McDonald's has not-so-helpful budget tips for workers
Its financial basics suggest what most of its fast-food employees already know: They need 2 jobs to make ends meet.
Some McDonald's (MCD) workers might not be lovin' their employer's advice on how to make ends meet: Get a second job -- oh, and forget about budgeting for child care, retirement savings or gas.
McDonald's and Visa (V) have teamed up to help teach the fast-food chain's workers the basics of household budgeting, but the effort has backfired for its suggestion of working two jobs and for its omission of basics like the water utility.
For starters, the Practical Money Skills Budget Journal offers two income lines: "1st job" and "2nd job." A sample budget provided by Mickey D's depicts a worker holding down two posts and earning a total of $24,720 per year. But under the monthly expenses portion, the budget leaves out such essentials as water, child care and retirement savings.
While the budget includes a line for "savings," it's unclear whether McDonald's means saving for a basic rainy-day account or for a worker's golden years.
McDonald's estimate of a fast-food worker's income is also high, given that the average burger flipper earns just $18,720 per year, according to the U.S. Bureau of Labor Statistics.
The fast-food chain defended its budget planner, telling The Huffington Post that the sample budget is "intended to provide a general outline of what an individual budget may look like."
Some of its suggested expenditures are laughably low, such as putting aside $20 a month for health insurance. Employees typically spent $2,204 on health care premiums in 2011, according to the Society for Human Resource Management. That's about $183 per month, or about nine times more than McDonald's suggests.
And forget having children. McDonald's sample budget leaves no room for child care or other expenses related to kids. Given that the average age of a fast-food employee is 29, it's likely that many have children and kid-related costs.
But the biggest issue for many is simply what the basic math of McDonald's budget suggests: Living on a fast-food income is nearly impossible without sacrificing some basics.
The company's plan just might provide ammunition for supporters of a higher minimum wage. President Barack Obama is urging a $9 federally mandated hourly rate, up from the current $7.25. Based on McDonald's math of workers earning $24,720 per year, employees would receive an hourly wage of $11.88, assuming a 40-hour week (and no second job.)
You can bet its employees would end up lovin' that.
Follow Aimee Picchi on Twitter at @aimeepicchi.
The minimum wage job is supposed to be for teenagers learning how to deliver an honest day's work for an honest day's pay. I worked at a KFC, when I was 18 years old and living at home, for $2.20/hr in 1976. They deducted 20 cents per hour for the food I was going to eat.
The fact that people are working low paying part-time jobs to feed a family exposes the DIRTY LIE that the government and so-called economists tell us about the economy getting better. The sunny-sounding June jobs report is a major offender. Most of the jobs created were part-time jobs. The good paying full time jobs with benefits are still in DECLINE.
Worse yet, how many times have we read in mainstream news (including this website) that America needs MORE INFLATION and that deflation must be avoided at all costs? They want us to believe higher cost of living is what makes us more prosperous! This is an insult to the struggling American worker.
We need people to manufacture things that others want to buy. When money is SOUND (no inflating the money supply) and workers are productive, the supply of goods increases, driving down the prices. The workers can then afford to buy the goods themselves and their standard of living goes up. Mild deflation is the worker's best friend and it also lowers the cost of doing business for smaller employers.
What is happening now, with family breadwinners desperately working 2 or 3 part time jobs in the service sector, is a symptom of a crashing economy. Meanwhile, the big dogs on top are still snickering over their stock gains, which are out of the reach of these part-time workers.
Stimulus mostly benefits the super-rich. It creates economic imbalance that needs to be rebalanced by recession. Refusal to let recession run its course (as the U.S. has been doing for decades) just leads to bigger recessions. Don't believe government officials or so-called economists that tell you the recession of 2008-2009 ended in less than one year. The recession is STILL GOING!
Making the super-rich more rich so that the government can quote misleading statistics, then pat itself on the back, is of NO HELP to family breadwinners who work 2 or 3 part-time jobs.
All the people who are suggesting McDonald's employees-except for teens-get a real job seem to think that adults with families are working at Mickey D's because they are stupid, lazy, or lack ambition. For many people that have been downsized or laid off because their job was outsourced it may be the only job they've been able to obtain. I have a lot more respect for someone flippin' burgers even though they are overqualified than someone who sits around whining.
It's a part time job.
If your circumstances place this or any minimum wage job as your sole means of income, you may want to give serious consideration to your plans for future happiness.
It's a part time job.
These were never suppose to be jobs intended to support a family, and with McD' now limiting it's employees to 30 hours to avoid Obamacare they NEED a 2nd job.
I thought the idea of the article was good but the leftwing politics came through.
The minimum wage is just that; a MINIMUM wage. It's meant to be for teens starting out or retirees wanting a little extra. If you're trying to make a living (or worse, raise children) on a fast food salary, that will never happen. Instead of whining about your situation, look to get something better. Don't look to someone else to "make it better" for you.
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A basic income policy can actually ensure a decent standard of living for everyone.
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