What Are 3 Basic Budget Categories?

What are the four stages of the budget process?

The budget cycle consists of four phases: (1) prepara- tion and submission, (2) approval, (3) execution, and (4) audit and evaluation.

The preparation and submission phase is the most difficult to describe because it has been subjected to the most reform efforts..

What is the biggest expense of the US government?

Social Security will be the biggest expense, budgeted at $1.151 trillion. It’s followed by Medicare at $722 billion and Medicaid at $448 billion.

What are there 3 different spending categories?

The U.S. Treasury divides all federal spending into three groups: mandatory spending, discretionary spending and interest on debt. Mandatory and discretionary spending account for more than ninety percent of all federal spending, and pay for all of the government services and programs on which we rely.

What are 3 parts of a family budget?

The Economic Policy Institute reports that family budgets for a modest standard of living have seven components: housing, food, child care, transportation, health care, other necessities such as clothing and entertainment, and taxes.

What are the 4 types of expenses?

You might think expenses are expenses. If the money’s going out, it’s an expense. But here at Fiscal Fitness, we like to think of your expenses in four distinct ways: fixed, recurring, non-recurring, and whammies (the worst kind of expense, by far).

What is a typical family budget?

According to the chart on CreditLoan.com, which was derived from information released by the Bureau of Labor Statistics, the average American family spends roughly 34 percent of its income on housing. This includes rent or mortgage payments.

How do I make a family budget?

How to Prepare a Simple Family BudgetSet a Savings Goal. Sit down with your partner and decide how much you would like to save per month. … Determine Your Income. Get out copies of each of your pay stubs. … List Your Expenses. … Calculate Leftover Amount. … Adjust Variable Expenses. … Plan Spending. … Monitor Your Budget.

What is a typical household budget?

That means the average American budget is $61,224 — a 1.9% increase from 2017. According to the BLS, consumer units “include families, single persons living alone or sharing a household with others but who are financially independent, or two or more persons living together who share major expenses.”

What categories should be in a budget?

Budgeting 101: Personal Budget CategoriesA list of recommended personal budget categories is a great place to start when creating a budget. Here are two ways you can get the most out of the list:Housing.Transportation.Food.Utilities.Clothing.Medical/Healthcare.Insurance.More items…

What are the two main categories in a budget?

The two main categories in your budget are Direct Costs and Facilities & Administrative (F&A or indirect) Costs.

What does the government spend the most money on?

Nearly 60 percent of mandatory spending in 2019 was for Social Security and other income support programs (figure 3). Most of the remainder paid for the two major government health programs, Medicare and Medicaid.