What Should I be Spending in Budget Categories?
Deciding how much money should be allocated to various categories in a family budget depends upon the particular family’s income, lifestyle, and financial goals. The following ranges of percentages, however, can serve as guidelines:
| Budget Category | Percentage |
|---|---|
| Housing | 33-35% |
| Food | 18-25% |
| Transportation | 7-9% |
| Clothing | 6-12% |
| Medical | 6-8% |
| Automobile Insurance | 2-3% |
| Life Insurance | 2-5% |
| Education | 1-2% |
| Credit Obligations | 12-15% |
| Savings | 2-10% |
| Recreation/Entertainment | 2-6% |
| Church/Charities | 2-10% |
