One Last Pedicure: Balancing a Personal Budget

10 Pages Posted: 20 Aug 2019

See all articles by Kenneth M. Eades

Kenneth M. Eades

University of Virginia - Darden School of Business

Safiya Sinclair

Independent

Gregory B. Fairchild

University of Virginia - Darden School of Business

Abstract

This case follows dance instructor Jackie McKenzie as she struggles to properly budget her expenses needed to support life with her youngest daughter, Millie. At the checkout aisle of her local grocery store, McKenzie becomes embarrassed when she discovers she cannot afford the $150 bill. Luxury purchases such as a red dress and McKenzie's bimonthly pedicures have maxed her credit card and strained her checking and savings accounts. Unfortunately, this is not the first time McKenzie has overspent her means. When McKenzie calls her oldest daughter, Kerry, to ask yet again for her financial help, Kerry challenges her mother to put together a budget.

Excerpt

UVA-F-1889

Aug. 6, 2019

One Last Pedicure: Balancing a Personal Budget

Introduction

In early September, Jackie McKenzie stood in the checkout aisle of the grocery store and watched with fear as the cashier rung her up. With each quick swipe of the cashier's hands, McKenzie looked at the total price on the monitor and knew she was going to come up short on money for her groceries. Again. Once the cashier was done, sure enough, the total of $ 150 was more than McKenzie had in cash or checking, and her credit card was almost maxed out for the month; she'd last used it on one of her bimonthly rituals—a shiny red pedicure. She started sweating with embarrassment as she had to ask for certain items to be removed. The cashier sighed exasperatedly as she deducted the items, and McKenzie was sure she even felt some other customer's eyes looking in her direction. Somehow she had lost track again of how much she had spent that month, and immediately began regretting that red dress she had bought on an impulse at the mall two weeks before.

As McKenzie left the supermarket with only half of what she needed for her and her youngest daughter, Millie, she was depressed. She felt like the same gray cloud followed her wherever she went, and at the end of every month, she felt like she was in a deep hole she could never dig her way out of. She was so stressed that she stopped at the gas station on the way home to buy cigarettes. She would have to call Kerry again to ask for her help with monthly expenses, and she was dreading making that phone call.

. . .

Keywords: budgeting, Resilience Education, female protagonist, financial literacy, financial analysis, fixed expenses, variable expenses

Suggested Citation

Eades, Kenneth M. and Sinclair, Safiya and Fairchild, Gregory B., One Last Pedicure: Balancing a Personal Budget. Darden Case No. UVA-F-1889. Available at SSRN: https://ssrn.com/abstract=3438635

Kenneth M. Eades (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4825 (Phone)
434-924-0714 (Fax)

HOME PAGE: http://www.darden.virginia.edu/faculty/eades.htm

Safiya Sinclair

Independent

No Address Available

Gregory B. Fairchild

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/faculty/fairchild.htm

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