How to Build a Family Budget

Take every family member's interests into account for the family budget.

A home budget has many advantages. It can create financial structure and prevent chaotic or random spending. It can also help a family save money and pay off debt. But when creating a family budget, it is important to allow for both fixed and flexible expenses. Having a budget that's too strict can cause more tension than good financial results. A family budget, while important, should make some room for fun.

Instructions

1. Collect all of the fixed-expenses bills for the family. The fixed expenses include car payments, mortgage payments, utilities, cable and internet bills and phone bills.

2. Collect all the receipts for the flexible expenses, such as groceries, sports registration fees for the children, weekend entertainment expenses, education expenses and credit card payments. Include everything you have spent money on in the past few months.

3. Read through the list and determine what expenses are necessary and what expenses could be spared in the next few months.

4. Make a budget by adding the fixed expenses to the budget. These are the reoccurring expenses necessary for the family to function. A set grocery limit can be set under fixed expenses. Anything over that limit should be set as a flexible expense.

5. Subtract the fixed expenses from the overall income of the family.

6. Set aside an amount each month to pay off debt and start a savings account. Subtract the debt and savings amount from the amount left over from in the previous step.

7. Save the money left over for flexible expenses. Flexible or surprise expenses can happen each month and can include car repairs, medical expenses, birthday parties, emergency travels, presents and gifts, broken appliances, house damages and weekend entertainment events for the family.

References

• Money Problems: Household Budgeting
• Seeking Success: Articles and Guides -- Budgets