COMPARITIVE STUDY OF IMPACT OF FAMILY BUDGET IN FAMILY

ECONOMY

ABSTRACT
A family budget is a statement which shows how family income is spent on
various items of expenditure on necessaries, comforts, luxuries, and other cultural
wants. It shows the distribution of the family income over the various items of
expenditure.The study is about impact of the budget in the family economy. The
purpose behind the study is to find out the importance of budgeting in family's as
such it helps to save money and also to plan there future.

INTRODUCTION
Irrespective of how the society in size or change in government, they all have one
thing in common which is the family. For families to live efficiently there is a need
for adequate financial management which can only be achieved through budgeting.
A budget is the saving and spending plan designed to keep on one's spending in
order to achieve individual or family's financial goals.

Successful living depends upon good financial management. The expenditures

exceed income, results misery. If outgoing is less than income, results happiness.
The family income is generally known in advance, at least approximately
expenditures made almost daily can be in large part anticipated. To be sure,
unforeseen contingencies are bound to arise medical and hospital expenses,
unanticipated assessments or taxes, price changes beyond the householders control
etc. The sensible person, aware of this according provides for such possibilities
successful management calls for planning.

To spend one's entire income as fast as it is received is undesirable. This can be

avoided if we keep a moderately accurate record of income and expense.
STATEMENT OF THE STUDY

The study is about impact of the budget in family economy . The purpose
behind the study is to find out the importance of budgeting in family’s as such it
helps to save money and also to plan there future. So the study is titled as
“comparative study of impact of the budget in family economy.
NEED AND SIGNIFICANCE
The study was conducted to identify the effect of budgeting on family , determine
how budgeting is affected in the savings and expenses.
OBJECTIVES
To determine how far family expenditure is based on planned and pre determined
way
To know how many families are keeping a record of income and expenses.
To compare savings and expenses of record keeping families with others.
To identify which sector the families spend more
METHODOLOGY
TOOL
A self designed questionnaire was used for this study . it contains two parts the
first part contains questions relating to the biodata of respondent and second
part contains 10 other questions relating to the economical status of respondent.
SAMPLE
The sample used for this research is 20 families to examine the effect of
budgeting in families. The sample technique adopted was interview method.

DATA ANAYSIS AND INTERPERTATION

The study was conducted among 20 families . The data was collected by
the researcher . A self designed instrument was used for study.
The study was conducted to determin e how many families was plan there
budget before spending for next year . The researcher find that in 20 families only
2 families are planning there spending for next year. It means that only 10% has a
habit of planning there spending1 .

The second objective is to determine how many families keeping a record for
income and expenses . The researcher find that among 20 families only 5 were
keeping a record for their income and expenditure. This means 75% of the
families are not keeping any records for income and expenses. This implies that
majority of the families do not practice a planning or record keeping.
The next objective of the researcher is to make comparison among the
families who keep record for expenses and savings with others.
From this comparison researcher observed that the savings and insurance of
record keeping families is more than that of other families. The families which are
not keeping records has a high expense compared to others.Table 1 and figure 1
are showed the benefit associated with budgeting or recording . compare to this
families shows that more than 80% of their income goes under expenditure and
only few percentage is able to save .
 It can therefore be decided t budget making have a positive effect in
financial management. The planning of budget and recording help the families to
organize a good family living and to achieve their needs . The families F1,F
2,F3,F4,F5 in the figure are keeping a record for expense and saving.so from the
figure the rate of expense of them is low compared to others.The families F1, F2
are planning a budget before they spending so they are able to save major part of
income
FAMILY NUMBER NUMBER NUMBER INCOME EXPENSES SAVINGS EXPENSE SAVINGS
OF OF OF OF PERCENTAGE PERCENTA
MEMBERS EARING STUDENTS INSURANCE GE
MEMBERS
F1 4 2 2 250000 150000 100000 60% 40%
F2 5 1 2 200000 121000 79000 60% 40%
F3 4 1 2 250000 160000 90000 64% 36%
F4 4 3 1 300000 210000 90000 70% 30%
F5 4 2 2 350000 254000 96000 72% 28%
F6 4 1 2 300000 260000 40000 86% 14%
F7 4 1 2 120000 95000 25000 79% 21%
F8 5 1 3 80000 60000 20000 75% 25%
F9 3 1 1 100000 90000 10000 90% 10%
F10 3 1 2 60000 40000 20000 67% 33%
F11 5 2 1 100000 85000 15000 85% 15%
F12 5 1 3 100000 80000 20000 80% 20%
F13 5 1 1 180000 140000 40000 78% 22%
F14 5 1 2 144000 130000 10000 90% 10%
F15 5 2 1 312000 292000 20000 93% 7%
F16 4 2 1 240000 200000 40000 82% 16%
F17 5 2 2 324000 312000 12000 97% 3%
F18 4 1 2 250000 200000 50000 80% 20%
F19 4 2 1 300000 250000 50000 82% 16%
F20 5 1 1 240000 221000 19000 93% 7%

TABLE4

The last objective is to identify in which sector they spend more.

The researcher find that most of the income is spend for food,clothing and
education.The figure 2 shows the spending of families.Most of the families spend
20% or more income for food and only few were spending less 20% for food.
About 40% or more of their income goes for clothing. Most of them are spending
10% or more for educational purposes.
By record keeping the families can calculate there expenses for each item.But the
families which are not keeping record can't find how much they spend for each
items.They only know their overall expenses. They can't control it but record
keeping families can control it by reducing there spending for any item.
So the result of the study is the families can achieve a good financial management
and their financial goals.

CONCLUSION

None of us want to remain or be without money, short on cash, cash-strapped and

not able to live well and or get the things we need, dream about and want. Family
budgeting brings us one-step closer to our fiscal realities, while offering more than
the direction and route, but also the tools and techniques to get to fiscal nirvana!
Most of us have an inherent want to protect what is rightfully ours. Our hard-
earned cash is no exception here. We want to enable, as far as it is in our power, to
utilize what little (or much) we do have to the best advantage and our family
benefit overall. Family budgeting helps us do so with method, structure, elements
and processes that enable success.
Family budgeting can assist have and have nots alike make better financial
decisions with a future perspective always in mind.

REFERENCE
http://www.familybudgettips.info/setting-family-budget.html