Your Task You must create a monthly budget As a single parent making minimum wage
To successfully complete this project, you must turn in all of the following: Completed Excel spreadsheet budget Apartment advertisement (printed out) Babysitting advertisement (printed out)
Evaluation You will be graded on a 100 point scale according to the rubric below:Criteria Explanation (how to receive full credit) Possible Points Budget The budget spreadsheet is:spreadsheet Printed out (10pts) All of the math is correct and works out (10pts) 40 Is completely filled out; nothing is missing (20pts)Apartmentadvertisement 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 10 distance from work or the bus stop (it can be handwritten somewhere on the ad) (5pts)Babysittingadvertisement 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 10 your child to the sitter or if the sitter is coming to you, &the sitter’s hourly rate. (5pts)Reflection paper Write a 1-2 page hand-written reflection paper that meets all of the following requirements:DONE IN Describe the challenges that you encountered in trying to plan your budget. Do youCLASS! 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 40 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)
What is the purpose of this activity? What are the end goals? Students should know Students should be able to• The challenges of living as • Interpret the world from a member of the poor. the perspective of a person• The values, norms, and making minimum wage. lifestyle of someone living • Create a monthly budget on minimum wage • Read text & use technology• The social structures that for information/research recreate inequality in our society
Let’s get started You are a 28-year-old person. With a 3-year-old child. Working at a supermarket, making minimum wage.
Step 1: Hourly wage 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 2: # hours worked/week Full time is 40 hours per week. Plug that number in
Step 3: Taxes 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 4: Rent 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 5: Utilities 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 6: Child care 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 7: Groceries To estimate your monthly grocery cost use this website: http://www.extension.iastate.edu/foodsavings/pla n/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)
TRANSPORTATION 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.
Step 8: Car Insurance Use this website to estimate your monthly car insurance cost: http://money.msn.com/auto-insurance/auto- insurance-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 9: Fuel 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 10: Bus 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 11: Cable/internet/phone 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 cableand/or internet. Check the ad.
Step 12: Restaurant/Take out 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 13: Clothing 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 14: Entertainment 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 15: Child 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…
Emergency Fund 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.
Step 16: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/
Need more money? Now you can consider ways to stretch your budget.
Steps 17: Overtime! 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 18 & 19: 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.
Step 20: Child Support! 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_supp ort_calculator.shtml Divide that number by 12 and enter it into Step 20.
Public Assistance This is temporary aid (like money or food) given to people in need. It is paid for by taxes
Step 21: SNAP(Supplemental Nutrition Assistance Program) 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 22: WIC Program for Women, Infants, & Children To see if you qualify for WIC, check THIS WEBSITEYou 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 23: Child Healthcare 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/elgibilit y/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_plu s/what_does_it_cost.htm Enter the cost in Step 23
Step 24: Headstart 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.
Have more money now? 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…
Is your budget finalized? Double check and make sure that you have done all of the following: 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
Turn in the following: BudgetApartment adBabysitting ad All paper-clipped or stapled together with your name on ALL pieces.