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.
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.