What Is a Budget?
A budget is a written plan for how you spend your money each month.
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In this lesson you learn to
- Define a budget as a plan for income and spending over a period
- Work out a surplus or a deficit from an example
- Tell fixed costs from variable costs
Check yourself: sample questions
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1.What is a budget?
A budget is a written plan for how you spend your money each month. It shows income and expenses.
2.Worked example: 2,500 comes in each month and 2,300 goes out. What is left?
Income minus spending: 2,500 - 2,300 = 200 left each month (example numbers).
3.Which of these are usually fixed costs? Select all that apply.
Several answers can be correct.
Fixed costs stay about the same each month (rent, phone plan). Variable costs move around (food, fuel, going out).
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Sources (3)
- Federal Trade Commission, consumer.gov: "Making a Budget" (Faltblatt, August 2024)
- U.S. Bureau of Labor Statistics: Consumer Expenditures - 2025 (News Release, 29.10.2026)
- Eigene Berechnung (synthetisches Monatsbudget; Wochen-Monats-Umrechnung)
Education only. Not financial advice.