Expenditures refer to the amounts of money spent on goods and services. They can include various categories such as household expenses, business costs, and government spending. Understanding expenditures is essential for budgeting and financial planning, as they directly impact savings and investments. In personal finance, tracking expenditures helps individuals manage their money effectively. By categorizing spending, such as food, housing, and transportation, people can identify areas to cut back. For businesses, monitoring expenditures is crucial for profitability, while governments analyze expenditures to allocate resources and fund public services.