Budget

A budget is a plan for using money. It is a tool to help manage money and forecast expenses.

For example, a student may create a budget to manage their tuition, rent, and living expenses. This budget may look something like this:

Total Income - Total Expenses = Savings

Where total income consists of any money earned from a job, scholarships, or grants, and total expenses are the costs of tuition, rent, food, and other living expenses. The budget is used to plan how much money to allocate for each expense, with the goal of having money left over for savings.