Quality life in the family is the symbol of good civilization. All families do not have same type of life style. Some have very high standard of living whereas some have low. It is essential to make the size of family small and increase family income for attaining quality life.
Family income plays a significant role in making the family qualitative. The fact that the larger the sizes of the family, the greater are the needs of the family is an accepted one. That is why, the family income and expenditures are related with happiness and prosperity of the family. Income is the fundamental means for fulfilling the needs and wants of the family. Active labor forces of a family are regarded as sources of income for the family. If these members are efficient, active and productive, income of the family increases. Therefore, active labor forces or productive members of the family should be motivated toward the income generating activities. Moreover, level of education and mental as well as physical capacity of family members always determine their income.
The matter of expenditure for family welfare depends on income. Daily needs can be easily fulfilled and additional needs and wants can also be met with. The balance between the income and expenditure of the family can only be maintained when the expenditure does not exceed the income.
Each family makes and estimated budget consciously or unconsciously for expenditure. Estimated budget is prepared to keep balance between expenditure and income. The family usually spends the money that has been set aside for the expenditure. Generally, an estimated detail of expenditures to be incurred in the family is prepared due to the following reasons:
- To calculate the actual amount of income and expenditure during a whole year.
- To maintain balance between income and expenditure by determining priority of expenditures in accordance with the sources of income.
- To save some amount of income for the providence, after fulfilling the needs that have been given priority.
In this way, to maintain the balance between income and expenditures, a family budget should be prepared. Expenditures should be in accordance with the income of the family. But, in many families, family income is not sufficient even to meet the everyday needs.