Considering the mind of rivalry between families, each family focuses not only on its own wealth but also on other families, especially neighbors. In this paper, we investigate the non-zero-sum mean-variance game between two families with a random household expenditure under the default risk and relative performance. Applying the stochastic control theory within the framework of the game theory, the extended Hamilton–Jacobi–Bellman equation equations are derived. By solving this equation, we obtain the Nash equilibrium strategies of the two families and the corresponding equilibrium value functions. We also provide a numerical example to analyze the effects of relevant parameters on Nash equilibrium strategy and on the utility loss due to the mind of rivalry.