spend

Spend refers to the act of using money to pay for goods or services, or more generally of using up time, energy, or other resources. It is a common verb and can also describe consuming resources in non-financial contexts.

In economics, spending denotes expenditures on goods and services. Total spending in an economy includes household consumption, business investment, government purchases, and net exports (exports minus imports). Consumer spending, a major driver of economic activity, reflects how households allocate income to goods and services.

In personal finance, spending describes how a person or household uses its resources. Budgeting aims to control spending, prioritize needs, and avoid debt. Overspending can lead to reduced savings and financial stress, while disciplined spending supports long-term financial goals.

Common types of spending include durable goods (such as cars and appliances), nondurable goods (such as food and clothing), and services (such as healthcare and entertainment). Government spending funds public goods and services, including infrastructure, education, and social programs, while business spending covers operating costs and capital investments.

Spending is measured by statistics such as personal consumption expenditures and government outlays. In macroeconomics, the level and composition of spending influence inflation, employment, and growth. Policy tools that affect interest rates, taxes, or public spending can alter spending behavior and the overall economy.

The term spend also carries nuance in everyday language, including the idea of wasting money or resources, or conversely the value of careful or frugal spending to conserve resources.