6.4 Budgeting


Steps in managing money include identifying the amount of income available and the expenses that need to be covered, and prioritising short and long term goals. Individuals, households, government, businesses, and other organizations all budget with these ideas in mind.

Most budgets are developed for a set period of time. A family might develop a monthly household budget; a high school student, a weekly budget based on an allowance. Businesses routinely do quarterly budgets; schools are mandated to prepare annual budgets. Making a budget for spending and saving can help people reach their goals.

Everyone makes decisions each day on their budgets, although not always consciously, on how to spend or save the income they have. By keeping a simple daily or weekly budget, you may become aware of how you might cut an expense and save for something you really want.

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