AKHBAAR Volume-14 November 2019

FAMILY BUDGETING
Why is it a Good Idea?
Inflation rates are surging into double digits and
indications are that this trend may remain for the near
future. Such conditions impact the cost of living and
increase the burden on households to support
expenditures on ration, transportation, education and
health. One way of dealing with such issues is by
developing budgets for your families.
Family Budgeting is a tool that educates members
how to spend money wisely. It is an estimate of a
family’s income and expenditure and helps decide
more effectively how much is to be spent on different
kinds of goods and services and how much can be
saved.
KEY TO BUDGETING
Spending less than you earn
All families handle family budgeting and money
management in different ways, but the general goal
of a family budget is a yearly, monthly or weekly
picture of what you need to spend and what you
have left over:
• Write down long-term and short-term goals.
• List earnings, expenses and debt.
• After you’ve accounted for essentials, put a set
amount towards savings each month for
unexpected expenses, emergencies and
long-term goals.
Sticking to a budget is the hardest part but if you
continue the above practice you will be able to plan
ahead for your family’s needs.
A FAMILY BUDGET
WILL HELP YOU TO
• 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.
• Set aside money for unforeseen expenses.
• Stop accidental overspending and control
the temptation to spend.
• Take steps towards the control of your own
money.
• Avoid Debt.
• Not spend too much time worrying about
your finances.
• Reduce money-related conflicts within
your families.
• Set a good example for your children.
In addition to its programmes for skills development, entrepreneurship and employment services, the
Economic Planning Board for Pakistan (EPB) will be bringing to the Jamat, sessions on key economic
related topics of government regulations, taxation, financial products, family budgeting, and smart
investments. If you wish to learn more about these important concepts, make sure that you register
for these sessions as they are announced in your jurisdictions.