1. It helps the family to make wise decisions about expenses I.e, how their income is been spent on good and services.

2. It helps the family to spend money on what they really need I.e, prioritizing their needs before their wants.

3. It prevents wasteful spending of family money I.e to minimize wastage of resources.

4. It helps the family to see how they they spend their money ( helps them keep account on how their money was been spent).