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How do you use a family budget sheet template?

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Quick Answer

A family budget sheet template is used to keep track of household finances. Templates differ in terms of the items that they use for monetary calculations, but they all ultimately sum up family expenses and subtract them from the family income.

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Full Answer

A well-designed family budget sheet template categorizes all expenses and income through relevant criteria. For instance, a budget sheet may have columns for both monthly and yearly income and rows that define income sources from each family member, as well as income resulting from other sources. These income sources include pension, real estate income and Social Security income. When all income figures are added together, they tally to a total income value.

On the expenses table, it is good practice to separate necessary expenses from discretionary expenses. Necessary expenses include water, rent, mortgage, insurance, gas and electricity. Discretionary expenses comprise of items such as cable/satellite TV, travel and vacation costs. When all these expenses are added up, they form the total expenditure figure.

When this total expenditure is subtracted from the total income tally, the sheet gives a remaining amount that is utilizable for savings and investments or a budget deficit. Other family budget templates include a savings column to differentiate between actual income and saved income. The value from this column is treated the same way as the income values.

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