A budget for a family of four

AlexJust 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%
Food $700 20%
Clothing $350 10%
Transportation (car payment, insurance, bus fare) $420 12%
Medical $420 12%
Savings $350 10%
Entertainment $140 4%
“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!

AlexThe 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.

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