The concept of a family budget denotes the plan that one family puts in place to control the flow of funds incoming and outgoing from it. In other words, it is an organized method that aims to control the expenses and revenues of the family and the individuals who represent it within a specific period of time, usually for a month or a year, and it is possible to allocate this using The percentages of each spending agency depend on the size of the income obtained by the family, and the idea of the family budget is similar to the state budget in managing its expenditures. the family and the high likelihood of having to resort to debt or borrowing, while it regulates individual behavior and increases family members’ feelings for one another.

What are the factors affecting the family budget?

The budget, in general, is important for all parties, whether it is at the level of the state, the institution, the family, or individuals, as it works to organize their spending aspects, which in turn may reduce their need for more money to meet their needs, so giving priority to basic matters will contribute In looking at other matters as needs that are not necessary and can be dispensed with, all budgets are affected by a group of factors that determine their nature, divisions, and the way income is distributed in them. The basic factors that affect the family budget can be identified through the following:

Total household income

The family budget depends mainly on the amount of money available to it, so the entire income that the family receives from all individuals in a specific period of time is collected to know the size of the total income of the family as a whole. In low-income families, spending is greater on food and basic needs such as housing, necessary clothing, and so on. That is, while the expenses of high-income and somewhat rich families are higher, they spend more on entertainment, education, and other luxuries.

Family size and composition

The amount of spending that families make depends on the size of the family and the nature of the ages that make up the family, so that families consisting of three people do not spend the same amount of money as a family consisting of six or seven people, for example, so the more people in the family, the higher the spending. Consequently, each member’s share of the expenses allocated to him may decrease, and this also depends on the age stage in which the family members live. Children need more expenses than adults, and the same applies to adults of any age, whether the individuals are studying or have graduated, and so on.

Stages of family life

The amount of money spent by the family varies according to the stage in which it is.At the beginning of establishing the family, the husband and wife will not need the same amount of spending that they will need after periods of their marriage and having children, but it may appear to newly married families that some aspects of spending are necessary, such as doing the honeymoon, taking care of the furniture of the house, or giving birth to the first child, and then starting the stage of educating children and what is related to their clothes and such, while large and somewhat older families need more expenses, such as teaching children in universities or preparing for their wedding and helping them to start their own lives.

Family members work

The family budget also depends on the size of the income they receive, which is related to the number of working family members, the nature of their jobs, and the amount of wages received by each of them. The family in which the wife works will have more income than the family in which only the head of the family works, and the situation is similar if the children are also employed. They work, which contributes to supporting the family’s ability to spend.

Family needs and goals

The needs of the family play an important role in determining the size of the expenses it undertakes and thus influencing the structure of its budget. For example, families who are committed to paying a loan must allocate part of their income to meet this obligation, as is the case when the family buys a house or a car through the bank or by paying in installments. family and its needs.

Where the family lives

The amount of spending varies according to the place where the family is located; for example, if the family is in a rural area, it must spend more money on transportation and food, while the family’s presence in the city is something that requires spending more money on entertainment, education, and clothing than others, and it is also related to The issue is the level of prices in the country in which the family resides and the difference in the standard of living from one country to another.

What are the factors affecting the family budget?