Family Budget Honor

Household Arts

Requirements

1. What is a Family Budget and what is the importance of making one?

   Answer: A family budget is the planning of the family's income and expenses over a period (monthly). It lists income (salary, extra income) and expenses (food, housing, transportation, health, leisure). Its importance lies in controlling spending, avoiding debt, saving, and achieving financial goals. — Steps: record all income, list fixed expenses (rent, bills) and variable ones (leisure, groceries), calculate the balance. Biblical principles: stewardship (1 Cor 4:2), honest work (2 Thess 3:10), tithing (Mal 3:10), avoiding debt (Prov 22:7). Useful apps: Organizze, Mobills, Money Lover. Adventism emphasizes faithfulness in tithes and offerings as a spiritual and financial principle.

2. Make a list of your family's expenses and classify them into necessary, useful, and superfluous.

   Answer: Necessary: essential to survival (food, housing, health, basic transportation, education). Useful: improve quality of life without being essential (internet, moderate leisure, additional clothing). Superfluous: dispensable (luxury, expensive brands, expensive hobbies, impulse spending). — Example list. Necessary: rent, water, electricity, basic food, medicine, bus, school. Useful: internet, TV plan, reasonable new clothing, gifts on special dates. Superfluous: brand-name clothing, expensive restaurants, expensive trips, unnecessary electronics. In a crisis, cut superfluous items first, then reduce useful ones. Principles: temperance (1 Cor 9:25) and Christian stewardship over resources.

3. Check your family's shopping list of groceries and hygiene and cleaning products. Are all the items really necessary?

   Answer: List what you buy each month. Assess the frequency of use, the appropriate quantity (leftovers become waste), cheaper alternatives (generic, in bulk, at the market), and the real need. Focus on health and cost-benefit in the family routine. — Practical criteria: real use (food that goes to the trash is waste), expiration date (do not buy too much of a perishable), price per unit (kg, liter), alternatives (store brand, bulk, market), need (a superfluous item can be cut). Tools: a simple spreadsheet, a shopping-list app, comparison of stores. Ellen White recommends simplicity in food (The Ministry of Healing).

4. Find out which is the best day and place to buy greens, fruits, and vegetables in your neighborhood.

   Answer: Research neighborhood street markets (Saturday/Sunday, better prices), produce markets, supermarkets, and local producers. Compare prices and quality. Buy on market day for freshness, and prefer seasonal fruits/vegetables for savings. — Advantages of the street market: direct from the producer, freshness, better prices at the end of the market (discounts), seasonality. The produce market is intermediate in price and variety. The supermarket offers convenience, but higher prices for produce. Organic: specialized markets. App: Mercado Livre Hortifruti, Cestas Verdes. Adventism values natural and fresh food, in line with The Ministry of Healing.

5. What can you and your family do to save water, electricity, and on the phone bill?

   Answer: Water: quick showers, turn off the tap while brushing teeth, reuse water from the washing machine, fix leaks. Energy: LED bulbs, unplug appliances, dry clothes on the line, moderate air conditioning. Phone: basic plans, use Wi-Fi, messaging apps instead of traditional calls. — The water bill drops with a 5-min shower (vs. 15 min). A dripping leak wastes 4,000 L/month. LED saves 80% vs. incandescent. The standby mode of electronics consumes 12% of energy. Phone: WhatsApp is free, basic plans cost R$30 vs. R$100 for unlimited. Daily habits add up to significant annual savings, a principle of Christian stewardship (Luke 16:10).

6. What is inflation?

   Answer: Inflation is the widespread and continuous increase in the prices of goods and services over time, reducing the purchasing power of money. Measured in Brazil by the IPCA (IBGE), it affects family budgets and savings, requiring planning and investments that protect wealth from monetary devaluation. — Causes: excess demand, production costs, expansionary monetary policy. Consequences: reduced purchasing power, loss of savings, rising interest rates. Brazil had hyperinflation in the 1980s-90s; today the target is ~4.5% per year. Tesouro IPCA+, real estate funds, and real assets protect against inflation. Families should protect their emergency fund in indexed investments.

7. What taxes does your family need to pay? In which month must they be paid?

   Answer: Common taxes: IPTU (property, annual, usually Jan-Feb in installments), IPVA (vehicle, annual, Jan-Mar according to license plate), IRPF (income, declaration Mar-May, adjustment within the year), ICMS (built into purchases), ISS (services). Families may also pay fees (garbage, street lighting) and contributions (social security). — IPTU: municipality, the assessed value of the property. IPVA: state, a % of the vehicle's value. IRPF: federal, progressive rates (0% to 27.5%). ICMS: built into prices (average 18%). ISS: services (up to 5%). The schedule varies by municipality/state. App: Receita Federal Digital. The Brazilian tax burden is high (~33% of GDP), requiring family planning to avoid delays and fines.

8. What types of purchases should never be made on installment? Why?

   Answer: Avoid on installment: perishable food (it runs out before being paid off), superfluous items (luxury, brand), electronics that quickly become obsolete, leisure trips, and items for immediate consumption. Reason: paying interest on something already consumed decapitalizes the family, increases debt without return, and burdens the future budget with old obligations. — Principle: finance only essential durable goods (house, car, appliance). Food, superfluous clothing, parties, and fast-changing technology do not justify interest. Prov 22:7: 'the borrower is servant to the lender'. In an emergency, plan to pay in cash. A credit card without paying the full bill generates interest of more than 300% per year in Brazil, devastating family finances.

9. What is interest? How should it be calculated?

   Answer: 1) What interest is: it is the compensation paid for the use of borrowed money, expressed as a percentage of the amount (principal) per period. 2) How it should be calculated: in simple interest, J = C × i × t (principal × rate × time); in compound interest (more common), M = C × (1 + i)^t. In Brazil, credit cards and overdraft have high interest (more than 300% per year). — Types: simple (linear) and compound (interest on interest, exponential). Example: R$1000 at 10% per year for 2 years. Simple: 1000×0.10×2 = R$200. Compound: 1000×(1.10)² = R$1210. The difference grows with time. The Selic is the base rate (it sets the others). Prov 28:8: 'he that increaseth his wealth by usury'. Adventism advises caution with debt.

10. Research what the interest rate and finance charges are on the following lines of credit:
    • Credit card
    • Overdraft
    • Personal loan

    Answer: A credit card has interest of 13-15% per month (revolving), overdraft 7-10% per month, a personal loan 5-8% per month. The credit card and overdraft are the most expensive options and should be avoided. — The Central Bank of Brazil publishes average credit rates monthly, with the revolving credit card being the most expensive option in the world according to the World Bank, with an annual average exceeding 400% in 2023, justifying stricter regulation today.

11. What measures should be taken when the family is in debt?

    Answer: You list all debts with their rates, prioritize paying off the most expensive ones (credit card, overdraft), cut superfluous spending, renegotiate with creditors, swap expensive debts for cheaper ones (payroll loan), seek extra income, and avoid new loans. — An SPC Brasil 2023 survey shows that 73% of Brazilians are in debt. Procon and the Public Defender's Office offer free assistance for renegotiation. The Desenrola Brasil platform, launched in 2023, helped negotiate billions in debt officially.

12. What percentage of a family's income should be saved?

    Answer: You ideally save 10-20% of your monthly income for an emergency fund (6 months of expenses) and investments. Minimum: 10% to start building wealth. Emergency fund first, then invest the surplus in planned goals. — The 50-30-20 rule (50% needs, 30% wants, 20% savings) was popularized by Senator Elizabeth Warren in 'All Your Worth' (2005), and is an international standard currently taught in financial education worldwide in every country.

13. Research at least 2 methods, besides a savings account, for investing the saved money. What are the advantages and disadvantages of each?

    Answer: You can invest in: Tesouro Direto (Brazilian Treasury bonds — safe, low risk, IPCA+), CDB (returns similar to savings+), real estate funds (monthly income, volatile), stocks (high volatility, high potential return), private pension plans (long term). — Tesouro Direto, created in 2002 by the National Treasury, democratized investments in Brazil with a minimum investment of R$30. In 2023 more than 2 million Brazilians invest in it, making it the second most popular form after savings accounts nationally.

14. Know how to do the following:
    • Fill out and endorse checks
    • Fill out receipts
    • Pay payment slips and/or invoices at a self-service terminal
    • File payment receipts
    • Interpret a checking/savings account statement

    Answer: You fill out a check with the name, the amount in numbers and in words, the date, and a signature. Endorse it on the back. Receipts describe the product/service, the amount, the date, and a signature. Bank slips (boletos) are paid in banking apps or at an ATM via the barcode. — Basic financial education for the use of banking instruments has been included in the BNCC (Brazilian National Common Curricular Base) since 2018 as a cross-cutting theme, being an essential competency for every Brazilian from high school onward for full adult financial autonomy.

15. Keep a personal budget and a report of money coming in and going out for at least 6 months.

    Answer: Record daily all income (allowance, work, gifts) and expenses (snacks, transportation, leisure). Use a notebook, spreadsheet, or app (Organizze, Mobills). Categorize the spending. Make a monthly summary with the balance. After 6 months, analyze trends and adjust your personal financial behavior. — Daily discipline is the key. Apps make automatic categorization easier. Useful categories: food, transportation, leisure, clothing, tithe. The monthly summary shows a surplus or deficit. Trends reveal patterns (excessive spending on snacks, little saving). Adjustment is formative: learning to manage money young prevents adult problems. Christian stewardship teaches responsibility from an early age.

16. Set up a family budget and keep an accurate report of income and expenses for 6 months.

    Answer: Gather the family, list all combined income (salaries, earnings), list all expenses (fixed, variable, seasonal). Define categories and goals. Use a shared spreadsheet or app. Update it weekly. Hold a monthly meeting to review balances, adjustments, and progress on the established family goals. — Family involvement is essential for success. Categories: housing, food, transportation, health, education, leisure, tithe, savings. Goals: a trip, replacing a car, a reserve fund. Collaborative apps: shared Mobills, Google Sheets. Monthly meetings align expectations. Adventism: planning as stewardship (Luke 14:28-30 - count the cost). Financial education strengthens the family.

17. Read Malachi 3:8-12 and write at least 250 words about what it means, to you, to be a faithful steward.

    Answer: Biblical stewardship encompasses time, talents, body, and resources. The tithe (10%) is holy (Lev 27:30). Offerings are voluntary (2 Cor 9:7). Mal 3 is the only text where God invites us to 'test me'. Blessings are not only material, but spiritual and relational. Adventism sees the tithe as a test of faithfulness and an expression of gratitude for salvation. Application: budget, tithe, offerings, support of the work, environmental responsibility.