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Making a Budget - Homescience Form 3

Making a Budget

A budget is a plan for spending the available income to an individual or family. This is done by listing expenses which vary from individual to individual and family to family. There are two types of expenses:

Roll over each for more information

Fixed expenses


Fixed expenses refer to expenditure on goods and services that must be paid for on regular basis. They include:


  • House rent
  • Electricity
  • School fees
  • Savings
  • Hire purchase
  • Water

Flexible expenses


Flexible expenses refer to expenditure on goods and services that must be bought on regular basis but the time and money spent can be varied. They include:


  • Food
  • Clothing
  • Medical care
  • Transport
  • Emergency

Objectives

By the end of the lesson you should be able to make a budget.

Steps in Making a Budget

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