Have you tried the minimum wage challenge? This challenge is designed to help you understand the difficulties of living on minimum wage. However, it also has benefits such as clarifying your spending priorities and teaching you about responsible budgeting.

 

Before you start the minimum wage challenge, consider these tips:

 

1. Minimum wage challenge basics. When you take the challenge, you live on the same amount of money as what the minimum wage would provide you, for at least 7 days.

 

• The challenge doesn’t actually affect your job. You don’t have to quit your job or ask for less money. You simply have to set aside the money – in a savings account or wherever you like – that is above the minimum wage amount for the duration of the challenge.

 

• Since the minimum wage can vary by location, it’s important to get the latest figures on your city.

 

• Once you’ve committed to the challenge, you’ll only spend the minimum wage earnings for a week. This means that all of your expenses must be covered with only the minimum wage funds.

 

• The goal of the challenge is to see how people actually live on minimum wage and to learn from it. You’ll see the needs and luxuries in your life in a new light.

 

2. Examine your priorities. The minimum wage challenge allows you to see how your spending habits affect your family. They can show you how living on less may actually help you save more.

 

• The challenge shows you how much you actually spend on food, transportation, school, work, bills, and other expenses. It gives you a clear picture of your household and its budget.

 

3. Prepare for difficulties. If you’re used to a bigger paycheck every week, then the minimum wage plan can make it difficult for you to survive. You’ll want to plan ahead.

 

• Think of ways to cut your expenses before you run out of money and can’t buy lunch or pay for your kid’s haircut.

 

4. Involve the children. The minimum wage challenge is a good opportunity to teach your children about wages, budgets, and money. Your kids will have many questions. They’ll learn how wages affect households and see the struggles firsthand.

 

• They’ll learn about budgeting and prioritizing their needs and wants.

 

5. Figure out how to handle emergencies. Emergency situations can occur at any time, so you can’t predict them as you start the minimum wage challenge.

 

• You’ll want to figure out how to handle emergencies before starting the challenge. Do you want to feel the full experience of handling a broken appliance or car repair with minimum wage or go back to your savings and extra money?

 

• Of course, a medical emergency must be taken care of right away. You can always go back and try the challenge later or just stop the challenge and take advantage of what you’ve learned so far.

 

The minimum wage challenge can open your eyes about how you truly spend your money.

 

It can show you new ways to save and budget at home. You’ll clarify what’s most important to you in terms of your spending. And you may come away with a new appreciation for the good life that your hard work provides for you and your family. Help preserve that life with smart financial choices, now and in the future.