The Money PagesDo We Have to Spend the Last $9?
A school group leaves room in its plan for costs it doesn’t know yet.
A school project has $50. The things it plans to buy cost $41. That leaves $9.
Does the group have to spend the $9 now? No.
It could keep some money ready in case another cost comes up. A plan like this is called a contingency: a backup for a possible problem.
Not every budget has spare money. And $9 won't cover every surprise. But when there is money left, it's worth thinking before spending it.
At the end, the group follows its school's rules for any money it hasn't used.
Money words
Contingency
A backup plan or amount kept ready for a possible problem.
If money is left, you can keep some ready for a surprise. You do not have to spend it all now.
