“Everyday millions of families buy food, go shopping, avail of services such (salon, massage, entertainment) , eat out – which can be summarized by one activity: spend money. While it is true that most families have dual breadwinners still there is always shortage of money. Could it be that the income is not enough? Probably but even families with high-income complain of not having enough.
The problem then is not the income but the budget. Generally, a budget is a plan which is reflected in value (money). A homemaker (who usually manages the budget) spends money as soon as she receives it from the husband’s salary. The money received can be considered receivables. The first thing that is usually done is pay bills, utilities, credit cards, insurance and other payables. It seems a routine task but what happens actually is the process of home accounting.
The terms may be different in general accounting since there are no vouchers nor entries at home but there are definitely receivables, payables and budget. In the past few years, more people (especially the breadwinners) have utilized the advantage learning home accounting. It is not really a scientific procedure but rather a more objective way of seeing how money gets spent in a household.
Home accounting involves preparing a budget, listing down all payables as well as receivables, and recording all transactions made.These transactions can be in the form of paying bills or even purchasing items in a grocery.
Indeed, home accounting tracks down exactly where all the money went including the pennies. This might seem rigorous at first but it definitely pays back in the long run.
First, planning a budget makes the members of the household get conscious about their spending habits. Once a budget is set, there is not much room for a splurge on some luxury items since it will affect other expenses. People who would do home accounting for the first time would be surprised how money is spent unwisely on sale items that were not even used.
Second, the value of delaying gratification will be instilled in family members. There would be a deeper appreciation of the value of money aside from just being a commodity.
Lastly, one can make decisions about the future since there is an concrete overview of resources available. Indeed, home accounting benefits not only the planner but the whole family as well.”