Clothing is an essential part of any annual family budget. The family budget is really nothing more than a listing of the expenses and incoming moneys on month to month basis. In budgeting one must consider the size of the family, its income, the needs of the family and the locality where the family lives. For a budget to be workable, income should be adequate enough to meet the prioritized needs of the family. Anyone can put together a basic wardrobe even on a limited budget. By shopping for and selecting certain classic pieces, we can have an all purpose, stylish wardrobe that will suit all our fashion needs.
A budget (from old French bougette, purse) is generally a list of all planned expenses and revenues. It is a plan for saving and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. In other terms, a budget is an organizational plan stated in monetary terms.
A family budget is the main tool used to manage personal finances and save money. A family budget can be simple or detailed, depending on ones need for track ones income and expenses for an entire month to make a family budget.
Budget plan helps one to achieve ones spending and financial goals, other benefits are as follows
Keeping Track : Budgeting allows one to track ones monthly expenditures so that one can plan key savings strategies for important short- and long-term goals.
Limits one's spending : A budget will identify expenses that can be cut so that one can set goals on making important long-term savings.
Discipline oneself : Ones goal is to rid oneself of instant gratification (the symptom of credit card use). The budget sets guidelines on what and when items can be purchased.
Setting Goals : Budgeting supports ones financial goals, which may include: saving for one's first home, paying down debt, preparing to go to school, planning for retirement
Good budgeting skills add these goals into the budget.
In budget "cash in-flows" needs to be greater than "cash out-flows"
This section allows one to input either monthly or annual family expenses in each of fourteen different categories including: food, alcoholic beverages, housing, clothing, transportation, healthcare, entertainment, personal care, reading, education, smoking or tobacco, other expenses, contributions, insurance and pensions.
� Overview : Sitting down and making a family budget may not be the most fun activity one ever do. However, the effort and thought one put into ones budget can help relieve stress and enable one to manage ones money more efficiently. Learning to budget for one family of four is the first step toward smart financial management. If one have attempted family budgeting before but have experienced difficulty staying on track, try once more to set one family on the right financial path.
Step 1 : List one fixed monthly expenses. Include mortgage or rent payments, electricity, cable, food, phone, insurance, loan payments and transportation costs. If our children are in child care or a private school, add those costs as well. To ensure accuracy, use past bank statements to make a complete list.
Step 2 : Look through one's past 12 months of expenses. Write down any expenses that are paid annually. Magazine subscriptions, pest control fees, car registration fees, membership dues and school supplies for children and other such expenses. Add these together and divide by 12 to obtain the average monthly cost of these annual fixed expenses. List this result on one's monthly budget sheet.
Step 3 : Write down one variable monthly expenses on one sheet. List the cost of clothing, entertainment, restaurant meals and other variable expenses for both adults and children. Remember to look over the past year and include expenses that do not occur every month, such as school lab fees, sports or music lessons, and the purchasing of gifts.
Step 4 : Compare the total monthly expenses to monthly take-home income. Note whether the expenses are greater or less than the income. Examine each budgeted category and decide if one needs to reduce that expense. Involve children in the discussion if they are old enough.
Step 5 : Rewrite monthly budget with adjusted figures. Prepare for unexpected expenses by setting up an automatic transfer system with one bank to establish or build a savings account. Budgeting helps establish the habit of saving money. Encourage children to save part of any money that they receive.
Step 6 : Decide the person responsible for keeping track of monthly budget. Rotate the responsibilities occasionally to ensure that both of them understands the income and expenditure pattern, frequent communication will enlighten the budget plan.
Step 7 : Set up an envelope system to break any credit card habit one may have. Commit to paying cash for as many expenses as possible. Pay the fixed expenses before calculating how much money one have left for variable expenses. Put the budgeted amount of cash in an envelope designated for each variable category expense, such as entertainment, clothes, restaurant meals, coffee and gifts. Once the money in that envelope is gone, do not make any additional purchases for the month in that category.
� Tips and Warnings : Use budgeting software to streamline the process. Consider automating loan payments through the financial institution. Stop using credit cards and pay off any outstanding balances. Establish savings accounts for children. Open a vacation or holiday fund to help save for those expenses. Consult with a trusted friend or adviser concerning any financial difficulties.Beware of consolidation loans if one has credit card debt. Analyze any fees and expenses associated with savings plans.
Clothing the family can be an expensive endeavor, especially with the growth spurts that children go through so often when they are younger.
Restrict oneself from impulse buying. Hold oneself to the rule of buying clothes only if one or one family absolutely needs them. Purchase new items of clothing, wisely. It is best to invest in a few staple pieces that match existing pieces in one's wardrobe and can be worn in a variety of styles.
Take advantage of end-of-season clearance and buy out specials, especially on big ticket items such as winter coats. One can easily find discounts of 75% or more on winter clothing at the end of March or April, and summer clothing at the beginning of August and September. This can be a bit trickier for younger children because they outgrow things so quickly, but for teenagers and older children one can find significant savings.
Consider setting up a schedule for purchasing new clothes, and make sure children are aware of the new ruling. It makes sense to shop in the late summer for new school clothes and proper fitting shoes for the fall- repeat the process in the spring. Before going shopping for new clothes, have one family go through their closets and remove clothing that they no longer wear or outgrown.
Creative thinking and flexibility are the keys to keeping one family budget intact. These tips will help one stick to a strict clothing budget and save money for more important things. And with a family-there is always something (or someone) that needs money!
The family consists of the father, the mother, and the two children sixteen years, and eleven. The father sets aside part of his income for life insurance and savings with the hope that he is providing for future emergencies. Because well-balanced meals are required for health and physical growth, a large part of the family's income must be spent for food.
In addition there are such items as operating expenses for the home, church/temple and charity contributions, doctor's bills, recreation, and education which a normal family included in its spending. If these are provided for, this family on a moderate income cannot afford to spend more than approximately eight to ten percent, on clothes. In some instances the father spends more for clothes than the mother. In others the reverse is true. In this case let us assume that the mother spends more. Most girls of high-school age need more clothes than boys of eleven.
The largest division of the budget is outer clothing, which includes wraps and dresses. Shoes and hose generally rank next. This is not difficult to understand at a time when stockings are so sheer that they do not last long. The following figures compiled from the clothing expenditures of several hundred higher secondary school girls show one how the expenditures may vary in the different divisions of the clothing budget:
Outer garments-------- 48 to 54
Undergarments and sleeping garments -------- 8 to 13
Shoes and hose-------- 18 to 27
Accessories-------- 4 to 8
Sport clothes-------- 0 to 4
`Determine the percentages of ones own wardrobe costs and see how they compare with the ranges shown above.