Explain 2 uses of a budget ?

1. Planning and controlling expenses: A budget helps individuals or organizations plan and allocate their financial resources effectively. By setting specific limits on spending in different categories, a budget can help prevent overspending and ensure that funds are available for essential expenses. It also allows for tracking expenses and making adjustments as needed to stay within budget.

2. Setting financial goals: A budget can be used to set and track progress towards financial goals. By outlining income and expenses, individuals can identify areas where they can save or cut back in order to reach their goals, such as saving for a vacation, paying off debt, or building an emergency fund. A budget provides a roadmap for achieving these goals by showing how money is being allocated and where adjustments can be made to prioritize savings and investments.

Explain simple interest and compound interest