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Budgeting illustration: Rudi goes to the Cinema
This story illustrates the 6 stages of drawing up a budget.
It is Friday afternoon and a teenage son – Rudi – rushes in from school asks his mother for $10.00 as he’d like to go out with some friends for the evening. His mother asks him to explain what he will be doing and why he needs $10.00.
He says he will take the bus into town, have a burger and then go to the cinema. His mother then took him through the budgeting process, as follows:
- Objective: To have an entertaining evening with friends.
- Activities: Bus journey to town, visit burger bar, visit cinema, bus journey home.
- Resources: Money to cover the costs of bus fares, burger, cinema ticket and popcorn.
- Costs:
|
Item |
Amount ($) |
Notes |
| Travel | 1.50 | 2 x 75c bus fares |
| Food | 3.50 | $3.00 burger, 50c popcorn at cinema |
| Tickets | 3.00 | |
|
TOTAL |
8.00 |
- Source: Mum
- Realistic?: After she has seen a detailed breakdown of the costs, Rudi’s mother decides that his plan is reasonable. She approves the budget, and gives him $8.00, not the $10.00 he originally asked for.
However, Rudi’s night out did not go exactly according to plan. Rudi Reports to His Donors describes why not … and what his mother thought about it!