Are you worried about your budget getting out of your income? This Sample budget for a family of 5 is definitely going to release you from all of your financial worries.


Making a budget for a family of five is undoubtedly a challenging task. It is something that everyone is struggling with (probably not for Bill Gates or Jeff Bezos). 

My complicated journey of maintaining a budget started after a few delightful days of my wedding. But unfortunately, the effort has a harsh start but no end. 

Tip: Find out some best cash envelope wallets to hold your family budget and cash in it.

Don’t get disappointed! Once I acquired the skills of creating a budget, it couldn’t bother me anymore.

I. Creating A Budget For A Family Of 5

Every family follows its own criteria for earning and spending money. But behind the scenes for this story are evenly the same in every middle-class family.

Following this sample budget can help you a lot to survive with your limited income.

Let’s plan our budget by considering a sample budget for a family of 5 like mine. Suppose a family with three children along with their parents.The budget greatly varies from family to family that concerns the following:

  • What is the net income of the family?
  • The spend on accommodation (rents, mortgage payments, etc.)
  • Billing rates
  • Spends on groceries and entertainment
  • Insurance expenses
  • Transportation etc.

Mortgage payments or rent is the major expense throughout the other expenditure. It is mostly about 20%-30% of the net income for most families.

It must not exceed it to maintain a budget. The average rent is $1,529 for an apartment with three bedrooms. Depending on your needs, it reduces to $1,207 for a two-bedroom apartment.

Another chief expense, groceries, I spend 17% of my monthly income on them. A constant effort caused it to drop by 14%. An average spend on groceries can be $750 with children of teen ages. It may increase to $820 with young children. Be cautious. It should never exceed 20% of net income.

Gyming and personal care cost me about $150. 5-9% of my net income goes for the purpose of entertainment including the expenses of our children.

Mortgage payment$1459

01. Maintaining billings expenses of my budget:

Electricity and gas bill$220
Water bill$42 
Cell phone and TV cable$98
Premiums for other applications and software$15
Other taxes$150

02.  There is a part of our revenue to insurance.

Buying insurance helps financially to face any inconvenience in the future. Many of us purchase insurance so consider it to be a part of our monthly sample budget.

Health insurance$405
Car Insurance$115

03. Medical and other emergencies pricing

Being human, we all have to face a state of a medical emergency. Therefore, one should keep a share of his income to withstand that emergency.

There is a part of medical expenses to our family budget. Medical and healthcare costs are around $265 that vary monthly to me. Many times, I save a considerable amount of it. But sometimes, the medical expenses make the budget out of the whole month. It became more than $500 for the surgery of my daughter. It cost a net amount of about $475 at the time of birth of my children.

04. Setting aside a portion of my income for big expenses,

Setting up a proper budget is often disrupted by some big expenses. Therefore, I already set aside a portion of my income for such major expenses.

Buying a new refrigerator, my mobile phone had broken recently and repairing the pipelines of my home, all these were a part of my big expenses. My perfect family budget grants me a considerable amount for yearly expenditures.

Despite these, I make savings for any emergency.

II. Making savings out of a budget

Making savings, a vital action towards creating a budget. Firstly, I set a goal that Why am I making savings? It can be done for various purposes, for marriage, travel, or to meet any need of our children.

Savings are indispensable to secure your financial life after retirement. I add up to 20% of my income to my savings account. It should be $1,356 on average. It should not be reduced to 10%.

About 2% should set apart of your revenue to meet yearly expenses. You must try to save 20% of your income in a bank account. Upon saving some money out of regular costs, add them up to your savings account.

III. Calculate Your Income

It is the first step towards generating a family budget plan. I calculate it first so that I can make adjustments in my expenses accordingly.

IV. Calculate Your Fixed Costs

The second step is calculating fixed costs. Fixed expenses are those spending that don’t vary monthly but remain the same. They may include rent or mortgage values, different types of taxes, insurance premiums, and other billings that remain fixed from month to month.

V. Calculate Your Variable Expenses

Variable expenses are those that may vary monthly. Households, groceries, electricity and water billings, and clothing are my variable expenses, along with the cost of entertainment. 

Calculate Your Net Income

At last, I calculate my net income that excludes all the taxes. I also exclude my fixed expenses from my net income. In this way, I become able to adjust my variable spend according to my net income

VI. Tips to Create a Monthly Household Budget

  • Set your primary goals of spending before maintaining your budget.
  • If a budget gets out of some unexpected expenses, adjust the budget according to your net income.
  • Keep upgrading your budget according to your requirements

FAQs: Sample Budget For A Family Of 5

Have a look at our budget grocery list.

What is the average monthly budget for a family of 5?

Well, it is $6,800 on a monthly basis or $81,400 annually. It will be markedly less for a family of four.

What is a reasonable grocery budget for a family of 5?

$750 is an acceptable budget for groceries. It is for a family of five with children of little ages. It can exceed $820 for young children.

What income does a family of 5 need?

$7,500 is a satisfactory monthly income. About $6,800 can be the monthly expenses of a family of 5. It is important to consider a reasonable amount for saving.

How do you calculate the family budget?

First, calculate your monthly income, followed by a calculation of your expenses (fixed and variable). Schedule your budget accordingly.

How much should we appoint for entertainment?

5 to 8% of our total income is the average you can appoint for the cause of entertainment.

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