Spending refers to the act of using money to buy goods or services. When you go to the store and purchase items like groceries or clothes, you are spending your money. People often budget their spending to ensure they can afford what they need while saving for the future. Many factors influence spending habits, such as income, personal preferences, and economic conditions. For example, during a holiday season, people might increase their spending on gifts and decorations. Understanding spending helps individuals manage their finances better and make informed decisions about their money.