1
Q
Budget
A
A planning device to help a person or business achieve their financial goals and control their money.
2
Q
What are the components of a budget?
A
Income earned (money coming in) subtracted by expenses (money going out)
= surplus or deficit
3
Q
Surplus
A
When a consumer’s income is greater than their expenses, so money can be saved and invested or further spent.
4
Q
Deficit
A
When a consumer’s expenses are greater than income because of overcommitment, leading to the consumer needing to either earn more or spend less.
