Family budgeting is the process of creating a plan to manage a household's finances. It involves tracking income and expenses to ensure that spending does not exceed earnings. By setting financial goals, families can allocate funds for necessities like housing, food, and utilities, while also saving for future needs or emergencies. A successful family budget typically includes categories for discretionary spending, such as entertainment and vacations. Regularly reviewing and adjusting the budget helps families stay on track and make informed financial decisions. This practice promotes financial stability and encourages responsible spending habits among family members.