What is a plan for how money will be spent called?

A plan for how money will be spent is called a budget. A budget details how much income is anticipated and how those funds will be allocated across different categories of expenses, such as necessities, savings, and discretionary spending. It serves as a financial roadmap, helping individuals or organizations to manage their finances effectively and achieve their financial goals.

While a financial plan is a broader concept that may include a budget as one of its components, the term specifically refers to the systematic approach of allocating funds that best describes a budget. A balance sheet, on the other hand, provides a snapshot of assets, liabilities, and equity at a specific point in time, rather than focusing on spending plans. An action plan outlines steps to achieve specific objectives but does not specifically focus on financial expenditure. Thus, the most accurate term for a plan outlining how money will be spent is indeed a budget.