budget

BUJ-it /ˈbʌdʒɪt/
nounverbadjectiveB1IELTSTOEFLGMAT
neutral

An estimate of income and expenditure for a set period of time; to plan the coordination of resources and expenditures.

In travel, it refers to the financial limit set for a trip, or products (like airlines or hotels) that are low-cost.

The story behind the word. From Middle English 'bowgette', from Middle French 'bougette', which was a diminutive of 'bouge' meaning 'leather bag or wallet'. This traces back to Latin 'bulga', a leather bag of Celtic origin. The word came to mean a financial plan because the chancellor of the exchequer would carry financial statements in a leather bag.

Word relationships

  • allowance: An allowance is a specific amount of money given regularly for a purpose, while a budget is a comprehensive plan for managing all expenses.
  • funds: Funds refers simply to available money, whereas a budget is the strategic plan for how those funds will be spent.
  • extravagance: Extravagance is spending money excessively without a plan or limits, the opposite of budgeting.

Commonly confused with

  • finance: Finance refers to the management of large amounts of money (often by governments or companies), while a budget is a specific spending plan.

Word family

  • budgetary (adjective): Relating to a financial budget.

Collocations

  • tight budget
  • travel budget
  • budget airline
  • within budget

Example sentences

  • "I am traveling on a tight budget, so I prefer staying in hostels and cooking my own meals." A backpacker explaining their travel style
  • "The department must budget carefully for international travel next fiscal year." A corporate travel policy

Memory hook

Think of a 'budge-it'. If your expenses are too high, you have to 'budge' or shift your numbers to make them fit! A budget keeps your wallet from budging too much.

When not to use

Do not use when referring to a simple price tag; it must refer to the broader plan of managing money.

Fun facts

  • The British Chancellor of the Exchequer still carries the government's annual budget speech in a famous red leather briefcase, a direct nod to the word's origins.

Related words

insurance, reservation

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