Thrive as a member of the upper class

 Basic Information

  You must create a monthly budget  As a single parent  making $1.5 million/year Your Task

  Completed Excel spreadsheet budget  House listing (printed out from website)  Nanny listing (printed out from website) To successfully complete this project, you must turn in all of the following:

 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 spreadsheet The budget spreadsheet is:  Printed out (10pts)  All of the math is correct and works out (10pts)  Is completely filled out; nothing is missing (20pts) 40 Housing advertisement Print the online ad for the house you chose. If possible, include the financial calculator part of the webpage. 5 Nanny advertisement Print the online ad for the nanny that you chose  If the nanny is a live-in, make sure you have a bedroom for him/her 5 Unit 6 Synthesis Paper Write a 2-3 page typed synthesis paper that meets all of the following requirements:  Respond to the statement: Social inequalities are not the fault of individuals alone, nor are they the fault of systems alone. They exist because of systems and individuals.  Describe the differences between your experience in the minimum wage budget challenge and your task this time around.  What would you say to someone who believes that working people who require public assistance programs (like food stamps) to make ends meet are lazy or taking advantage of taxpayers? Is minimum wage enough without public assistance?  Connect your experience creating this budget to at least 2 articles from Unit 6 50

 Students should know The challenges of living as a member of the poor. The values, norms, and lifestyle of someone living on minimum wage The social structures that recreate inequality in our society What is the purpose of this activity? What are the end goals? Students should be able to Interpret the world from the perspective of a person making minimum wage. Create a monthly budget Read text & use technology for information/research

  You are a 28-year-old person.  With a 3-year-old child.  Working at as the CEO of a business that your parents started, making $1.5 million/year Let’s get started

 When you download the spreadsheet, click SAVE AS

 Make sure you save the file to “My Documents” (NOT downloads)

 Click “Open” in the yellow bar at the bottom of the screen

 When you open the excel file, click “enable editing” in the yellow bar at the top of the document

 Write your name in the top left green box.

  You make $1,500, each year. Enter this amount in step 1 on the excel spreadsheet. Step 1: Yearly salary

  Now go to this website: federal-income-tax-brackets-irs-tax-rates/  Find out how much you will be taxed.  REMEMBER YOU ARE SINGLE!!!  Plug that percentage in step 2. Step 2: Taxes

  You probably want to invest some money in the stock market.  Choose how much money you want to have invested in the previous month.  Enter this amount in Step 3. Step 3: Capitol Gains

  Go to this website:  eturncalcinput.php eturncalcinput.php  Choose a stock that you want to invest in. Remember the symbol for that stock (left column) Step 3 continued

  Now go to this website  com/html-mktscreener.asp com/html-mktscreener.asp  Enter the symbol for the stock you chose.  Change the year of the start date to  Click “Calculate Returns”

 Step 4:  Enter the percentage gain/loss in step 4 to calculate your capital gain

  Your parents were wise and kind enough to start a trust fund for you. When you turned 21, it began paying out “gifts” to you each month.  Your trust fund gives you $2,000 a month, tax free.  Enter this amount in step 5. Step 5: Wealth/Savings

  Go to this website:   For property type choose “single family”  For minimum price, don’t go below $500,000 (think big!)  You choose any other criteria, or keep it broad and hit search Step 6: Choose a house

  Click to view the listing  Scroll down to the “financial calculator” section and check the box that says “Use a financial calculator to analyze ownership scenarios for this property.”  Look at the right for the monthly payment calculator When you find a house you like…

  Plug in $350 for the insurance cost and ignore the HOA box.  Click “calculate” and see your monthly mortgage  Plug that in for step 5 on your excel spreadsheet. When you find a house you like…

 Print the ad for the house you choose

  There is no easy way to estimate your utility bills so assume these amounts (assuming you have a big house)  Heat: $300/month  Water: $20/month  Enter this amount in step 7. Step 7: Utilities

  Your child is going to need a full-time nanny. You are the CEO of your family business, and you might need to go to work at a moment’s notice.  Read up on the types of nannies there are here:  p1145-q5377.html p1145-q5377.html  Then choose a nanny from this list:  nannies.html nannies.html  Your child is going to need a full-time nanny. You are the CEO of your family business, and you might need to go to work at a moment’s notice.  Read up on the types of nannies there are here:  p1145-q5377.html p1145-q5377.html  Then choose a nanny from this list:  nannies.html nannies.html Step 8: Nanny

 Print the page and circle the nanny you chose

  Lastly, go here: nanny-cost-p1145-q83979.htmlhttp:// nanny-cost-p1145-q83979.html  Read up on the cost of a nanny and then calculate how much you should pay the nanny you chose EVERY MONTH.  Enter this amount in step 8. Step 8: Nanny

  Let’s put it this way: When you were living on minimum wage, you had to budget. Now you don’t.  Go here: CostofFoodDec09.pdf CostofFoodDec09.pdf  You can use the “liberal” column and add the cost of groceries for you (remember, you’re 28) and your child (who is 3).  Enter this amount in step 9. Step 9: Groceries

  Use this website to estimate your monthly car insurance cost:  insurance-quotes.aspx 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. Step 10: Car Insurance

  Divide the yearly quote by 12 and enter that number in step 8.  If you choose to own more than 1 car, add all of the insurance costs together before entering the total in step 8. Step 10: Car Insurance

  Just estimate anywhere from $100 a month (if you only own 1 car and don’t plan on going very far) to $400 (if you own 2-3 cars and drive a bit)  Enter this amount in step 11. Step 11: Fuel

  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 Time Warner Cable website  Verizon Fios website Verizon Fios website Step 12: Cable/internet/phone

  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: Restaurant/Take out

  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: Clothing

  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: Entertainment

  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… Step 16: Child

  Do you have money leftover?  It’s time to consider some luxury purchases. So what do you want?  Vacations?  Spa treatments?  Cars?  Electronics? Enter each item that you desire in the left column of step 17, and the cost in the right column. Step 17: Luxury Costs

 Double check and make sure that you have done all of the following: Is your budget finalized?  Completed Excel spreadsheet budget (printed out)  All info filled out  Math makes sense  Name at the top  House advertisement (printed out)  Your name at the top  Circle the financial calculator information  Nanny advertisement (printed out)  Your name at the top  Circle the nanny you want.

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

 You’re done!