A spending plan refers to a detailed budget or financial plan that outlines how much money an individual, business or government entity intends to spend on various expenses over a specific period. It is a tool used to help manage finances by allocating funds for necessary and discretionary items while also taking into account savings goals and other financial objectives. A spending plan can be short-term, covering a few months or long-term, covering several years. By creating and sticking to a spending plan, one can better manage their finances, avoid overspending, and ensure that they are able to meet their financial goals.