Why is income estimated in a family budget?

Correct answer: To prioritise expenses and plan savings

Estimating income tells a family how much money is likely to be available during a given period. This helps the family prioritise necessary expenses and set aside an amount for savings. Stopping savings is not the purpose of a budget; a budget helps balance income and expenditure. Exam tip: Relate family budgeting to income, expenditure, savings, and priorities.