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budget

BUJ-it /ˈbʌdʒɪt/

nounverbB1

neutral

An estimate of income and expenditure for a set period of time; to plan the expenditure of (money, time, etc.).

Refers to a systematic plan for managing money or resources. It's a tool for financial control, applicable to individuals, families, businesses, and governments.

The story behind the word. The word 'budget' has a surprisingly humble and physical origin! It comes from the Old French 'bougette,' which meant 'a small leather bag' or 'pouch.' This was the bag where people would carry their money and documents. When the British Chancellor of the Exchequer presented his financial plans to Parliament, he would literally 'open his budget' (his bag of papers). Over time, the word shifted from meaning the bag itself to meaning the contents of the bag – the financial plan. So, when you make a budget, you're metaphorically opening your financial 'bag' and planning its contents!

Word relationships

financial plan: A more formal and comprehensive term for a plan concerning money.
estimate: An approximate calculation or judgment of the value, number, quantity, or extent of something; 'budget' is a specific type of financial estimate.
allocation: The action or process of allocating or distributing something; 'budget' is the plan for allocation.

overspend: To spend more than the amount of money available or allotted.
deficit: The amount by which something, especially a sum of money, is too small.
surplus: An amount of something left over when requirements have been met; an excess of production or supply over demand.

Commonly confused with

account: An 'account' is a record of financial transactions. A 'budget' is a plan for future transactions.

Word family

budgetary (adjective): Relating to a budget.
budgeter (noun): A person who budgets.

Collocations

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

Idioms & expressions

on a budget
blow the budget

Example sentences

"Creating a monthly budget helped her track her spending and identify areas where she could save." Personal financial planning.
"The government announced its annual budget, outlining proposed spending for defense, education, and healthcare." Government financial policy.
"I need to budget my time carefully this week to finish all my assignments before the deadline." Managing time effectively.

Memory hook

Your BUDGET is like a BAG-it of money you plan. BAG of money plan

When not to use

Do not use 'budget' when you mean simply 'money' or 'funds' without the implication of a planned allocation or limit.

Fun facts

The phrase 'to open the budget' was a common parliamentary expression in the 18th century, referring to the Chancellor of the Exchequer's annual statement.