Are You Kidding? Socks Financial Literacy Article for Students

The brothers work an event with the Special Olympics.

Sebastian Martinez has always had a passion for socks—the more colorful and over-the-top, the better! When he was 5 years old, his mom suggested that he start making some styles of his own. Sebastian immediately grabbed his crayons and set to work creating fun, unique sock designs. A year later, Sebastian and his older brother Brandon launched Are You Kidding?, a company that sells their sock designs.

Since then, the company has sold more than 500,000 pairs of socks in dozens of eye-catching styles. But for the brothers, running the company isn’t just about making money. Through nationwide charity events and sock hop fund-raisers, Are You Kidding? has raised more than $350,000 for pediatric cancer treatments, diabetes research, and other causes.

Sebastian Martinez has always loved socks. The more colorful and over-the-top, the better! When he was 5 years old, his mom suggested that he design his own. Sebastian immediately grabbed his crayons. He got to work drawing fun, unique sock designs. A year later, Sebastian and his older brother Brandon started their own company. It’s called Are You Kidding? and sells their sock designs.

Since then, the company has sold more than 500,000 pairs of socks. They have made dozens of eye-catching styles. But for the brothers, running the company isn’t just about making money. They want to give back too. They participate in nationwide charity events and sock hop fund-raisers. So far, Are You Kidding? has raised more than $350,000 for charity. The brothers have donated to charities for pediatric cancer treatments, diabetes research, and other causes.

As the CEO, it’s Sebastian’s job to make sure the company always has enough socks in its warehouse to meet demand. Brandon is the director of sales, which means he’s in charge of selling socks at fund-raising events.

The brothers share many other responsibilities, including creating new sock designs. “We get inspired by things people like,” says Brandon. “For example, we made an astronaut design because everyone loves space!” It takes about two months to manufacture a new sock design. Once it’s ready, the boys work together to create social media posts promoting the new style.

Sebastian is the CEO. It’s his job to make sure the company always has enough socks in its warehouse. Brandon is the director of sales. This means he’s in charge of selling socks at fund-raising events.

The brothers share many other responsibilities. They create new sock designs together. “We get inspired by things people like,” says Brandon. “For example, we made an astronaut design because everyone loves space!” After they are happy with the new design, they send it to the factory to make. The whole process takes about two months. Then the boys work together to promote the new style. This includes posting the design on social media!

Running a business during a pandemic taught the boys to expect the unexpected. “You have to come up with a backup plan in case things go wrong,” says Brandon. “We used to do a lot of school fund-raisers, but those stopped with Covid. Now we do most of our sales online.”

Despite the past year’s challenges, the brothers feel lucky to be working as a team. “There are so many benefits to working with family,” says Sebastian. “You know each other so well, and you can help and learn from each other.”

Running a business during a pandemic taught the boys to expect the unexpected. “You have to come up with a backup plan in case things go wrong,” says Brandon. “We used to do a lot of school fund-raisers, but those stopped with Covid. Now we do most of our sales online.”

Last year was difficult. But the brothers feel lucky to be working as a team. “There are so many benefits to working with family,” says Sebastian. “You know each other so well, and you can help and learn from each other.”

KEY MATH IDEA: Using Percents to Split Profits

An important part of Are You Kidding? is working with charities and donating a percentage of their profits. The net profit from an item is the difference between the gross profit, or amount earned from selling the item, and the amount spent to produce it, known as the cost.

KEY MATH IDEA: Using Percents to Split Profits

An important part of Are You Kidding? is working with charities and donating a percentage of their profits. The net profit from an item is the difference between the gross profit, or amount earned from selling the item, and the amount spent to produce it, known as the cost.

Here's how they do it. Record your work and answers on our answer sheet.

A charity wants to partner with Are You Kidding? to make 430 pairs of socks for a sock hop fund-raiser. Each pair costs $11.85 to produce. The charity has agreed to cover 20% of the cost to produce the socks. What is the total cost to produce the socks? How much will Are You Kidding? have to pay to manufacture the socks?

If they sell all 430 pairs of socks at the event for $14.75 per pair, how much gross profit will they make at the event? How much net profit will they make after subtracting all costs to produce the socks?

The charity will receive 65% of the net profit from sock sales during the event. After splitting the net profit, how much money will the charity end up getting? How much will Are You Kidding? receive?