Archive for October, 2009

One has to wonder if fictional fry cook SpongeBob makes enough to live the life he does. SpongeBob did, after all, exchange vows with his squirrel love, Sandy (more about that on “Truth or Square“, November 6th). But since she’s a land-based, oxygen breathing squirrel, Sandy lives separately in her own glassed-in home. Could SpongeBob really own a house on his own? Let’s take a closer look at SpongeBob’s finances.

SpongeBob works at the Krusty Krab as a fry cook. The average fast food worker earns minimum wage or slightly more per hour. Let’s say for the sake of this article that SpongeBob makes $8 per hour. If he does work full-time, that’s $1,280 per month before taxes. But, whether or not SpongeBob actually works full-time is unknown. Not only does SpongeBob work at the Krusty Krab, but he also attends boating school, which means he more than likely works part-time.

One thing to remember is SpongeBob had his house before he started working at the Krusty Krab. This means that his house may have already been paid for. If this was the case, SpongeBob could easily live on $1,280 per month, especially when you consider that most fast food workers get free meals while on the job and meals at a discount when they aren’t on duty. Of course, this would depend on whether or not Mr. Krabs, who is incredibly cheap, would allow such benefits.

What about credit cards? Does SpongeBob use them? There is one episode in which he is asked to purchase a gift for Mr. Krab’s daughter, Pearl. Mr. Krab’s gives SpongeBob his credit card and SpongeBob wonders what it is. He’s fascinated to find out that you can purchase items with a piece of plastic. Truthfully, this is how most people feel when they first learn about credit cards.

SpongeBob is financially responsible, though. He has both a checking and savings account. He even saves up his money to spend on the things he wants, which is a great lesson to teach children. SpongeBob is also known to blow his paycheck on frivolous things, though, but who doesn’t from time to time?

Chances are SpongeBob really could live the life he does on a fry cook’s paycheck. It’s really not that far-fetched. In fact, according to the Bureau of Labor Statistics, around 2.5 million workers are in the food preparation and serving field, which includes fast food workers. In other words, thousands of people are making a living doing exactly what SpongeBob does.

Amy Brantley

Living in Miami can be expensive, especially if you’ve been burned. Just ask Michael Westen, a disgraced spy living in Miami and trapped there by his “Burn Notice” (USA Network).

Life on Easy Street

Before he was sold out by someone more powerful than he, Michael Westen was an international field agent - presumably for the CIA. Based on his level of technical proficiency and the sensitivity of the jobs he was given, it is safe to assume he made a nice living. The base pay for a top non-supervisory field agent is around $79,000 annually, and with Miami locality pay, the number increases to $98,000. That buys a lot of Cuban sandwiches.

But base pay is only part of the picture. As a jet-setting international man of espionage, Westen had access to a nearly unlimited expense account. On-scene weapons procurement, bribes and elaborate escape plans all require serious capital. Not to mention any “bonuses” he may have earned by neutralizing a particularly troubling target. All in all, he was sitting pretty.

Feel the Burn

After escaping death when his cover is blown, Westen was dumped in Miami, where he grew up. It was there he discovered just how bad a burn notice could be. No job, no identity, no social security number, no credit or personal history and a frozen bank account.

He managed to find a loft above a bar in a seedy part of town. Based on current rental information, a loft in Miami like Westen’s rents for around $800 per month. He grabbed his father’s old muscle car for wheels, so he saved some money there. But paying off the right people to find out how and why he was burned costs money, so Westen has to take a few “odd jobs” off the books.

Like any business, Westen’s requires start-up capital. For openers, a Sig Sauer P226R 9mm pistol (the gun preferred by special ops guys the world over) retails for $1,200. Given the current shortage of ammunition, Speer Gold-Dot Hollow Point 9mm rounds are selling for $1.50 each. Multiply that by 5,000 or so and, well, you get the picture.

Westen runs with a sketchy crowd, too. There’s Sam, a former SEAL turned FBI informant who is a bit of a shlub, but who always manages to come through for Michael whether he needs inside information or a good trigger man. There’s his on-again, off-again girlfriend Fiona, an ex-IRA assassin and demolitions expert who never met a mercury detonator she didn’t like. His brother Nate is a born con man. And his friend Barry is an international money launderer and identity thief.

Identity theft is actually Westen’s stock-in-trade. In the variety of assignments he accepts, he always impersonates someone else, sometimes with full credentials provided by Barry the money launderer. While he is always a good guy, Westen illustrates just how easy it is to have your identity compromised and why it is a good idea to take the necessary steps to avoid identity theft.

By helping the right people out, Westen manages to make enough money (all cash, of course) to keep yogurt in the fridge for himself, beer on ice for Sam and miles of detonation cord for Fiona. Though he’s trying desperately to get back in the good graces of his former employer, he may discover that the security of a government paycheck might not equal the freedom and profitability of freelance spy work.

Dave Guilford

Though its premise may be a little far-fetched, HBO’s “True Blood” has been a hit since its premiere in September of 2008. Set in the tiny (fictional) Louisiana town of Bon Temps, “True Blood” features a star-studded cast of preternaturally attractive people, mostly notably Anna Paquin as the show’s main female lead, Sookie Stackhouse.

At first glance, Sookie is just like every other girl in Bon Temps - lives with her grandmother, works as a waitress at the local watering hole and is content with the simple life her income affords her. However, upon closer inspection, we notice that Sookie’s hair, skin and nails always look perfect, and that when she’s not wearing her waitressing uniform, her clothes are always adorable. Additionally, when her grandmother died, Sookie inherited the house - and presumably all of the maintenance bills, property taxes and upkeep costs that go with it.

So, how does Sookie do it? Well, she’s definitely not putting in more hours at the bar. Though she does do a little telepathy work for vampires for extra cash, dating a vampire (and having to save her town from a maenad) has caused her to lose precious hours at Merlotte’s. Louisiana is one of five states with no minimum wage laws, but federal minimum wage for waitstaff is $2.13 an hour. In a low cost-of-living, low income area like Bon Temps, Sookie can’t be pulling down much more than $10 extra an hour in tips. $12 an hour total isn’t bad for waitressing, but will it keep Sookie in highlights and high heels? Credit cards (and credit card debt) simply must come into play!

Sookie’s blonde tresses have to set her back at least $150 per treatment, and since she never has roots, she probably hits the salon every three weeks. Throw in a mani-pedi, eyebrow wax and maybe a facial, and you’re looking at probably $300 a month just for beauty treatments. Pull out the plastic - that’s all going on a credit card for sure. Clothes, shoes and other accessories add up - and we see her in at least three different cute and fully accessorized outfits per episode! Then there are basic living expenses - even if Sookie’s house and car are paid off, she still needs gas, utilities, food - and renovating the house after that whole Bacchanalian orgy thing is going to cost a fortune. Do I see a Home Depot credit card in Sookie’s future?

Okay, so “True Blood” is slightly unrealistic, both in terms of plot and the financial viability of its characters (don’t even get me started on what Bill’s credit card bill must look like!). That’s just part of the fun, though. With vampires, telepaths, maenads and other mystical creatures abounding, there are better things to worry about than Sookie’s credit report.

Lindsay Woodland

With consumer spending at record lows and fewer credit card purchases during the 2009 recession according to the Federal Reserve, elite credit cards are feeling the pinch. Several premium credit cards that have been offering exclusive benefits to cardholders were born during the economic boom and have been struggling ever since. Social lending organizations have been trying to find unique ways to position their credit card programs ahead of the competition, but are still having trouble attracting and retaining cardholders.

Here’s a close look at some of the elite credit card programs that are struggling — or dying — during these turbulent economic times:

Ill: Visa Black Card from Barclays

The Visa Black card was originally pitched as an exclusive credit card with many similar benefits to the Amex Black. While the Visa Black was significantly different than Amex Black, it was still designed for elite cardholders who met certain income criteria. Cardholders pay an annual fee of $495, have access to a luxury concierge service 24 hours per day and earn rewards points for their purchases. Still, this program has fizzled since its launch, failing to offer truly exclusive and elite benefits for its cardholders.

Terminal: The Stratus Rewards Visa White Card

The Stratus Rewards Visa White Card was designed to compete with the Amex Black — after all it is white — boasting more travel features and other perks than Amex. However, this card simply didn’t get much traction or interest from consumers, and failed as a social lending program for avid travelers and VIP shoppers. Today, Stratus’s relationship with US Bank has expired and they’re negotiating with other issuers.

Passed: Sotheby’s World Elite MasterCard

The Sotheby’s World Elite MasterCard was among the most attractive exclusive cards available, and was “specifically tailored for those who earn over $250,000 per year and have over $2 million in investable assets.” This card offered complimentary admission to museums,and VIP services including concierge travel services abroad and access to airport lounges. The card ceased to exist as of September 2008 in the midst of the tumultuous economy.

From the Visa Black Card to Sotheby’s World Elite MasterCard, elite credit cards are struggling to stay afloat during the drop in credit card spending in recent years. Many cards are simply disappearing since consumers are no longer interested in the VIP services and exclusive benefits. Issuers may need to find new ways to attract cardholders and roll out programs that offer a wider range of perks and benefits.

Sabah Karimi

The new Current Card from Discover is one of many financial solutions aimed at the teen and young adult market. This particular tool is a debit card that offers an unprecedented level of control for parents, while helping teenagers learn how to manage their finances before they step foot in the “real world.”

Unlike credit cards, the Current Card allows teens and parents to load it with whatever cash they feel is appropriate. Once they have put cash on the card, parents can set parental controls on how their teenagers can use the card as well as where they can use it.

Loading the Card

The Current Card from Discover is different from most teen credit cards in that the amount available to use for purchases and withdrawals is established by how much is deposited into the account. For example, if a teenager’s parents load it with $500, he or she cannot spend more than $500. In other words, it works like debit cards do when attached to savings or checking accounts.

The Current Card can be loaded for free from any bank account or credit card. It is even possible for parents to establish recurring deposits, such as $200 per month from a credit card. There are no minimum balances, loading fees or credit checks required with this card.

Free direct deposit is also available for this teen debit card if it is more appropriate. For example, teens with summer or after-school jobs can have their paychecks deposited directly into their Current Card accounts.

Setting Limits

The most unique feature of the Current Card from Discover is the ability to set myriad parental controls so parents can monitor and control their teenagers’ spending habits. The available controls include:

• Spending Limits:
  Parents can decide how much money their teenagers can spend in a given period of time. If the teen tries to exceed that limit, the card is declined.
• Shopping Categories:
  With cash or other teen credit cards, teenagers can spend their money wherever they wish. This isn’t the case with the Current Card, as parents can restrict certain shopping categories, such as tobacco or liquor stores or hotels.
• Activity Alerts:
  In addition to letting parents decide how teens will use the Current Card, this card also informs parents of purchases and withdrawals. Messages can be sent via text message or e-mail.

Other Perks

The Current Card comes with the same convenient perks you might expect to find in other teen credit cards, such as no liability for fraudulent purchases. Card holders can withdraw cash from the card at any ATM if they are unable to use the card itself, and the card also comes with exclusive discounts at many favorite teen shopping destinations.

There are seven available designs for the Current Card from Discover, which makes it particularly attractive to the younger market. Teens can not only learn to manage their finances, but do it with a sense of style.

Steve Thompson