Spending policy

A spending policy is a set of guidelines that govern how an organization or individual manages their money. It outlines what expenses are acceptable, how much can be spent, and the procedures for approving and tracking expenses. The goal is to ensure responsible use of resources, maintain financial stability, and support organizational goals. Essentially, it helps prevent overspending, fraud, and mismanagement by providing clear rules for financial decision-making. Having a well-defined spending policy promotes transparency and accountability, making financial management more efficient and aligned with the organization’s priorities.