Millionaires Challenge

Thrive as a member of the upper class

Breakdown of Social Classes in ...

Upper Class

Upper Middle Class

Middle Class

Working Class

Working Poor

Underclass

1%

14%

30%

30%

13%12%

Basic Information

$1.5m

• UPPER CLASS• Investors, heirs, chief executives

$80k+

• UPPER MIDDLE CLASS• Upper-level managers, professionals, owners of medium-sized

businesses

$45k

• MIDDLE CLASS• Lower-level managers, semi-professionals, craftspeople, foremen,

non-retail salespeople, clerical workers

$30k

• WORKING CLASS• Low-skill manual, clerical, and retail sales work

$20k

• WORKING POOR• Lowest-paid manual, retail, and service work• Do not earn enough to rise out of poverty

$10k

• UNDERCLASS• Unemployed, part-time menial job, and/or on welfare• Typically from families poor for generations

You are starting here

Typical Salary

Per year

Typical Occupations

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:

ALL OF THESE ITEMS ARE DUE BY

Wednesday, May 22nd

EvaluationYou 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 already know this, so you will be Comparing this experience

to your previous one (minimum wage)

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)

Wrong Right

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 $1,500,000.00 each year. Enter this

amount in step 1 on the excel spreadsheet.

Step 1: Yearly salary

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. 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: http://buyupside.com/stockreturncalculator/sto

ckreturncalcinput.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 http://markets.usatoday.com/custom/usatoday-com/h

tml-mktscreener.asp

Enter the symbol for the stock you chose. Change the year of the start date to 2012. 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: http://cnyrealtor.com

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: http://www.care.com/child-care-nanny-options-p1

145-q5377.html

Then choose a nanny from this list: http://elizabethroseagency.com/meet-our-

nannies.html

Step 8: Nanny

Print the page and circle the nanny you

chose

Lastly, go here:

http://www.care.com/child-care-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: http://www.cnpp.usda.gov/Publications/FoodPlans/2009/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: http://money.msn.com/auto-insurance/auto-ins

urance-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 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!