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Budget Meaning: Definition, Examples, and Translations

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budget

[ˈbʌdʒɩt ]

Definitions

Context #1 | Noun

financial planning

A budget is an estimation of revenue and expenses over a specified future period of time. It is a financial plan that allocates resources based on a company's strategic goals and objectives.

Synonyms

allocation, financial plan, spending plan.

Examples of usage

  • The company created a budget for the upcoming fiscal year.
  • We need to stay within our budget to ensure profitability.
Context #2 | Verb

financial management

To budget means to create a plan for the use of money, taking into account income and expenses. It involves setting limits on spending and prioritizing financial goals.

Synonyms

allocate, manage, plan.

Examples of usage

  • We need to budget carefully to save for our vacation.
  • She budgets her income to ensure she can pay all her bills.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Historical Context

  • The modern practice of budgeting began in the 19th century when governments started using detailed fiscal plans to manage public funds.
  • The first government budget was drawn up by the British Parliament in the 1680s, marking a significant shift in public finance transparency.
  • Budgeting became a formalized process in businesses after World War II, where companies recognized the need for financial discipline.

Psychology

  • Research shows that having a budget can reduce financial anxiety and increase feelings of control over personal finances.
  • People who stick to a budget often develop better money habits, leading to long-term financial stability and security.
  • Studies indicate that visualizing budget categories helps individuals better understand and allocate their finances effectively.

Pop Culture

  • In TV shows and movies, characters often face relatable budgeting dilemmas, highlighting the importance of managing money wisely.
  • The phrase 'living within your means' frequently appears in popular media as a theme for character development and conflict resolution.
  • Numerous apps and tools featured in trending pop culture help simplify budgeting for younger audiences, making it accessible and engaging.

Education

  • Budgeting is increasingly being taught in schools to equip young people with crucial money management skills for adulthood.
  • Financial literacy programs often include budgeting elements, empowering individuals to make informed fiscal decisions.
  • Understanding how to create a budget is a foundation for advancing personal finance education, helping students visualize their financial future.

Origin of 'budget'

Main points about word origin

  • The word 'budget' comes from the Middle English term 'bougette,' which means 'small bag,' referring to where money was kept.
  • The term evolved from the French word 'bougette,' indicating a pouch or wallet, highlighting its connection to finances.
  • Historically, the concept of a budget has been used since ancient times when peoples kept records of expenditures and resources.

The word 'budget' originated from the French word 'bougette', which means 'little bag'. In the late 18th century, it was used to describe a financial statement of the government. Over time, the meaning evolved to include personal and corporate financial planning.

See also: budgetary, budgeting, underbudget.

Word Frequency Rank

This word ranks #1,511, placing it within important intermediate vocabulary. Learning it will significantly improve your ability to express yourself in English.