What Is A Budget?
The simplest definition is an estimation of both money coming in and going out for a period of time. It can also be described as a goal or limitation on your spending and savings for a period of time. Some of you might have heard the word budget from your parents. Most of you probably do not have to worry about the daily bills that pile up within your household. These bills probably include your home, transportation, food, and the occasional entertainment. It’s also recommended that you also put some of the money you earn into a savings account for a rainy day. The key is to not spend more money than you are making. In a 2016 Gallup Poll, only 32% of couples keep a written budget. Understanding how a budget works will also help you when it comes time to purchase the items needed for your next campout. If you're the Quartermaster in your troop, then you understand the importance of not spending more on food or gear than what has been allocated for that specific activity.
For this merit badge, you will prepare a budget of your expected income and expenses for the next 13 weeks. During those 13 weeks, you will then track and record your actual income and expenses. Break out your expenses into categories. These typically include: Housing, Transportation, Food, Utilities, Insurance, Medical and Healthcare, Savings, and Personal Spending.
Having this comparison will help you understand where your money actually goes compared to where you think it should be. If your expenses are higher than what you budgeted and your spending more than you earned, then you will want to take another look at your budget and see what items you need to adjust. It may also be a good idea to look at your expenses and determine if what you're spending your money on is a need or a want.
Tracking your budget may seem like a lot of work, but it doesn't have to be. Use what works best for you to track your budget. This could be simply a notebook where you write down everything, a spreadsheet, or even an app that is linked to your bank account.