Which term is defined as a financial plan used to forecast and track income and expenses?

• A. Budget
• B. Career
• C. Certificate of Deposit (CD)
• D. Charitable Contributions

Answer: (A)

Budgeting is a plan for forecasting and tracking income and expenses. It helps you estimate how much money will come in and how much you’ll spend over a set period, like a month or a year. With a budget, you assign planned amounts to different spending areas—rent, groceries, utilities, entertainment—and then compare what you actually spend to what you planned. This keeps your money on track, makes it easier to save, and helps you adjust when income changes or if you want to reach a savings goal. The other options refer to different concepts: a career is your field of work, a Certificate of Deposit is a saving vehicle with fixed terms, and charitable contributions are donations, not a plan for forecasting and tracking finances.