McDonald’s Workers Need A Second Job — Corporation’s “Sample Monthly Budget” Slammed, Ridiculed By Critics

 

Minimum-wage fast food workers  need to get a second job and work over 60  hours a week to survive

By  Daily Mail Reporter

McDonald’s seems to be well aware that its  employees are unable to survive on their minimum wages, so the company has come  up with a solution – go out and get a second job.

The fast food giant became the object of  ridicule this week when its financial planning site called Practical Money  Skills for Life created back in 2008 in conjunction with Visa and Wealth  Watchers International to help its workforce caught the attention of several  media outlets.

The portal provides a sample monthly budget,  which makes a series of assumptions that have been slammed by McDonald’s critics  as both naive and condescending about the workers’ ability to supports  themselves while earning $7.72 an hour after taxes.

Scroll down for parody video 

Crunching numbers: McDonald's has landed in hot water after a financial planning site created for its employees suggested that they need a second job to make ends meet .Crunching numbers: McDonald’s has landed in hot water  after a financial planning site created for its employees suggested that they  need a second job to make ends meet

 

‘McBudget’ for McDonald employees is laughable to  some

Suggested monthly expenses for the  hypothetical McDonald’s employee working a 40-hour week include $600 for rent –  a figure that has raised eyebrows among anyone familiar with the housing market  in cities like New York and Philadelphia.

While it is still possible to find housing  with three-digit rent in some parts of the U.S., an average apartment in  Manhattan rents for about $3,000 a month. Even in the outer boroughs it is  nearly impossible to come across anything cheaper than $1,400 a month.

Poking fun: The fast food workers' advocacy group Low Pay Is Not OK created a video mocking McDonald's' sample budget .Poking fun: The fast food workers’ advocacy group Low  Pay Is Not OK created a video mocking McDonald’s’ sample budget

Something's missing: The parody pointed out that the mock-up of a budget makes no mention of basic expenses like food, water, clothing and gas .Something’s missing: The parody pointed out that the  mock-up of a budget makes no mention of basic expenses like food, water,  clothing and gas

The sample budget also sets aside only $20  for health care and $150 for car payments. The financial planning tool, however,  does not include allowances for either food or gas.

Revealed: Less than ONE THIRD of Americans keep a household  budget

It was an oft-invoked image on last year’s  campaign trail: The typical American couple, sitting around the kitchen table  making a budget.

Candidates of both parties decried the  federal government for failing to complete this most basic of financial tasks,  citing a growing national debt and wide deficit as evidence of fiscal  irresponsibility.

Turns out, most Americans don’t do it  either.

A poll from Gallup shows that 32 per cent of  Americans put together a budget each month to track income and expenditures, and  just 30 percent have a long-term financial plan laying out savings and  investment goals.

Those with higher incomes or college degrees  were a bit more likely to say they regularly put together a budget, though less  than half in those groups said they keep close tabs on their financial life.  Only about a quarter with a high school diploma or less say they do.

And despite the frequent political invocation  of a budgeted family, Gallup’s finding may not reflect a new trend in Americans’  financial behavior. A 1951 Gallup survey showed that only 40 per cent of  Americans said they had ‘a budget for household expenses.’

That poll asked those who didn’t maintain a  budget why they skipped it. The most frequent response? We spend it all  anyhow.

McDonald’s charges workers who have been with  the company for at least year $12.58 for its most basic health care plan. New  hires have to shell out $14, according to The Atlantic.

In a surprising bit of self-awareness, the  McDonald’s mock-up budget includes lines for monthly income from a first job  totaling $1,105, and a second job, which brings in $955.

Those figures suggest that the hypothetical  worker has to toil away for more 60 hours a week at minimum wage, or earn more  than $12 an hour on a 40-hour work week.

In 2009, the federal government set minimum  wage at $7.25, CNBC reported.

In comparison, McDonald’s CEO Don Thompson  received a compensation package worth $13.8million in 2012.

Others entries in the fictional  McDonald’s-Visa financial plan include $100 allotted for cable and phone, $90  for electric – just below the national average of $103 – but no money set aside  for heating, which would not work for employees living anywhere outside of  Hawaii or Florida.

Since the budget includes no separate line  for groceries, it may be assumed that either the workers have to rely on  leftover French fries for their meals, or they have to use the $27 a day in  spending money to buy food.

The sample financial plan also makes no  mention of basic necessities like child care expenses, water or clothing, to  name a few.

In recent months, industry workers have gone  on strike in cities across the U.S., including Chicago and New York, to protest  for higher wages.

In recent months, industry employees from  McDonald’s, Wendy’s, Taco Bell, KFC, Burger King and Domino’s Pizza have gone on  strike to demand higher wages, according to a report by the International Business Times.

McDonald’s seemingly misguided and  financial  planning site has been pilloried far and wide on the Internet by  everyone from  Think Progress to Huffington Post and  Gothamist,  with  critics decrying the corporation’s preposterous assumptions about the  way  its low-wage workers spend their meager pay checks.

Some media outlets, among them the L.A. Times  and the Washington Post,  have come to McDonald’s defense, insisting the the sample budget accurately  reflect the spending of millions of low-income Americans.

Struggling: Employees from McDonald's, Wendy's, Taco Bell, KFC, Burger King and Domino's Pizza have gone on strike to demand higher wagesStruggling: Employees from McDonald’s, Wendy’s, Taco  Bell, KFC, Burger King and Domino’s Pizza have gone on strike to demand higher  wages
Hard day's work: According to the sample budget, a minimum-wage fast food worker would need to get a second job and work over 60 hours a week to survive .Hard day’s work: According to the sample budget, a  minimum-wage fast food worker would need to get a second job and work over 60  hours a week to survive

A disclaimer on the Practical Money Skills  site states that McDonald’s does not endorse the site, even though the page  features the fast food chain’s trademark Golden Arches.

The fast food workers’ advocacy group Low Pay  is Not OK has called the McDonald’s budget advice for its employees  ‘unbelievable’ and produced a video mocking the site.

‘The samples that are on this site are  generic examples and are intended to help provide a general outline of what an  individual budget may look like,’ McDonald’s said in a statement to the LA  Times.

Haves and have nots: McDonald's CEO Don Thompson received a compensation package worth $13.8million in 2012.Haves and have nots: McDonald’s CEO Don Thompson  received a compensation package worth $13.8million in 2012

While McDonald’s initiative may have come off  as obtuse, promoting financial literacy among American workers has long been  viewed as a worthy cause.

A recent Gallup poll showed that just over a  third of Americans bother to put together a budget each month to track income  and expenditures.

Read more: http://www.dailymail.co.uk/news/article-2366370
/Sample-budget-given-McDonalds-workers-proves-CANT-live
-minimum-wages-need-second-job-make-ends-meet.html#ixzz2ZJ6iC41W

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One Response to “McDonald’s Workers Need A Second Job — Corporation’s “Sample Monthly Budget” Slammed, Ridiculed By Critics”

  1. Sigrid Houslet Says:

    I’am boycotting McDonalds for the wages for the employees. I will not do any business in your company! The wages are too low for the hard working employees.

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