Living Through the Depression



Names of people in your group:

Living Through the Depression

Directions: You will recreate a family budget for the late 1920s and early 1930s. You might need a calculator for this. By designing a budget and then adjusting when the economy drops, you can experience the anxiety, fear and frustration everyday Americans would have felt! Work through each step together.

Part 1: The Roaring Twenties Family (1928)

1. Record the names and ages of your family members. What is the job of the head of household?

Part 2: The Roaring Twenties Budget (1928)

2. It is 1928. The head of your household makes a profit of $________________/year (after taxes).

Break down the costs of your annual budget below:

Example of the math: 30 % of $3000 = 3000 x 30/100 (.30) = $900

|Budget Item |Budget % |Dollar Amount |

|Food |30% | |

|Clothing |15% | |

|Housing |30% | |

|Medical Care |4% | |

|Transportation |10% | |

|Miscellaneous |6% | |

|Savings |5% | |

|Total |100% | |

3. Assume you have lived on this budget for many years. Where would your savings be after

two years?

five years?

ten years?

4. What is your monthly food budget? (Divide annual food budget by 12) $______________________

What is your monthly miscellaneous budget? $_____________________________

What is your monthly transportation budget? $_____________________________

Use the Price List to pick out the food, gasoline, tickets, toiletries, etc., you would need in a month. Your total purchases for each budget must be within $1 of your budget and you may not go over budget.

Also, you must buy a car. Every self-respecting American owns a car. Which car can you afford?

| |Food |Misc. Budget $________ |Transportation Budget $______ |

| |Budget $________ | | |

|Items | | | |

|Total Monthly Cost | | | |

Part III. After the Crash – Reality Check (1930)

It is now mid-way through 1930. The stock market has crashed and thousands of banks have failed after the bank panic. One of these banks, The Bank of the United States, was where you kept your savings. You have lost the last ten years of savings. How much money did you lose: $___________________________

5. Americans are still expected to work hard and make sacrifices. President Hoover believes in “rugged individualism” and so, there is no help coming your way. Luckily, you still have your job but your salary has been reduced. How much has your salary been reduced to? $______________________________

6. Design a new monthly budget based on your reduced wages. (Divide your new annual budget by 12)

BUT DID I FORGET TO MENTION…your mortgage/rent is fixed and so your housing costs are the same as 1928, regardless of your reduced salary.

|Budget Item |Old Budget % |New Budget % |Dollar Amount |

|Food |30% | | |

|Clothing |15% | | |

|Housing |30% |FIXED | |

|Medical Care |4% | | |

|Transportation |10% | | |

|Miscellaneous |6% | | |

|Savings |5% | | |

|Total |100% |100% | |

7. Do you still have a savings? If so, where will you keep it? If not, why did you cut it?

8. What cuts did you make to your budget? How did you decide? How will these cuts affect your family?

9. Using your new budget and the Price List, choose your new monthly items. Make sure the totals are within $1. (NOTE: starving your family is not an option nor is depriving them of necessary nutrition.)

| |Food |Misc. Budget $________ |Transportation Budget $______ |

| |Budget $________ | | |

|Items | | | |

|Total Monthly Cost | | | |

10. What changes did you make to your monthly expenses on the new budget? What items did you get rid of? How might this affect your family?

11. Your old refrigerator finally quit. The current market price is $99.50. Where can you take from your budget to buy a new fridge by the end of the month? How will you need to adjust?

OR…If you decide a fridge is too expensive, how will this affect the food you are able to buy?

12. Congratulations! Your wife/daughter/grandmother/niece/sister is pregnant! In 1930, the first year of a baby’s life would cost approximately $884 but, because you are so thrifty, cut your costs to about $700. Where can you find this money in your budget? What will you have to cut from your budget? How will this affect your family?

Part 4: The Worst Years of the Great Depression (1932)

By 1932, unemployment has soared to more than 25%.

• 1 in 4 men will lose their job.

• 2 in 4 men will have their salary reduced by half.

• 1 in 4 men will not have their salary personally affected.

See Ms. Eplin when you are ready to know what 1932 holds for you.

You have lost your job. (1 in 4 men)

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1. Where do you and your family go with your new life & situation? Does it change?

2. What difficult decisions did you have to make over the last few years? What surprised you about this activity?

3. How did the stock market crash affect you, even if you didn’t own any stocks?

You have had your original 1930 salary reduced by half to $____________/year. (2 in 4 men)

[pic]

1. How will you have to change your lifestyle based on your new salary?

2. What difficult decisions did you have to make over the last few years? What surprised you about this activity?

3. How did the stock market crash affect you, even if you didn’t own any stocks?

Your salary is still the same as it was in 1930. (1 in 4 men)

[pic]

1. What difficult decisions did you have to make over the last few years? What surprised you about this activity?

2. What challenges do you face now that weren’t an issue in 1928?

3. How did the stock market crash affect you, even if you didn’t own any stocks?

NAME: __________________________

GREAT DEPRESSION SIMULATION REFLECTION

Jobs and salaries

| |1928 Salary |1932 Salary |

|Construction Worker |3,000 |2,200 |

|Railroad Worker |3,600 |2,600 |

|Farmer |3,200 |2,400 |

|Teacher |2,300 |1,800 |

-----------------------

You will find that, since your housing costs have not decreased, the old numbers no longer work. Reduce the budget percentage for each item until the numbers work. (Example, you can no longer afford to spend 30% of your annual budget on food unless you make cuts elsewhere)

Construction Worker

1928 Salary: $3,000 (after taxes)

Family Members:

John, age 36 Mary, age 31

John Jr, age 10 Helen, age 12

James, age 9 Dorothy, age 7

Construction Worker

1928 Salary: $3,000 (after taxes)

Family Members:

John, age 36 Mary, age 31

John Jr, age 10 Helen, age 12

James, age 9 Dorothy, age 7

Railroad Worker

1928 Salary: $3,600 (after taxes)

Family Members:

William, age 39 Anna, age 36

Robert, age 16 Margaret, age 16

Joseph, age 14 Ruth, age 11

George, age 4

Railroad Worker

1928 Salary: $3,600 (after taxes)

Family Members:

William, age 39 Anna, age 36

Robert, age 16 Margaret, age 16

Joseph, age 14 Ruth, age 11

George, age 4

Farmer

1928 Salary: $3,200 (after taxes)

Family Members:

James, age 35 Margaret, age 36

Charles, age 15 Mildred, age 17

Edward, age 12 Anna, age 13

Frank, age 10 Elizabeth, age 8

Farmer

1928 Salary: $3,200 (after taxes)

Family Members:

James, age 35 Margaret, age 36

Charles, age 15 Mildred, age 17

Edward, age 12 Anna, age 13

Frank, age 10 Elizabeth, age 8

Teacher

1928 Salary: $2,300 (after taxes)

Family Members:

George, age 31 Helen, age 30

Thomas, age 8 Frances, age 10

Virginia, age 4

Teacher

1928 Salary: $2,300 (after taxes)

Family Members:

George, age 31 Helen, age 30

Thomas, age 8 Frances, age 10

Virginia, age 4

Construction Worker

1932 Salary: $2,200 (after taxes)

Family Members:

John, age 38 Mary, age 33

John Jr, age 12 Helen, age 14

James, age 11 Dorothy, age 9

Construction Worker

1932 Salary: $2,200 (after taxes)

Family Members:

John, age 38 Mary, age 33

John Jr, age 12 Helen, age 14

James, age 11 Dorothy, age 9

Railroad Worker

1932 Salary: $2,600 (after taxes)

Family Members:

William, age 41 Anna, age 38

Robert, age 18 Margaret, age 18

Joseph, age 16 Ruth, age 13

George, age 6

Railroad Worker

1932 Salary: $2,600 (after taxes)

Family Members:

William, age 41 Anna, age 38

Robert, age 18 Margaret, age 18

Joseph, age 16 Ruth, age 13

George, age 6

Farmer

1932 Salary: $2,400 (after taxes)

Family Members:

James, age 37 Margaret, age 38

Charles, age 17 Mildred, age 19

Edward, age 14 Anna, age 15

Frank, age 12 Elizabeth, age 10

Farmer

1932 Salary: $2,400 (after taxes)

Family Members:

James, age 37 Margaret, age 38

Charles, age 17 Mildred, age 19

Edward, age 14 Anna, age 15

Frank, age 12 Elizabeth, age 10

Teacher

1932 Salary: $1,800 (after taxes)

Family Members:

George, age 33 Helen, age 32

Thomas, age 10 Frances, age 12

Virginia, age 6

Teacher

1932 Salary: $1,800 (after taxes)

Family Members:

George, age 33 Helen, age 32

Thomas, age 10 Frances, age 12

Virginia, age 6

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