Budgeting for the Working Poor

[mikoyan29]

I'm actually not sure where this goes but I'll put it here since it seems to be a social woe and not actually politicals. But this is a budgeting tool put forth by Visa and McDonald's, presumably for someone on the lower end of the income scale.

http://finance.yahoo.com/news/mcdona...153900487.html

It's a noble idea but a person in a minimum wage job (like say at McDonalds) would probably make $217 per week (based on the fact that most of those people dont' work full time and typically work about 30 hours/week). Which means that they would be making about $1740/month if they have two jobs. Some of the other numbers seem to be a bit off as well. Now that $1740 becomes a bit less because Uncle Sam (and Uncle Rick in my neck of the woods) decide that they want theirs.

I guess without realizing it, these folks showed why the working poor will never get ahead.

[Rebel]

According to that budget, the working poor don't need to heat their house (or use gas for a stove), they don't need to buy food to eat, and their cars work without needing gasoline in them.

Amazing!

(and no, that wouldn't all be covered under 'other')

[bainsidhe]

And let's not forget $20/mo health insurance, when the lowest version of McD's insurance costs $14/wk. I have what I consider to be a decent job with decent insurance, and I pay appx $300/mo for the "cheap" insurance plan.

This budget also suggests an ability to work two full-time jobs with appx 40 hours at each job. Because it's just oh so common to find two perfectly flexible full-time jobs with super-cheap insurance.

I don't expect McD's to suddenly change their operation, but this "budget" is so out of touch it's offensive.

[Aethian]

I think the -0- in heat comes from some apartment complexes offering heat. The one I'm couch surfing at currently has that with water at only 19 a month. The thing that bugs me if they are expecting their worker to have a paid off car and while it's completely possible to have a paid for car...I see way, way, way to many under 30's having twice that in car payment alone.

[Andara Bledin]

Yeah, but the article mentions the $0 heat figure in conjunction with the $600 rent/mortgage figure and notes that the average rent in the US is $1048.

Honestly, the sheet is a joke. It's lacking several very important lines (auto fuel, for one), and some of the figures are outright laughable.

[Fire_on_High]

We noticed that it seems like they're EXPECTING welfare and food stamps to cover the gaps, without saying so outright, which is frankly a travesty.

[siead_lietrathua]

that chart is laughably sad, because any other reaction would make me cry. how out of touch with reality are those people? it's pathetic and insulting.

[mikoyan29]

I mean my calculations were pretty much off the cuff but I think I based them on some pretty solid assumptions. Granted, a person working at McDonalds isn't making minimum wage forever but still, it is pretty likely they aren't working full time there either. So I'll stick to my $1700 figure per month.

But this may be a pretty good reason why the wealth gap in the United States is increasing. If you fall in this category of worker, it is pretty difficult to accumulate any sort of wealth and if your car breaks down or something like that, your savings could be wiped out.

[Andara Bledin]

I work a full time job at rather more than minimum wage, and my take home is around $1900 per month. Between the mortgage ($1200) and groceries ($600 for 4 people, $450 for 2) I require a second income to afford pretty much everything else.

[Rageaholic]

And this is assuming you even have a job.

No wonder this country is going to shit.

[bara]

We noticed that it seems like they're EXPECTING welfare and food stamps to cover the gaps, without saying so outright, which is frankly a travesty.

Of course they are... like Wal-Mart does.

[violiav]

I was looking at it and a thought occurred to me- maybe whoever made this was thinking of some student in a roommate situation. 90 bucks for electric for one house? Where? 150 for a car payment? In this day and age? Maybe for a Geo Metro back in 98 for someone with excellent credit.

[Andara Bledin]

I was looking at it and a thought occurred to me- maybe whoever made this was thinking of some student in a roommate situation. 90 bucks for electric for one house?

We pay less than that for electric, in a 4-person household that has computers, consoles, and someone who has a tv on pretty much 24/7.

[Greenday]

I was looking at it and a thought occurred to me- maybe whoever made this was thinking of some student in a roommate situation. 90 bucks for electric for one house? Where? 150 for a car payment? In this day and age? Maybe for a Geo Metro back in 98 for someone with excellent credit.

150 for a car payment seems totally legit...if you pay 80% upfront.

[violiav]

We pay less than that for electric, in a 4-person household that has computers, consoles, and someone who has a tv on pretty much 24/7.

How? In Texas ours is routinely 200-300, and that's very common in this city. Did California all of a sudden get low utility costs?