basic needs
Also called: kebutuhan dasar
Essential spending for food, housing, health, and basic education.
What it means
Basic needs are expenses that must be met for a family to live decently, such as nutritious food, housing, water, electricity, basic education, and health services. Basic needs differ between families depending on household size, location, and health conditions. A family budget's priorities should start here.
Why it matters for families
Separating basic needs from wants is the foundation of a healthy budget. If this line is blurred, a family can cut important needs such as health or education for momentary wants. As a result, financial risk rises when something unexpected happens.
Example
For example, income of Rp8 million with two children. Basic needs such as rent, food, electricity, and school might reach Rp5.5 million. The rest goes to installments, savings, and wants, in a priority order agreed on together.
Common misunderstanding
People often assume all monthly expenses are basic needs. The correction is that basic needs are only what truly supports a decent life, while the rest needs to be reassessed.