12/5/25, 12:46 AM Family Budget Report - Financial Literacy Assignment
FINANCIAL LITERACY
Assignment
Session: 2024-2028
UNIVERSITY OF DELHI
FACULTY OF COMMERCE
BACHELOR OF COMMERCE ([Link])
ACCOUNTING & FINANCE
SUBMITTED TO: SUBMITTED BY:
Mr. Amit Kumar Sourav Yadav
1st Year
[Link]
CSE A1
Roll-No. 26
Urban Middle-Class Family Income & Budget
1. Family Background
Our family is part of the growing urban middle-class segment in Delhi. We consist of five
members: my father (a software engineer), my mother (a homemaker), my two younger sisters,
and myself. My father is the primary earning member, with a stable income from his IT job.
Additionally, my mother has started freelance content writing work, which provides
supplementary income. Unlike agricultural families, our income is relatively stable, though we
face expenses related to urban living and education.
The yearly household income is approximately ₹15,00,000 , distributed between my father's
salary and mother's freelance earnings. Our family prioritizes education and investment for the
future while maintaining a comfortable lifestyle.
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12/5/25, 12:46 AM Family Budget Report - Financial Literacy Assignment
2. Monthly Income Pattern
Our primary income comes from my father's fixed monthly salary of ₹1,10,000. Additionally, my
mother earns an average of ₹15,000 to ₹20,000 per month through freelance content writing
projects. This provides a stable and predictable monthly income of approximately ₹1,25,000 to
₹1,30,000 , making financial planning more straightforward compared to agricultural or informal
sector livelihoods.
3. Monthly Expenses Breakdown
Rent/Mortgage: ₹35,000
Groceries & Food: ₹18,000
Electricity & Utilities: ₹8,000
Internet & Mobile: ₹3,000
Education (Tuition & Coaching): ₹12,000
Health & Medical Insurance: ₹5,000
Transport & Fuel: ₹6,000
Clothing & Personal Care: ₹4,000
Entertainment & Dining Out: ₹5,000
Insurance (Life & Home): ₹8,000
Miscellaneous/Emergency Fund: ₹4,000
4. Education-Related Financial Details
Education is a major priority in our family. My two younger sisters attend a private English-
medium school, costing ₹8,000 per month. I am pursuing a [Link] degree, with tuition fees of
₹4,000 per month. Additionally, we invest in coaching classes for competitive exams, adding
another ₹3,000 to our monthly budget. The total education expenditure stands at approximately
₹15,000 per month, which is about 12% of our monthly income.
My mother's freelance income primarily supports education expenses and future savings,
demonstrating the importance of multiple income sources in middle-class household
management.
5. Health and Insurance Expenses
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12/5/25, 12:46 AM Family Budget Report - Financial Literacy Assignment
Unlike families depending on government hospitals, we maintain a comprehensive health
insurance policy covering all family members, costing ₹5,000 monthly. We also allocate funds for
regular medical check-ups and preventive healthcare. Emergency medical expenses are
managed through our health insurance, reducing out-of-pocket costs. Life and home insurance
policies add another ₹8,000 to our monthly budget, providing financial security.
6. Summary of Monthly Budget
The total monthly expenses sum to approximately ₹1,08,000 to ₹1,12,000 . This leaves a surplus
of ₹13,000 to ₹22,000 per month after expenses, which we allocate toward savings and
investments.
EXPENSE CATEGORY AMOUNT (₹)
Rent/Mortgage 35,000
Groceries & Food 18,000
Electricity & Utilities 8,000
Internet & Mobile 3,000
Education 12,000
Health & Medical Insurance 5,000
Transport & Fuel 6,000
Clothing & Personal Care 4,000
Entertainment & Dining Out 5,000
Insurance (Life & Home) 8,000
Miscellaneous/Emergency Fund 4,000
TOTAL MONTHLY EXPENSES ₹1,08,000
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12/5/25, 12:46 AM Family Budget Report - Financial Literacy Assignment
Monthly Surplus: After total expenses of ₹1,08,000 from an average income of ₹1,27,500,
the family maintains a monthly savings of ₹19,500. This surplus is invested in mutual funds,
fixed deposits, and children's education plans.
7. Financial Challenges & Planning
Rising costs of education and private schooling expenses.
Need for long-term investment planning for children's higher education and marriage.
Balancing current lifestyle with future financial security.
Managing unexpected medical emergencies despite health insurance.
Planning for retirement and creating passive income streams.
Inflation impact on purchasing power and real returns on investments.
8. Conclusion
This middle-class urban family budget reflects the financial opportunities and challenges of the
growing professional segment in Indian cities. With stable dual income, access to insurance, and
investment opportunities, the family can build wealth while maintaining a comfortable lifestyle.
Strategic financial planning, diversified investments, and continuous income growth through skill
development ensure long-term financial security and enable the family to achieve its goals of
quality education, home ownership, and retirement planning.
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