6

TLE - HE
Quarter 2 - Module 2:
Allocation of Budget for Basic and
Social Needs
TLE-Home Economics – Grade 6
Alternative Delivery Mode
Quarter 2 - Module 2: Allocation of Budget for Basic and Social Needs
First Edition, 2020

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Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio

Development Team of the Module

Writer: Retchie Ann Quitoy
Editors: Jesusa D. Paladar, Haidee T. Villalon
Reviewer: Haidee T. Villalon
Typesetters: Haidee T. Villalon, Fe T. Cabio
Management Team: Senen Priscillo P. Paulin, CESO V Rosela R. Abiera
Fay C. Luarez, TM, Ed.D., Ph.D. Maricel S. Rasid
Adolf P. Aguilar, Ed.D.,TM Elmar L. Cabrera
Nilita L. Ragay, Ed.D.
Antonio B. Baguio, Jr. Ed.D.

Printed in the Philippines by ________________________

Department of Education –Region VII Schools Division of Negros Oriental

Office Address: Kagawasan, Ave., Daro, Dumaguete City, Negros Oriental

Tele #: (035) 225 2376 / 541 1117
E-mail Address: [email protected]
 6

TLE - HE
Quarter 2 - Module 2:
Allocation of Budget for Basic
and Social Needs
 What I Need to Know

The money being used by the family comes from salary or other forms of
income of family members. It can also come from bonuses, commissions or
honorarium received by an employee.

By means of proper budgeting, the family can properly allot the income. All
family members should have a knowledge of family budgeting to know how much is
spent for family needs and where the income goes.

This module is designed to introduce and help you understand about

preparing feasible and practical budget, managing family resources efficiently, and
prioritizing needs over wants.

Content Standard
Demonstrates an understanding and skills in managing family
resources.

Performance Standard

Manages family resources applying the principles of home management

Most Essential Learning Competency

Prepares feasible and practical budget/manages family resources

efficiently/prioritizes needs over wants.
TLE6HE-0b-3-4

Learning Objectives

At the end of the module you should be able to:

1. Define budget and enumerate the elements of a family budget.

2. Calculate budget for basic and social needs.

3. Value wise spending of money.

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 What I Know

I. Identify the components of a family budget. Choose the correct answer

inside the box below and write it in your notebook.
___________ 1. Rice, coffee, bread

___________ 2. House repair, house rental, amortization

___________ 3. Underwears, jackets, t-shirts

___________ 4. Tuition fees, notebooks, school bag

___________ 5. Electric fan, dining set, kitchen wares

___________ 6. Salary of workers, water bills, telephone bill

___________ 7. Doctor’s fee, medicines, laboratory tests

___________ 8. Field trip, swimming, outing
___________ 9. Deposits, investments, insurance

___________ 10. Fruits, vegetables, fish

FOOD SHELTER CLOTHING

EDUCATION HOUSEHOLD OPERATIONS UTILITIES
HEALTH RECREATION SAVINGS

II. The following are all important, but they can still be classified under
NEEDS or WANTS. Identify which can be the need, and which can be the
want. Write NEEDS or WANTS in your notebook.

_____ 1. a wristwatch _____ 6. a laptop

_____ 2. clean water to drink _____ 7. daily food for lunch
_____ 3. a pair of skinny jeans _____ 8. a soft mattress to lie on

_____ 4. television _____ 9. school uniform

_____ 5. the latest cellphone unit _____ 10. notebook, pen, pencil

2
 Lesson Allocation of Budget for
2 Basic and Social Needs
The standard of living of people is reflected in their family budget. Money can
be managed properly by allocating budget wisely. Make a plan for the family’s
expenses. Through this, the family will learn to spend wisely, save regularly, and
participate in family matters more actively.

What’s In

Are you ready to start your day in a more productive way? If yes, that’s good!
If no, then you must think twice. I am sure you would like to contribute something
good to your family. You may be thinking how. Therefore, this module will help you
find out the secret on how to budget and have a wise spend of money.

What’s New

Study this situation.

Tina had been saving for her birthday. She wanted to treat her best friends to
a pizza and ice cream party, like what they also do.
Every day, she would save a portion of her allowance for that wishful dream.
She had already saved about four hundred pesos. It was still a week before her
birthday. She could add a few more pesos to that.
On the eve of her birthday, she secretly opened her wallet and counted her
savings. “Wow, I’ve got six hundred pesos,” she smiled and hugged her savings so
dearly on her chest.
But… Tina was startled by her mother’s voice from the other room. “Father,
what shall we do? Den-den is very sick,” cried Mother.
“We must bring him to the hospital. He is running a very high fever,” Father
cried.
“But we do not have money,” Mother sobbed.

3
 Tina clutched her savings with her two hands. She felt mixed emotions
in her heart. What about the birthday blowout that she had promised to her
friends? But Den-Den is sick, and she loves her brother so dearly.

Shortly, Tina folded the money in her hands. Then, she approached
Mother. She almost choked as she said, “Mother, I have some savings. Please
bring Den-Den to the hospital.”
Tears flowed down on Tina’s cheeks, but she felt no remorse for what she
did. She felt lightness in her heart. She knew that she had done what she ought
to do.

 If you were Tina, would you have done the same thing? Why or why not?

What is It

In this lesson, you will learn more

things about allocation of budget for basic
and social needs. Every member must also
know how the family income is budgeted.
Through budgeting, family members learn
to spend money wisely, thus, saving money
which could be used for other family needs.
Resources such as time, energy, and
utilities are also used well when income is
budgeted.

https://www.philstar.com/business/2019/09/24/1954341/budget-deficit-seen-
widen-next-year

LET’S BE INFORMED

A budget is the amount of money set aside

for planned expenses. It is a plan specifying
how much money will be spent or allocated
during a particular period.

Budgeting is related to the wise use of family

resources. It is based on the system by which
wages or salaries are received and how these
are to be spent by itemizing the needs of the https://www.allbusiness.com/basic-marketing-budget-117818-
family and how much money is needed to meet such
1.html
needs.

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Components or elements of a family budget

• Food – groceries, raw and cooked food, staples, condiments, and spices
• Shelter – if not renting, includes taxes, repair, and maintenance
• Clothing – uniforms, clothes, and accessories
• Education – tuition fees, books, daily food, transportation allowance of children
• Household operations – things needed in the house, beddings, curtains, furniture,
and other paraphernalia to make members comfortable
• Utilities – electric, water, and telephone bills, gas, salaries of helpers
• Health – medicine, check-up
• Recreation – family outings, outside dining, watching movies.
• Savings – the amount set aside or deposited in the bank

Allocation of Family Budget

A family budget may differ from one family size and composition, family values
and standards of living. Some families may spend more on food, others on clothing
and still others on education.
The values of the family influence its priorities.

Sample of Monthly Budget

Monthly Income: Php 25, 000.00
Family Members : 4

ITEM % OF BUDGET AMOUNT

ALLOTED
Food 40 P10,000.00
Education 16 P4,000.00
Shelter 15 P3,750.00
Utilities 12 P3,000.00
Household Operation 6 P1,500.00
Clothing 3 P750.00
Recreation 3 P750.00
Savings 5 P1,250.00
Total 100 P25,000.00

How to manage family resources efficiently?

1. Inform all the members of the family about the budget.

2. Make adjustments to your budget as necessary. Keep within the amount

allocated for budget items.

3. Choose a simple lifestyle that you can sustain with your earnings.
4. Buy only things that are needed.
5. Schedule your expenses.

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6. Follow a shopping and marketing schedule.

7. Avoid making unscheduled, unplanned purchases especially at a store you are

not familiar with.
8. Teach the children to spend their allowance wisely.

9. Conserve energy and other utilities.

10. Recycle or reuse materials.

11. Repair appliances and furniture as needed.

12. Take good care of your belongings.

13. Buy products that are of good quality and reasonable price.

Factors affecting the family budget

The following are some factors that can affect a personal or family budget.

1. Amount of Income – the higher the income of the family, the greater the

amount that the family members can spend for their

needs and wants. But, the greater the income, the more

savings the family can have for the future. On the other

hand, the smaller the income of a family, the more it

needs to spend for what is most important and immediate

needs. Food, shelter, clothing, education, and utilities are

some of the immediate needs of most families today.

2. Size and Composition of the family – the more family members are there, the

bigger amount of income is spent on food, schooling,

clothing, and for their other basic needs. Also, when

family members are still young and growing up, the more

expenses are needed for their food, health

and medical expenses, clothing and other basic needs.

3. Values of the family – different families and different individuals have different

values so they have different priorities on how to spend

their money.
4. Needs and wants of the family – needs are materials which the family

members need to survive on a day to day basis. Food,

shelter, and clothing are basic needs. Today, however,

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 education, transportation, lights, and water are also

considered needs. Wants, on the other hand, are

materials that the family members desire to have. They
can be postponed if the budget is not enough but can be

purchased if the budget allows it. Jewelry, new dresses,

cell phones and other electronic gadgets, appliances,

and cars are some of the wants most families would like

to buy.
Needs and Wants

Our needs and wants motivate us to work hard. They encourage and inspire
us to get involved in productive endeavors that will help our families live better.

It is important for family members to distinguish clearly their needs from their wants.
In family budgeting, we must prioritize our needs and not wants.

What’s More

A. True or False: Write TRUE if the statement is correct and FALSE if it is wrong.
Write your answer in your notebook.

1. Cellphones, books, computers and laptops are basic items that one need from
day to day.
2. One important consideration in making a list of expenditures is to know your
priorities.
3. Balance your income and expenditures.
4. Buy your needs first before anything else.
5. Fixed expenses may be increased or decreased depending on the money
available.
6. Needs are those things which family needs to survive on a day to day basis.
7. Know your income or allowances for a definite period of time -monthly, weekly,
daily.
8. Spending for fun and satisfaction that comes occasionally can be part of a
budget.
9. Family budget represents family income.
10. Needs first before wants.

B. Identify what component of family budget the following belongs. Write your
answer in your notebook.

______ 1. Rice, coffee, bread

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 ______ 2. House repair, house rental, amortization
______ 3. Underwears, jackets, t-shirts
______ 4. Tuition fees, notebooks, school bag
______ 5. Electric fan, dining set, kitchen wares
______ 6. Salary of workers, water bills telephone bill
______ 7. Doctor’s fee, medicines, laboratory tests
______ 8. Field trip, swimming, outing
______ 9. Deposits, investments, insurance
______ 10.Fruits, vegetables, fish

C. Adopt the 70-20-10 principle of budgeting for the following families. Show
recommended breakdown of their expenses. Write your answer in your
notebook.

1. Torres family (with four family members)

Combined net family income: P70,000.00 a month

Expenses: (70%) ____________________

Savings: (20%) ____________________
Emergency savings: (10%) ____________________

2. Cruz family (with three family members)

Combined net family income: P45,000.00 a month
Expenses: (70%) ____________________
Savings: (20%) ____________________
Emergency savings: (10%) ____________________

What I Have Learned

LET’S REMEMBER

1. The budget is the amount of money available for a particular use.

2. Four types of spending involved in a budget include spending for comfortable
living, spending for major purchases, spending for savings, and splurge
spending.
3. The family income is the combined earnings of the father, mother, and other
members of the family.
4. Expenses can be classified as fixed, flexible, occasional, and emergency
expenses.

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5. Factors affecting family budget are amount of income, size and composition of
the family, values of the family, needs and wants of the family.
6. There are six steps in making a budget.
7. The proper method of handling the budget is to separate in envelopes the money
allotted for all expenses listed on the budget. Do not touch the money for an item
unless it will be used for the intended purpose

What I Can Do

Using a pie graph below, prepare a monthly family budget using the total
income of the family for one month. You can make your own pie graph if it is not
applicable to your family budget. Do this in an illustration board or folder in a
creative way. Use rubrics to assess your output. Pass it through your parent for your
score.

RUBRICS

CRITERIA POINTS
1 2 3 4
Use of Visuals Missing Missing Unclear Clear
in Pie Graph most some labeling or labeling or
labeling or labeling or coloring of coloring of
coloring of coloring of key items. key items.
key items. key items.
Mechanics of Many math Some math No major No math
Pie Graph errors. errors. math errors.
errors.
Use of Data Missing Missing Unclear Clear
Table most some labeling of labeling of
labeling of labeling of key items. key items.
key items. key items.
Demonstrated Many Some Few errors No errors
Knowledge of errors errors made when made when
Data Table made when made when transferring transferring
and Pie Graph transferring transferring information information

9
 information information from data from data
from data from data table to pie table to pie
table to pie table to pie graph. graph.
graph. graph.
Neatness of Few things Some Most things Everything
Data Table of are neat things are are neat is neat and
Pie Graph and neat and and readable.
readable. readable. readable.
TOTAL

Assessment

Direction: Identify the following. Choose the correct answer inside the box below.
Write your answer in your notebook.

1. The higher the income of the family, the greater the amount that the family
members can spend for their needs and wants.
2. Related to the wise use of family resources. It is based on the system by which
wages or salaries are received and how these are to be spent by itemizing the
needs of the family and how much money is needed to meet such needs.
3. Different families and different individuals have different values so they have
different priorities on how to spend their money.
4. The more family members are there, the bigger amount of income is spent on
food, schooling, clothing, and for their other basic needs.
5. The amount of money set aside for planned expenses. It is a plan specifying
how much money will be spent or allocated during a particular period.
6. Materials which the family members need to survive on a day to day basis like
food, shelter, and clothing.
7. Classified as fixed, flexible, occasional, and emergency expenses.
8. Inform all the members of the ___________ about the budget.
9. Materials that the family members desire to have.
10. The combined earnings of the father, mother, and other members of the
family.

family income amount of income budget

budgeting needs wants

size and composition values family

expenses

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 Additional Activities

Interview a parent (A), and a relative (B) about their family budget. Fill up the chart
with the data collected. Tell them that their names will be held confidentially. Write
it in a long bond paper and pass it to your teacher through your parent.

Families FAMILY A FAMILY B

Monthly Income Php Php
EXPENDITURES
 Food
 Housing
 Education
 Services (water,
electricity, telephone,
cable, internet)
 Clothing
 Savings
 Recreation

11
 12
What’s More What I Know
C. 1. Expenses: Php 49, 000.00 I.
Savings: Php 14, 000.00
Emergency Savings: Php 7, 000.00 1. FOOD
2. Expenses: Php 31, 500.00 2. SHELTER
Assessment Savings: Php 9, 000.00 3. CLOTHING
Emergency Savings: Php 4, 500.00 4. EDUCATION
1. Amount of 5. HOUSEHOLD
budget OPERATIONS
2. Budgeting
6. UTILITIES
3. Values
7. HEALTH
4. Size and
composition 8. RECREATION
What’s
5. Budget What’s More 9. SAVINGS
More
6. Needs 10. FOOD
7. Expenses A. B.
8. Family II.
9. Wants 1. FALSE 1. FOOD
2. SHELTER 1. WANTS
10. Family income 2. TRUE
3. CLOTHING 2. NEEDS
3. TRUE
4. EDUCATION 3. WANTS
4. TRUE
5. HOUSEHOLD 4. WANTS
5. TRUE
OPERATION 5. WANTS
6. FALSE
6. UTILITIES 6. WANTS
7. TRUE
What I Can Do 7. HEALTH 7. NEEDS
8. TRUE
8. RECREATION 8. WANTS
9. TRUE
Activity 2 9. SAVINGS 9. NEEDS
10. TRUE
10. FOOD 10. NEEDS
Output rating may vary
Answer Key
References
Internet sources

https://www.economicsdiscussion.net/articles/family-budgets-meaning-importance-and-engles-
law-of-family-expenditure/1457

https://www.doughroller.net/tools-resources/10-online-budget-tools

https://www.philstar.com/business/2019/09/24/1954341/budget-deficit-seen-
widen-next-year

www. Agrademath.com/rubrics/pieGraph.html

https://www.bing.com/search?q=expenditure&qs=EP&pq=expenditure&sc=8-
11&cvid=C29D25C4C90144ED951AA856965A1ED2&FORM=QBRE&sp=1

https://www.bing.com/search?q=RECREATION&qs=n&form=QBRE&sp=-
1&pq=recreation&sc=8-10&sk=&cvid=FBC4A0C2E62543ACAB1B50D3283DD522

https://www.bing.com/search?q=expenses&qs=EP&pq=expense&sc=8-
7&cvid=B984E3943D964A8587C6CE11E30EAE9D&FORM=QBRE&sp=1

https://www.bing.com/search?q=utilities+DEFINITION&qs=n&form=QBRE&sp=-
1&pq=utilities+definition&sc=8-
20&sk=&cvid=2BE743B725144C3897F9E88DC111BF0C

Home Economics and Livelihood Education 6

Ma. Tita D. Reyes, et.al.

Home Life 6
Rosario B. Butaran, et.al.
For inquiries or feedback, please write or call:

Department of Education – Schools Division of Negros Oriental

Kagawasan, Avenue, Daro, Dumaguete City, Negros Oriental

Tel #: (035) 225 2376 / 541 1117

Email Address: [email protected]
Website: lrmds.depednodis.net