McDonald’s has taken some heat for its Practical Money Skills Budget Journal, a financial planning guide for its low-wage workers that suggests monthly spending on a variety of expenses. That’s pretty ironic since heat was one of the things McDonald’s failed to anticipate in the guide’s first iteration—it was later included in the sample budget in response to public pressure.
News coverage has noted the implausible monthly $600 rent (compared with the national average of $1,048). Many people have pointed out the impossibility of spending just $27 a day on gas and groceries, and the absence of a clothing budget. All of these criticisms are completely valid.
McDonald’s has defended the second income required to balance this budget, indicating that it could be representative of a two-person household, with both contributing. Let’s play along with this scenario.
Two-thirds of fast-food workers are women, according to the federal Bureau of Labor Statistics. The majority are older than 32—in their prime years for raising children. In fact, almost a third of minimum-wage earners are raising children. Thus, there’s a good chance that our theoretical couple has children. But let’s back up.
Assuming that the full-time McDonald’s worker qualifies for the company’s $14 a week health-care plan and that costs already have been deducted from the gross pay in this budgeting scenario, the plan caps coverage at $10,000 a year—a measly amount, particularly for a female employee (or insured female partner of an employee) who gives birth to a child.
The joy of that child would surely be dampened by the realization that no money is left to dedicate to child-care costs—the average of which exceed average rent costs in half of all states for just one child. Using the financial planning guide’s insanely low projection of $600 for rent, this family would likely need at least $600 for child care, leaving merely $200 to feed and clothe a family of three each month. [cont’d]