Minimum Wage Challenge

Try to survive as a member of the working poor

Breakdown of Social Classes in ...

Upper Class

Upper Middle Class

Middle Class

Working Class

Working Poor

Underclass

1%

14%

30%

30%

13%12%

Basic Information

$1.5m

• UPPER CLASS• Investors, heirs, chief executives

$80k+

• UPPER MIDDLE CLASS• Upper-level managers, professionals, owners of medium-sized

businesses

$45k

• MIDDLE CLASS• Lower-level managers, semi-professionals, craftspeople, foremen,

non-retail salespeople, clerical workers

$30k

• WORKING CLASS• Low-skill manual, clerical, and retail sales work

$20k

• WORKING POOR• Lowest-paid manual, retail, and service work• Do not earn enough to rise out of poverty

$10k

• UNDERCLASS• Unemployed, part-time menial job, and/or on welfare• Typically from families poor for generations

You are starting here

Typical Salary

Per year

Typical Occupations

You must create a monthly budget As a single parent making minimum wage

Your Task

Completed Excel spreadsheet budget Apartment advertisement (printed out) Babysitting advertisement (printed out)

To successfully complete this project, you must turn in all of the

following:

ALL OF THESE ITEMS ARE DUE BY

Tuesday, Dec. 11 (for Blocks 1 & 3)

Wednesday, Dec. 12 (for Block 8)

EvaluationYou will be graded on a 100 point scale according to the rubric below:

Criteria Explanation (how to receive full credit) Possible Points

Budget spreadsheet

The budget spreadsheet is: Printed out (10pts) All of the math is correct and works out (10pts) Is completely filled out; nothing is missing (20pts)

40

Apartment advertisement

  Print the online ad for the apartment that you chose. (5pts) Be sure to circle the rent per month, any utilities that are included, and write

in the distance from work or the bus stop (it can be handwritten somewhere on the ad) (5pts)

10

Babysitting advertisement

  Print the online ad for the babysitter that you chose (5pts) Somewhere on the ad, make sure that you write down whether you have to

transport your child to the sitter or if the sitter is coming to you, &the sitter’s hourly rate. (5pts)

10

Reflection paperDONE IN CLASS!

Write a 1-2 page hand-written reflection paper that meets all of the following requirements: Describe the challenges that you encountered in trying to plan your budget.

Do you have any tips for those trying to make a budget like this work? (10pts)

What would happen if you were living in this situation and you came down with a serious case of pneumonia? (10pts)

What would you say to someone who believes that working people who require public assistance programs (like food stamps) to make ends meet are lazy or taking advantage of taxpayers? Is minimum wage enough without public assistance? (10pts)

Could you live like this? Why or why not? (10pts)

40

Students should know

• The challenges of living as a member of the poor.

• The values, norms, and lifestyle of someone living on minimum wage

• The social structures that recreate inequality in our society

What is the purpose of this activity? What are the end goals?

Students should be able to

• Interpret the world from the perspective of a person making minimum wage.

• Create a monthly budget

• Read text & use technology for information/research

You are a 28-year-old person. With a 3-year-old child. Working at a supermarket, making

minimum wage.

Let’s get started

Go to this website: http://

www.minimum-wage.org/states.asp?state=New%20York

Find out what minimum wage is in New York state and plug that amount in step 1

Step 1: Hourly wage

Full time is 40 hours per week. Plug that number in

Step 2: # hours worked/week

You will need to know your yearly income

before taxes, which you can figure out with this formula:

Multiply your hourly wage times 40 hours per week times 52 weeks per year.

Now go to this website:http://www.fivecentnickel.com/2011/09/28/2012-federal-income-tax-brackets-irs-tax-rates/ Find out how much you will be taxed. Plug that percentage in

Step 3: Taxes

You work at the Nichol’s Supermarket in Liverpool. You

probably want to find an apartment nearby.(Click here to see the location in Google Maps)

Try the following website to look for rentals http://www.apartmentfinder.com/New-York/Liverpool-

Apartments

You MUST print the ad for the rental that you choose. Be sure to circle the rent per month, any utilities that are

included, and write in the distance to work (just get the distance by getting directions from Nichol’s to your apartment in Google Maps)

Step 4: Rent

Your apartment might include utilities in the

monthly price, but most won’t include all of them.

There is no way to estimate your utility bills so assume these amounts: Heat & electric: $100/month Water: $20/month

If your advertisement says nothing about utilities, assume that you have to pay them all separately

Step 5: Utilities

Find a child care provider and plug in the cost per hour You can search here: http://www.care.com/syracuse You might want to refine your search as follows:

Make sure that you babysitter is close to your apartment. Some sitters will only travel a certain distance.

If the sitter gives a range for his/her cost (ex. $5-10) you can go with the smaller number.

You MUST print the ad for the provider that you choose. Circle the sitter’s cost per hour and whether or not they

have their own transportation

Step 6: Child care

To estimate your monthly grocery cost use this

website: http

://www.extension.iastate.edu/foodsavings/plan/foodspendingplan/

Remember that in this scenario, you are 28 years old AND you have a 3-year-old child

The number of meals eaten away from home should be 5-7 for each of you (Sometimes you will eat at work and your child will eat at the babysitters)

Step 7: Groceries

If you want to have a car, then you need to complete

steps 8 & 9 to calculate insurance and fuel costs. You will skip step 10.

(We will assume that you own your car and aren’t still making car payments)

If you want to save money and take the bus, then you need to make sure that your apartment and babysitter

are close to a bus stop and skip to step 10.

TRANSPORTATION

Use this website to estimate your monthly car

insurance cost: http://money.msn.com/auto-insurance/auto-ins

urance-quotes.aspx

You can decide the make/model car that you own in this pretend world, but don’t forget it. You’ll need it for the next step.

Divide the yearly quote by 12 and enter that number in step 8.

Step 8: Car Insurance

Use the “Fuel Cost Calculator” on the right side of the excel

budget document. First input the cost per gallon of gas. You can find the

average cost here: http://www.syracusegasprices.com/ Then google “mpg” and the make and model of the car you

chose to find the miles that your car gets per gallon of gas (mpg). Input that number.

Then go to Google maps and type in the location of your apartment. Get directions from your apartment to Nichol’s grocery store.

Plug that # of miles next to “work” Do the same with directions to the babysitter (if your babysitter

is going to drive herself, then enter 0 for the miles in that box.

Step 9: Fuel

You can check for Centro bus routes from your

apartment to the mall and find out the cost of a bus pass here: http://centro.org/CNYCENTROFares.aspx

But remember, your apartment has to be within walking distance of a bus stop and you babysitter has to drive herself/himself!

Step 10: Bus

Do you want to have a cell phone? Check the cost

of a plan for one person on the website for the phone company of your choice.

Do you want cable TV? Internet? A landline phone? Check Time Warner Cable or Verizon for estimates (or look into Netflix, Hulu, Skype for other options) Time Warner Cable website Verizon Fios website

Your apartment might include cable and/or internet. Check the ad.

Step 11: Cable/internet/phone

How many times are you going to go out to a

restaurant or order takeout in a month? Sometimes you might want a special treat for you or your child.

Estimate your own budget and plug in the amount.

Step 12: Restaurant/Take out

Think about how much will you spend on new

(or used) clothing for you and your child IN AN ENTIRE YEAR

Then divide that number by 12 to get your monthly clothing average.

Keep in mind that your 3-year-old will grow out of his or her clothing and you will have to buy more clothes for your child at the very least.

Your number in this box CANNOT BE ZERO

Step 13: Clothing

You might want to go out to the movies, the

zoo, take a small vacation, etc… Calculate the average monthly cost for these

little splurges.

Step 14: Entertainment

Your child will cost you some extra money

sometimes Calculate how much you want to spend per

month on things for your child, such as toys, books, etc…

Step 15: Child

The federal government will require businesses to

provide health insurance to all fulltime employees, but not until 2014.

Employers are not legally obligated to provide health insurance, and yours does not.

You ARE covered by the Family Medical Leave Act, which gives you up to 12 weeks of unpaid leave if you or someone in your family is sick and need care.

During this time you can’t be fired if you take up to 12 weeks of sick time, but don’t earn any money.

Emergency Fund

You need to budget for health emergencies on

your own in case you or your children need medical care for any reason.

How much do you want to set aside each month just in case you need to pay for a doctor’s visit, car repairs, serious medical injury, etc…?

If you’re not sure how much to save, this article has some helpful tips:

http://20somethingfinance.com/emergency-savings-fund-why-how-much-and-where/

Step 16: Emergency fund

Now you can consider ways to stretch your

budget.

Need more money?

Maybe you want to supplement your income

by working overtime. You make 1.5x your regular wage by working more than 40 hours per week.

Use the website below to see the minimum overtime wage in New York State

http://www.minimum-wage.org/overtime/new_york

Plug that amount under step 17

Steps 17: Overtime!

Choose the extra hours you want to work and

plug them in step 18 Enter your tax rate under step 19 (it’s the same

rate that you entered on the page before) KEEP IN MIND THAT EVERY HOUR EXTRA

YOU WORK IS AN EXTRA HOUR THAT YOU NEED TO PAY A BABYSITTER.

The extra cost of child care is automatically added in when you decide how much overtime to work.

Steps 18 & 19: Overtime!

As a single parent with sole custody of your child, you are

entitled to court mandated child support from the other parent.

Even if your child’s other parent does not want to pay, the court can force him/her to pay a minimum yearly amount.

Use this website to calculate how much child support you should receive in 1 year. Assume that the other parent’s yearly salary is the same as yours: $15,080.00.

http://www.nyc.gov/html/hra/html/directory/child_support_calculator.shtml

Divide that number by 12 and enter it into Step 20.

Step 20: Child Support!

This is temporary aid (like money or

food) given to people in need. It is paid for by taxes

Public Assistance

Find out if you qualify for SNAP (food stamps) http://www.snap-step1.usda.gov/fns/index.jsp

Use $15080 for your yearly net pay and don’t forget to include the child support that you receive when prompted.

(You can make up a name for you imaginary three-year-old! And remember, you’re 28!)

If you do qualify, you can type the amount in the box for Step 21

Step 21: SNAP(Supplemental Nutrition Assistance

Program)

To see if you qualify for WIC, check

THIS WEBSITE

You need to make sure that you don’t make too much money (including your overtime pay) to qualify.

If you do qualify, you will save about $30 per month in groceries (click to see exactly what you get), so enter $30 in Step 22.

Step 22: WICProgram for Women, Infants, &

Children

Private healthcare will be far too expensive for you to

afford for yourself, but New York state does offer free/reduced cost healthcare for children in low-income families

See if your child qualifies here: https://apps.nyhealth.gov/doh2/applinks/accessny/elgibility/gettingstarted.jsp

If your child qualifies, check to see what your monthly cost will be ($0-$60)http://www.health.ny.gov/health_care/child_health_plus/what_does_it_cost.htm

Enter the cost in Step 23

Step 23: Child Healthcare

Your 3-year-old might be eligible for free half-day pre-

school through a program called “Head Start.” Head Start exists to make sure that children from

low-income families get the early education they need to succeed in school.

Check HERE to see if you qualify. If you do, you will save yourself 80 hours a month in

childcare costs. That’s half of your babysitter’s time! If you qualify, look back at your total child care cost

per month (in the yellow square). Enter HALF of that amount in the box for step 24.

Step 24: Headstart

Go back and look at your extra expenses.

If you don’t mind having less savings, you can increase the money that you devote to things like entertainment, your emergency fund, etc…

Have more money now?

Double check and make sure that you have done all of the following:

Is your budget finalized?

Completed Excel spreadsheet budget (printed out) All info filled out Math makes sense Name at the top

Apartment advertisement (printed out) Name at the top Circle the monthly rent and the utilities included (if any) Wrote somewhere on it the distance to Nichol’s Supermarket

Babysitting advertisement (printed out) Name at the top Circled cost per hour and whether or not transportation is needed Distance from home written on it

Budget Apartment ad Babysitting ad

All paper-clipped or stapled together with your name on ALL pieces.

Turn in the following:

You’re done!