What is budgeting?

When the money you have is limited, it is really important to keep track of your finances so that you don’t spend more than you can afford. If you don’t have enough money to do everything you want, a budget can help you prioritise and decide what is most important to you.

A budget records the money you have coming in, such as your salary or wages, benefits and pensions, against payments you make, like your rent or mortgage, Council Tax, insurance and other living expenses.