Why is income estimated in a family budget?
Answer and explanation
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.
Frequently asked questions
What is the correct answer to this question?
To prioritise expenses and plan savings
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Home Science question. Chapter: Work, Livelihood and Career. Topic: Work, careers and livelihood.
