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budget

BUH-jit /ˈbʌdʒɪt/

nounverbB1

neutral

A plan for how much money will be spent and on what, over a particular period of time.

As a noun, it's the plan itself. As a verb, it's the act of creating and adhering to that plan.

The story behind the word. The word 'budget' comes from the Old French 'bougette,' meaning 'small leather bag' or 'pouch.' Imagine a time when all your financial documents and money were literally kept in a small bag! Over time, the word evolved to refer not just to the bag, but to the contents within, and eventually, to the plan for managing those contents.

Word relationships

financial plan: More formal and broader, 'budget' is a type of financial plan.
spending plan: More informal, emphasizing the expenditure aspect.

extravagance: Refers to excessive spending, the opposite of careful budgeting.

Commonly confused with

fund: A 'fund' is a sum of money set aside for a specific purpose; a 'budget' is the plan for how all funds (and income) will be used.

Word family

budgetary (adjective): Of or relating to a budget.
budgeter (noun): A person who creates or manages a budget.

Collocations

strict budget
tight budget
household budget
set a budget
stick to a budget
manage a budget

Idioms & expressions

budget crunch (a period of financial difficulty)

Example sentences

"Our family created a monthly budget to ensure we don't overspend on non-essentials and can save for our vacation." Financial planning for a household.
"The marketing department needs to budget carefully for the new campaign, as resources are limited." A company's financial strategy.
"The government's annual budget proposal sparked heated debate in parliament." Discussing government spending.

Memory hook

Think of a 'bag it' list – you 'budget' what goes into your financial bag. Bag-it plan

When not to use

Avoid using 'budget' to mean simply 'money' or 'funds' without the implication of a structured plan for spending.

Fun facts

The British Chancellor of the Exchequer still presents the 'Budget' to Parliament, often carrying it in a red dispatch box, a modern echo of the old 'bougette'.