At home, at work and at school, working within a budget is of vital importance.
Budgeting is listing estimated income and expenditures for a given time period or event.
Once this list is done, you are able to make informed choices regarding income and expenditure as time or the event passes, based upon this budget.
Income- how much money is received normally from employment. Other sources of income can include interest from savings accounts, tax credits and benefits.
For budgeting purposes it is necessary to start calculations after all tax and insurance amounts have been deducted from salaries. This is known as net income (incomings).
Expenditure- the amount spent on items which are deducted from income. Expenditure amounts will vary depending upon the situations being considered (outgoings).