Question

List any two importance of making a family budget.

Answer 1

The importance of making a family budget is:

1. Financial Planning: A budget helps families plan and manage their money more successfully. By outlining expected income and expenses, families can allocate finances to different areas such as housing, groceries, utilities, savings and entertainment.
2. Controls Spending: A budget provides a structure for monitoring and controlling spending habits. Tracking expenses against planned amounts allows families to identify areas of overspending and make necessary adjustments.