Budget illustration

Guide to Financial Management

Budget illustration

Budgeting illustration: Rudi goes to a football match

This story illustrates the six 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 to see a football match. 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 match. 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, watch the football match , bus journey home.
  • Resources Money to cover the costs of bus fares, burger, ticket and sweets.
  • Costs:
Item Amount ($) Notes
Travel 1.50 2 x 75c bus fares
Food 3.50 $3.00 burger, 50c sweet
Tickets 3.00 Entrance fee for the football
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.  

After going to the cafe, Rudi and his friends arrived at the football stadium to find that all the $3.00 tickets were sold out and they had to spend an extra $1.00 each for a more expensive area. This meant that Rudi did not have enough money left to buy sweets or to get the bus back home again.  Fortunately, he met the parents of some school friends at the match and they offered to give him a lift home, which he gratefully accepted.  So it all ended well, even though his plans did not go exactly as intended

What lessons do you think Rudi and his mum learnt from this outcome?  

Well, Rudi might want to buy his ticket earlier next time and his mum might consider adding something extra as a contingency for travel, to make sure he always has money to get home.