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McDonald’s budget assumes you need a second job to survive

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1(KTVI) – If you’re working on financial planning, you might want to avoid McBudgeting.

McDonald’s recently partnered with Visa to create Practical Money Skills, a website that aims to teach McDonalds employees how to “spend and save wisely”.

This sample budget does not factor in things like childcare, groceries, clothing and transportation costs. According to the United States Energy Independence Association, transportation costs alone account for almost 4% of pretax income.

The restaurant has received criticism for the site because of their sample monthly budget.

The budget allots $20 for health insurance. The Henry J. Kaiser Family Foundation says the average monthly healthcare cost per person in the U.S. is $215.

The sample budget also includes a second job in wages, which seems to imply that McDonald’s believes their employees need to find another job outside the fast food restaurant in order to support themselves. WTVR-TV spoke with spoke with former McDonald’s employees who described the sample budget as “insulting.” “It’s almost impossible to get two jobs. It’s almost impossible to get one job and keep that one job,” Jackie Chandler said.11

Timothy B. Lee, a Washington Post blogger, says the McDonald’s budget is realistic. Journalists from CNN and The LA Times disagree. McDonald’s released the following statement in response to criticism:

“In an effort to provide free, comprehensive money management tools, McDonald’s first used the Wealth Watchers International budgeting journal when this financial literacy program launched in 2008. As part of this program, several resources were developed including a sample budgeting guide, an instructional video and a web resource center that had additional tools and information. 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.”

By: Christina Santiago Turner