Operating budget

An operating budget is like a plan for how much money someone or something needs to operate. For example, let's say you have a toy store that sells toys. You need to plan how much money you will need to run the store for the year. This means you need to figure out how much you will spend on things like rent, electricity, toys, and your employees' salaries.

It's kind of like making a shopping list for your store, but instead of buying groceries, you're figuring out how much you will spend on everything you need to keep the store up and running. You might also think about how much money you expect to make from selling toys and how much you need to break even or make a profit.

Having an operating budget is important because it helps you know exactly how much money you have to work with and how much you need to spend on each thing. This way, you won't accidentally spend more money than you have and you can make sure your store stays open and successful.