This document outlines an activity where students take on the role of a single parent making minimum wage to create a monthly budget and understand the challenges of living in poverty. Students are guided through steps to estimate expenses like rent, utilities, childcare, food, transportation, and entertainment to balance a budget. The activity evaluates students on creating an accurate spreadsheet budget along with printing advertisements for an apartment and babysitter they select within the constraints of minimum wage income.

1. Try to survive as a member of the working poor

2. Basic Information

1% Upper Class
14%
Upper Middle Class
30%
Middle Class
30% Working Class
13% Working Poor
12%
Underclass
Breakdown of Social Classes in America

3. You are
starting here

4. Your Task

 You must create a monthly budget
 As a single parent
 making minimum wage

5. 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)

6. 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)
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
10
distance from work or the bus stop (it can be handwritten somewhere on the ad) (5pts)
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 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 you
CLASS! 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)

7. 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

8. Let’s get started

 You are a 28-year-old person.
 With a 3-year-old child.
 Working at a supermarket, making minimum wage.

9. 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

10. Step 2: # hours worked/week

 Full time is 40 hours per week.
 Plug that number in

11. 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

12. 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)

13. 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

14. 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

15. 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)

16. 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.

17. 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.

18. 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.

19. 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!

20. 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 cable
and/or internet. Check the ad.

21. 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.

22. 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

23. 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.

24. 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…

25. 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.

26. 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/

27. Need more money?

 Now you can consider ways to stretch your budget.

28. 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

29. 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.

30. 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.

31. Public Assistance

This is temporary aid (like money or food) given
to people in need. It is paid for by taxes

32. 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

33. Step 22: WIC
Program for Women, Infants, & Children

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.

34. 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

35. 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.

36. 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…

37. 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

38. Turn in the following:

Budget
Apartment ad
Babysitting ad
All paper-clipped or stapled together with
your name on ALL pieces.

39. You’re done!
