Family Budget as A Factor of Economic Well-Being

This scientific article examines the importance of strategic planning and management of the family budget in today’s volatile economic conditions. The author explores the economic essence of the family budget and analyzes three primary management models: joint, separate, and mixed.The article presents rules for classifying expenses to ensure the financial stability of the family, as well as practical recommendations for creating a "financial safety net" and fostering a culture of consumption. Furthermore, special emphasis is placed on the impact of financial literacy on the socio-psychological climate within the family and the development of future generations. Empirical studies highlight the crucial importance of family budgets in sustaining financial stability, a fundamental aspect of overall economic well-being. Fergusson et al. emphasize that direct assessments of familial material well-being, including ownership and economizing practices, serve as dependable markers of a family's financial health beyond conventional income measurements. Allegretto similarly asserts that family budgets, which incorporate local and family-specific expenses, provide a more comprehensive view of economic stability than poverty levels alone. The formulation and administration of household budgets significantly affect a family's ability to endure economic disruptions, as evidenced by Malheiros et al., who identified that proficient resource distribution and debt management are essential for the resilience of rural households. Furthermore, Rasool emphasizes that open and accountable household financial management is essential for economic stability, particularly in volatile economic contexts such as Ukraine. These findings together confirm that a well-organized family budget improves financial stability by allowing families to allocate resources effectively, manage debts, and adjust to economic changes, thereby promoting ongoing economic well-being.