- Budgeting provides a way to measure financial performance. It is a self-evaluation of progress.
- Budgeting reveals wasteful or inefficient spending patterns.
- Budgeting requires the family to identify and deal with potential financial problems before they arise and consider possible alternative courses of action.
- Budgeting may be used to establish financial goals and determine the feasibility of meeting them.
- Budgeting may provide motivation to accomplish financial goals.