Monthly family budget example with real numbers
One example explains more than a thousand rules. Here is a month for a family of three, split into shares of income, so you have something to compare yours with.
In short
A typical monthly family budget, as shares of income: housing around thirty percent, food around twenty, transport and children's costs eight each, utilities six, savings ten, yearly costs and emergencies five, and health, phone and personal money three to four each. If housing takes more than forty percent, everything else has to shrink, and the main lever is housing itself.
The example is in shares of income rather than money: every country has its own currency and prices, and a share carries over to any city. Take your income as a hundred percent and compare.
A family of three: two adults and a school-age child, a rented home, one car.
Essential expenses
30%
Housing
Rent or mortgage
6%
Utilities
Electricity, water, gas, internet
20%
Food
Groceries and eating out together
8%
Transport
Car, fuel, fares
Housing is the largest item in nearly any budget. Thirty percent is the benchmark at which everything else fits without strain.
Food at twenty percent includes both groceries and eating out. They are worth keeping on separate lines: they are two different decisions, and the one that usually grows is the second. More in how much to spend on groceries.
Children, health, phone
8%
Children
School, activities, clothes, pocket money
3%
Health
Medicine, appointments
3%
Phone and subscriptions
Plans, streaming
Children's costs depend heavily on age and grow every year. A separate line per child is not for control but for knowing the real figure. More in a family budget with children.
Savings and what comes once a year
10%
Savings
Moved out first, on payday
5%
Yearly and unexpected
Insurance, taxes, repairs
4%
Personal money
Two percent each, no questions asked
3%
Other
Whatever did not fit the lines above
A hundred percent in total. Note the personal money line: a small amount for each adult that does not need explaining. Without it, every small purchase becomes a topic for discussion.
What if your shares are different
They almost certainly are, and that is normal. Three common cases:
- Housing is forty-five percent or more. Everything else will have to shrink, and it will hurt. The main lever is housing, not coffee.
- Food is over twenty-five percent. It is usually not the supermarket that grows but weekday meals out.
- There are no savings. Start small, but on payday: how to save money.
There is only one way to learn your real shares: record every expense for a month without changing anything. To compare with the classic rule, see the 50/30/20 rule.
How much you can spend per day
In the example, essential expenses, savings and yearly costs come to about eighty percent. What is left, together with the day-to-day part of the food budget, is what can be spent freely. Divide that amount by the days left in the month and you have a daily limit. How to work it out when the month has not gone to plan is in how much can I spend today.
If you want to run this budget in a spreadsheet, here are the columns it needs.
Common questions
- How should a family split its monthly budget?
- As a benchmark, in shares of income: housing around thirty percent, food around twenty, transport and children eight each, utilities six, savings ten, yearly costs and emergencies five, and health, phone and personal money three to four each.
- What share of income is normal for housing?
- Around thirty percent. At forty-five or more, the rest of the budget has to be squeezed hard, and the main lever is housing itself, not trimming small things.
- Should the budget include personal money for each adult?
- Yes — a small amount each that does not need explaining. Without it, every small purchase becomes a topic for discussion, and within months people start hiding receipts.
Try it on your own money
Caudal is an expense tracker in Spanish, English and Russian. Several currencies, goals, debts, a shared household budget. Recording an expense takes three seconds.
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