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Cost Comparison: Coffee

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Perhaps it’s time to start looking where your money goes, and even further where your money could be going. According to Accounting Principal’s 2012 survey, the average American worker spends more than $20 a week on coffee, adding up to a yearly average of around $1,092. For java-lovers, this may seem like a hard habit to kick. However, by even simply making your own coffee at home, you can both save calories and spend that money in a more useful way – combating global poverty.

If more Americans skipped their morning Starbucks and instead donated that money, two things could happen. 1. American obesity would significantly decline 2. Global poverty would significantly decline. Of the roughly 315 million people in the United States, if simply 30 million (about 1 out of 10 people) put their coffee money toward combating global poverty, it could be entirely eliminated.

You heard correctly. The United Nations estimates that it would take nearly $30 billion a year to put an end to world hunger. Therefore, this small and easy adjustment could save the lives of millions worldwide. Is your cup of coffee really worth more than the lives of people everywhere?

There are many ways to start taking steps to make a change toward combating world hunger. While going cold turkey and saving the money for donation is definitely an option, there are other alternatives as well. A basic Keurig Coffee Brewer costs about $120, and including the price of the coffee that goes in them (an extra $180 a year), you can still have your coffee and save the difference between buying coffee every day. While the total is slightly less, it gives coffee-lovers an option to still enjoy their brew but also fight for a good cause.

You may think your contribution won’t make a difference- but it does. Talk to friends, family and encourage them to give up buying a daily cup of java and instead save the money to donate to poverty-groups. This way, we can save the world, one coffee been at a time.

– Sonia Aviv

Sources: Consumerist, Borgen Project, LA Times
Photo: Consumer Channel Dynamics

Cost Comparison: Xbox One

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With the release of Microsoft’s Xbox One the most recent era of next-gen gaming is fully upon us. Following Nintendo’s release of the Wii U, and Sony’s release of the PlayStation 4, Microsoft released its third generation of Xbox. Sporting cutting edge software and hardware, these consoles will allow gamers all over the world to play the most sophisticated modern gaming titles to their heart’s content.  And with the holiday season fast approaching, it seems everyone is clamoring to get their hands on one.

The cost of an Xbox One here in the U.S. is about $500. But with the limited amount of Xbox’s available at release not everyone will be able to buy a machine in-store before Christmas. As is usually the case, individuals who absolutely must have one can find a heavily marked up Xbox One on places like Amazon, Craigslist and Ebay. The costs are variable but can range from $600 to $1,250 as sellers range from opportunists to outright extortionists. So, all told the average cost for a Christmas morning console with one game is right around $800.

Over one million units of the Xbox One were sold in the first 24 hours after it launched. And while the Xbox has different price points for the 13 different regions it was released in, the cost is either the same or greater. Thus it’s safe to assume that consumers have spent approximately $800 million on Xbox Ones to date.  Nearly a billion spent on entertainment.

By contrast, the cost of helping rebuild homes in the Philippines is $10.25 million. Habitat for Humanity is taking donations now in an effort to help rebuild homes that were devastated by Super Typhoon Haiyan. They currently have raised nearly $200,000 of an estimated $10 million needed. According to their website that equates to 53 homes rebuilt.

Though 53 homes is a good start, one wonders why it takes so long to raise the funds for a project of this importance. Assuming one consumer per Xbox, it would take a donation of $10 from each Xbox One owner to finish raising funds and get this vital project underway. Moreover it would only take 24 hours if people felt as enthusiastically about playing video games as they do about saving lives.

This is not meant to dissuade people from purchasing an Xbox One. Rather, this Christmas when purchasing an Xbox One, try donating $10 dollars to help disaster relief as well.

– Pedram Afshar

Sources: Bloomberg, Habitat For Humanity
Photo: CNet