The term that is defined as a financial plan that anticipates how much money you will earn and how much money you will need to cover expenses is:
A. Budget
Explanation:
1. A budget is a financial plan that outlines an individual's or organization's income and expenses over a specific period, usually monthly or annually.
2. By creating a budget, you can estimate your income sources (such as salary, investments) and allocate funds for various expenses like rent, utilities, groceries, and savings.
3. Budgeting helps you track your financial health, identify areas where you can save money, avoid overspending, and achieve your financial goals.
4. It involves setting limits on spending in different categories and monitoring your actual expenses to stay within those limits.
5. In contrast, the other options are:
- B. Inflation: a general increase in prices and fall in the purchasing value of money.
- C. Impulse purchase: buying something without planning or consideration.
- D. Cost of living: the average cost of basic necessities such as housing, food, and transportation in a particular place.
