This paper made an attempt to study the household expenditure patterns of remittance receiving families in Kathmandu. A field survey was conducted in order to see the contribution of remittance for improving the livelihood of the respondents` family. The factors incorporated in the study were; basic consumption, education, health, entertainment, saving pattern, building a new house and repayment of loan expenses. Non-probability convenient sampling technique was used and a structured questionnaire was distributed to collect the information from the respondents in Kathmandu. The study depicted that the highest portion of the remittance was used on purchasing food expenses and for the education expenses of the children. Other portion of it was used for health expenses, saving; repayment of the loan and etc. The analysis predicts that remittance-recipient households experienced a significant effect of remittance on the household`s consumption, education and health expenses as well as saving which leads to improve the wellbeing of the family.