Budgeting

Create a simple personal budget

Creating a Budget

A budget is a plan for your money. It lists expected income and planned expenses for a period (week, month). A budget helps you control spending, save money and avoid debt. Everyone — from children to businesses to government — benefits from budgeting.

Example

A Simple Budget

Thandi's Weekly Pocket Money Budget: Income: R50 pocket money Planned expenses: • School tuck shop: R20 • Savings: R15 • Stationery: R10 • Emergency: R5 Total: R50 ✓ (balanced budget) If she spends R30 at tuck shop, she must cut somewhere else!

Note

Remember

A balanced budget: income = expenses + savings. Always include saving in your budget — even 10% is good. Review your budget regularly and adjust. Stick to your budget! Unplanned spending ruins budgets. Write it down so you can track it.

Key Vocabulary

BudgetA written plan showing expected income and planned spending

BalancedWhen income equals expenses plus savings

PlanDeciding in advance how to do something

TrackTo keep a record of what you spend

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Budget

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