Introduction Family income is a particular sum of money the whole family gets annually. The salaries, income from deposits and other stable and regular incomes are really important for the family as depending on this information many families plan their costs. Having the information about the annual income of the family and the list of the obligatory costs, it is possible to calculate the expenses of the family, the cloths they can buy and the number of entertaining places they can visit. Moreover, the food and other unexpected costs should be considered. However, it seems rather difficult for the family to pay attention to unexpected expenses and to plan them if the family income is too low. Additionally, there are a number of notions which should be considered while discussion of the family budget. The Consumer Price Index is the notion which should not be avoided as it is the measure which points at the obligatory items people are to be able to buy on the salaries and income they have. Family and Living Conditions The situation is the follows. The family consists of a father, a mother, and two kids, a 10 years old girl, and a 4 years old boy. The family lives in the personal house which is not that small as children do not have to share the rooms and have their personal ones. The family income comprises 15300$ annually, which is about $1275 monthly. The task is to consider the budget of the family, and calculate their costs on the basis of the fact that these people are to live in the house, buy food and clothes and provide other expenses obligatory for an average American citizen. Consumer basket The consumer basket is the number of categories which account the items necessary for living. There are about 200 categories which are gathered into eight great groups. Thus, food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, other goods and services are the items which are to be involved in calculation. Thus, using this pattern as the basis for creating the budget for a family, the following data should be considered. Things necessary for living As it has already been mentioned, the family is to be able to buy the items mentioned in the consumer basket. Here is the detailed description for each of the major categories. Food and beverages are important for the family, however, paying attention to their low income, this category should be presented with breakfast cereal with milk, coffee or tea, chicken (another type of meat may be too costly for the family), wine, and full service meals which are comprised of a great many of different vegetables and other products. Much attention should be paid to the prices in this category. The cereals may cost about $22.08, different breakfast bars and other snacks about $2-3 per item. This may be enough for a week or two. Milk will cost the family about $90 a week (1 pack costs $30, which is for two-three days). The process are presented as the sample how the average annual cost of the life was calculated for the family. The prices for most of the products may vary greatly depending on the season and on the place where the products are to be bought. This category also covers eggs, fruits, fats and oils, alcoholic beverages, me