Just so you can see how adults especially need to plan and budget, let’s take a look at a household budget for a family of four. In this example, the family takes home $3,500 a month in income.
Budget for a family of four
Total take-home income: $3,500
|Expenses||Amount||Percentage of Income|
|Housing costs (mortgage payment and insurance)||$1,050||30%|
|Transportation (car payment, insurance, bus fare)||$420||12%|
|“Just in case” funds||$70||2%|
The family also budgets 20% of their income each month for food — that’s another $700. As you can see, the money goes quickly with a family of four!
The chart here shows the family spends 30% on housing costs, which includes their monthly home payment, called a mortgage, and home insurance. That totals $1,050 a month.
Click the Next button to continue.