family budget
Also called: anggaran rumah tangga, AR
A plan for dividing monthly income into spending categories before the money is spent.
What it means
A family budget is a written plan for where household money will be allocated in one period, usually monthly. It contains allocations for fixed expenses, variable expenses, savings, and other goals. In Indonesia, budgets are often made simply by recording income and then dividing it into spending categories. A budget differs from an expense record because it is made before the money is spent.
Why it matters for families
A budget means spending decisions are no longer based on feelings when money is available. Without a budget, families easily spend money on small things and run out before the end of the month. The concrete result is that important bills such as electricity or loan installments may be delayed, and savings never form. A budget also becomes a communication tool between husband, wife, and other family members about priorities.
Example
For example, a family earns Rp8 million per month. The budget allocates Rp3 million for fixed expenses, Rp2.5 million for variable expenses, Rp1.5 million for savings and an emergency fund, and Rp1 million for other needs. At the end of each month, actual spending is compared with the plan. The difference is used to improve the next month's budget.
Common misunderstanding
Many people think a budget is only for high-income families. The correction is that a budget actually helps families with limited money the most because it forces them to choose priorities.