Budget

A written plan that matches expected income to expenses and savings goals.

In more detail

Budget is one of the foundational terms in budgeting. Understanding it clearly helps you read financial documents, compare products, and avoid the kind of small misunderstandings that compound into expensive mistakes.

An example

Imagine you are evaluating a typical financial product where this concept appears. Knowing exactly what budget means lets you ask the right follow-up questions, compare two options on an even footing, and choose what is best for your circumstances rather than what sounds best in marketing copy.

Related terms

• APR (Annual Percentage Rate) — The yearly cost of borrowing, including interest and most fees, expressed as a percentage.
• APY (Annual Percentage Yield) — The real annual return on a deposit, accounting for compounding within the year.
• Asset — Anything of value you own that could be sold or used to generate income.
• Budget — A written plan that matches expected income to expenses and savings goals.

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