When Essential Prices Rise: What Happens to a Family Budget? I will use a simplified monthly budget for a family of four. My purpose is to show, step by step, what happens when supermarket and energy/fuel prices rise while household income stays unchanged. Main idea: A family cannot easily stop buying food, heating the home, or travelling to work. When these essential costs rise, the extra money has to come from somewhere else in the budget. 1. Starting monthly budget Category Monthly amount Type Housing & utilities €750 Essential / mostly fixed Transportation €150 Essential Insurance €100 Mostly fixed Debt repayments €200 Fixed Childcare & education €200 Essential Supermarket €500 Essential – affected by price rises Energy & fuel €250 Essential – affected by price rises Leisure & personal spending €100 Adjustable Total regular spending €2,250 Income €2,500 Money remaining / possible savings €250 The family normally spends €750 per…