Another question If eg let's say a parent (grandparent) gives money to pay for a child's after school activity. Do you add that expense and then add the income money and it balances out, or do you just leave the whole thing out of the budget bc basically the money comes in and just goes straight to this one expense, which you only have because the money is coming straight in for it?

Track it in the budget and let it cancel out

@mysterious-tomato-10057 I know this is an old thread, but I'm just seeing it now and wanted to chime in. I've discovered that for those new to budgeting concepts its important to track it in the budget and then let it cancel out because it's important to understand that everything comes down to income and expenses. This happens a lot. For example, a parent helps out a couple with rent or tuition. It's important to realize that the rent is an expense and the parent's $ is income. It sounds obvious if you're experienced in thinking this way, but is completely novel for some people (apologies to @curved-postman-19509 if i'm expounding something obvious. Just wanted to get on a soap box for a sec because its not obvious to everyone)

Thank you, this is helpful. Shakoach!

Does this help? https://frum.finance/budgeting/managing-reimbursable-expenses-ynab/