The majority of short films are kept to a low budget and are often financed through people's personal savings. This is because the films last a short period of time and usually don't require much financial backing. The directors and cast are normally just experimenting and are not looking to make any financial gain or get any awards. However some budget is usually required for props, clothing and to rent out particular scenes for filming. Of course this cost is usually limited depending on the financial resources available.
Examples
http://filmmakermagazine.com/96844-10-lessons-learned-while-making-my-first-short-film-budget/#.WbpbebKGPcc
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