. Canuto for his
assistance and support.
My sincerest appreciation to Anna Liza A. Banglayan, School LR Coordinator
and to Maám Loida C. Mangangey, EPS - LRMDS who patiently helped me make this
module better and possible, thank you for their time and effort.
It would have been impossible to complete this module without the assistance
and support of my family, Leonardo, Eleonor, Ellen Grace, and Elnard John.
Above all, I give thanks to our Almighty God for His abundant blessings and for
guiding my thoughts amidst the threat / danger brought by COVID 19 during the
development of this module which aims to help our learners grow to be responsible
citizens.

Development Team
Author : Elizabeth C. Teng-eg
Layout Artist: Altea E. Ramos

School Learning Resources Management Committee

Castro P. Canuto School Principal
Elizabeth C. Teng-eg Learning Area Consultant
Anna Liza A. Banglayan School LR Coordinator

Quality Assurance Team

Mary Jane N. Malihod, Ph.D EPS – EPP/TLE
Brendalee C. Awingan PSDS – West Baguio Central District

Learning Resource Management Section Staff

Loida C. Mangangey EPS – LRMDS
Victor A. Fernandez Education Program Specialist II – LRMDS
Christopher David G. Oliva Project Development Officer II – LRMDS
Priscilla A. Dis-iw Librarian II
Lily B. Mabalot Librarian I
Ariel Botacion Admin. Assistant

CONSULTANTS

JULIET C. SANNAD, EdD

Chief Education Supervisor – CID

SORAYA T. FACULO, PhD

Asst. Schools Division Superintendent

MARIE CAROLYN B. VERANO, CESO V

Schools Division Superintendent

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 TABLE OF CONTENTS

COPYRIGHT NOTICE .......................................................................................................... ii

PREFACE .............................................................................................................................. iii
ACKNOWLEDGEMENT ...................................................................................................... iv
TABLE OF CONTENTS ........................................................................................................ v
What I Need to Know ............................................................................................................2
What I Know ...........................................................................................................................5
What’s New .............................................................................................................................7
What Is It .................................................................................................................................8
What’s More ......................................................................................................................... 12
Self-Check 1.1 ....................................................................................................... 12
Self-Check 1.2 ....................................................................................................... 13
Self-Check 1.3 ....................................................................................................... 13
Activity 1.1.............................................................................................................. 13
Activity 1.2.............................................................................................................. 14
What I Have Learned ......................................................................................................... 15
What I Can Do ..................................................................................................................... 15
Lesson 2 ................................................................................................................................ 16
What’s In .............................................................................................................................. 16
What’s New .......................................................................................................................... 16
What’s More ......................................................................................................................... 20
Self-Check 1.1....................................................................................................... 20
Self-Check 1.2....................................................................................................... 21
Self-Check 1.2....................................................................................................... 21
Activity 1.1.............................................................................................................. 21
Activity 1.2.............................................................................................................. 22
What I Have Learned ......................................................................................................... 23
What I Can Do ..................................................................................................................... 23
ASSESSMENT .................................................................................................................... 24
Additional Activity ................................................................................................................ 25
Answer Key .......................................................................................................................... 26
REFERENCES .................................................................................................................... 28

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 What I Need to Know

This module is part of the series of modules in Technology and

Livelihood Education in Home Economics. This module is designed to help you
acquire an understanding of knowledge and skills in managing family resources and
soon to apply the principles of home management in managing family resources.

The contents of this module were carefully prepared based on the

learning competencies of the Basic Education Curriculum as prescribed by the
Department of Education.

This module covers 2 competencies which are covered separately in 2

lessons, each lesson is directed to the attainment of specific learning outcomes:

Lesson 1 – Competency: Allocates budget for basic and social need

(TLE6HE-0b-3)
Learning outcomes:
 Identify the components of a family budget
 Identify the different ways on how to manage the family
resources efficiently
 Prioritize needs over wants

Lesson 2 – Competency: Prepares feasible and practical budget

(TLE6HE-0b-4)
Learning outcomes:
 Identify the Factors affecting the family budget
 Prepare a family budget

Here is a guide on the parts of the learning modules which you need to understand
as you progress in reading and analyzing its content.

ICON LABEL DETAIL

What I need to know This contains the learning objectives
which you need to accomplish.
What I know This evaluates what you know about the
lesson you are to learn.
What’s In This connects the current lesson with a
topic necessary in your understanding.
What’s New This introduces the lesson through an
activity.

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 What’s Is It This contains a brief discussion of the
learning module lesson.
What’s More These are activities to check your
understanding of the lesson.
What I have Learned This summarizes the important ideas
presented in the lesson.

What I Can Do This is a real-life application of what you

have learned.

Assessment This is a post assessment of what you

have learned.

Additional Activities This is an activity that will strengthen

your knowledge about the lesson.

To get the most from this module, you need to do the following:

1. Begin by reading and understanding the learning outcomes. These will tell you
what you should know and be able to do at the end of this module.

2. Take the Pre-assessment. Your score will determine your knowledge of the
lessons in the module. If you get 100% of the items correctly, you will skip the
module and you may proceed to the next module. If you will get 50% - 99%
correct you will proceed with the module.

3. Do the required learning activities. They begin with one or more information
sheets. An information sheet contains important notes or basic information that
you need to know. After reading the information sheet, test yourself on how
much you learned by means of the self-check and activity sheets. Do not
hesitate to go back to the Information Sheet when you do not get all the test
items correctly. This will ensure your mastery of basic information.

4. It is not enough that you acquire content or information. You must be able to
demonstrate what you learned by doing the activity indicated in What Can I Do,
this is an application or transfer of learning into real-life concerns / situations.

5. At the end of the module, take the Post-Assessment to evaluate your overall
understanding about the lessons.

Each lesson also provides you with references and definition of key terms for
your guide. They can be of great help. Use them fully. If you have questions, don’t
hesitate to ask your teacher for assistance

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 What I Know

PREASSESSMENT:
Let us determine how well you understand and know about family resources and its
management. Read and analyze each statement carefully then write the letter of the
correct answer in a separate sheet of paper.
1. What is called to the money paid by the family for goods and services that they get?
a. Expense c. Budget
b. Income d. Family Finance
2. What is called to the monetary payment received by the family members for the
goods and services rendered?
a. Budget c. Expense
b. Income d. Family Finance
3. The following statements indicate efficient management of family resources except
for one, what is it?
a. Identify your priorities. c. Know how much money is included
b. Make a plan d. Allocate the money only for daily expenses
4. What practice shows avoiding shortage or deficits in a budget?
a. Always buy using credit card c. Buy items that are not in the shopping list
b. Always buy the right size. d. Always do frequent shopping
5. What component of family budget gets the biggest share in the allocation of family
income?
a. Clothing b. Shelter c. Food d. Education
6. What is related to the wise use of family resources?
a. Budgeting b. Saving c. Spending d. Computing
7. What factor affecting the family income pertains to the priorities on what to spend
their money for?
a. Needs and wants of the family c. Amount of income
b. Size and composition of the family d. Values of the family
8. What type of spending money for basic items that one needs from day to day?
a. Splurge spending c. Spending for savings
b. Spending for major purposes d. Spending for comfortable living
9. What are the basic needs of a family?
1. nutritious food 3. Imported can goods 5. Clean and safe home
2. a 64 inches flat screen TV 4. Signature clothes 6. Maintenance medicine
a. 1,2,3 b. 1,5,6 c. 2,5,6 d. 1,4,5
10. What are the steps in making budget?
1. Know your income or allowance for definite period of time
2. No need to make a list of expenses
3. Determine the amount to be spent on fixed and flexible expenses
4. Check on the figure to find out if you are spending the right amount where you need to
5. Do your total expenses balance with your income.
a. 1,2,3,4 b. 2,3,4,5 c. 1,2,4,5 d. 1,2,3,5

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 What’s In

What do you usually observe every time your parents receive their salary?
Did you say, they went to the grocery to buy the necessities at home? Or mother
went to the landlord to pay the rent of the apartment?

What else did you observe when they are at home upon receiving their
salary? Did you observe that they have envelopes where they put money in it?
What are those envelopes for?

Parents usually separate an amount for particular expenses like payment of

electric and water bill, daily allowances of children going to school, an amount for
the maintenance medicine and others.
The act of doing this is what we call Financial management.

Financial management is the process of wisely budgeting, spending, saving, and

investing the money earned that is why family budget is very important, this shows
how the family income is spent on different items of expenditure on basic needs
and social needs. It shows the distribution of the family income over the various
items of expenditure.

In this lesson we will find out where do parents allocate the family income.

What’s New

LEARNING OUTCOMES:
At the end of this lesson you are
expected to:

 Identify the components of a family budget

 Identify the different ways on how to manage the family
resources efficiently
 Prioritize needs over wants

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Direction: Fill in the window frames with what or where do your families spent your family income.

How observant you are?

Window Frames

What Is It

What Is It

From your graphic organizer:

What have you listed?
From your window frame, what are the necessities?

What are the things that are not really important?

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 Read the Information Sheet very well then find out how much you can
remember and how much you learned by doing the activities in What’s More?

Information Sheet

Let’s Be Informed

Family Finance – refers to the management of income and expenses that

affects the family. There are two things that are important when we speak of family
finance, the income and the expense.
Income – refers to the monetary payment received by family members for the
goods and services rendered. Usually, income of the family comes from the
employment and / or profit from a business or commission like in selling real estate or
selling beauty products.
Expense – refers to the money paid by the family for goods and services that
they get.
Budget – refers to the amount of money assigned to a particular purpose. It is
a plan specifying how much money will be spent or allocated during a particular period.

Components of a Family Budget

1. Food
You need to eat every day, so this gets the biggest share in the
allocation of your family income. The kind of food served in the family will also
depend on the condition of family members. A special diet will require extra
expense for the family. Prices of basic food supplies affect the kind of food
served in the family. It is important that meals are planned so that you can
protect how much money you are going to set aside on groceries, takeout food,
or dining out.

2. Clothing
Clothing is an item that you do not need to buy every day. Clothing needs
of family members differ from one another depending on the physical growth,
status, and development rate of family members, and occasion or engagements
attended. Your consideration when allocating family income for clothing is on
the need to buy basics, like uniform, because it is really important. There are
families that seldom purchase clothing but there are those that purchase items
each month as their budgets would allow them.

3. Shelter
Some families allocate payment for rent of the house or apartment they
live in. If this is the case, a fixed monthly budget should be allocated. For those
families who are on the process of owning the house, there should be an
allocation for the amortization (the fixed amount paid to an agency or bank

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 for a period of time after which the house will be owned). Allocation for home
repair, home improvement, and real estate tax must also be set aside.

4. Education
Families should also allocate an amount of their income for education.
This can be taken from your savings or emergency fund. Since school fees are
paid either yearly or on a semestral basis, one can already foresee how much
is needed and be prepared for it. This will include expenses for children’s
allowances, tuition, uniform, books, and other school supplies.

5. Utilities
This is paid on a monthly basis. It includes electricity, water, telephone,
internet, and home cable bills. You can get the average of all these bills so that
you can allocate a fixed amount monthly.

6. Household Operations
This is an allocated budget for the things needed in the house, like
beddings, curtains, furniture and other paraphernalia to make members
comfortable.
This is also used by the parents or helpers who stay at home to buy
things that are immediately needed, e.g. kangkong for sinigang and others.

7. Medical and Dental Care

These are expenses for medical and dental appointment and the
medicines needed by the family. This also includes vaccinations if there is a
baby in the family.

8. Rest and Recreation

This refers to activities that provide relaxation and entertainment for the
family. This can also include pursuing hobbies and interests, town trips, and
vacations.

9. Savings
This is a separate amount of money that is set aside for emergency
purposes or allotted for something to be bought in the future
“Save for the rainy days” so the saying goes. This is very true when it
comes to family management. You can never tell what will happen in the future.
It is good to save now and have something for the future. Illness or accidents
in the family is the most common factor that eats up a family’s savings. It should
be a part of the operational budget, not to be taken from what is left of the
budget after deducting other components.
How do you save? Here is a suggested formula that you could apply to
make your savings grow. The formula is 50-25-25, which means that once you
receive your money you have to divide it accordingly:
This means that whenever I receive one
50 % SAVINGS peso, Fifty centavos goes to SAVINGS,
25 %GROWING (Business/Investment) Twenty -five centavos goes to GROWING,
25 % Spending Twenty-five centavos goes to SPENDING.

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 If I want to buy one peso worth of candy, I need to earn four pesos, Two
pesos goes to SAVINGS, One peso goes to GROWING, and One peso goes
to SPENDING.

10. Social and Moral Obligations

We have certain social and moral obligations to ourselves and others.
This is allocating budget for the family who attends personal events, like
birthdays, anniversaries, weddings, among others. The family also has their
own moral responsibilities to society. There are families that have their own
outreach activity like feeding program in depressed areas, visiting an
orphanage or home for the aged. Other families prefer environmental
conservation projects. Financial resources are needed to support these
endeavors.
11. Pre-need plans
A pre-need plan is a financial program designed to help the family build
a better future. Through its easy payment programs, it offers to planholders
affordable means to prepare for certain future needs such as education of
children, retirement or death. (e.g. insurance policy, St. Peter, etc.)

12. Efficient Management of Family Resources

You should also know how to manage your family resources aside from
knowing the components of a budget. Knowing how to make the most of the available
resources is a characteristic of a good home manager. Managing the family income
includes balancing the budget so that resources are distributed fairly among the many
needs of the family.

All members of the family must feel responsible for managing the family
resources. Each must strive to meet the needs of the family. If needs are not met, each
must abide by the family decision, feel contented, and make a sacrifice for the sake of
the family.

Good management of family resources always include provision for

savings. A definite amount is taken from the income for this purpose. The amount
should be saved regularly.

Savings can increase by investing. However, investments often are

risky. Before you invest, you have to study very well how it works and what the pitfalls
of business are, if there are any. Make sure it is not a scam.

It is important to set family guidelines in managing family resources.

Here are some things that you can do:
 Identify the goals of the family. What are your priorities? Is it education? Good
health? A comfortable house?
 Make a plan to help lead you in achieving your family goal. Identify items that
should be included in the plan.
 Know how much money is included to achieve your goal. What other family
resources are available like individual skills, tools and machines, land, etc.?
 Make a final decision on what to prioritize. It should be that the whole family
must be involved in the decision making. Stick to the first thing first policy.
 Allocate the money for all items.

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  Assess the output of the plan undertaken with the budget

There are great benefits when the whole family is involved in managing their
own resources. By checking and counterchecking the progress in planning and
management implementation, it enhances unity and cooperation among family
members. It trains younger family members to be hardworking and disciplined in
caring for or growing their own resources. Finally, it enhances the family’s will to
succeed against all odds since the members are all trying their best to achieve their
goal.

Prioritizing Needs over Wants

In economics, needs are defined as the things that help us survive like food,
clothing, and shelter while wants are those that make our life comfortable and
enjoyable like television, computers, cell phones, etc.

It is important to know the needs and wants of the family because it helps in the
apportioning of the income and expenses. Always have a clear picture of what your
family goals are when determining your needs and wants. Needs should be prioritized
over wants

You should be extra careful when it comes to money matters. Limit your
expenses within your budget thus avoiding shortage or deficits. They are as follows:
1. Never buy on credit. no matter how tempting the offer, do not grab it. Wait until
you have the available cash to buy them.
2. Always buy the right size. It is a waste of time, money, and energy when you
get the wrong size.
3. Never buy items that are not in your shopping list. You might be enticed to buy
items that are on promo or an on sale. This seems very attractive at first, but
only to find out that you do not need the item later on.
4. Make sure you are full when you go out shopping. A hungry consumer is often
tempted to eat on impulse resulting to buying expensive food.
5. Refrain from frequent shopping. While others make shopping a habit, it might
be because they can afford it. But if you have limited source of income, it might
just get you into financial trouble.

Your family should live within the budget. This will relieve you from the burden
of incurring too many debts. Be aware of the cost of item before buying it and
be cautious in spending your money freely.

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 What’s More

Self-Check 1.1

A. Fill in the graphic organizer. Analyze the set of words in the box, then group
them into 5 according to the components of a family budget, then write a
name for each group in a separate sheet of paper.

condiments tuition fee electric bill uniform

allowance of children going to school rent for the apartment
groceries shoes cable bills house amortization

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 Self-Check 1.2

B. Read and understand the following statement. If the statement shows

efficient management of family resources write E in a separate sheet
of paper the number and NE if it is not efficient.

1. Inform all the members of the family about the budget.

2. Make adjustments to your budget as necessary. Keep within the
amount allocated for budget items.
3. Choose a simple lifestyle that you can sustain with your earnings.
4. Buy things that you want at once.
5. Schedule your expenses.
6. Follow a shopping and market schedule.
7. Make unscheduled, unplanned purchases when in a mall.
8. Buy products that are of good quality and reasonable price.
9. Conserve energy and other utilities.
10. Take good care of your belongings.

Self-Check 1.3

C. Identify the following objects as to needs or wants in a separate sheet of paper.

Flat screen television A pant that is on fashion
A black shoes for the uniform A clean and safe home
Latest model of cellphone A payment for utilities
A grand birthday celebration A simple but nutritious food

NEEDS WANTS

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 Activity 1.1

A. Matching Type : Match the description in column A to the components of a

family budget in column B. Write the letter of your answer in a separate sheet
of paper.
Answer
Column A Column B
1. It is where the biggest share in the
a. Savings
allocation of the family income goes.
2. It is where a monthly budget allocated by
the family goes, in order to protect them
from harm especially at night and where b. Utilities
they enjoy each other’s company after
work and school.
3. This is a separate amount of money that is
set aside for emergency purposes or c. Rest and
allotted for something to be bought in the Recreation
future.
4. This is paid on a monthly basis in
exchange of the consumed electricity and d. Food
water.
5. It is where the amount allocated by the
family goes in order to provide relaxation e. Shelter
and entertainment for the family.
6. Some families allocate an amount for
f. Education
charity purposes.
7. It is where the amount allocated by the
g. Social and moral
family goes in order to ensure the future of
obligations
their children.

Activity 1.2
B. Fill in the blanks. Read and understand each paragraph. Write the
missing word to get the thought of the paragraph in a separate
sheet of paper.

A. Good management of family resources always include provision for

(1) . A definite amount is taken from the (2) for
this purpose. The amount should be saved regularly.
B. All members of the family must feel responsible for managing the family
(3) . Each must strive to meet the (4) of the
family. If needs are not met, each must abide by the family decision, feel
(5) , and make a sacrifice for the sake of the family.
C. In economics, (6) are defined as the tings that help us
survive like food, clothing, and shelter while (7) are
those that make our life comfortable and enjoyable like television, computers, cell
phones, etc.
D. Your family should live within your (8) . This will relieve
you from the burden of incurring too many debts. Be aware of the
(9) of item before buying it and be cautious in
(10) your money freely.

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 What I Have Learned

Answer the following questions in a separate sheet of paper.

1. What are the different components of a family budget? What components of a family
budget does your family allocate an amount?

2. What are the different ways on how to manage the family resources efficiently?

3. How do you prioritize needs over wants?

What I Can Do

Discuss with your family the efficient management of family resources. Reflect on
these ways of managing the family resources. What are the things that you are going to
adapt? What benefits did you learn from your discussion? Make a written report on this
activity in a separate sheet of paper.

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Lesson 2

What’s In

How do you receive your allowance from your parents? Do you get
your allowance in a daily, weekly, or monthly basis?
How do you manage your allowance? What do you do?
Did you say, you are dividing or separating a certain amount to where
it is intended?
The act of separating a certain amount from the whole of it is what
we call budgeting. In the family, the parents usually do the budgeting which
covers the previously learned components of a family budget.
A family budget may differ from one family size and composition,
family values and standards of living. Some families may spend more on food,
others on clothing and still others on education.
The values of the family influence its priorities.
In this lesson we will find out the factors affecting the family budget
and how to prepare a budget.
So, let’s move on!

What’s New

LEARNING OUTCOMES:
At the end of this lesson you are expected to:

 Identify the Factors affecting the family budget

 Prepares a family budget

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 Let us determine how well you remember your resources at home.

What Is It?

Read the Information Sheet 1.2 very well then find out how much you can
remember and how much you learned by doing the activities in What’s More?

Information Sheet 1.2

Let’s Be Informed
Budgeting 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.

Factors affecting the Family Income

The following are some factors that can affect a personal or family budget.
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 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. But, the greater
the income, the more savings the family can have for the future. On the other
hand, the smaller the income of a family, the more it needs to spend for what is
most important and immediate needs. Food, shelter, clothing, education, and
utilities are some of the immediate needs of most families today.

2. Size and Composition of the family – the more family members are there, the
bigger amount of income is spent on food, schooling, clothing, and for their
other basic needs. Also, when family members are still young and growing up,
the more expenses are needed for their food, health and medical expenses,
clothing and other basic needs.

3. Values of the family – what does the family consider most important in the
budget? It pertains to the 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. Food, shelter , and clothing are basic
needs. Today, however, education, transportation, lights, and water are also
considered needs. Wants, on the other hand, are materials that the family
members desire to have.
Preparing the Family Budget

Today, money is considered as the most important among the resources of the
family. Sad to say, the purchasing power or the capacity of our money to buy as many
goods and services is weak and is not enough for daily living. It is therefore
important that every family should learn how to budget in order to make both ends
meet.
One family’s budget is different from another family’s budget. It may be
depending upon the size of the family members, and the location of their residence.
Below is a sample percentage allocation for the different budget components:

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 Percentage distribution may vary. In making the family budget, it helps to know
the actual family income. Determine also the fixed and flexible expenses and make a
list of priorities.
Fixed expenses are expenses that are paid regularly on a more or less the
same amount. For example, transportation, water bills, electricity, house rental or
amortization, tax, SSS, Pag-IBIG, Pre-need premiums, insurances, loans among
others.
Flexible expenses are expenses that come irregularly or paid in varying
amounts. For example: food, medical and dental services, donations, gifts, recreation
and entertainment, social and moral obligations, among others.
Always keep a record of your expenses to keep track of your family’s income
and lastly, do not forget to include savings in your budget.

Types of Spending
1. Spending for Comfortable Living – spending money for basic items that one
needs from day to day like foods, clothing, transportation
2. Spending for major purchases – spending money for personal budget like
buying new gadgets.
3. Splurge spending – spending for fun and satisfaction
Steps in making budget
1. Know your income or allowance for definite period of time.
2. Make a list of expenses
3. Determine the amount to be spent on fixed and flexible expenses

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 4. Check on the figure to find out if you are spending the right amount where you
need to.
5. Do your total expenses balance with your income.

Sample Family Budget

Making a family budget is highly dependent on how much the family
income is. Below is a sample family situation and the suggested budget.
Monthly income of the father PHP 45,000.00
Mother is a plain housewife
Income of the married eldest son PHP 20,000.00
Living in separate household
Daughter is in third year college
The family is renting an apartment
Total family income PHP 45,000.00

Allocation
Budget Component Amount (in PHP)
(in %)
Food 30 % PHP 13,500.00
Utilities 17 % PHP 7,650.00
Shelter 10 % PHP 4,500.00
Education 10 % PHP 4,500.00
Savings 10 % PHP 4,500.00
Household Operations 5% PHP 2,250.00
Medical and Dental 5% PHP 2,250.00
Clothing 5% PHP 2,250.00
Rest and Recreation 3% PHP 1,350.00
Pre-need plans 5% PHP 2,250.00

The income of the eldest son is not included in the total family income because the
son is already married and living separately from his parents and sister.

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 What’s More

Self-Check 1.1

A. Identify what is being asked in each statement. Write your answer in a

separate sheet of paper.
1. It is based on the system by which wages or salaries are
received and how these are to be spent.
2. It is considered as the most important among the
resources of the family.
3. These refer to the expenses that are paid regularly on a
more or less the same amount.
4. These refer to the expenses that come irregularly or paid
in varying amounts.
5. This refers to one of the factors affecting the family
budget which determines how much money is to be
allocated for each component of a family budget.

Self-Check 1.2

C. Determine what type of spending are the following. Write them answer
in a separate sheet of paper.

- Family went to the movie house - Billy bought a new laptop

- Mother bought rice, sugar, and bread - A trip to Boracay
- Father bought his new set of uniform - Nena bought her dream
gadget

Spending for Spending for Splurge

Comfortable Living Major Purchase Spending

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 Self-Check 1.3
D. True or False. Write true if the statement is a good practice of budgeting and
false if it is not. Write your answer in a separate sheet of paper.

1. Mother asked the family members to list down their needs and wants.
2. It’s payday, you allocated 50% of your income for your dream gadget
and asked your landlord that you will pay your rent next month.
3. Your mother prepared a list of expenses.
4. You budgeted your weekly allowance as – 20% for one week fare, 20%
for daily snacks, 60% for computer expenses.
5. Ellen budgeted her weekly allowance as – 20% for one week fare, 10%
savings, 35% for food/snacks, 15% for cellphone load, 20% for other
school expenses.

Activity 1.1
A. Situation Analysis: Study the table and the situation carefully, then answer the
questions that follow in a separate sheet of paper.

Allocation in %
Budget Component Family Family
A B
Food 35 % 39 %
Utilities 17 % 19 %
Shelter 10 % 10 %
Education 10 % 14 %
Savings 10 % 5%
Household Operations 5% 3%
Medical and Dental 5% 3%
Clothing 5% 4%
Rest and Recreation 3% 3%

Both families have a monthly income of PHP 38,000.00 and they are
neighbors in the apartment they are renting. Family has 5 members; the 3
children are all studying in a public elementary school. Family B has 7
members; all children are in the public schools, 2 in high school and 3 in the
elementary.
1. Why is family A’s budget different from the budget of family B?

2. Why is the distribution of budget differ?

3. Which was prioritize? Why?

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 4. What were the fixed expenses? Flexible expenses?

Activity 1.2
Compute the monthly allocated budget of your family if your total
income is PHP30,000.00. Write your answer inside the box.

Allocati
Budget Component Amount
on
1. Food 32%
2. Shelter 13%
3. Education 15%
4. Household Operation 3%
5. Medical and Dental 4%
6. Utilities 12%
7. Clothing 5%
8. Recreation 2%
9. Savings 14%
TOTAL 100 %

What I Have Learned

Answer the following questions

1. What is budgeting?

2. What are the factors that affect family budget?

3. How do you prepare your family budget?

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 What I Can Do

Prepare your own budget from your daily allowance. Follow this template to record
your budget using a separate sheet of paper. Let your parent sign your template
on the fifth day.

Name : Date:

WEEKLY BUDGET TEMPLATE

Daily Allowance :
Was it carried? Put a / mark if it was carried
Expenses Amount and X if not carried
Monday Tuesday Wednesday Thursday Friday

Parent’s signature over printed name Date

ASSESSMENT

Post Assessment
Let us determine how well you understand about family resources and its management.
Read and analyze each statement carefully then write the letter of the correct answer in a
separate sheet of paper.

1. What refers to the money assigned to a particular purpose?

a. Expenses b. Income c. Budget d. Finance
b.
2. What component of family budget is a fixed monthly budget and is considered a
basic need for the safety and protection of the family members against heat and
rain?
a. Shelter b. Education c. Clothing d. Utilities
b.
3. What component of a family budget is designed to help the family build a better
future?
a. Social and moral obligations c. Household operations
b. Pre-need plans d. Rest and Recreation
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 4. How can savings increase?
a. by investing c. by spending
b. by having a piggy bank d. by being thrifty

5. In economics, what is defined as the things that help people to survive?

a. wants c. savings
b. shelter d. needs

6. What factor affecting the family income refers to the basic needs and other things the
family members desire to have?
a. Amount of income c. Size and composition of the family
b. Needs and wants of the family d. Values of the family

7. What type of spending did you use when your family went to Asin Hot Spring last
summer?
a. Spending for comfortable living c. Spending for savings
b. Splurge spending d. Spending for major purchase

8. What will you do to keep track of your family’s income?

a. Keep a record of expenses c. Keep all the receipts
b. Record your income d. Mark your calendar

9. What could be the major reasons why one family’s budget is different from another
family’s budget?
1. size of the family members 4. location of residences
2. clothing 5. household operations
3. savings 6. family income
a. 1,2,3 b. 1,3,5 c. 1, 4, 6 d. 2,4,6
10. How much money is reserved for a food if the allocation is 32% of PHP 27,500.00
family’s monthly income?
a. PHP 8,250.00 b. PHP 8,080.00 c. PHP 8,520.00 d. PHP 8,800.00

Additional Activity

Prepare a pie graph of your family budget. Let your parents sign your pie graph. Use
a short coupon bond.

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Answer Key

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References

Bilgera, Yolanda P. 2016. Home Economics and Livelihood Education In The New
Generation. Tarlac City: Wizard Publishing Haws, Inc.

Josephine C. Bernardino, Maria Gracia A. Fulgencio, Estifania Gloria L. Lee, Alma L.

Paragas, and Edita T. Rafael. 2016. Home Economics and Livelihood
Education 6. Quezon City: Phoenix Publishing House Inc.

https://www.deped commons

www.yourarticlelibrary.com

www.merriam-webster.com

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