Make & Balance Budgets

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What is a budget?

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A budget is a plan that outlines how much money you expect to earn and how much you plan to spend over a certain period.

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Why is it important to balance a budget?

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Balancing a budget is important to ensure that you do not spend more money than you earn, which helps avoid debt.

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What does it mean to overspend?

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Overspending means spending more money than you have budgeted or earned.

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What is income?

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Income is the money you receive, usually from work or investments.

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What is an expense?

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An expense is any money that you spend.

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How can you track your spending?

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You can track your spending by keeping a record of all your expenses, such as using a notebook or a budgeting app.

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What is a financial record?

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A financial record is a detailed account of all income and expenses over a specific time period.

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What is a fixed expense?

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A fixed expense is a cost that does not change from month to month, such as rent or a subscription.

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What is a variable expense?

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A variable expense is a cost that can change from month to month, such as groceries or entertainment.

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What does it mean to save money?

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Saving money means setting aside a portion of your income for future use instead of spending it all.