INFLUENCE OF MATHEMATICS IN HOME BUDGET

BIJITHA VASU

ABSTRACT
The study intended to know how much is the home budgeting influenced by Mathematics, and to
know whether there is any advantage of using mathematics in home budgeting. For this study a
sample of five families of different economic status is taken. A questionnaire was given to each
family to know about their income and expenditure. The result revealed was, irrespective of
economic status, those who have a definite plan of the percentage of income to be spent for
different purposes have a savings.

INTRODUCTION
Mathematics has an important role in everyday life. Numerical and logical thinking play
a part in each of everyday activities. A good understanding of mathematics is essential for
making sense of all the numbers and problems life throws at us. Budget is prepared either in
quantitative details or both. A budget is a statement that is always prepared prior to a defined
period of time. This means a budget is always prepared for future period and not for the past.
Budget will show the planning in terms of rupees or in quantity or both. The objectives of
budgeting are planning, co-ordination and control. This article is about mathematics in home
budget.

NEED AND SIGNIFICANCE

The application of mathematics in day to day life is very vast. For effective planning of home
budget mathematics is used. Those who spent money without any plan, dont get enough as
savings. The application of mathematics is important here. Mathematics and its application helps
people to spent their income effectively and necessarily and also to analyze their income and
expenditure.

STATEMENT OF THE PROBLEM

The study is about the application of mathematics for effective planning of home budget.
OBJECTIVES

To study the impact of mathematics on home budget.

To study peoples awareness about the application of mathematics in money
management.

METHODOLOGY

First of all a questionnaire was prepared to study the objectives. The questionnaire contained the
details of family members, their income and expenditure and also includes the questions to
evaluate whether the sample is aware of the application of mathematics for an effective home
budget.

A sample of ten families who belong to different economic categories were selected. Investigator
did a primary data collection by asking each question to the sample. The ideas of budget, its
objectives and types of budget were acquired as secondary from text books. The filled
questionnaires are coordinated and the study is evaluated.

ANALYSIS AND INTERPRETATION

In the month of September , investigator conducted the study among five families. The data is
collected, how much is the income, how much they spent for different needs.

Family 1 Family 2 Family 3 Family 4 Family 5

Taxes/ payment of loans 7500 500 500 5000 21000
House maintenance 2000 - 3000 2000 4000
Grocery+ Fruits+ Vegetables 5000 7500 12000 10000 1500
Travelling 2500 2000 3500 3000 3000
Education and classes 5000 5000 1000 3500 -
Electricity+ Water+ Gas+ Milk 1500 2000 5000 4000 5000
Media 500 500 500 500 1000
Clothing 2500 1500 2500 2000 4500
Savings 8500 6000 2000 20000 -
Total Income 35000 25000 30000 50000 40000

The range of income of the selected sample was between 25000-50000. Family 4 has highest
income and highest savings. Most of the sample have savings, but in different ranges. Families in
the sample spent more money either to purchase grocery items or to pay taxes or loans. Every
family spent enough for education and classes except the fifth family. In some cases the money
spent for clothing is comparatively high.

CONCLUSION

Among the five families , those who spent money according to the budget or on the basis of
percentage utilize their income well. They have enough savings in every month. But those who
spent money on requirement cannot save enough money , even their expenditure on education is
low. They have no proper planning and do not use application of mathematical ideas for the
purpose.

REFERENCE

Institute of Cost accountants of India, Cost Accounting and financial management

(2013).