Household expenses can be an overwhelming and complex part of budgeting for a family. As head of household, you are tasked with managing the finances and keeping within a budget that works for your family’s needs. Household expenses represent a per-person breakdown of general living costs such as shelter, food, clothing, furniture, and utilities.

The United States Internal Revenue Service (IRS) has given "head of household” status to the individual responsible for the primary financial support of their family. This provides the head of household with a larger standard deduction, and more advantageous tax rates.

Household expenses commonly consist of various fixed expenses like mortgage and rent payments, property taxes, utility bills and household items, as well as incidental expenditures like groceries, clothing and entertainment. Although each of these expenses are essential for daily living, it is important to properly manage and prioritize these costs in order to meet budget requirements.

Home-related expenses can make up a bulk of household expenses and can include mortgage or rent payments, property taxes, homeowners’ insurance, utilities (water, electricity, gas and telephone). Unforeseen repairs are generally not budgeted and can come as a nasty surprise. Home-related expenses can be minimized by making energy-saving modifications to your home, such as installing double-glazing windows, purchasing energy-saving appliances, and using solar energy. In addition, local electricity, gas, and water companies may offer discounts or special rates to qualified, low-income families.

Child-related expenses are also an important factor when considering household expenses. These expenses can include daycare, tuition and school supplies, extracurricular activities, health and dental costs and child support payments. Many of these costs can be reduced by reducing spending on extras and researching discounts and grants offered by local governments.

Transportation costs, including the purchase of a car, gasoline, and the cost of public transportation, are also part of household expenses. Transportation costs can be reduced if you use public transportation, plan trips ahead of time, and use low-grade gasoline.

Household expenses also must include entertainment costs. Common entertainment expenses include eating out, purchasing tickets for movies, plays, concerts, and trips. Though entertainment can relax the family and can provide quality bonding time, these expenses can often become a large budget drain.

Household expenses should be thoroughly planned and monitored to ensure money is available for essential costs, such as rent or mortgage payments, utilities, food operating costs, health and dental expenses, and transportation costs. It is often helpful to write down a list of fixed and variable expenses and prioritize them accordingly to prevent overspending on unnecessary items. By following these tips, your family can minimize household expenses and better set themselves up for financial success.