What are the Factors that affect Expenditure of a Family?

1. Sources of family income.

Income and purchasing power of the family in­creases if along with head of the family, housewife and other family members also earn.

2. Structure of the family.

Expenditure on house, kitchen, etc. per member is less in a joint family as compared to a nuclear family.

3. Size of family.

Expenditure on educa­tion, food and clothing is more in a large family.

4. Age of family members.

School or col­lege- going children spend more on books, fees, uniform, etc.

5. Standard of living.

The higher the level of living standard of a family, the more is the expenditure.

6. Residence.

Families residing in urban areas spend more than families residing in rural areas.

7. Family traditions.

Certain families have more faith in certain social and reli­gious traditions and sometime spend lav­ishly on these traditions.

8. Available resources.

Proposed expendi­ture can be reduced by utilising the hu­man resources, for example, expenditure on education can be reduced by teaching the child at home instead of arranging tu­itions.

For best utilization of income, people should make budget. “Budget is a ten estimate of a family’s income and ex pen over fixed period of time”

It we spend according to our budget proposed expenditure can be less Thai estimated income and some money i saved.