SPENDING THE FAMILY INCOME SPENDING THE FAMILY INCOME, BY S. AGNES DONHAM !\J^ BOSTON LITTLE, BROWN, AND COMPANY 1921 Copyright, 1921, BY LITTLE, BROWN, AND COMPANY. All rights reserved Published October, 1921 PBINTED IN THE UNITED STATES OP AMERICA TO MY PUPILS AT THE GARLAND SCHOOL FOB 1913-1920 IN WHOSE INTEREST I FOUND THE INCENTIVE TO DEVELOP THE MATERIAL THIS BOOK IS AFFECTIONATELY DEDICATED. 494401 PREFACE Years ago Mrs. Ellen H. Richards said, "There are to-day many temptations to spend for things attractive in themselves, but not necessary to the effective life." This is equally true of the present day and the purpose of this book is to assist those who wish to plan their spending systematically, giving each department of household or personal expenditure such careful consideration that they may be sure they have resisted the temptation to spend for those things which are merely attractive in themselves without adding to the real values of life. It is not the size of the income so much as the way in which it is spent which determines whether we are successfully obtaining those things which we believe to be most worth while in life. Too many people live according to the conven- tional standards of their social set without con- sciously defining their own standards, counting the cost of maintaining them and balancing the cost with the return in "the durable satisfactions of life." v PREFACE Living by a carefully made budget means using such intelligence in the spending of one's income that first the necessities and then those desires which are most worth while are obtained. The successful budget is the one which neglects none of the physical necessi ties, gives none of them an undue portion of the whole, and provides maxi- mum amount of opportunity for the development of the mental and spiritual needs of life. Satisfaction with the results of our spending will come only when we feel that a fair proportion of our desires have been gratified. The quickest way to such gratification is through planning our spend- ing, keeping our main purpose always hi view. The family which is saving for a home will spend for other things with greater care than the family without such a goal. The child who is saving for a bicycle will find it comparatively easy to deny himself an ice-cream cone. Both the home and the bicycle are obtained more quickly if all spend- ing is done with the home or bicycle in mind. This book represents no attempt to solve indi- vidual problems in the distribution and use of in- come. The purpose is rather to state and discuss the principles which should guide the spending of income, whether it is large or small. The author is convinced that no one can successfully solve the vi PREFACE financial problems of a home except the people who direct the spending of the money within the home itself. Suggestions may be made which will, if applied to the individual problem, prove helpful, but so many and so diverse are the personal elements which enter into the arrangement of life for each family that actual decision can be made only from the inside. There will be many who will wonder why this or that division of household business has not been touched, but the book is not planned to cover the business of the home. The intention has been to confine the subject matter to budget making. If there is help in these pages for others, it is be- cause of the fact that the experiences and opinions of many have been studied and absorbed during years of lecturing and teaching. The source is not to be traced except by accident, and if any fellow worker recognizes an apparently direct quotation, apologies are due to him. If in the constant rear- rangement of notes, quotation marks have disap- peared it is a compliment which it is hoped is not too subtle to win his appreciation. There may be places where quotations are made from Mrs. Rich- ard's "Cost of Living Series" without due credit. If so it is with pride rather than apology, for Mrs. Richard's thoughts and conclusions were so fine, vii PREFACE so clear, so fundamental that one might well be glad to find himself incapable of separating them from the woof of his own weaving. Many will ask why no "standard," "ideal" or guiding budgets are given to serve as a starting point. Such budgets may be had from various sources if they are desired; they are not included here because in the opinion of the author they are not ideal, they do not guide, and they lead only to discouragement when individuals find themselves unable to live up or down to them. A recent effort to convince herself that this conclusion was wrong and that standards which were helpful could be suggested led to a study by the author of budget reports from fifty cities during 1919. It was evi- dent that the expenditures for food for five people from an income of $900 varied in these reports from 34 per cent to 48 per cent of the whole, the average was 43 per cent; and yet at that time in Bos- ton 43 per cent of $900 would not by any means provide food adequate for nourishment for five people. The result of the publication of such a standard budget would only be to convince the people in most of the fifty cities that they were spending far too large a sum on food while few who spent below the average would have discernment viii PREFACE enough to realize that local conditions must be re- sponsible for it. The individual solution of the individual prob- lem, based upon fundamental principles, is the text if there be one, and is at the same time the reason for the omission of those standard budgets and ideal percentages once so dear to the hearts of the statistical budget maker. The book is not meant to be controversial in any way and where opinions differ as to the conclusions drawn it will usually be because the qualifying con- ditions have so far affected the problem that the principle underlying it has been forgotten or ignored either by the author, or by the reader who finds that his experience seems to contradict the opinion expressed here. S. AGNES DONHAM IX CONTENTS CHAPTER PAGE PREFACE v I. THE INCOME 1 II. CONSCIOUS STANDARDS 8 III. STANDARDS FOR SAVING ...... 18 IV. STANDARDS FOR SHELTER . .^ 31 V. STANDARDS FOR FOOD . . ._. 38 VI. STANDARDS FOR CLOTHING 47 VII. STANDARDS FOR OPERATING EXPENSES 60 VIII. STANDARDS FOR DEVELOPMENT 68 IX. DISTRIBUTION OF INCOME 74 X. HOUSEHOLD ACCOUNTING 88 XI. THE GRAPHIC CIRCLE 99 XII. THE INDIVIDUAL INCOME 109 XIII. THE CHILD'S INCOME 120 XIV. STUDENT'S INCOME 132 XV. THE TIME BUDGET 140 XVL LISTS AND INVENTORIES 148 XVII. QUESTIONS FOR DISCUSSION 156 BIBLIOGRAPHY 168 INDEX.. 169 Spending the Family Income CHAPTER I THE INCOME The money which comes to the family regularly or within a specified time, whether as compensation for services or for the use of property, is by the Government considered as " Income," and when it reaches a given amount, with certain exemptions defined by law, it is taxable. Until the era of direct taxation many men and women were without defi- nite information as to the amount of their incomes; now it is necessary not only to know the total but to consider its source in order to make the reports which the State and Federal governments require. When making a plan for spending the income, the amount of the income taxes may be subtracted from the total, leaving what may be considered as net income which will be spent according to the requirements of the family standards of living. If these standards are defined in a family con- 1 FAMILY INCOME f erence after full discussion of all the points involvec and a spending plan or budget is made, the coop- eration of all the members of the family will b( much more positive. 1 1 is difficult for individuals to insist upon their right to spend carelessly or sel- fishly when they see that in order to gratify thei] whims they have deprived the whole group oi necessities or of comforts which would add materi- ally to the efficiency of the family. It is an effec- tive check to selfishness for a child to realize thai his thoughtless wasting of small sums means the loss of a much needed convenience or article oj clothing for his mother, that his carelessly torn suil can be replaced only by the self-denial of his father The first step to be taken in the family-budget con- ference is the making of an accurate inventory oi all assets and liabilities. How Much Does The Family Own? Investments Life Insurance Accounts receivable Real and Personal property Buildings Live stock Land Cash hi savings bank Furnishings Cash hi hand Shares in cooperative bank 2 THE INCOME How Much Does The Family Owe ? Mortgages Notes Debts Compare the total liabilities with the total assets. Is the family on a sound financial basis? Are the assets of greater value than the liabili- ties? Are the liabilities accumulating more rapidly than assets? If that is so, what is the reason? Can the liabilities be reduced by more careful spending of each year's income? Would it be good business to reduce the liabili- ties by sacrifice of some of the assets? Are the liabilities due to expenditures for con- structive agencies a home, education, working equipment or were they caused by a deficit in meeting the current expenses of previous years? If due to deficit in current expenses, the stand- ards of living should be changed so that the cur- rent expenses may be met by the current income, thus maintaining a standard of living which the income can support. The second step is to estimate the income for the coming year and this will include: All salary, interest, dividends, commissions, 3 SPENDING THE FAMILY INCOME royalties or other money which is expected to be available for use during the year. Estimates of the market value of all food raised in the home garden and consumed by the family. The market value of eggs, chickens, milk or meat raised and consumed by the family. The money value of the labor of the various members of the family should also be considered as a factor in reckoning the cost of service, food, clothing. The interest on the money invested in the house is a factor in the cost of shelter and should be considered when judging the real cost of living in a house owned by the family. These additions to the income are sometimes called material income; they may not affect the apportionment of the money income, but they should be considered when comparing the cost, amount and quality of food, clothing, service, shel- ter, etc., which one family is able to obtain from a given income with the same purchases which an- other family will be able to make from the same amount of money. A family with a small money income may have so large a material income that its problem of main- taining comfortable standards will be less than that of another family whose money income is much 4 THE INCOME greater. The spending of the income involves certain decisions as to ways and means, and these must be adjusted by the family according to the circumstances and the conditions existing within the family. While the ideal arrangement is probably a joint account with both husband and wife free to draw upon it at will, there are families where such a plan would be impossible because of conditions which exist and cannot be ignored. Lack of self-control or early training in the use of money, poor judgment in the selection of materials on the part of either man or woman may make it necessary for the other to attend to the business affairs of the home; but whatever condition of this sort exists there should be mutual discussion of the problems involved, and while the responsibility of spending may be undertaken by the one best fitted for it, the deci- sion should be made by both husband and wife and the children should understand the plan adopted and the purpose which governs the spending. A joint bank account, a system of personal and household allowances, a division of financial responsibility, certain bills paid by the husband and others paid by the wife, even the old plan of keeping all the family money in one pocket to be doled out to the other members at will or at need 5 SPENDING THE FAMILY INCOME are all methods of dealing with household finance which find advocates under certain conditions. The first decision for the family conference to make is as to the purpose for which the home exists. "No budget can be determined by your income but by what you want your family to get out of that in- come." 1 Is the purpose for which this income is to be spent personal satisfaction or service to the community? Is it for efficient work, for food, shelter and other purely material needs or for service, breadth of vision, enjoyment of the beau- tiful, education of the children, mental growth of all the members of the family so that they may each have a share in making the world a better place in which to live? With this decision made it is easy to follow it with details as to how the bills are to be paid from the money available and thus clear the way for planning the budget. Real success hi the adjust- ment of this question comes not from the particu- lar method selected but from the perfect agree- ment as to the desirability of the method and the acknowledgment and constant practice of equal partnership. No matter what form of detail is adopted in spending the income, the husband and wife must consider themselves equally responsible 1 "Household Engineering," by Mrs. Frederick. 6 THE INCOME for the result. The joint bank account will be successful if both husband and wife have the same ideals and purposes and the same business training; it will be likely to fail otherwise. The household and personal allowance system is desirable when, with a common ideal, either husband or wife has less self-control than the other, or when one is a "born business manager" and the other finds it im- possible to master business details successfully. When either husband or wife proves a weak part- ner, with neither intention or desire to cooperate in a spending plan, it may become necessary, in order to save the family from financial disaster, for the stronger member to assume control of the income and insist upon its careful use. This con- dition is happily less frequent than formerly and husband and wife are now more often really part- ners, with a complete and frank understanding as to purposes and methods, a division of responsibil- ity as to details, and an equal responsibility for re- sults. This we may assume to be an ideal con- dition and it makes possible a successful business partnership which will lead to more perfect spiritual and mental fellowship and understanding within the family group. CHAPTER II CONSCIOUS STANDARDS A budget is a plan for the expenditure of any commodity during a specified time and, subject to changed conditions, should control the expenditure during that time. An income budget is, then, a plan for spending one's income during a week, a month or a year. Having been made, it should be followed as ex- actly as possible during the time for which it is planned. A household budget is a plan for spend- ing the family income during a definite period of time. A plan for a yearly budget covers seasonal as well as regular expenditures, and is usually more satisfactory than when made for a shorter tune. When a household budget is carefully made, based upon past experiences and well-thought-out esti- mates, it can be followed if all the members of the family are agreed upon its provisions and nothing happens to decrease the purchasing value or actual amount of the income or to essentially change the mode of living. Increased prices for commodities 8 CONSCIOUS STANDARDS or rent, or change in business are influences any one of which may necessitate revision of the budget. The cooperation of every member of the family is necessary to success and it is imperative that the budget be kept in mind and used as a check upon purchases. It is true that a budget may prove to be a poor one and in the process of living better plans will present themselves. In this case, if the first bud- get is reviewed as a whole and fails to prove its worth, a second plan may be substituted, provided the first has been given fair trial and good reasons for every change are apparent. A poor budget is better than none at all, and no changes of impor- tance should be made until time enough has elapsed for the faults to be so clear that remedies suggest themselves. A budget which is changed every month becomes worthless; the records prove noth- ing and at the end of the year there can be no defi- nite conclusions which are of constructive value. It has been said that no permanent result ever comes from thoughts or impressions unless they are expressed by action. If this is true, a budget planned with great care, accounting for the whole of the income and then laid aside, will never help in the expenditure of the income, or bring about any improvement in the living conditions of the 9 SPENDING THE FAMILY INCOME family. A budget must be made and then lived. "Why make a budget ?" "I know what I have and I usually spend it all." "I only buy what I must." "I never buy anything which I do not need, and if by chance anything is left there is sure to be a good use for it." These and similar excuses are made for unplanned spending. The old saying that we must cut the garment according to our cloth applies to the income. We must make our purchases according to our money. There is always a limit to the returns which can be had from a definite sum of money. If spent carelessly, some of the income goes for purposes less useful or less desirable than would be the case if the expenditure had been planned. There are many reasons for making a budget. Chief among them are these: The necessities will be provided, because con- sidered first. Purchases will be made more wisely, since having been planned for, advantage can be taken of seasonal reductions and time may be allowed for finding the right article. Purchases will fit together because planned to- gether. Leaks will be uncovered and may be stopped. 10 CONSCIOUS STANDARDS The standard of living will improve because the family life will be considered as a whole. If there are extravagances they will be dropped and real values will take the place of careless choice. More money will be saved because saved regu- larly and by definite plan. Saving, planning for all necessities, choice of most worth-while luxuries, wise marketing, har- mony in results, discovery of leaks, improvement of standards, recognition of real values may, any or all of them, result from the use of a carefully made budget. A well-rounded life should include expenditure for necessities, saving, giving, spiritual growth, edu- cation, health, play, culture and social life. The family or individual which ignores any one of these must inevitably lose some of the abundance which life should hold in store for all. When we unneces- sarily spend all for food, clothing, or shelter, and ignore the demands of higher life or development, we are crippling souls. If we spend all for art and are careless of the necessities, we are equally unfor- tunate, for a crippled body either reacts upon the soul or shortens life itself and makes all effort vain. The successful business man knows the expense of carrying on his business. His costs are figured carefully and overhead charges are worked out defi- 11 SPENDING THE FAMILY INCOME nitely. He bases his prices, his purchases, his methods upon knowledge of his financial plan, but with an occasional exception he allows the business of spending his personal income to go on without thought of planning, without even classification of expenditures, with no positive knowledge of what effect any one purchase may have upon the whole. The individual or the family spending a comforta- ble income without a plan, must, if suddenly con- fronted by facts, often acknowledge that too much is being spent for clothing, or that their food is elaborate and choice at the expense of comfort in operating or the simplest expenditures for culture, health or play. Planned expenditure should lead to better round- v ed family or individual life, with due consideration given to food, clothing, shelter and operating, but with an equal measure of thought and effort placed upon service to others, religious and civic activities, mental and spiritual growth, health, social life and play. The development of a one-sided family is as much to be avoided as that of a one-sided man or woman. The budget maker who plans only for material things is like a woman who works all day in the kitchen, forgetting that the rest of her house should be put in order. A plan for life should in- clude the spiritual, mental and social, as well as 12 CONSCIOUS STANDARDS material; this provision for spiritual, mental and social development involves expenditure of money just as surely as does the purchase of food or clothing, and if nothing is to be neglected or crowded out, a spending plan must be made to cover all of these demands. No one plan will suit every family. Each family must make its budget in accordance with its in- come, environment and standards of living. The heedless purchase rarely indicates a consciousness of values, while planned expenditure is based upon definite standards which the very act of planning has made conscious. Few people know exactly what their standards of living are. Challenged by the question and given time to formulate them, most men and women would be able to express their standards vaguely. /One reason for the difficulty which many families have in making ends meet is the fact that they have never made definite choices, but have drifted from one expenditure to another, suddenly finding themselves without money to purchase what seem to them absolute necessities, and obliged to go into debt to satisfy their needs. Making a spend- ing plan involves a conscious choice between ex- penditures and should disclose to the family its fail- ure or success in estimating values.^ 13 SPENDING THE FAMILY INCOME For convenience, let us consider all incomes as classified under four heads, existence, living, comfort, luxury. An Existence income is so small that it provides only enough food, clothing and shelter to keep the family alive and protected from the elements. A Living income will provide more and better food, clothing and shelter, enough to keep the family alive and able to work. This will mean: Food adequate for nourishment, but with little choice; Clothing sufficient for cleanliness, of durable quality; Shelter, safe, with possibilities of sanitation; Operating necessary to life (heat, light and water) ; A surplus, which permits small savings and some recreation. The Comfort income is large enough to give: Food adequate for nourishment, with some possi- bilities of choice; Clothing suitable for the work which has to be done, comfortable for the climate in which the family lives, with opportunity for choice and beau- ty; but carefully selected after definite planning and with constant care to make every purchase count. 14 CONSCIOUS STANDARDS Shelter, safe physically amd morally, sanitary, with some privacy for individuals and a degree of comfort for all, but without reckless expenditure for location or size. Operating consistent with the expenditure for food, shelter and clothing. A comfort income will not allow heedless or extravagant operating. Every detail will require careful supervision and restraint. Surplus for saving and well being, that is, for those things which tend to develop the spiritual, mental, physical and social sides of family life. The Luxury income will purchase : More/ood, with greater delicacies; More clothing, of finer fabrics, more decorative and with more frequent changes; Better shelter, with greater privacy, beauty and comfort in appointments; Operating expense consistent with the expendi- tures for food, clothing and shelter; increased ser- vice and consequently freedom from small, pinch- ing economies; Surplus for larger savings and greater develop- ment of spiritual and mental life through possibili- ties of travel, education and society, according to individual choice. It is impossible to set the limits in amount which 15 SPENDING THE FAMILY INCOME divide any two of these classes of income. Because of education, heredity, environment, occupation and number in the family, what might be a luxury income for one family would be a comfort income for another, and equally a comfort income for one family would provide only living conditions for another. Each family must look its standards of living squarely in the face and decide honestly whether it is harboring luxury standards on a com- fort income, or comfort standards on a living income. If its standards have been at fault, they should be reduced until they are within the limits of the income. It is, then, wise to ask very seriously what the family standards are for Shelter, Food, Clothing, Operating, and for Development, mental, physi- cal, social and spiritual. If this is done in the family group, and the analy- sis put into writing, there are likely to be various inconsistencies apparent, and discussion should result in clearing the way for more constructive planning than would be possible without such a definite statement of standards. If the object in making a budget is first to save more money, and second to get a better return for the money ex- pended, the first step in the budget making should be to discover what has previously prevented sav- 16 CONSCIOUS STANDARDS ing, and the next what return has come from the spending; and the result of such study should be a readjustment that will eliminate the expenditures which have failed to produce adequate returns. 17 CHAPTER III STANDARDS FOR SAVING When the savage, dependent upon the fruits of each day's hunting, discovered that days came when he found no food, he increased his efforts sufficiently so that on good days he killed a little more than he ate and put away the extra for the days when fresh supply failed. Since that time many systems of saving for the proverbial rainy day or sunny opportunity have been developed, and they have all been based upon the simple plan of the savage, to produce a little more than he consumed and preserve the surplus; but even with the long centuries of experience behind us, com- paratively few people to-day are saving construct- ively. The need for protection in case of emergency - illness, death, nonemployment, loss of earning power the desire for home ownership, a business, a farm, new equipment or furnishings, education, travel, the wish for power or social position in the community are incentives which lead to saving. In a comparatively small number of cases these 18 STANDARDS FOR SAVING savings are made according to a well-defined plan with the purpose of obtaining within a definite period of time a certain result in total amount saved and in return of income or purchasing power. Until a short time ago, most men have felt that whether they saved or not was a matter which con- cerned themselves alone, so long as they did not become public charges; but recently it has been apparent that not only is it a civic duty to try to save enough so that during old age, illness or other emergency the family will not be dependent upon the community, but that the welfare of the indus- trial world is largely dependent upon the savings of individuals. The small savings of many people combined and invested by the banks make possible the development of industry and the natural re- sources of the country. It is well to realize then that money which is saved and invested not only accumulates purchasing power for its owner but provides the means for increasing our national welfare. A good citizen will save as a civic duty, after he has provided the necessities of life in suffi- cient amount so that he and his family can do efficient work. Families living upon an income received from securities frequently spend it all, feeling that if they have not encroached upon their principal they 19 SPENDING THE FAMILY INCOME are quite safe. Indeed, one of the expressions most frequently used to describe a luxury income is, " He doesn't begin to spend his income." Asa matter of fact, most people who have spent the whole of their income from securities during recent years have found that same income greatly reduced of late, owing to the shrinkage in values, suspended dividends and the reduced purchasing power of the dollar. It has been pretty definitely shown that if the total value of the income is to be main- tained, a considerable portion of it should be rein- vested each year. 1 Ten per cent of the income is often given as the amount which should be saved and many people follow that rule without regard to conditions. To say that ten per cent of a family income must be saved is to apply a specific rule to a special problem in an arbitrary fashion which might result disas- trously. If ten per cent can be saved without reducing the efficiency or health of the members of the family, then ten per cent makes a very good starting point for a saving plan. When people are young it is often possible for them to save more than ten per cent and to do so means greater returns and less strain later in life. Application of the ten per cent rule tends to make a family satisfied with 1 Cromwell's "The American Business Woman", pages 2-9. 20 STANDARDS FOR SAVING saving. Study of future needs and a plan for sav- ing which will meet those needs provides an incent- ive which often results in putting away more than ten per cent, because the family is working toward a goal instead of following an arbitrary rule without any of the zest of accomplishment. To say that an individual should be satisfied with saving ten per cent or even fifteen per cent is as foolish, for many people who are without family cares can easily save as much as thirty-three per cent or fifty per cent without reducing efficiency or comfort; and to save is, as has been shown, a civic as well as a personal duty. On the other hand, there are families and individuals who have such legitimate demands upon their incomes that to save as much as ten per cent is impossible if daily life is to be sufficiently comfortable to enable them to do good work in the world. No one should save at the expense of health or decent living, and busi- ness equipment must be provided if the income is to continue, but a distinction should be made be- tween well-being and luxury; to refrain from saving in order to purchase luxuries is as wrong as to save according to a rule and allow the health to suffer until the income is reduced as a natural result. An arbitrary application of the ten per cent rule 21 SPENDING THE FAMILY INCOME might easily prevent the family living upon an in- come derived from securities from becoming conscious of the need to save and reinvest a much larger percentage of their annual income if they wish to maintain its standard of purchasing power. For several years insurance companies have used as advertising material the very suggestive charts given below. Whether these statements are based upon authentic figures or not I do not know, but my own observation leads me to believe that they contain more than a grain of truth. This indicates 100 men, representing an average group of Americans starting out in life At age 35 of these men 5 have died 10 are wealthy 10 are well-to-do At age 45 of these men 16 have died 1 is wealthy 3 are well-to-do At age 55 of these men 20 have died 1 is wealthy 3 are well-to-do 40 live on their earn- 65 live on their earn- 46 live on their earn- ings ings ings 35 show no improve- 15 are no longer self- 30 are not self-sup- ment supporting porting At age 65 of At age 75 of Estates at Death these men these men of 100 men 36 have died 63 have died 1 leaves wealth 1 is wealthy 1 is wealthy 2 leave comfort 4 are well-to-do 2 are well-to-do 15 leave from $2,000 5 live on their earn- 34 are dependent to $10,000 ings 82 leave nothing 54 are not self-sup- porting 22 STANDARDS FOR SAVING Financial Condition of 100 Widows 18 live on their incomes 47 supplement incomes by working 35 are dependent Saving by a plan which will result in building an income for the future must avert a large part of the disaster indicated by these charts, and even where it is manifestly impossible to create an estate which will yield the standard of comfort and well-being maintained during the productive years, it is evi- dent that an income which will prevent entire de- pendence would be a tremendous gain over the con- dition which now exists. Men and women have insured their lives in favor of their dependents but in most cases without mak- ing a careful study of the probable needs of these dependents and provision for an income adequate to ensure their comparative comfort. The family with a comfort income, in making a saving plan, should consider not only the amount of insurance which it is desirable to carry, but the way in which it shall be paid to the family in order to provide the maximum amount of comfort and safety during the years when the children must be supported. Such a saving plan should also include provision for an emergency fund readily accessible and sufficient for probable needs; and a third fund 23 SPENDING THE FAMILY INCOME for special purposes, like the purchase of a house or education for the children, etc. What income do you wish to leave your fam- ily? To accumulate an estate requires careful planning with a definite goal in mind and the reali- zation that the result is dependent upon the amount of the annual savings. Statistics show that a healthy man may expect to live the number of years and attain to the age shown in the following table: TABLE I. LIFE EXPECTANCY OF HEALTHY INDIVIDUALS OF VARIOUS YEARS OF AGE Age at Last Birthday Age likely to be Attained Years of Expectancy 15 60 45 20 25 8 42 39 30 65 35 35 67 32 40 68 28 45 70 25 50 71 21 . 55 72 17 60 74 14 65 76 11 70 78 8 24 STANDARDS FOR SAVING TABLE H, COMPOUND INTEREST TABLE. ONE HUNDRED DOLLAR PRINCIPAL The sum to which $100 principal will increase at interest compounded annually in one to five decades at 5%, 6%, 7%, 8%, and 10% per annum. Rate per An- num at which Amount of Accumulation at Year Designated Compounded 10. 20 30 40 50 5 $163 $265 $ 432 $ 704 $ 1147 6 179 321 574 1029 1842 7 197 387 761 1497 2945 8 216 466 1006 2172 4690 10 259 673 1745 4525 11738 TABLE m. COMPOUND INTEREST TABLE. HUNDRED DOLLARS PER ANNUM ONE The sum to which $100 per annum, paid at the beginning of each year, will increase at compound interest, in one to five decades at 6% and 8% per annum. Rate per An- num at which Compounded Amount of Accumulation at Year Designated 10 20 30 40 50 6 8 $1397 1464 $3899 4942 $ 8390 12234 $16415 27978 $30810 61967 Note some of the following results of a few years of consistent accumulation of estate: $100,000 $162 a year compounded at 8% for 50 years $100,000. . . .$817 a year compounded at 8% for 30 years 50,000 $305 a year compounded at 6% for 40 years 25 SPENDING THE FAMILY INCOME From these tables it is evident that the amount of annual savings and the regularity with which these savings are made are two of the vital factors in accumulating an" estate; the third factor is the safety of the investments chosen, and the fourth the amount of interest which is received on the in- vestments. The earlier in life one begins to save the more surely is the desired result obtained, and the strain upon the income and daily sacrifice of one's desire for luxury is much less when the saving is distribu- ted over a large number of years than is possible if the necessity for saving only presents itself after the enthusiasm of youth is gone. It is well in making a plan for constructive sav- ing to allow for the fact that there will be times when it is impossible to save and to set the goal as high as possible in order not to fail to attain a good average. " How much should we save?" should be answered by the counter question, "Why are you saving?" If the answer is for emergency, then you must define the emergency for which you wish to provide illness or non-employment and the general opinion of business men seems to be that for incomes below $2,000 the equivalent of one year's income in the savings bank is necessary if an 26 STANDARDS FOR SAVING individual or a family are to be able to cope success- fully with emergencies. If the savings are to be made toward the pur- chase of a house, the location, size and type of house must be defined; the cost of the lot must be considered, and the saver must estimate the total sum required to pay for the house; ascer- tain how much cash he must have in hand before beginning to build or purchase and upon what terms he can arrange to pay the balance of the money. The advantages offered by the purchase of cooperative bank shares, the possibility of borrowing from a savings bank, the various op- portunities for second mortgages all enter into consideration of this problem in constructive saving. With such an estimate the amount which must be saved each year will be evident, and sav- ing can be planned which will accomplish the de- sired result within a definite period of time. When the savings are to be invested in the education of the children the same general method of estimate is necessary. When shall we wish to use the money? How much probably will be necessary? How much must be saved each year in order to provide this amount by the tune the children are ready for college? How can we be sure that we shall have enough money at the 27 SPENDING THE FAMILY INCOME proper time? How should this saving be made if it is to be done with the least strain upon our income? A savings bank account, cooperative bank shares or endowment insurance are all of them of great assistance in saving for an object which is to be purchased in the more or less defi- nite future. It is impossible to determine in advance the pre- cise sum which would be necessary if one were to be ready to take advantage of a business opportunity, but the person who saves with the idea of accu- mulating a bank account equal to a year's salary will, when his goal is reached, be able to continue his saving on the same basis, keeping the second fund for emergencies and thus being in a position to invest the first fund when good opportunity presents itself. If the reason for saving is to provide an income for one's old age, the plan might include en- dowment insurance as well as a carefully devel- oped scheme of investment. When the income to be provided is for the benefit of one's heirs, straight life insurance and reliable securities may be considered a good basis for the plan. The individual dependent upon his earnings looks forward to the time when he can no longer 28 STANDARDS FOR SAVING earn and must obtain support from his savings or be dependent upon other people. Such a condition can be avoided only if provision is made for an in- come which will continue after earning ceases. Constructive saving makes a continuous income possible and if the savings are made with that purpose in mind, the income will be more likely to be sufficient to meet the needs than is the case when there has been no constructive plan for ensuring such an income. Bolton Hall says that " Life is not made for sav- ing, but savings are made that life may be more abundant." Whether savings insure more abund- ant life to the individual, to his family or to the community does not affect the truth of this state- ment. When savings are made and hoarded in a stocking they accumulate little, either in purchas- ing power or in possibilities for abundant life, but when the same money is put to work for the pro- duction of useful things which will add to the good of the whole people, life has indeed been made more abundant for all. Unless we save and use for con- structive purposes as much money as we are spend- ing for mere luxuries we are not planning our ex- penditures on a stable basis. To spend first and then save is equally bad in policy. Those who save successfully and regu- 29 SPENDING THE FAMILY INCOME larly do so because they plan carefully, fix the amount they wish to save and save that amount before spending, then forget they have had the money and spend as if the remainder were all that had ever been available. 30 CHAPTER IV STANDARDS FOR SHELTER The smallest income must provide some sort of shelter and the poorest shelter must have a roof, walls and a floor. The first increase in the amount of income available for shelter will usually be spent for possibilities of cleanliness, sanitary con- veniences, and a degree of privacy for individuals. Further increases will be used for added com- fort, and later for better location and appear- ance, with recognition of the desirability of living where opportunities for social, religious and educational connections are possible. Certain decisions must be made before formulat- ing standards for shelter. One must choose be- tween city, suburban, town or country life. If a family lives in the country, it is desirous of space sufficient for privacy; if in a town, for a yard; if in a city, for a backyard; if in an apartment, space for air and sun. The amount of privacy possible for individuals is determined by the size of the in- come, the number in the family and the houses 31 SPENDING THE FAMILY INCOME available for rent in the community. The ques- tion of location is important. Convenient prox- imity to business, church, schools, social center and railway must be considered. Are there indi- viduals in the family whose condition of health or strength necessitates especial care in choice of climate, location or arrangement of rooms? Must social advantages be sacrificed for comfort, or comfort and convenience be relinquished for busi- ness reasons? Does the family own property which does not meet its demands? Can changes be made so that it will be suitable, or shall it be rented and something hired which is satisfactory? Standards of living determine the size of the house and whether it is to be hired or owned. Will a single or a double house or an apartment best meet the need? The advantages of an apart- ment are low operating costs, heat, water, service and a minimum amount of care. Some of the advantages of living in a house are greater pri- vacy for individuals, more freedom of movement, greater space, stronger sense of permanency. The question of buying or renting must be answered by the individual after studying his own problem. TQ own one's house develops home feeling, removes temptation to change carelessly, develops civic pride and concern and gratifies a 32 STANDARDS FOR SHELTER desire for ownership. On the other hand it is often impossible in large cities, and the cost of ownership in the suburbs is increasing. Owner- ship entails responsibilities and sometimes makes a change of location for business purposes diffi- cult. The decision must be made after thorough study and weighing of the conditions surrounding the individual. The child growing up hi "our own house" has memories, associations, habits and development very different from those of the child who has moved from house to house. The better citizen is probably developed from the child who has a sense of permanence in a locality. Having decided upon the location, type of house, ownership or rental, other questions present them- selves. Shall you require one, two or more bathrooms or none? How many sleeping rooms will be nec- essary? Will one living room be sufficient? How many rooms must be provided for service? Shall the living room serve as nursery, or must there be an extra room? Do you insist upon a serving pantry, or will a china closet answer your purpose. What about gas, electricity, hot water and heating plant? If these are not already installed, what will be the cost of obtaining them? 33 SPENDING THE FAMILY INCOME How many closets must there be? What are your requirements for cellar, storeroom, lawn, garden? The essentials in shelter for any size income are those which make life safe, physically, mentally and morally. Air, space, light, water, sanitation, good drainage, good cellar; clean streets, walks and gutters; honest, clean-minded neighbors, the absence of a rough element and immoral conditions are essentials. The family hiring or purchasing a house should consider the surroundings very care- fully, especially if the selling price or rental asked is smaller than might be expected. If the neigh- borhood is running down, the cause for the low price may become a menace either to health or to the morals of the family. When choosing a house, either for rent or ownership, the cost of maintenance should be a factor in the decision. If it is an old house out of repair, the cost of put- ting it into condition may be prohibitive. Cheap construction, poor location or plan may cause difficulty in heating it, so that the cost of operating is excessive. The cost of shelter includes business and regular school carfares as well as rent. It .is frequently possible to avoid having to pay carfare if, in choos- ing, the demands of the individual family in regard 34 STANDARDS FOR SHELTER to business, church, schools, social life and train service are considered. If the house is owned, injgrestjm_;yie_m taxes, repairs and upkeep, depreciation, fire insurance and business carfares constitute the actual cost of shelter; but to add the estimate of interest on the money in- vested to the income and then to the cost of shel- ter, when no money is actually involved, compli- cates the household accounts, and it is simpler to include in the budget only the interest on a mortgage when there is one. The wise house owner will set aside a house fund in which he will deposit each month the amount of money he would pay for rent if he hired the house. A separate bank account makes it less likely that this money will be borrowed for other purposes. He will thus have a sinking fund from which to pay taxes, insurance and interest when they are due, and will be able to make desirable repairs when they are needed, beside having a surplus which will accumulate either to enlarge and improve the house, or to use for investment later. Intelligent standards in shelter will result in the choice of a location and house which are safe physically, mentally and morally, the appearance of which belittles rather than exaggerates the size of the income. To spend 35 SPENDING THE FAMILY INCOME below the possible (limit for shelter is far more desirable than to lower the standards for devel- opment and food. Society's guide to one's standards should be based upon the expendi- tures for development, rather than upon a false impression gained from an excessive amount spent for shelter. When the cost of shelter alone is in excess of a sum which is reasonable, the allotment for food or for development is reduced. This is not a desirable distribution, and except with a very small income should never occur. In case the rent includes heat and water and some service, as in an apartment, the excess which is due to the cost of heat and water reduces operating costs and is legitimate. While it is never wise to say positively that any arbitrary amount is invariably safe or unsafe for a family to spend for shelter, results in working out a large number of budgets have shown conclusively that if the cost of rent or ownership exceeds one- fifth of the net income (after savings and income tax have been subtracted) the family is likely to have difficulty in paying comfortable operating ex- penses, is decidedly cramped in expenditures for development, or is not saving a reasonable sum. Stated as a rule, one might say that under ordinary conditions a family living on a comfortable income 36 STANDARDS FOR SHELTER should pay one-fifth or less for rent or ownership, that one-tenth of the cost of a house must be set aside each year to pay for rent (as taxes, insur- ance, repairs, depreciation and interest) and that unless an increase in income is to be expected almost immediately, a family is not justified in investing more than twice its annual income m the purchase or building of a house. The budget maker should be able to tell from a frank statement of his standards whether he has been demanding luxury in shelter from an income only large enough to warrant comfort, or comfort when the size of the income indicates only "living" standards. If the cost of the shelter provided is too high for the income, other standards must suffer and one will be in the position of a shop- keeper who places all his stock in the window, leaving nothing to sell from the shelves. 37 CHAPTER V STANDARDS FOR FOOD Food is provided for the primary purpose of nourishing the body, but good food, attractively served, may be assimilated better by a given individual than the same food poorly cooked and carelessly served. Therefore, in addition to pro- viding food for health and efficiency, there should be a return in enjoyment. Training in good food habits is helpful. Thought should be given to the value of food in the body rather than to the pleasure of the palate; the tendency will then be toward enjoyment because of delicate seasoning, good cooking and attractive serving, rather than because of rare flavors, out of season delicacies and complicated processes of cookery. Food standards for a family may be in accord with other expenditures, but the meals should be planned with dietetic rules well in mind. Good food, well cooked, attractively served, without too frequent repetition and without undue cost for material and preparation, or excessive waste either in purchase, care, preparation or serving 38 STANDARDS FOR FOOD should be the standard for any income. Simplic- ity of choice is desirable, as it provides necessary nutrients at less expense. Simplicity in prepara- tion saves time, and the result is food which has retained its natural flavors and is more easily digested. Simplicity in serving saves paid ser- vice, or the strength of the housekeeper, and tends toward a more comfortable attitude of mind if the family is suddenly deprived of the usual amount of formal service. Good economics may not justify eating at home but the home table is justified by other returns than the economic. The freedom from publicity makes possible the training of children in self-con- trol and regard for others. Adults and children be- come responsible for pleasant speech, interest in the affairs of the family and discussion of questions of moment. The returns for the money invested in home life are not expressed in dollars and cents, but in terms of flesh and blood, comfort and health, family interest and enjoyment, efficiency and com- munity interest. At present the aesthetic value of the family table seems sufficient to warrant the ex- pense necessary to maintain it, but that value may be lost entirely in individual cases if care is not used. The common dining room, with its lack of privacy and loss of individuality, can be maintained at less 39 SPENDING THE FAMILY INCOME expense than the home table. Less duplication of effort and waste of time with greater freedom from care are the advantages which the community din- ing room offers, but until it can also give to the members of the family equal satisfaction, pleasure and training in the fundamentals of fine family relationships, it wilTbe worth while to continue the serving of food to family groups in separate dining rooms at any possible cost in money. The cost of food includes the cost of production, distribution, preparation, serving and disposal of waste. Cost of production means the cost of seed, rent or interest on the ground used, labor, machin- ery, waste from weather or disease and loss in harvesting. Distribution includes the cost of trans- portation, packing, handling, wrapping and deliv- ery, while the cost of preparation and serving is the cost of service, heat, loss in preparation and serving and waste in digestion. The house- keeper who is definitely planning her food stand- ards must study the value of foods to the body. Her questions should be, "Can I afford to buy? Can I afford not to buy?" "Is this food neces- sary to maintain or increase the efficiency of the family?" "Does its usefulness warrant its cost?" To answer these requires a knowledge of the purpose for which she intends to use the food and 40 STANDARDS FOR FOOD its suitability for the purpose. " Would a cheaper substitute give as good results?" Foods may be valuable for variety, concentration, succulence, bulk, color, crispness or flavor as well as for the nutriment they contain. The money spent for a bunch of radishes in the late winter may give little return so far as the nutriment is concerned, but the value of the crispness and color is great, when an otherwise dull menu has been brightened sufficiently to make it interesting for every one. Consideration of food values and of the waste in preparation and serving, definite standards for serv- ice, the number of courses demanded, the fre- quency with which the same dishes may be served, the use of left-overs and out-of-season foods all influence the cost of food for a family. Butter, meat, eggs, fish and cheese, fresh fruits, cream and out-of-season vegetables are the most expen- sive foods. Self-denial practised in their use, the serving of less expensive substitutes for the more costly foods and simple desserts instead of rich "made" dishes all tend to reduce food costs. One has always to remember that with protein dishes, especially of meat, those which cook quickly are the most expensive cuts and the iriore costly des- serts are frequently those which require elaborate preparation. 41 SPENDING THE FAMILY INCOME Each housekeeper must decide for herself, after due consideration of all conditions, whether she shall cook at home, or purchase cooked food; whether she shall bake her own bread, or use a bak- er's product. It may be that extra costs are more than balanced by the difference in the amount of service or strength required. The housekeeper, in making a statement of her food standards, must de- cide whether she will serve simple or elaborate breakfasts, with fresh fruit, cream and hearty dish; midday or evening dinner with one, two or three courses, choice or less expensive meats, two or three vegetables, native or out-of-season vegeta- bles or fruits, rich or simple desserts. Made dishes, the use of left-overs, the absence or addition of soups and salads all add to or subtract from the ex- pense and at the same tune affect the work of preparation. It is well to begin with the minimum amount of money for which adequate food can be provided. The number in the family, age, occupation and health of the individuals must all be considered. Decide first what foods are necessary for the health of the family. Estimate the cost of these foods for a week. If the total is more than should be spent for food, consider whether less expensive sub- stitutes with the same food value can be used in 42 STANDARDS FOR FOOD place of some of the more costly articles on the list. If the foods necessary to health do not use all of the money available, additions may be made which will give greater interest and attractiveness to the diet. The minimum cost of adequate food varies with the locality, the number of children or old people in the family and the changing market conditions. At the present time it is close to fifty cents a day per person. Five years ago it was near to thirty cents, and ten years ago was from twenty- two to twenty-five cents, depending upon the locality. There are various rules for the apportionment among the different groups of food. Of every dol- lar, spend for Meat, eggs and fish 20 cents, or less Milk (1 pint to each child, quart to each adult) 20 cents, or more Cereals and bread 20 cents, or more Vegetables and fruit 20 cents,more or less Fats, sugar and other groceries. .20 cents, or less $1.00 Another plan for spending a minimum food allow- ance is to use milk as the basis: one-third of a quart to each adult; one pint for each child. 2 1 Bureau of Home Economics, Department of Agriculture. Thrift leaflet No. 15. 2 It should be noted that this is the minimum amount of milk one quart for each child and one pint for each adult is a safer amount. 43 SPENDING THE FAMILY INCOME No meat, eggs and fish until the full amount of milk has been purchased, and then not more than one-fifth of the total food allowance. Fruit and vegetables, for each person as much as has been spent for meat. Fats, 2 ounces for each adult; one and one half to two ounces for each child. Cereals and bread, from one-fifth to two-fifths of the total food allowance. Sugar and other sweets, two and one-half ounces for each person. Doctor Graham Lusk has said that no family of five should purchase meat until they have first purchased three quarts of milk. It is evident that when the food allowance is small, great care must be used if adequate food is to be provided. When there is more than a mini- mum food allowance, the diet may be more varied and will be more interesting. The danger which the budget maker must guard against is the ten- dency to increase the expenditures for food with every addition to the income, frequently beyond the amount consistent with that spent for develop- ment. The results desired are first: health and power to work; second : enjoyment which is keen and yet not so consuming as to make one lose sight of the 44 STANDARDS FOR FOOD first requirement. Simplicity in the choice of foods makes possible greater expenditure for de- velopment and greater comfort in operating, with less need for paid service. Those families which live on the minimum amount of food necessary for nourishment must eat to live, not live to eat, must have appetites made keen by work or exercise and have the incentive of great need, or of intense de- sire to accomplish something else with their money. It takes less money per person to provide food for a large family than for a small one, but whether the family is large or small, the success of the expendi- ture for food is indicated by the resulting health and ability to work. The businesslike homemaker will wish to handle food problems in a businesslike way and will plan what she can spend, will know how much nourishment she should provide and will endeavor to make the money, nourishment, gratification of appetite and tastes correspond; in other words, will make a food budget. In making a food budget for a family, the housekeeper may plan first the separate meals, taking care that she considers food value, individual tastes, variety, material on hand and costs (in the market, of preparation and of waste); then make out a grocery order, and if she has the necessary 45 SPENDING THE FAMILY INCOME knowledge she will find it an exciting game to work the whole out in calories. She will then know whether she is furnishing the proper amount of each group of foods. This plan is possible only when the income warrants a food budget without great restriction as to cost. When the income is small, it is safer to start with the number of calories necessary for a week's meals and plan a grocery order of staple foods with that cal- oric value. Give heed to the proportion of milk, meat and vegetables, substitute cheaper materi- als of the same food value in order to reduce ex- penses, but always take great care to keep the necessary amount of milk, leafy vegetables and fruit. She can then separate the totals into meals, planning different and attractive ways of serving to prevent repetition. Such food budgets will give better food with greater variety at less cost than when the plans are made from day to day. 46 CHAPTER VI STANDARDS FOR CLOTHING Clothing should serve to protect the body from heat and cold, to satisfy one's own sense of the beautiful, and to gratify the eyes of one's friends. Protection is the first object, gratification the second and this order should be kept in mind when choosing. Carelessness in the selection of clothing is inexcusable with any income and a tragedy with a moderate income. Certain fabrics are admittedly beyond our means, others are possible in limited quantities, others less expen- sive or more durable must be used frequently. Quality and quantity should be studied, and the occupation, social life and special needs of the individuals taken into consideration. The business of the family; the social standing of the parents; the school affiliations of the child- ren; the clothes worn by their associates; the abil- ity of the mother to sew ; country or city life; the way the summers are spent; the opportunity to pass on clothes out-grown to the next in size; all must influence the making of a clothes budget.^ 47 SPENDING THE FAMILY INCOME The cost of clothing includes the original price, the cost of care and of articles necessary to wear with it. One should be very sure that each article purchased is needed, is suitable in style, material and quality for the purpose for which it is intended, is as beautiful as can be afforded and will wear long enough to warrant its purchase. It must not only stand usage, but it should be of such color, style and material that the person who must wear it will not tire of it before it is worn out. For this reason extreme fashion, unbecoming styles, colors and trimmings should be avoided, as well as material unsuitable for the purposes for which the garment is to be used. The wardrobe is much more suc- cessful if it has been considered as a whole. If each article purchased is chosen because it agrees in color, style and quality with other articles already on hand, the whole clothing outfit will be more suitable, more beautiful and more durable in satis- faction. The quality of undergarments should be con- sistent with that of the outer garments worn and always in accord with the purpose which they are to serve. Camp life, business life, social life each demand different fabrics, and what is suitable for one kind of life is frequently absolutely unsuitable for another. While it is possible that one person 48 STANDARDS FOR CLOTHING might use several kinds of materials, it is as unde- sirable that the business girl or woman should wear to business fabrics suitable only for social functions as it is that the business man should wear corduroy hunting clothes to the office. Silk lingerie is not consistent with knitted shirts from the five and ten- cent store, nor should silk stockings be permissible with patched or coarse underwear. Honest stand- ards in clothing require consideration of fitness and consistency in the combination and use of fabrics. A chart like the following will prove of use in formulating clothing standards. A great difficulty with most of us is that we have standards of which we are not clearly conscious, and because we do not recognize them as standards, we frequently make purchases which are not consistent. Our clothing in consequence is inadequate and unsatisfactory. While the details given on the chart are not new, a study of them does insure decisions which compel us to think and make conscious choice. 49 SPENDING THE FAMILY INCOME Materials Making Style MY STANDARDS ARE silk wool cotton weave texture suitability for climate health work social life quality coarse fine superfine colors fast or fade easily for effect suited to the individual homemade machine hand work ready-made custom-made seamstress dressmaker tailor " modiste" remade for owner for other members of family latest fad new each season conservative good as long as it lasts finish and line quality of material 50 STANDARDS FOR CLOTHING Replacement hand or machine-made j durable or fragile Trimmings \ q^ei in color or design conspicuous when styles change when tired of the garment when worn out when half worn when outgrown when it will give better service to some one else when no longer in active service shaking and airing cotton or linen brushing and airing wool materials removal of spots hanging or folding Clothing covering in closets Care 1 cleansing and redyeing mending and darning sponging and pressing summer storage winter storage use of shoe-trees airing, cleaning and polishing shoes straightening heels Shoe resoling Care half soles whole soles stitching rips relining heels To make a clothing budget, list all the articles of clothing worn under four heads : Inner clothing, Outer clothing, Street clothing, Accessories. 1 1 See charte, pages 56-59. 51 SPENDING THE FAMILY INCOME This list should not be burdened with articles never worn by the person making the budget but should include everything which is hi the wardrobe. In the first column write the number of each which would be necessary for use during a year, in the second column the number already on hand which will|not need to be replaced during the year. This requires care and judgment as to durability. For example, if twelve pah* of stockings are normally purchased each year and six good pair are on hand, it means that before the year is over the inventory shows that six pair of stockings must be purchased. If, on the other hand, three of the six pair are al- ready nearly worn out, they should not be consid- ered in the budget, and nine pair should be entered in the column marked " Number to purchase." In the third column write the average cost of the articles on hand. In the fourth column, the number which must be purchased in order to keep up the standard of the first column. In the next column, put the amount which it seems wise to plan to spend in buying the articles found to be necessary. This amount will be affected by changes in -price since the last purchases. The last two columns are to be used later for the record of what is actually spent and the difference between that and what it is planned to spend. 52 STANDARDS FOR CLOTHING When all estimates are made, add the amounts in the fifth column and compare the total with the amount of the income which has been al- lowed for clothing. If the total of the fifth column exceeds the total of the original plan, one must go over the list and reduce it, eliminating the articles which were not really needed. If it is still impossi- ble to make the two totals come together, one must either reduce the quality of some of the articles/or again reduce the quantity. To make a successful clothing budget, one must be willing to face facts and plan with the limitations of the income as well as one's desires in mind. Do not try to buy everything that the budget calls for at once, but as articles are discovered in the market which satisfy and which have been planned for, take advantage of it, jotting down the amount spent in the next to the last column, and the amount saved or exceeded in the last column. If an unexpected need appears, it may prove that enough has been saved on some other things to make its purchase possible. If not, it is neces- sary to give up some definite thing in order to provide for the emergency. A better clothing budget will result if the whole year is planned for at one time. Then, if condi- tions change, the budget can be altered to meet the 53 SPENDING THE FAMILY INCOME new conditions by making deliberate choices, giv- ing up one thing in order to get something else. It is obviously impossible to tell in the fall exactly what the summer needs will be; but if the clothing allowance is limited, it is just as obvious that the money available for spring and summer clothing will be what is left after the winter needs have been met. If, during the fall and winter, money is spent without regard to the rest of the year, the next season is sure to be a lean one, or the clothing ap- propriation will be overrun. It is far better to plan on expenditures for a normal, average year than it is to refuse to plan because the coming season may differ in its demands from the usual. If the ab- normal demands come, the money can be spent to the best advantage at the time, and there is sure to be more available than there would have been if no plan had been made.] With the budget made out for the year, r it be- comes a matter of course to buy when it suits the money supply, or when one sees a thing he wants at the price which he has planned to pay. The ob- jection may be made that it is impossible to tell what it will be necessary to pay for a garment a whole year ahead. That is true, but one knows what he is in the habit of paying, and if, when the time comes, he finds that the thing planned for 54 STANDARDS FOR CLOTHES cannot be obtained at the price he planned to pay, he will then be obliged to accept a poorer quality, or give up something else in order to keep to the standard which he has always had. Such a survey of the wardrobe and plan for re- plenishing will show when there are more articles on hand than are needed, prevent needless buying, and almost invariably result in including in the wardrobe various articles which have always been wished for but which it has seemed unwise to afford to purchase. The following lists may include ar- ticles unnecessary to many people; if so, they can be ignored. The figures in the lists indicate the way in which the different columns are to be used. When articles are not purchased every year and do not conveniently alternate with some other ar- ticle of about equal value for example, a fur coat or an evening wrap it is well to set aside a sum each year as a sinking fund to replace the garment when desirable. If a fur coat will presumably last five years, one-fifth of its value should be placed in the sinking fund each year. Jewelry which is to be purchased by the wearer might alternate with other large and infrequent expenditures like that for furs. 55 Clothing Budget (Woman) Number required Number on hand Average cost Number to purchase Amount to spend Amount spent Amount different UNDERWEAR Union suits . Undervests Corsets Brassieres 4 Camisoles ^ Chemises / Bloomers ft Stockings, silk cotton woolen Nightdresses I* 6 4 $2 00 2 |4 50 $4 25 $ 25 1 Negligees Bathrobe Skirts, cotton silk OUTER CLOTHING.. Dresses, street house business afternoon summer evening Skirts wash silk lingerie street shoes 2 1 $7.50 1 $7.50 $8.00 $.50 1 -f sport shoes gaiters rubbers 2 $1.00 2 $2.00 overshoes STREET CLOTHING Suits, spring summer winter winter (dress)... 56 11 II Number on hand h < Number to purchase Amount to spend Amount spent I ^3 automobile evening sport sweater .... rain Hate, spring summer winter sport ACCESSORIES Belts . Neckwear Gloves Veils Handkerchiefs j i The $.25 saved from the nightdress was used for the street shoes and $.25 more must be saved from some other purchase. Clothing Budget (Man) UNDERWEAR Union suits Undervests Drawers Athletic Pajamas Nightshirts Bathrobe Socks, cotton 6 4 $1.75 2 $3.50 $3.00 $.501- silk . wool Bathing suit OUTER CLOTHING.. Shirts, street dress sport Suits, business dress sport wash Extra coats .... vests trousers jumper overalls 57 Number required Number on hand Average cost Number 1 to purchase a a & $ o a " the equipment is allowed to de- teriorate until suddenly everything seems to be at the breaking point. Then either the entire fur- nishing must appear shabby, or everything must be repaired or replaced at once, and some really necessary purchases must be foregone in order to prevent the household goods Jrom reaching a state of decrepitude which prevents comfortable living. A definite plan for the replacement of china, kitchen utensils and bed or table linen will prevent the tragedy of a vanishing supply at the moment when an overstrained bank account seems to make replacement impossible without depriving the fam- ily of necessities or leaving the taxes unpaid. A distinction between replacement and new equipment must be made, as expenditures for the latter should be classed under development rather than as operating. Some one has said that any article which cost less than a dollar or would last 66 STANDARDS FOR OPERATING EXPENSES less than a year belonged in operating, while more permanent additions to equipment were a matter of choice and should be charged to development. The money spent for replacing a broken drinking glass is thus assigned to operating, while a dozen new glasses of finer quality or design, purchased as new equipment, belong under development. When considering equipment like a washing-ma- chine or vacuum cleaner, the purchase of which is to reduce operating expense for service, it is possi- ble to arrange to pay for them from the money saved. Such purchase of worth-while household machinery for the reduction of labor seems justifi- able whenever it can be shown that its use will re- duce operating expenses or prevent doctor's bills, and if a system of partial payments makes it possible to obtain this equipment, the monthly payments are chargeable to operating. Purchasing new furniture, a piano, victrola or automobile on such an instalment plan is a different matter and can hardly be justified by any reasoning. Payments of this sort are expensive and eat into the income. The purchases never "earn their keep," and it is a far safer and more cheerful procedure to save to buy than to buy and save to pay. 67 CHAPTER VIII STANDARDS FOR DEVELOPMENT The money spent for development of the spir- itual, mental, social and physical sides of family life is indicative of the character of the spenders far more than is the money spent for food, cloth- ing and shelter. True, expenditures for the other four groups may be in excess of the amount which is necessary, advisable or even desirable, but that may be due to ignorance or unwillingness to plan. The results are often unworthy the amount spent to obtain them and their cost so encroaches upon the resources, that the expenditures of a family become merely indicative of their desire for material things. But in the final arrangement of the budget, it is the plan for development which indicates the real preferences of the family. Just as the budget of the individual should in- clude provision for saving, " necessities " and de- velopment, so must the family consider the three and thus plan for well-rounded life. Personal taste, ideals, guiding principles, will cast the decid- 68 STANDARDS FOR DEVELOPMENT ing vote as to the nature of expenditures for de- velopment. There is necessity for honest study of the problem with due consideration of all the needs and characteristics of the various members of the family. The choice should not be left to chance, for drifting leads often to the choice of the least good. Careful thought upon the subject brings a more definite sense of values minimizes money value and develops more constructively the principles which should guide the expenditure of money beyond that used for absolute necessities. Progress is only made through effort, and a drift- ing choice requires no effort. Decisions should be the result of conscious choice. At first the direc- tion of choice is less important than the conscious- ness, for if the results are disappointing a lesson has been learned, and wiser choice will result a sec- ond time. Choose things which endure; choose those things which are suitable to the environment; choose because of personal ideals, not because of those of other people. Hold fast to the principle of growth, whether physical, spiritual or mental. Conscious choice is only possible with a margin beyond that necessary for decent living. After that point is reached, one can choose between effi- ciency, luxury and savings. After efficiency has been obtained, choice is between greater refine- 69 SPENDING THE FAMILY INCOME ments of mental and social life, physical luxury and savings. The incentive to wise choice may come from desire or from force. Desire may be in- nate, springing from guiding principles, or the re- sult of envy, which leads one to copy the life of his neighbor. Force may be applied by environment or business conditions. Whether the margin beyond necessities is large or small, there are certain well-defined needs which should be considered. The wise family saves something for a rainy day; gives something to others, making service one of its guiding principles; spends something for mental, social and physical development. The expenditures for mental growth will include those for newspapers, books, tuition for special classes, lectures, perhaps con- certs, travel, art; and those for social development must include entertaining and personal gifts. Spiritual development includes service to others, religious activities and benevolences. Physical development covers vacations, health, doctor, den- tist, occulist, optician, medicines, etc., as well as recreation, games, physical training classes. It is true that many of these may be obtained with little or no expenditure of money, while others cost much money. The well-rounded plan of life will include some provision for each one of 70 STANDARDS FOR DEVELOPMENT these divisions, and though the size of the income may be a deciding factor in the choice, it is well to remember that the greatest opportunities for en- joyment are frequently offered without price. Individual characteristics always determine which direction choice will follow, but if there is serious consideration in the family of the characteristics which should be developed in each member, and conscious choice is made between the various ob- jects for which the available money may be spent, the result will be better development for each, greater returns for the money and more under- standing of the meaning of life and of the family and individual responsibilities toward our fellow men. Because the standards in food, clothing, shelter and operating frequently increase until they are open to the charge of being standards of luxury be- yond the limits of reason for individual incomes, it is well for the budget maker who is defining his standards in development to review those of the other four groups of expenditure and see whether unconsciously or with premeditation luxuries have crept in to those groups which are likely to prevent more worth-while expenditures in the fifth group. For this reason a partial list of luxuries in each group is included hi this chapter. 71 SPENDING THE FAMILY INCOME Luxuries in Food are foods beyond the body needs: condiments delicacies out of season fruits and vegetables expensive cuts of meat careless marketing expensive food materials to avoid the necessity for careful preparation Luxuries in Shelter are : house larger than required private bathrooms, extra sitting rooms, single bedrooms location chosen especially for social environment expensive finish excessive distance from business and schools Luxuries in Clothing are: styles materials too fine for the service desired trimmings hand work custom-made garments in place of ready-made ready-made undergarments in place of home- made when time and strength allow home- made Luxuries in Operating are: careless use of heat, light, water and house supplies service for formality alone, beyond that required for health 72 STANDARDS FOR DEVELOPMENT service which simply relieves children from neces- sity to help lavish replacement of equipment telephone Luxuries which need careful scrutiny are ex- penditures for: transportation, carfare, taxi, etc. elaborate entertaining lavish gifts to friends candy, tobacco, flowers personal and house equipment unregulated additions to children's allowances social clubs expensive recreation disregard of opportunities for free recreation money saved at expense of health, welfare or efficiency automobile for pleasure only 73 CHAPTER IX DISTRIBUTION OF INCOME When one is making a budget the various items of household expense fall quite naturally into six groups: food, shelter, clothing, operating, saving, and a sixth so diversified that it is difficult to name it. This group has been variously called the Mar- gin, Higher Life, Betterment, Life of the Family, Region of Choice, Well Being, Development and Advancement. Whichever title is chosen, the ex- penditures are the same and in most cases indicate the cost of spiritual, mental, social and physical development for the family. There are various ways of getting at the proper proportion of the income to spend for each group,, Mrs. Richards came to the conclusion, after much study of many groups of accounts, that the ideal percentages for a family of five were: Food, 25 per cent Clothing, 15 per cent Shelter, 20 per cent Operating, 15 per cent Higher Life and Savings, 25 per cent There are people who insist that 45 per cent to 50 per cent of one's income should be saved, others 74 DISTRIBUTION OF INCOME that 10 per cent should be given away. One definite rule often quoted is that no more than one week's income should be spent for rent each month: and another, that one half the amount spent for rent should be all that is allowed for ser- vice each year. Those who use percentages agree that they are only guides, and that as the income drops below three thousand dollars the necessary percentage for food is increased, while above five thousand dollars it is usually possible to use a smaller per- centage. In general, according to Engel's Laws, experience seems to prove that the proportion for clothing and rent remains fairly stationary, but as the income decreases, the percentage spent for development also decreases, while an increase in income usually leads to decrease in the percentage allowed for food and increase in that devoted 'to development. The fact that proper percentages vary with every change in income is only a part of the reason for not placing too much stress upon their use. Given incomes which are alike, two families will spend very differently, and because of differences in education, social position, occupation, number in the family, health and environment, the family which spends in accord with the so-called ideal 75 SPENDING THE FAMILY INCOME percentages may in the end receive less of real value in* return than the family which has arranged its expenditures in such a way that the ideal percent- ages are ignored to solve some individual problem. ' The following plan is an easy one for the house- holder whose mind does not work comfortably with percentages which do not stay ideal but must be changed with every new problem. It is neces- sary for each budget maker who has an income tax to pay to decide what place to give the tax in the budget. The taxes may be subtracted from the gross income and the budget made for the amount which remains; or the income taxes may be con- sidered as belonging to the section of expenditures devoted to development, as only the people who have a margin to spend for development have in- come taxes to pay. Income taxes are not charge- able to the operating expense of the house. It is important that no one who can avoid doing so should reduce his savings because of his income taxes. Subtract from the total income, the amount which it seems desirable to save, the income tax and any fixed charge for expenditures outside the family i.e., care of dependents, or business costs. Then plan as if the remainder were the total in- come and divide it into five equal parts, assigning one part to each of the five groups of expendi- 76 DISTRIBUTION OF INCOME tures. At the beginning assume that each group is of equal importance; later subtract from the allotment of one group in order to add to that of another group which proves its need of more than its fifth. (See Chart Number II.) There are four adjectives which, applied to the groups of expenditures, assist in determining the minimum amount required for each group, but knowledge of conditions is necessary in order to estimate the actual cost for each family, and each budget should be based upon estimates made after consideration of the individual problem with all the existing circumstances. Safe shelter indicates the fact that certain local- ities and houses are impossible, if the moral and physical health of the family are to be safeguarded. The budget maker with knowledge of the locality where he must live can easily learn the minimum amount which he must allow for rent if he is to keep his self-respect and avoid danger to the family health. Adequate food indicates not a definite sum to be spent for food, but a fixed standard which cannot be reduced if the health and efficiency of the family are to be maintained. Suitable clothing again indicates a minimum, but no definite amount of money can be fixed as the 77 SPENDING THE FAMILY INCOME minimum absolutely necessary to assign to cloth- ing, for without knowledge of the special problem one cannot tell what the demands will be in order that a family may be suitably clothed. City or country life, a mother who sews, clothing to make over or hand down all affect the actual expense without necessarily reducing the standards for a particular family. Necessary operating may mean heat, light, and water only, but if there is illness, other items will be forced into the group, and once more the adjec- tive indicates a minimum standard but does not fix an amount until a special problem is under dis- cussion. Having definite standards well in mind, the cost of maintaining those standards must be estimated. Make a list of all possible expenditures for a family with the standards outlined. Divide these ex- penses under the five heads, shelter, food, op- erating, clothing and margin for development. Subdivide each group under three heads, fixed charges, charges possible to estimate and charges necessary to limit. Some expenses can be charged in either of the last two groups. When that is possible, put them in the group which promises the most definite information. 1 Reference to old bills, i See table, page 87 78 DISTRIBUTION OF INCOME drawing upon past experience, conferences with others of greater experience, or in many cases care- ful estimates after studying the situation from every point of view will be of assistance in deter- mining the cost of each item. When advice, old bills and experience are all lacking, one or two months of careful accounting will be necessary. Decide what is the smallest amount for which nourishing, satisfying food can be provided. If this exceeds the portion of the income allowed for food, figure how much it exceeds it and later plan from which other allotments it must be provided. If it is less than the allotment, it is safe to increase it to the full amount, though not necessarily wise to do so. Count the rent and business carfare as cost of shelter, if the house is hired. The rent is a fixed charge; carfare may be estimated. If together they exceed the allotment, too much is being planned for rent. Can it be reduced and still pro- vide safe shelter? If not, then the extra is being spent to provide comfort or safety, and it may 'be taken from the " margin" allowed for development. When the amount spent for rent includes heat, water and service as in an apartment the excess is properly taken from the amount assigned to operating. 79 SPENDING THE FAMILY INCOME Figure carefully the amount of money required to clothe the family. Make careful clothing bud- gets and estimate the cost of repairs, making and materials as well as clothing purchased ready-made. Experience has proved that the amount used for clothing should not exceed the fifth allotted to it, and in small families might well come below that amount. With very small incomes the clothing must be reduced to provide enough food. Make careful and complete estimates of all op- erating expenses. Examine the items separately to be sure that nothing is being wasted. Gas, electric light and laundry bills, as well as inciden- tals, may often be reduced if care is taken and at- tention is drawn to them. When the items in op- erating expenses have been figured, add them up and see how the total compares with the amount allotted to the group. Remember that from shel- ter, operating and development the extra amount necessary for food must be supplied. It is quite probable that operating expenses will prove to be absorbing more money than is desirable. It is within this group that leakages most often occur, and with care reductions may be made with no effort for the family beyond a slight increase in thoughtfulness. The money left is the margin for development 80 DISTRIBUTION OF INCOME and must cover expenditures for education, church, culture, social life, philanthropy, health, gifts and new equipment, as well as the allowances for personal expenditures. A family may divide the amount for petty cash, church dues and philan- thropy, gifts, club dues and other social life, ex- cept family entertaining, nto separate allowances, making each member responsible for his own ex- penses for advancement as well as those for cloth- ing and petty cash, thus teaching the children something of the responsibilities which money entails. The use of the money allotted to development is almost entirely within the region of choice; one family may prefer to use it all for education and health, another for travel, a third for philanthropy. For each family there is a distinct advantage in planning the expenditure in such a way that a well- rounded family life results. Something for edu- cation, culture, health, play, church and civic ac- tivities, as well as social life should be included in this plan. This allotment most often gives up a large portion to food, shelter or clothing; it should not give money to operating except under great need, when the health of the home-maker requires extra service. These estimates and apportionments are made 81 SPENDING THE FAMILY INCOME on the basis of the minimum amounts required for the special problems involved. Should there be a larger margin than seems necessary for saving, each item should be gone over carefully in order to determine where expenditures may be increased so that the family will receive the greatest benefit and satisfaction. One family will prefer to keep the expenditure for food at the minimum for ade- quate food, increasing operating expenses to a point of greater comfort, while anotherfamily will feel it desirable to maintain its other standards of living at the minimum cost in order to save for education, travel or giving. When all estimates and apportionments are made, if the total exceeds the amount of the in- come, new standards must be outlined. Expendi- tures must be weighed; those which are merely to gratify desires (not for real needs) eliminated; and costs reduced to the lowest amount consistent with health. When this proves to be not reduc- tion enough, it is safe to conclude that the stand- ards for saving are too high Adequate food, safe shelter, suitable clothing necessary operating should be provided before very much money is as- signed to development, but before expenditures for advancement are omitted altogether, one should be sure that other expenditures are not in 82 DISTRIBUTION OF INCOME excess of what is^necessary to provide adequate food, safe shelter, suitable clothing, and necessary operating. Savings should be made by every family with income enough to provide a margin over and above food, shelter, clothing, heat, light and water, but savings should not cut down efficiency. SUMMARY 1. Be sure every member of the family will co- operate. 2. Examine your family life carefully to be sure that you have definite standards of living; write out your idea of what your particular income should provide in the way of shelter, food, clothing, operating and de- velopment for your family. This is not a necessary step, but it helps very much to put into words just what you demand from your income. 3. Make a list of all possible expenditures for a family with the standards outlined. 4. Divide them under five heads: Shelter, Food, Clothing, Operating, Mar- gin for Development. 83 SPENDING THE FAMILY INCOME 5. Divide each group under three heads: Charges fixed. Charges possible to esti- mate. Charges necessary to limit. 6. Estimate the total income for the coming year. When this is irregular or uncertain estimate the minimum amount probable and base the living standards upon that amount planning to save all income in ex- cess of that minimum. 7. Decide how much should be saved and sub- tract it from the total income. 8. Divide the rest of the income into five equal parts and assign one part to each of the five groups of expenditures. 9. Decide what is the minimum amount for which nourishing, satisfying food can be provided. 10. Estimate the cost of shelter, include rent or 4 interest, taxes, repairs and insurance and business and school carfares. 11. Figure the amount required to clothe the family; make clothing budgets. 12. Make careful and complete estimates of all operating expenses. 84 DISTRIBUTION OF INCOME 13. Apportion the remainder of the income among the needs for education, church, so- cial life, philanthropy, health, gifts, new equipment and allowances for personal ex- penditures. 14. When all apportionments are made, put them into a graphic circle and analyze and judge the result to see whether lack of bal- ance may be accounted for and is excusable. 15. Do not reduce any section unnecessarily by careless expenditures in another division of the circle. 16. If the total expenditures planned are larger than the total income, reduce standards in shelter, operating and clothing before elim- inating worth-while expenditures for de- velopment. 17. If the income is increased after standards of living are already comfortable, do not in- crease expenditures for food, clothing, shel- ter and operating until the standards for saving and development have first been im- proved. It is important To have a plan for spending; To spend according to the plan; 85 SPENDING THE FAMILY INCOME To keep records of expenditures; To study the records, and compare them with the plan; To build a new plan on the basis of the lessons learned from the records. Poor budgeting with a record is far better than no budget. The record will help make the second budget better. A record of expenditures com- pared with a budget makes improved spending possible. The mistakes of last year may thus point the way to success this year. In the follow- ing list, many items are included which would not be required by every family. They are offered only as suggestions. 86 DISTRIBUTION OF INCOME HOW MANY OF THESE MUST YOUR INCOME BUY Cross out the items you do not use. Add other items which you do use. Savings Food Clothing Shelter Operating Development Savings Rent Water (if not Church Dues Bank Interest on metered) Club Dues Cooper- ative Bank Life In- surance mortgage Service Telephone Fire and Burglar Insurance Magazine sub- scriptions Newspaper subscriptions Tuition Securities Personal allowances Automobile Garage Juice nse Registration Groceries New ma- Taxes Water (if Philanthropy Ice terials (house) metered) Amusements Income Milk New cloth- Business Coal Concerts Tax* Meat ing carfare Wood Carfare (per- Vegetables Firo Insur- Gaa sonal) Fruits ance Electricity Automobile (house) Household Running Supplies Laundry expenses Outside Cleansing Repairs Extra service Doctor meals Ghrt of sea- son foods Repairs (house) Long distance telephone Repair and dentist Travel Books replacement Gifts (per- of equip- sonal) ment Automobile Extra Laun- Repair Incidentals Equipment Entertaining Express New equip- Postage ment House car- Personal In- fare, etc. dulgenoies Care of Candy grounds Tobacco Flowers Etc. * Income Tax is not saving, but is a charge possible to estimate. 87 CHAPTER X HOUSEHOLD ACCOUNTING It is difficult for the beginner to realize that there is a definite limit to the returns which may be had from a given income, that only hi our dreams can the same money be spent twice. Fortunately the experience gained in spending may be used to advantage in planning for the next year, provided a record has been kept which can be studied and used as a basis for the revision of the spending plan* Without such records there is no method by which it is possible to determine the compara- tive value of the purchases made. The house- keeper should keep these records hi a simple form which require a minimum amount of time and is easily understood by a third person. The system chosen should tell when, whence and what is re- ceived; when, where and what is spent; how much is on hand; how much is owed. There are many systems of household accounting, and it is well to look for the method which is best suited to the person who is to carry it out. Keep in mind al- ways that such accounts should be kept, not for the 88 HOUSEHOLDING ACCOUNTING sake of having a record of each cent spent, but in order that they may be used to check expenditures. The familiar slogan, "The first part of the dol- lar is the easiest part to save, " is balanced by an- other, "The hardest part of the dollar to account for is the last five cents I" If ninety-five cents is accounted for, one has material for study and comparison with the bud- get. It is better to use tune planning better ways of spending than to waste it by hunting for small sums which evade the memory. This is not meant to be approval of carelessness, and if the budget maker finds that he must continually record sums as unaccounted for, it is evident that there is a need for more care. Housekeeping records are usually easily kept if paper and pencil are in or near the purse. The spender who goes to the store with many small errands sometimes finds it impossible to account for all purchases. This hap- pens less often if the habit is acquired of jotting down the amount while waiting for change. Fre- quently people find that petty cash for the house or for personal expenses will not balance, and they say, "I can't bother with that," and give it all up. The sensible way is to pay as many bills as possible by check. Keep an approximately accurate ac- count of petty-cash expenditures and do not worry SPENDING THE FAMILY INCOME over failure to balance to a penny. Of course, if accounts habitually fail to balance by several dol- lars, it will be foolish to continue such slipshod methods, but a few cents each month make no dif- ference in the value of the record and a great deal of strain is avoided. A convenient method of car- ing for personal petty cash is to plan it very care- fully after study of the average amount required each day. Regular expenditures may be for food, carfare and newspaper. Decide what should be spent each day for these purchases. This gives the amount for petty cash each week. Let us suppose that the estimate is nine dollars for the week's charges. Cash a check for that amount each Monday and spend as the day's needs present themselves. If you find yourself paying more than your estimated average for dinner or lunch- eon, try to economize later to make it up. If you chance not to buy a newspaper, or if you go with- out a meal, pay no attention to the fact in your ac- counts. Seven dollars is credited for food, thirty cents for newspapers, and one dollar and seventy cents or carfare.- So long as those three expendi- tures keep within the total for the week, do not concern yourself with the difference in distribution, but if the money gives out and replenishing is nec- essary, search carefully for the particular purchase 90 HOUSEHOLD ACCOUNTING which caused the calamity and make a note of that as the reason for the extra check. If, on the other hand, money is left at the end of the week, consider it legitimate to use for extra savings. If by chance you wish to pay cash for some particular purchase outside of those three, do so, and pay the money back to the petty-cash account as carefully as if borrowed of a friend. A person who wishes to keep his personal accounts with sufficient accuracy to be sure he is not spending recklessly, but who does not wish to be haunted by the balancing bogey, can estimate his daily, routine expenses in this way and find the plan works well. A cash ac- count is one step better than nothing, but the real value of a record of expenditure comes from know- ing the total amount spent for each group of com- modities. These are then available for compari- son with the budget estimates. The budget acts as a pattern for spending, and the accounts indi- cate the success in following the pattern. Unless the two are compared, no improvement is likely to follow the use of either. For this reason the ac- counts should be distributed under headings corre- sponding exactly to those used in making the bud- get, and the divisions of the budget should be made by months and placed at the head of each column of the distribution sheets in red ink, so that they 91 SPENDING THE FAMILY INCOME will be easily identified. Some budget makers will find it far more simple to distribute the ex- penditures' once a day, or as they are made. Others will prefer to transfer the totals of each week from the cash book and distribute all at one time at the end of the month, then entering the checks for the month, distributing each and making a sum- mary of the monthly totals. There are many printed forms from which to select. Each housekeeper has need of special di- visions which might not be required by others, and one satisfactory plan is to purchase ruled sheets which will furnish the required number of columns and put them into covers, heading each column with the item desired. There are two things which can be done which help in keeping straight with a budget plan. Each month, after closing the accounts, make out a statement of assets and liabilities for the next month. This helps one to see just how much of the bank balance will be necessary for regular ex- penses,how much will be required for special bills, and what will be left for emergencies or toward a sinking fund for the large, irregular expenses like coal, taxes, clothing, etc. Such a statement might read like this: 92 HOUSEHOLD ACCOUNTING Statement of Assets and Liabilities August 10 to September 10 in Cash . . 3.65 Laundry 8.50 Petty cash 5 00 Food 52 00 Salary 208 33 Service 6 00 To be refunded . . . 5.00 Savings 41.66 Operating. . . . Telephone. . . . Balance 3.00 2.25 162 33 , $300.74 $300.74 This does not mean that there is $162.33 to spend recklessly but that this amount is available for purchasing things which the budget planned for, clothing, pleasure, personal allowances and equipment or to meet income tax payments- or some other large bill during the next months. Another thing which helps greatly is studying to see what the budget plan requires for the months ahead and comparing those amounts with the amount already spent. Consider these accounts textbooks for study, so that they may add to your knowledge each month, and you will spend better because of the experience gained. It also assists in studying results if red ink is used whenever an account is balanced. Draw all lines, enter all bal- ances or any unusual records in red ink, which call 93 SPENDING THE FAMILY INCOME attention at once to the record. For example, in the statements just shown, the balance would be in red ink to show that, although appearing in the column of liabilities, it is not one but represents a part of the assets. The lines which are drawn un- der the columns of figures should be in red ink to indicate the end of a period, and if the statement had shown a deficit in place of a balance, the defi- cit would have been entered in the first column in red ink to call attention to the fact that it was an unusual record, and although it appeared in that column, it did not represent an asset but too great liabilities. In any case when it is desir- able to call attention to an entry, the use of red ink helps. The following headings are suggestive only. Many housekeepers will prefer to combine most of the food columns under two or three heads. The headings given under operating may not prove use- ful to some, others will wish more details. Again, "Development" must be subdivided to suit the individual. No two families ever require exactly the same information from their records, hence it is simpler to select sub-headings suited to the es- pecial needs of the family than to take a definite list. Sub-headings help very much in estimating amounts for the budget, they may later be com- 94 HOUSEHOLD ACCOUNTING bined for the accounts, if it seems desirable to save space or time in figuring details. Suggestive Headings For Household Expenses U. S. Government securities Life insurance Bank account Other savings Rent Business carfare SAVINGS SHELTER FOOD CLOTHING or, when the house is owned Taxes Interest on mortgage Fire insurance Repairs to house Business carfare Meat and fish Eggs and cheese Butter, cream and other fats Milk Fruits and vegetables, fresh, canned or dried Sugar, jellies, etc. Cereals and bread Condiments, ice and beverages Meals outside the house [Man 1 Woman [Children 95 SPENDING THE FAMILY INCOME OPERATING Light, heat and water Laundry Service Telephone Repair and replacement of equip- ment House and cleaning supplies Miscellaneous operating stamps and stationery express flowers for house Fire insurance (furniture) Care of grounds Income tax 1 Health Education New equipment (house) Recreation Religion Philanthropy Personal allowances Social life and personal gifts Family luxuries automobile , social clubs Suggestive Headings for Individuals Savings Room Board and business carfare 1 This may be entered in a separate column next to savings. DEVELOPMENT HOUSEHOLD ACCOUNTING Clothing and repair Operating personal upkeep (manicure, hairdressing, etc.) laundry express and postage, stationery, etc. Development Income tax 1 Education Religion Philanthropy Recreation Social life and personal gifts Health New equipment Business equipment Personal luxuries tobacco candy extra meals flowers, etc. Suggestive Headings for a Child Savings Clothing School lunches Education special classes music, etc. Fun Gifts 1 This may be entered in a separate column next to savings. 97 SPENDING THE FAMILY INCOME To Sum Up I. Make a budget or plan for spending. I 1 . Choose a simple system of accounting which suits your needs. III. Keep as close to the budget as possible. IV. Keep the accounts accurately enough to give the material needed for study. V. Study results and act upon them. To do this successfully, definite time must be set aside for it. Odd-moment accounting is sel- dom continuous or satisfactory. If petty-cash expenditures are hard to keep a record of, estimate the probable cost of such inci- dentals as carfares, postage, newspapers, etc., and charge this amount each week in a column under Operating Sundries. If at any time the amount spent is in excess of this sum, look it up, if possible, but do not worry about it. Pocket-money expenditures should not be a burden. When the amount spent in the week is less than the estimated sum, it is easily adjusted by charging only the actual expenditure in the sun- dry column. Never charge anything not in this list to sundries. Save slips from the stores to check charge ac- counts and make up cash accounts. 98 CHAPTER XI THE GRAPHIC CIRCLE When a budget has been planned, there is fre- quently a feeling that it would be more satisfactory to its maker if he could compare it with a standard budget and know whether it is theoretically cor- rect or not. There are various standard budgets based upon averages obtained from studies which have been made in many homes; such averages can never allow for unusual conditions, in fact, they are themselves so often affected by unusual conditions as to make them useless for an average family. A recent study of the expense accounts of twelve families showed that an average of 5.2 per cent of their total expenditures went for light and heat, but of the twelve families, eight spent five per cent or more, while the other four spent less than four per cent. The average amount spent by eleven of the families for heat and light was over six per cent of their total expense, show- ing that one very high or one very low record may often change an average so materially as to make 99 SPENDING THE FAMILY INCOME the result useless for application to normal prob- lems. When a larger group of results is averaged, the figures are more accurate for general conclusions, but hardly of assistance in solving a definite prob- lem which must acknowledge the existence of es- pecial conditions. It cannot be too strongly emphasized that every family has to meet its own difficulties and solve individual problems and still keep as perfect a bal- ance as possible, not without regard to the conclu- sions of others, but without rejecting solutions just because they differ from accepted standards. The graphic circle described here has over and over served to give satisfaction to budget makers who were vaguely disturbed because unable to fit their estimates to any standard budget. The results are more convincing if colored and all details must be given in order that seeming lack of balance may be accounted for. If special conditions do not account for a lack of balance, then the budget maker should assume that something is wrong with his estimates and start anew, rebuilding the budget with the idea of restoring proper balance and spending to get the best returns. Draw two circles on the same center, one smaller 100 THE GRAPHIC CIRCLE than the other. The outer circle represents the total amount of the income, the inner circle the savings and also the income taxes, if they are to be subtracted with the savings from the total income. At the moment of starting the budget, consider the five divisions of expenditures as of equal value and divide the outer circle into five equal parts, 1 each representing one department of expense. For convenience in comparison, it is well always to divide the circle in the same way and employ the same divisions and colors for each of the five groups. Food at the top and colored red; Shel- ter at the lower right colored violet; Clothing at lower left colored blue; Operating above Clothing colored yellow; and Development above Shelter colored green. Use intense colors in order to get sharp impressions when analzying the results. The total income minus savings and the income taxes, divided by five, equals the amount to be assigned to each section. Taking the $2500 income as an example, with savings and taxes of $300, the result will be $440 for each section. The budget plan shows that $680 is required for food, $360 for shelter, $480 for clothing, $400 for operating and $280 for de- velopment. 2 Food evidently will draw heavily upon 1 See Chart I, page 100. 2 See Chart V, page 108 101 SPENDING THE FAMILY INCOME the other divisions before it is paid for. Shelter does not require all of its allotment and $82 taken from that section, $40 from operating, and $120 from development will provide for the food needs. Clothing requires $40 more than its allotment and it must be taken from development. When all of the additions and subtractions are indicated both by figures and by color on the cir- cle, it will show whether any one section is giving up more than it should to any other group of expen- ditures. The dotted lines which mark the new divi- sions must be put in carefully if the lack of propor- tion is to be shown correctly. When a section represents $440, and forty dollars is to be taken for use in another group of expenditures, it is necessary to divide the segment evenly into halves, quarters, and eighths and then an eighth into thirds, two of which will indicate approximately the right space to represent the forty dollars. When analyzing and judging results, it is neces- sary to consider the special conditions governing the family making the budget. For example, in the budget given here, the food cannot be reduced, as both boys are reaching the age when they re- quire almost as much food as the father, and the position of the father in the schools requires that he should entertain his teachers. 102 THE GRAPHIC CIRCLE The operating expenses cannot be reduced, as the mother's lack of strength requires that she should have assistance. The clothing exceeds its apportionment because the mother is unable to do very much sewing, and everything must be purchased ready-made or a seamstress must be hired. Development rightly suffers the greatest loss, for the extra money spent for operating and clothing is used to maintain the health of the mother. If this were lacking, she would be obliged to spend from the apportionment for development in order to regain her strength, which might require a still greater share of the money assigned to that group. When shelter and clothing overrun their sec- tions, there is sure to be difficulty in arranging for sufficient money for operating and development expenses. If operating expenses threaten to out- grow their section of the circle, there is need for re- trenchment in that direction. Food will usually exceed its fifth where the income is small, and the budget maker who can reduce clothing and shelter expenses sufficiently to make up deficiencies in the food section is able to obtain greater comfort in operating and finer spiritual and social life than is possible if clothing and shelter are taking too large a place in the circle of expenditures. 103 SPENDING THE FAMILY INCOME Regardless of how much experience a person has had in budget making, study of the colored graphic circle reveals inequalities and unbalanced appor- tionments which are not always apparent if figures alone are used. Each family has its own problems which affect its budget. No definite sums can be given as right or wrong, but certain general rules apply in every case, and budgets will vary according to the needs of the individual family. The following charts or graphic circles show how impossible it is to solve a budget problem with defi- nite figures unless something is known of conditions. The same amount of money must be spent dif- ferently by each family if their problems are to be solved wisely. The first chart indicates the results which would follow the spending of an income if the five divi- sions of expenditures were considered of equal im- portance. The second and third charts show difference in results because of changes in the plan for spending; the fourth and fifth charts are different because of difference in environment, education, social life and business conditions. Charts II and III 1 indicate two different ways 1 Pages 101 and 106. 104 THE GRAPHIC CIRCLE in which the same family spent the same size income in two succeeding years. The first year they hoped to save two hundred dollars, but each month they spent before they saved. At the end of the year, their savings amounted to less than fifty dollars. After study- ing in a " budget class," they adopted a new rule, and saved twenty-five dollars each month before spending anything. At the end of the year they had saved fifty dollars in addition to the three hundred dollars which they had planned. This extra money was saved in small sums after they had paid their bills each week. The amount needed for food was more than one fifth of the whole. It was therefore necessary to take away from the allowance set aside for two of the other divisions, and the colors show from which sections the money was used. The red in the shelter section of the circle shows how large a part of that money was used for food, and the other: the section show where the rest of the money went. For example Total income $2100 - $350 (Savings) = = $350 (amount for each section) Food $350 (money for food) 105 SPENDING THE FAMILY INCOME 84 ( money taken from shelter) 226.50 (money taken from operating) $660.50 (the total amount finally used for food) The section marked operating shows the original amount allowed for operating, the amounts sub- tracted for food, and for development, the colors indicating where the money was used. In Chart Number II, the green in the center circle shows how the automobile or something else used up the money they had meant to save. These budgets are not meant to show that these people spent their money in the best way, or that they used the right amount for each thing, but that by saving before they spent anything, they were able to increase their savings more than seven times. They spent the rest of their money as they thought best and wise, but this year they are spending differently and hope to find they are getting better returns. It must be remembered that each family budget is an individual problem and must be treated as such. There can be no standardized budget which will satisfy every one. 106 CHART NUMBER III OPERATING Gas $12.00 FOOD Electric Light. . . Water Laundry Service Supplies Repairs and Re- placements . . Telephone Misc. Oper Postage Express House Carfare 15.00 10.00 37.00 1.50 Week. . Month . Year.. DEVELOPMEI* Education $ ] ...$660.50 FOOD Milk $ 26.50 Fruit & Veg 74.00 Groceries & Ice. 70.00 Meat& Eggs.... 80.00 Bread & Cereals 40.00 Outside Meals ... 370 . 00 Health Church Philanthropy Recreation Vacation Gifts (personal) . Equipment Personal Allow- $660.50 -FOOD Automobile 28 $49 CLOTHING Man $125.00 Woman 125.00 Children... SHELTER Rent $24' Carfare _2_ $26 $1750 = $350 TOTAL INCOME, $2100 00 - $350 00 5 Number in family, 2 Ages of children SPECIAL CONDITIONS Occupation, Salesman Health, bills increased, vacation omitted Location, city, two room kitchenette apartment Dependents. Man's meals taken outside. Savings planned and made when rent was paid each month. Expenditure for automobile confined to money left after saving had been made. YEAR 1920 OPERATING Coal... Wood... Light 31.00 $144.00 Water Laundry .... Service \ Supplies 1 Repairs and 1 replacements / Telephone .... Misc. Oper. . . . Postage' Express .... House Carfare 24.00 104.00 50.00 20.00 27.00 CHART NUMBER IV FOOD Week ........ $12.30 Month ........ 53.33 Year ......... 640.00 FOOD Milk & Cheese. $ 3.00 Fruit &Veg.... 2.30 Groceries & Ice. 2.10 Meat & Eggs.. 2.30 Bread & Cereals 2.60 Outside Meals . ^12^0 FOOD DEVELOPMENT Education $25.00 Health 50.00 Church 26.00 Philanthropy... 26.00 Recreation 52.00 Vacation Gifts (personal) . 21.00 Equipment Personal Allow- ances Automobile .... $200.00 SHELTER Rent . . , Carfare. .$300.00 . 60.00 $360.00 CLOTHING Man $120.00 Woman 150.00 Children 130.00 $400.00 $2000 TOTAL INCOME, $2500.00 - $500.00 = = $400 5 Number in family 5 three children. Ages of children, 5 9 14. SPECIAL CONDITIONS Occupation, Factory Worker Health Location, small manufacturing town Dependents. Same amount of income and same number in family as Chart V. More money saved. Less expense necessary for professional books and magazines. Difference in environment and social life made possible a reduction in all expenses except shelter. THE GRAPHIC CIRCLE Two Ways of Spending an Income of $2500 The difference in spending was due to difference in occupation, education and environment. The first plan (Chart Number IV) represents a family of five with a $2500 income who set aside $500 for savings and divide the remaining $2000 into five equal parts of $400 each, as indi- cated by the heavy black lines. This family finds that they need more than $400 for food and they redistribute the amount, transferring $200 of the development allowance to food, and as they can obtain safe shelter for their family for $360 a year they are enabled to take $40 from shelter which they will also spend for food, leaving the final distribution as indicated by the colors, $640 for food; $200 for development; $360 for rent; $400 for clothing and $400 for operating. The second plan (Chart Number V) represents a family which, because of difference in the occupa- tion of the head of the family and the location in which business requires that the family should live, was able to save only $300 from its $2500 income, leaving $440 for each of the five budget divisions. This family found that it needed more than $440 for adequate food and more than $440 for clothing. There was no expense for business 107 SPENDING THE FAMILY INCOME carfare and they were able to keep shelter at $360. Operating required all of the $440, as they used both gas and electricity. This left the final dis- tribution as indicated by the colors. 108 $144.00 . 35.00 . 36.00 . 24.00 . 104.00 . 40.00 OPERATING Wood Coal Gas Electric Light Water Laundry Service Supplies 30.00 Repairs and Re- placements . . Telephone 27.00 Mieo. Oper Postage Express House Carfare CHART NUMBER V FOOD Week Month Year $680.00 FOOD Milk Fruit & Veg Groceries & Ice . Meat & Eggs.... Bread & Cereals. Outside Meals... FOOD DEVELOPMENT Education.. Health Church Philanthropy Recreation Vacation Gifts (personal) . Equipment Personal Allow- ances Automobile $ 50.00 50.00 26.00 26.00 52.00 11.00 25.00 $240.00 CLOTHING Man $150.00 Woman 175.00 Children 155.00 $480.00 SHELTER Rent $360.00 Carfare... TOTAL INCOME, $2500.00 - $300.00 = = $440 5 Number in family, 5 three children. Ages of children, 4 9 13. SPECIAL CONDITIONS Occupation, School teacher Health, mother not strong Location, small manufacturing town no carfare Dependents . Profession and social life of teacher necessitated better clothing and more entertaining and more for education than the other family. CHART NUMBER VI OPERATING Heat.. .......... Light ........... Water ........... Laundry Service .......... Supplies ......... Repairs and Re- placements . . Telephone ....... Misc. Oper ...... Postage.. . $ 66.67 House Carfare 60 FOOD Week $ Month Year... ...$442.00 DEVELOPMENT FOOD CLOTHING Woman $344. Education . Health.... Church Philanthropy.... Recreation Vacation Gifts (personal).. Equipment Personal Allow- ances Automobile. . . $ 75.00 85.00 52.00 27.06 10.00 $249.06 SHELTER /I208.00 vr. 4.00**. Carfare 75.52 TOTAL INCOME, 11600.00 - $214.13 = $1385 - 87 = $2 77 17 5 Number in family Ages of children SPECIAL CONDITIONS Occupation, Teacher Health Location, Suburban town Dependents . Budget planned by School Board. Good Room. No small operating expenses allowed. Vacation must be spent with family or in very inexpensive place. Nothing allowed for giving or personal equipment. CHAPTER XII THE INDIVIDUAL INCOME The methods of making a budget for an indi- vidual vary only slightly from those used for the family budget. The principles involved are the same; the development and application of the principles will vary with the needs and character- istics of the individual just as surely as the family budgets vary with the environment, education and needs of the families involved. There is, however, the same need for saving as when planning a family budget. The man or woman not a part of a family must provide the necessities of life, food, clothing and shelter. If living conditions are comfortable, there will be operating expenses. Laundry, service, stationery, postage, toilet articles, repair and replacement of equipment are all necessary operating charges for the individual. The man or woman who boards has usually no extra expense for heat, light and water, but when, as frequently happens, the shel- ter provided is an apartment, the operating divi- 109 SPENDING THE FAMILY INCOME sion acquires these items familiar to the same di- vision of the family budget. The selection of shelter must be based upon the need of the indi- vidual. Proximity to his business or convenient transportation, good food, air and sanitation, con- genial social environment are probably more nec- essary to the person living alone than to the mem- bers of a family who can afford to sacrifice social environment and even proximity to business be- cause of the compensations of family life. Fam- ily men and women can in a measure control the comfort of their furnishings, may adapt the use of their rooms to special needs; but the " boarder" must usually abide by the decisions of some one else and is called upon to pay according to the standards of another for the comfort which he finds essential if he is to do efficient work. A good food supply and comfortable room furnishings are necessary factors in the choice of shelter and often compel a selection which is more costly than would otherwise be required. It must not be forgotten either that the cost of shelter for the individual usually includes the charges for bedding, furnish- ings, light, heat, water and care. While these would belong in another division in budgeting the family income, it is impossible to separate them arbitrarily from the cost of rent for the individual 110 THE INDIVIDUAL INCOME and they must therefore be included under shel- ter. The standards for food for the individual vary with the sex almost as much as with the income; but, man or woman, the fact should be kept in mind that good food, adequate in amount and nourishment, must be provided if health and effi- ciency are to be maintained. That the individual who boards will pay more in actual money than the separate members of a family group is inevita- ble. In the family budget the cost of labor, heat and other overhead expenses is not estimated as a part of the cost of the food. In the boarding house or restaurant all overhead charges added to the cost of raw materials increase the price so greatly that it is obviously impossible to compare the cost of food for the individual budget with that of food hi the family budget with justice to either. This must be taken into account when considering the fact that the operating expenses for the individual may seem to be less than those for the family group, while food and shelter are more. As it is obviously impossible to separate any portion of the cost of food and shelter and assign it to operating, it remains for the budget maker to take this into consideration when distri- buting his income among the various budget items. Ill SPENDING THE FAMILY INCOME The self-supporting individual making a budget is likely to have a different clothing problem from that of the man or woman living in a family. The type of clothing required depends upon the pro- fessional or business requirements and the social life which is possible outside of business. The cost of sewing and repairs will be greater than when they are taken care of in the home. These things must be considered by the individual and meas- ured by different standards than those used for a family budget. The individual who is self-supporting but living at home will sometimes find that the money spent for the good of the household, though not con- sidered as board, amounts to as much as if board were paid. It is more businesslike to make a defi- nite allowance in the budget, for food and shelter, contributing this sum to the family expenses in whatever way seems most desirable, but for one's own satisfaction making sure that it is an adequate and pretty definite sum. If this of necessity ex- ceeds a reasonable amount for room and board, the excess is to be considered as used for depend- ents. In the budget of the individual, the fifth division for development is more likely to be in- sistent in its demands than operating. Recrea- tion, education, health, new equipment, personal 112 THE INDIVIDUAL INCOME indulgences, travel, vacation, gifts, philanthropy, church and club dues are as necessary to the indi- vidual as to the family and sometimes harder for him to obtain for a minimum sum. The inexpen- sive forms of family recreation, education and va- cation are frequently impossible for the individual. Equipment which can be used and enjoyed by the whole family will cost no more than when provided for the use of one person, though there are none of the possibilities of reduction in proportional cost which can be obtained by purchasing for the fam- ily. The individual pays a proportionately higher price for food, for privacy and for service than do members of a group. Sewing supplies purchased and shared by a family at small individual cost be- come a real item in the budget of one person. The " piece bag" of the family often saves many items which must be met by the budget of the per- son living alone. The self-supporting daughter of a family can reduce her operating expenses by taking advantage of her freedom in the home to do her own laundry work, but this is quite impossible for the same girl when she is away from home and buying food and shelter in a boarding house or rented room, where her movements are restricted to the space for which she pays. Men and women living at home are seldom 113 SPENDING THE FAMILY INCOME aware of the extent of their financial privileges un- til they try to obtain the same comfort outside for an equal expenditure of money. The individual, even more than the family budget maker, is likely to fail to take an all-round view of conditions; if food, clothing, shelter and recreation are provided, he is often satisfied to neglect professional equip- ment, education and sometimes even health and saving. The necessary steps are first a frank sur- vey of conditions: income, needs and desirable luxuries; an honest statement of standards with an estimate of the cost of living up to them ; a com- parison of this total with the total income, and the elimination of items which cannot be provided from the income or the addition of desirable ex- penditure if the total of the income justifies them. Planned expenditures, savings made before spend- ing and the choice of purchases most worth-while rather than haphazard buying in accord with the desire of the moment give results as desirable for the individual as for the family. Careful accounting of the money spent so that the records may be studied and a better plan made for the next year is a necessity. A simple method of keeping accounts, a definite time for doing the work, a sense of values, and a determination not to let the budget or the accounts become a bugbear, 114 THE INDIVIDUAL INCOME but to make them both of real assistance, will lead to better, richer life, with a businesslike foundation which will insure more freedom from care and at the same time help provide the really worth-while things that endure, instead of those which gratify only a passing fancy. In making the budget, it is well to select the five familiar mam headings, separating the items for board and room accurately if possible, but if not, making such an arbitrary division as seems reason- able. Make a list of all items likely to occur and estimate the amount of money necessary to meet each item; then divide them under the five head- ings. These headings may be subdivided ac- cording to choice for instance, one person will wish to include all estimates for development un- der the four sub-headings health, education, rec- reation and benevolence, while another would di- vide development into health, lectures, books and magazines, classes, social life, theater, gifts, va- cation, equipment, church, philanthropy, automo- bile, travel; the choice depending, as will readily be seen, upon the size of income, habits and en- vironment of the individuals involved. It will be much less difficult to make the esti- mates if each group of expenditures is considered not by the year but by days, weeks, months 115 SPENDING THE FAMILY INCOME and then totaled for the year. One may not know how many times a year he goes to a play or a concert, but he can estimate the number of times if he reasons in this fashion: "I do not go every day, or every week, but probably once hi three weeks; in the summer I do not go to the theater, but instead I do something which costs about the same. Altogether, I am safe in estimating eight- een times a year for that kind of expenditure, and if I spend two dollars each time, I must allow thirty-six dollars in my budget. " As with the family budget, it is desirable to make the estimates under the three classifications: fixed charges, charges possible to estimate and charges necessary to limit. Such an item as the above should naturally come in the class of " charges nec- essary to limit." When the limit has been reached, one must stop indulging in that form of recreation. When all the fixed charges, estimates and limits are determined, if the total income has been ex- ceeded, first reduce the operating expenses to their minimum, then cut down the least important ex- penditures for development, then food luxuries and last, the cost of shelter; but remember that it costs to move and unless the charge for shelter is very much too large, it is seldom possible to ob- tain an immediate reduction in total by changing 116 THE INDIVIDUAL INCOME the shelter. The graphic circles described in Chapter XI will be helpful, as they are with the family budget. No one of the five divisions should be greatly reduced without grave consideration of its value to the whole. Food and shelter will most often be found to consume more than their fifth of the circle, and with small incomes this is to be ex- pected, in fact is usually the only safe way. The individual, like the family, is very likely to save at the expense of development. The care- fully drawn graphic circle will indicate just how seriously one division can cut into another and will call attention to the dangers when figures might be accepted as safe or necessary. If one finds that any section is suffering from the insist- ence of others, it is well to answer certain questions very honestly before attempting to change the es- timates. Do the estimates for food and shelter exceed their portions of the circle? Can these be reduced and health and reasonable comfort be maintained? If not, what about clothing? Is that estimated on a reasonable basis? Will my clothes as planned consume too large a portion of my time in prepa- ration and care? Could I reduce the amount to be spent on them if I used some of my spare time 117 SPENDING THE FAMILY INCOME for sewing? Can I use strength for such sewing and not have my health suffer? Are my operating costs in excess of what they need be? How can I reduce them without undue demands upon time and strength? Operating charges are easily cut down in theory, amenable to discipline in fact, but need constant attention or they run away with much of one's surplus. The budget maker should see that his plan for spending provides for the development of the spir- itual, mental, social and physical sides of his life. The development of these phases of life need not involve the expenditure of very much money, but the amount necessary will vary with the individ- ual, just as his choice of the form of development will vary. One person may get his mental devel- opment from attendance at the movies, while a second will be satisfied only by the best Shakes- pearian plays. For one the desire for social life will be gratified by church activities and another will fulfill his social obligations by a friendly chat with his neighbors at the corner store. The way in which these things are obtained will depend upon the choice of the individual, and the expendi- ture of money will vary accordingly. The budget changes with the mental growth of the budget maker. The individual often fails to give due 118 OPERATING Heat Light Water Laundry 66 . 67 Service Toilet Supplies .. 8.00 Repairs and Re- placements. . Telephone 12.00 Misc. Oper Postage 12.00 Express House Carfare . . CHART NUMBER VII FOOD Week $ 10.00 Month Year... .. 520.00 FOOD CLOTHING Woman $305.28 DEVELOPMENT Education $ 50.00 Health 60.00 Church 15.00 Philanthropy .... 10 . 00 Recreation 26.00 Vacation 55.76 Gifts (personal). Equipment 25.00 Personal Allow- ances 7.30 Automobile. . . $249.06 SHELTER I $130. 00 yr. 1 2.50wk. Carfare... 82.84 "Rent TOTAL INCOME, $1600.00 - $214.13 = 07 = $277.17 SPECIAL CONDITIONS Occupation, Teacher Health Location, Suburban town Dependents Same salary as for Chart VI. Budget rearranged. Roommate necessary in order to pay for better board. Small operating expenses allowed and clothing reduced. Giving and personal equipment reduce amount for health and education. Recreation lower,money used for better vacation. CHART NUMBER VIII OPERATING Personal Upkeep $10.00 Laundry 70.00 Toilet Supplies. . 10.00 Stationary, . Postage . . . 10.00 $100.00 EDUCATION Tuition $200.00 Books & Supplies 40 . 00 Transportation . . 25 . 00 Extra Fees 40.00 $305.00 CHOICE Dues $ 10.00 College Paper .. 5.00 Gifts 20.00 Theatre etc 25.00 Church 25.00 Philanthropy ... 10.00 Extras... . 10.00 CLOTHING $205.00 $105.00 SHELTER Board & Rooms. $310. 00 TOTAL INCOME, $1077.00 - $52.00 = = $205 The amount necessary for board and room and for tuition varies with the school selected. Operating expense, cost of clothing and choice are more directly within the control of the student. These figures are given to indicate the method of work. They are taken from an actual budget but without any thought that they are applicable, as they stand, to another problem. THE INDIVIDUAL INCOME /alue to play, eliminating it altogether in some ;ases or devoting too much time to it in others. The danger that one group of expenditures may be neglected for others will be obviated when all are oonsidered together and values compared. By the wise distribution of money apportioned to each division, it is usually possible to avoid cutting any one division below a reasonable minimum. Advice to the individual then, as to the family Budget maker, is: Make a budget from carefully worked-out es- timates. Choose a simple plan for accounts. Stick to the budget. Keep the accounts. Study the accounts and learn to recognize the ieaks. Compare the budget and the totals of the ac- counts. Build a new budget on the basis of the knowl- edge gained. Make this year's accounts the link between this year's problem and next year's ease of mind. No budget is of use unless it is followed. Time must be given to both the making and the living of a budget, if the results are to be satisfac- tory and of value, making possible a richer life. 119 CHAPTER XIII THE CHILD'S INCOME It is our custom to consider that the family in- come is produced by the mental or manual labor of the man of the family, but it is frequently aug- mented in fact, if not in theory, by the efforts of the other members. If we admit this, we should also acknowledge the desirability of dividing the responsibility connected with spending the income. There are three types of family finance under which all variations may be grouped. In one the father controls the use of the income, giving or withholding, as suits his judgment or moods. In the second type the mother controls the purse, makes purchases and either economizes, wastes or spends judiciously, as may be. In the third type, the income is considered as a family fund, each member of the family entitled to his just share with distinct obligations in regard to its wise use and with definite responsibilities as to the produc- tion, extension or saving of the income itself. It is not desirable here to enter into a discussion 120 THE CHILD'S INCOME of the merits of these methods of family finance, but the following conclusions may be of value to parents who are trying to solve the problem in the best way, with justice to themselves and their children. There will be many who will disagree with me; there will be others who will agree un- willingly, because loath to make the effort neces- sary to carry out the suggestions. Aside from the financial independence which they gain, children who have been taught at home something of the responsibilities attendant upon the wise spending of their money prove to be bet- ter able to direct their own actions in other ways. The aim of each home where there are children is to create the beginnings of other homes. The children should therefore receive the training and experience which will later make it possible for them to assume successfully positions as heads of households. This should involve experience in the spending and perhaps in the earning of money, in order that they may realize not only its possibilities but its limitations. Experience alone gives ability to judge of the real value of things purchased and power to discriminate between the worth-while and the useless. Joy in spending for spending' s sake appears to be inherent in most children. Joy in spending be- 121 SPENDING THE FAMILY INCOME cause of the value of the return is usually the result of having lived through periods of famine which have followed reckless spending. To the thought- less child, food and clothing, the conveniences and comforts of the home, even the home itself seem to be a part of the day's routine, like the air and the sun. He does not realize that money comes only as a result of the expenditure of strength and energy on the part of some individual, and that the goods purchased with it should be of sufficient worth to justify the spending of that part of some one's life which is represented by the money. In the family with a comfortable income, the everyday things of life appear, are used, and the supply re- newed ; to the child this occurs without effort, ex- cept that which is involved in a telephone message, a walk to the store or a request to father. Provid- ing even the everyday necessities means the ex- penditure of life itself, and this should be taught each child while in the home. Many parents allow their children to continue in this belief that all nec- essities will be provided as a matter of course until the moment when circumstances throw the child upon his own resources. Then the world wonders at his failure to see clearly, to measure values accur- ately and to play fair in the game of life. The cir- cumstances which bring about the change may be 122 THE CHILD'S INCOME financial difficulties in the home, different school life, the beginning of a business career or marriage. The cause does not alter the result, and the child, hitherto carefully kept from all real knowledge of the difficulties connected with the wise spending of money, is suddenly faced with problems so com- plex that one wonders that there are not more who fail to solve them correctly. It is a fact that to many children an allowance "is the money which comes regularly." The rest of their money they get for the asking, as one of them naively expressed it, "Of course, if I can't make that go through the month, and I never can, father gives me more. Extras I get from mother." She was much surprised when asked if she had ever tried to make it last through the month. Why make such an attempt when no one expected it of her ! Too many children feel that when the money in hand is gone, more may be had for the asking; that when their allowance is spent, they may over- draw, and that father and mother are a source of supply, the limit of which is dependent only upon their mood at the moment, or the method of ap- proach in time of need. Such an attitude toward money breeds selfishness; it tends to make a child thoughtless and in the end helpless in the face of actual necessity. The familiar argument, "My 123 SPENDING THE FAMILY INCOME child will never need for money," will not excuse the negligence of such parents. The fact remains that many men and women have lived through helpless, hopeless years of financial anxiety because their parents fondly believed that they would be protected from all money difficulties. How much more sure of happiness are the children taught by their parents to spend wisely and to conduct their affairs in a businesslike way. Money is of value only because of its purchasing power, and that power should be used to the best advantage and for " things " which are good. The knowledge that money may buy happiness, health, education, comfort, luxury or equipment for the individual; or development of resources, industry or health for the community, and that the spender has a duty toward the world as well as toward him- self should be given to each child. We are all f amiliar with families where some one member absorbs more than his just share of the in- come. This may be excused if it is for a short time, in order to meet an emergency caused by the de- mands of illness, education or business, but when such unequal division of the income continues be- yond the emergency, it is usually because the par- ents are thoughtless and have allowed themselves or their children to become selfish. 124 THE CHILD'S INCOME The child who understands something of the ef- fort which it has required to produce the family in- come and is familiar with the number and scope of the demands upon that income will be far less in- clined to make selfish or thoughtless requests for money than the child whose only idea of money is that his father has plenty and will give it to him if he asks at the right moment. In every home two business principles should be emphasized; the expenditure must not be greater than the return, and the expenditure should not be more than the ability to pay. The teacher of chil- dren from families with comfortable incomes is often appalled by the ignorance of the children in regard to the value of money, of personal belong- ings and of the property of others. Last winter a girl of fifteen was heard to say, "I have carried this gold piece around all day. I might as well spend it here as anywhere. How much are your watch bracelets?. . . ."No, I don't especially need one, but I might as well spend the money now. It must be spent. " Children should be taught that to spend less than they have is a virtue and not a fault. Parents have many excuses for not entering se- riously upon the question of children's finances, and following are some of the most frequently re- 125 SPENDING THE FAMILY INCOME peated objections which are heard from parents who feel that they are doing their best for their children: "Children do not realize the value of money." Childhood is their time for learning to realize. They should be given a definite sum from which they must provide for their needs and pleasures, and then held to their responsibility in providing these things. " Children do not know how to plan and the money will be spent unwisely." There is no bet- ter tune to learn than while in their parent's home. Advice should be offered freely, but the decision should be left to the child and the child should suf- fer the penalty of a wrong decision. To be sure, other members of the family sometimes suffer with the child, but that helps teach another lesson. "It is easier for me to make the purchases and pay the bills, and my judgment is better." It would be easier to let some one else have the chil- dren and bring them up, but since the parents have chosen to assume the responsibility, the question should not be one of ease for them but of the best development of the child. "I have so little money I can't afford to let him make mistakes." One mistake will not be fatal, 126 THE CHILD'S INCOME even though it means that the child goes without some article which is, according to the parents' idea, a necessity. The subsequent self-denial or embarrassment will teach their lessons far more effectively than any number of wise purchases which a parent makes for a child. If the necessary stipulations are made as to suitability for weather, so as to protect health, the choice as to style, color and quality may well be left to the child, after the question has been thoroughly discussed. There will come a time when this discussion will not be necessary. In the beginning it is. As well set a carpenter to build a house without knowledge of your needs as to ask a child to buy clothes with- out discussion of the conditions which must be met. " While they spend my money, I mean to direct the spending." The everlasting ego which claims all virtue and is not willing to share anything of its advantages except with all credit for the re- sult! "I wish my family to be dependent upon me." Again the egoist who enjoys his benevolence and feels, like the slave-owner of old, " These are my people. I can force them to do my will because I hold the power of life and death. " "I am willing to give my children an allowance, 127 SPENDING THE FAMILY INCOME but $ a year is too large a sum for any boy or girl to spend, and they will not be satisfied with less." That father or mother should estimate very carefully what it has cost to provide for the child during previous years. An inexperienced child should not be asked to live on less than his parents, with their experience, have required for the child's needs. "My children will spend foolishly if I give it to them to spend. " Not many times, if no additions are made to the original amount. If, when they have spent foolishly, children must go without, they will soon learn to spend more wisely. "It costs me more in the end, because there are so many things I want them to have that I spend a lot extra for them." That is then the fault of the parents and not of the children, and it deprives children of the opportunity to form character by choosing and acquiring the things they think worth-while. "If I give them an allowance, they spend it for useless things, and their clothes are not up to the standards which I have always set for them." With experience they will outgrow that, provided the allowance is made large enough so that they can maintain the old standards; and if by chance they grow to feel that some other things are more 128 THE CHILD'S INCOME worth-while than "clothes according to the family standard, " there is then opportunity to discuss and compare standards, always remembering that children have a right to their individuality, and that so long as they are willing or compelled to consider the prejudices and preferences of their parents, they are entitled to opportunity to choose in directions where the welfare of the family or of society will not be affected. The following rules for children's finances are not new but are compiled from many sources : Each child should know what it costs to live, and should contribute toward his share by work or by saving. Include the older children in the family council. Let all share in the family efforts to save and to spend wisely. Careful estimate of the necessities in clothing, education and recreation should be made, and the child should be given an income based upon his needs and the parents' ability to provide for them. This sum should not be increased except when both parents and child realize that it is no longer large enough to meet the needs of the child's life. A plan for spending should be made by the child, discussed with the parents, and advice given as to special purchases. 129 SPENDING THE FAMILY INCOME An account of expenditures should be kept and discussed with the parents, and later plans should be based upon this study. Final decisions should be made by the child. Deficits should not be met by the parents. The reasons for saving, giving, and education should be emphasized in every discussion, or the child will grow up with the idea that personal ex- penditures for clothing and pleasure are his only financial responsibilities. Responsibility should begin with small things and increase with the growth of the child. Re- sponsibility and education should be parallel. Give a child opportunity to add to his income by earning. Do not pay for every service, but if there is some thing to be done which otherwise must be paid for, hire the child to do it and pay according to the quality of the work done. Teach that care of property saves money as defi- nitely as going without an ice-cream cone or after- noon tea. Teach that money saved should be put to work; that going without marbles in order to spend the money for soda is not really saving. Saving should mean putting money where it will accumu- late until it develops power to purchase something more worth-while in the future. 130 THE CHILD'S INCOME Teach every child to plan so that he may spend Something for saving; Something for giving; Something for needs; Something for growth; Something for play. 131 CHAPTER XIV STUDENT'S INCOME It is exceedingly desirable that the student, as well as the business woman, should begin the ex- penditure of her income with saving. Students who feel that their incomes are so small that they cannot save on them should realize that they are in school for the purpose of receiving education to fit them for living that living in the world will require that they handle money that without experience hi careful and intelligent spending of money they will go into the world unprepared to meet its problems and will spend time later in gaining necessary experience when they should be able to avail themselves of knowledge gained during school life. If, by force of circumstances, every cent available mmt be spent, the habit of saving may be acquired by putting aside a definite amount each week toward some fixed charge which will come due at a future date. The habit, once gained, of spending to the limit of one's possibility is hard to break, and instead of burdening one's self with a bad habit which must be broken, it is 132 STUDENT'S INCOME well for the student to acquire a good habit which will make living easier and more successful with far more immediate opportunities to be of real ser- vice in the world. Students who are living on very small incomes will find that planned expenditures bring better returns than haphazard or hand-to-mouth pur- chases. No matter how small the student's in- come, if it is possible to make it cover expenses at all, it will cover them more fully if a definite plan is made. When the spending plan, or budget, has been made a graphic circle will show him more clearly than figures whether he has apportioned his money wisely or not. When all of his expenses are paid by the student, the red division of the circle 1 will represent the money paid for education; the violet division, the money spent for board; the yellow division, money spent for operating; the blue, for cloth- ing; and the green the money spent for de- velopment. When the board, tuition and doctor's bills are paid by other people and not taken out of the al- lowance of the student, the circle should be divided into five equal parts as before, one part represent- 1 See Chart, VIII page 119. 133 SPENDING THE FAMILY INCOME ing education, one part operating, two parts cloth- ing and one part choice or development. Board includes the amount spent for room and meals. Education includes expenditures for tuition and extra class fees, when paid by the student, music, etc., books, supplies and transportation to and from school. Clothing includes all new ready-made clothing, all materials, cost of making and cleansing and re- pairing. Operating includes personal upkeep (toilet sup- plies, hairdressing, etc.), postage, stationery, laun- dry and miscellaneous carfares. Development includes expenditures for religion, philanthropy, health, social life, dues and personal extras. Social life includes expenditures for recreation, entertainment, theater, " functions" and personal gifts. Dues includes club and society dues, contribu- tions to school projects, etc. Health includes doctor's, dentist's or nurse's fees, medicine and also the cost of preventative measures. Extras includes extra food, candy, flowers, per- sonal equipment, etc. 134 STUDENT'S INCOME It will not be possible for most students to divide their income into five equal parts and keep to that definite distribution, but such a division gives a starting point from which changes may be made. As a preliminary step it is well for the student to make a list of all the fixed charges against the in- come. By fixed charges is meant regular fees and definite demands, such as tuition or other class fees and transportation to and from school, the amount of which is fixed at the beginning of the school year and which will be unlikely to change with the progress of the term. A second list should include charges which it is possible to estimate, such as laundry, contribution to school projects, regular expenditures for mani- cures or hairdressing. A third list will include charges which it is nec- essary to limit, that is, the amount which may be spent for recreation, entertainment, personal gifts and personal extras, etc. When the estimates for all three lists are made, they should be separated into the proper groups and very carefully checked up with the fifth of the income allowed for that group. It will be found that some groups require more than their fifth and some groups less, but if the total of the operating group and the items under choice exceed the 135 SPENDING THE FAMILY INCOME amounts allowed, a mistake is being made in plan- ning. It is quite probable that the allowance for cloth- ing will exceed the fifth of the whole, and when board and tuition are not paid for by the student, clothing expenditure is likely to exceed two fifths, especially if the allowance is a small one. A thoughtful examination of the circle will show whether it represents well-balanced expenditures, and careful following out of the budget plan, with study of the results as shown by the accounts, will soon teach a student to recognize poor budgeting and to take advantage of the mistakes of one year to improve expenditures for the next. A poor budget is better than none and a second budget which is not an improvement upon the previous one shows that the person making it has not ap- proached the matter with serious intention to spend wisely and to take advantage of opportunity for progress. 136 137 SPENDING THE FAMILY INCOME The^Use of the Loose-Leaf Distribution Sheet and Account Book for Students Use the top space for General Headings; the unlined space for sub-headings under which all expenditures are to be distributed. At the bottom of the page reserve three lines for Totals - Planned - Difference - If bills are paid by check, write in the broad column the name of the person to whom the check is drawn, with date and check number. If paid in cash, keep a record in a small cash book, and each week transfer the totals for the week to the distribution sheet, or enter each expenditure di- rectly in the book, distributing it at once. To prove the account, the sum of the totals of all the distribution columns should equal the sum of the total expenditures, while the total expenditures plus the balance in the bank should equal the total received. When the budget estimates are written at the foot of each column on the line below the totals and the two are compared and the difference noted on the next line, the student can easily esti- mate the amount of surplus which exists in any one division to cover later necessary expenditures. 138 STUDENT'S INCOME The headings used are suggestive only and may not all prove necessary for some students, while others will require more details. When the head- ings are decided upon, it is desirable that all sub- headings should be carefully grouped under the main headings and a copy of this kept in the front of the distribution book, so that like expendi- tures will be distributed under the same heading throughout the year. 139 CHAPTER XV THE TIME BUDGET The householder who cares for his own garden or lawns and the housewife who adds to the possibili- ties of the income by doing the family sewing, housework or laundry are adding to the actual income just as surely as if they did work outside for which they were paid. The children who share the work of the house and thus reduce the amount of paid service necessary are adding to the value of the income. The money expenditures of such a family may easily be less than those of a family where all this work is accomplished by paid service. This fact should be recognized, the value of such service should be estimated carefully and the results used in any comparisons made, with a view to de- termining whether a certain expenditure is justified or not. It has not seemed wise to include the money value of such service in the total income and thus make it necessary to charge it off in the operating expense, or cost of clothing or entertaining. Such 140 THE TIME BUDGET a procedure would only complicate the bookkeep- ing and make it more of a bugbear to the inexperi- enced. The author, however, does not mean to deprecate the value of such work, the additional possibilities which it offers for ease in the use of the income or the need that every member of the family should recognize the fact that such work does add to the real income. Where there is a question of choice as to work outside the home which will bring visible addition to the income, and work inside the home which seems futile be- cause the return is less tangible, the matter should be carefully discussed, and a balance drawn which shows the condition exactly, before the decision is made. It is impossible to place a money value upon the presence of the mother in the home and the spirit of the service which she gives, and it is difficult to judge of the real value of outside work to obtain additional income if one honestly faces the fact that such work means partial withdrawal of the in- fluence of the mother from the home life. Because of the money value which may be placed upon the time of the housewife, it is especially de- sirable that the time devoted to planning, sewing and housework should be carefully budgeted, and that the less important things should wait for the 141 SPENDING THE FAMILY INCOME essentials; comparisons must be made and the real value of each kind of work estimated. If this is done, mothers will spend less of their tune on unnecessary sewing, ironing and elaborate cooking and devote more time to the enjoyment of family recreation, study and exercise. Where there are children, it is desirable that each should be given a part in the work and care of the house. No matter how much paid service is avail- able, every member of the family should have a share in making the home a comfortable living place. This should be planned so that it is evident that the failure of any individual to perform his share of the work reacts directly upon the comfort of other members of the family. Such a plan makes for unity of family life and gives the chil- dren a sense of citizenship within the family which will later tend to make a better, more responsible citizen in the community, while selfish dependence upon either one or both of the parents must tend to develop a feeling that the world, as well as the home, owes him a living, and that his responsibility for others is nil. It is then a part of the work of the housewife to plan the duties for the rest of the family, and any budget of her own time must rec- ognize the fact that others are involved. When work has to be done, it is desirable that 142 THE TIME BUDGET nothing should be crowded out or attended to hur- riedly because forgotten or neglected for less im- portant things. Plan the tune so that as much as possible may be accomplished and leave undone only those things which can wait. Divide the time in such a way as to allow for work, rest and play, otherwise the quality of work will suffer. Failure to play means that work becomes drudg- ery. Failure to rest means that work becomes forced and is poor. To Make a Time Budget List the important things to be done, with the time each will take. Arrange in order. Allow time enough for interruption, but not time enough to work lazily. If not interrupted, time will be gained. Use this for less important work which it had seemed possible might be obliged to wait until the next day. Plan time for rest and play and use it as planned. When, as often happens, a worth-while interrup- tion prevents, make up for it later. Make the programme of work flexible. A daily programme should include : A list of routine work in the order in which it is to be done. 143 SPENDING THE FAMILY INCOME Hours for special work. A weekly programme should: Allow time for routine work. Specify special work for each day. A season's programme should include: Special work planned by weeks. In each programme there should be free tune for meals, rest and play. By the use of a time budget it should be possible to cover the greatest amount of work without excessive strain or fatigue; to give the right proportion of time to each task; the right value to essentials; to eliminate unnecessary details; to lead a better balanced life, with work, play and leisure each given due consideration. A housekeeper running her house on a businesslike plan should provide a daily and weekly programme for her maids as well as for herself and members of her family. A monthly or season's programme for herself will serve as the basis of changes in the other plans. It is desirable that the people who are to do the work should have some part in mak- ing the plan, and cooperation in this will bring far better results than offering an arbitrary programme and insisting upon it, without regard to the per- sonal preferences of the worker. 144 THE TIME BUDGET Example of a Time Budget DAILY ROUTINE WORK Put living rooms in order Prepare and serve breakfast Kitchen and bedroom work Special work of the day Prepare and serve luncheon Clear table, leave dining room in order Wash dishes, leave kitchen in order Rest Sewing, marketing, exercise out of doors Prepare and serve dinner Clear dining room and attend to dishes Time allowed for each process depends upon indi- vidual Time must be allowed and fitted in to programme for care of children or other special duties WEEKLY SPECIAL WORK Monday Attend to laundry and put house in good general order Tuesday Wash and iron special pieces not sent to laundry Wednesday Clean bedrooms. Give special care to bathroom Thursday Clean silver and put pantry in order Friday Clean living rooms and halls. Weekly mending 145 SPENDING THE FAMILY INCOME Saturday Sunday January February March April May June July August September October November December Preparation for Sunday meals. Count and put away clean clothes. Special dusting Necessary routine work. Rest. Social life with family SEASONAL OR] MONTHLY Sewing, replenishing household supplies Clean book shelves, closets, etc. Clothing inspection and plans for sum- mer clothing. Repair and refinish screens Sewing for summer. Remove storm windows and put in screens. Putting away winter clothes. Take down furnace pipes and clean the furnace Out of door life. Canning and sewing Plans for fall and winter clothing. Can- ning vegetables Put furnace in order for the winter Special cleaning of rugs and paint. Pack away summer clothing. Air closets, etc. Preparation for Christmas. Put on storm windows and doors Christmas preparation This list is suggestive only; no attempt has been made to make it model or even entirely complete, 146 THE TIME BUDGET as no two housewives would be able to follow any one budget exactly. A similar programme may be adapted to the use of a housekeeper, working with or without the help of other members of the family, or it may be adjusted to the needs of a housekeeper with one, two or three maids. 147 CHAPTER XVI LISTS AND INVENTORIES The housekeeper or individual with an instinct for business form will naturally fall into habits which follow somewhat the procedure of a business office. Lists, inventories and card catalogue data will accumulate according to the degree of business ability or " feeling for system " which is her portion. The time budget of our grandmothers included a very definite apportionment of the work of the home among the members of the family. Each day had its especial work and each season its list of household activities assigned to it. These time budgets were seldom written out but were no less hard and fast on that account. The time budget of the present day includes a different set of duties and they are less positively assigned to the day or month, but the housekeeper who is businesslike has her list and endeavors to plan her time to ad- vantage. The food budget is more important now than ever before, except during the late war. It is be- coming more and more necessary to spend the 148 LISTS AND INVENTORIES money available for food to the best advantage in order that the family may be well fed, which means that they should have an adequate amount of food of satisfactory quality, so chosen as to provide not only sufficient nourishment but enjoyment and interest. The supply of household linen should be replen- ished by a regular and definite system. If small additions are made each year, according to a plan, there will be no season of dismay when suddenly every tablecloth is frayed and every sheet is worn thin. Definitely planned additions to the stock of household linen will prove far less of a strain upon the income than the hit-or-miss buying which is frequently dependent upon the force with which one feels the blow when the hem is stripped from one of the last good sheets in the supply. There are people who revel in lists and in the home of such a person one may find inventories of the contents of the various closets, packing boxes and trunks. ^ hese are pasted in the tops of the boxes or fastened inside the closet doors and prove of value in tracing articles the first season after the lists are made; but when objects are found and removed for use, the lists become inaccurate. The orderly soul of such a housekeeper dislikes to cross off the list the articles removed; "They will go back 149 SPENDING THE FAMILY INCOME there when their time of service is over; why spoil the fair appearance of the card?" Some add cryptic marks to indicate that certain articles are temporarily out of bondage and later plan to add further signs to indicate their return; but few housewives carry a pencil and fewer still remember to attach one to the storeroom door or cover of the packing case. It is easy to think that memory will serve, and suddenly every list is inaccurate, none are up to date, and once more the weary hunt is on for last summer's underwear or last winter's overshoes. Another type of mind finds delight in a card catalogue of all the family possessions, with notes on each card something as follows: Article Acquired Cost Kept in Remarks This is a most satisfactory system if kept up to date, if the places for storing are never changed without a like change on the card, and if the cards referring to articles worn out or given away are culled from the box. Most helpful to many women are the cards which give addresses of workmen, household assistants and tradesmen, in fact, all sources of supply; 150 LISTS AND INVENTORIES other cards with recipes, short cuts in housework, " hints to handy housewives" and antidotes for poisons. I have always hoped I would have my cards under my arm when I swallowed a corrosive sublimate tablet instead of aspirin. There are lists of common poisons and their antidotes for the medicine-closet door; lists of the medicines con- tained there and the particular reason for their presence; lists of callers, their days at home, the date of their calls and the dates when they were returned; lists of books owned, borrowed and to be purchased; lists of wedding gifts, these do not become out of date and they serve several use- ful purposes beside being a fruitful source of rem- iniscence in later years. A card catalogue of the favorite dishes of guests and of their especial aversions in food is said to be of inestimable value in making them feel well cared for during future visits; menus successfully served or enjoy- ably participated in with suggestions for table decorations; games and hints for especial holiday celebrations, all assist the would-be hostess in solving her problems. Lists of gifts made and received, a card carried in the purse giving the sizes and makes of under- wear, collars, socks, etc., worn by the men of the family, and the clothing sizes and needs of the 151 SPENDING THE FAMILY INCOME different children assist the shopper and often make possible the purchase of a real bargain. The financial records for the family, names and other data regarding insurance policies, receipted bills, lists of charge accounts, organization dues, taxable property, investments, records of the storage of furs, the cost of jewelry or especial articles of cloth- ing and house furnishings may be kept. A list of tire numbers with the speedometer reading taken on the date of purchase will prove of value hi mak- ing tire adjustments. Whether or not one is inclined to keep many of these lists and inventories, there is one which should be made for protection's sake and kept up to date. This is a careful inventory of furniture, bric-a-brac, personal belongings, clothing, etc., made with such minutiae of description and in- formation as to cost that it will be accepted by in- surance companies in case of fire or burglary. At least two copies of this inventory should be in ex- istence, one kept permanently hi a safe place out- side the house and the other to be in the custody of the caretaker during the temporary absence of the owner of the property. The housekeeper who is fortunate enough to have a desk which may be devoted entirely to the busi- ness of the home has opportunity for the use of 152 LISTS AND INVENTORIES many business forms which are impossible for the occupant of a house or apartment where desk space is not available. Bill files, letter files and card index boxes, record books, account books, boxes of pens, clips, elastic bands and metal fasten- ers, postal scales, stationery and pencils, gummed package and name labels are among the conven- iences which offer temptation to the woman of sys- tematic mind whether she has room for them or not, but usually only those who are trained to a sense of their value really make successful use of such material. The possibilities of the card catalogue records are great but there is danger that the young and enthusiastic housekeeper will start a larger num- ber of such records than she is likely to keep with any degree of accuracy. It is wise for each to se- lect the type of records which she most needs and is sure of putting to continued use. A record which is not up to date, accurate and complete, is worse than useless, for its information is so mis- leading that its use will be likely to cause far more trouble and irritation than would result from the lack of any information! at all. With proper apologies for the addition of one more list to the many already extant, there is here given a number of lists which might prove use- 153 SPENDING THE FAMILY INCOME ful. One must judge for one's self which would be likely to be of value in a particular case and choose according to individual needs. Inventory ol property Inventory of investments; interest dates List of insurance policies with dates when pay- ments are due Inventory of household furniture Books and bric-a-brac Clothing and personal belongings Card Catalogue Lists a. Social Gifts given and received Guest menus Table decoration Holiday celebrations Games Calling lists Days at home Calls made and received b. Books Owned, loaned, borrowed, to pur- chase, to read [ r. Addresses Friends Telephone numbers Workmen Household assistants Tradesmen 154 LISTS AND INVENTORIES d 4 Supplies Furniture Linen Blankets Contents of closets, trunks or packing cases Poisons and antidotes Medicines e. Food and Housework Menus Recipes Amounts to buy Price lists Canned goods, special brands Handy Hints to Housewives 155 CHAPTER XVII QUESTIONS FOR DISCUSSION Have we a living, a comfort or a luxury income? Do we demand more luxuries than the size of our income warrants? Are we demanding that our income shall provide living conditons according to our former standards, in spite of increasing costs? What constitutes wise expenditure? Have we a plan for spending, or are we drifting? Are we taking into account the money value of the woman's work in the home, or are we consider- ing that the total income is represented by the money we have to spend? Do we know just what caused deficits last year? Do we know from last year's records what ex- penditures might have been curtailed in order to meet these deficits without affecting our stand- ards, our health our happiness? Is it possible to adopt a simple system which will prevent unwise expenditures and give a good basis for planning, so thai we may either save money, release money for better uses or purchase things 156 QUESTIONS FOR DISCUSSION which are of greater value in themselves and give us greater satisfaction? Shall the bills be paid from a joint checking ac- count, or from an account held by the person di- recting household expenditures? Shall we establish credit with a few reliable firms, or pay cash? Shall the division of the family income be de- termined by the individual, by conference of hus- band and wife or by family council? Standards for Saving Have we definitely planned our saving so as to insure a known return, or are we saving care- lessly? Have we planned our savings in a way which will insure our independence in later years? Are we saving all that we can without sacrific- ing health and efficiency? Do we plan for our needs and count our saving as a need? Do we save (according to our plan) before we spend for our other needs? Are we spending for well being and saving before we spend for luxuries? Do we remember that if we earn a little, spend less and save the difference, we will thus build up a 157 SPENDING THE FAMILY INCOME fund which will serve as a basis for income in old age, for protection in an emergency and, if safely invested, will be a contribution toward the develop- ment of industry, thus making us a partner in the resources of the community? Do we consider our savings from three points of view: Emergency have a savings-bank account; Protection carry straight life insurance; follow a carefully made plan of invest- ments. Education of children or home building buy endowment insurance or shares in a cooperative bank. Do we know what form of saving will best meet our need? Do we know the real cost of our life insurance and the return in interest? Do we realize that it is important not only to save, but to decide how much and how, and the wisest way to invest our savings, and then to fol- low our plans systematically? Standards for Shelter What conditions in shelter are necessary to safe- guard the health and comfort of our family? Have we children, old people or invalids in the 158 QUESTIONS FOR DISCUSSION family to be considered when we choose our shel- ter? What must we demand in: a. Location? City, country, town, suburbs? b. In type and size of house? House or apart- ment? Large or small rooms? Number of liv- ing rooms? Number of sleeping rooms? Number of bathrooms? Size and condition of kitchen, pantries, storeroom, cellar? Kind of sanitation, drainage and water supply? Safe construction or elaborate finish? Sunshine, light, space? Grounds, backyard? c. In type of neighbors? d. In possibilities of education and social life? Schools, churches, community? In choosing our shelter Have we considered the children our children must play with? The social conditions our children must be a part of? Are we paying more carfare than we should afford? Do we keep in mind the fact that the cost of shelter includes not only rent but carfares to busi- ness and schools? When we selected our shelter, did we consider the cost of operating the house before we made our 159 SPENDING THE FAMILY INCOME decision? The cost of heating or lighting one house may be much more than the cost for another of equal size and rent, but less well planned and built. Do we know why we hire instead of owning our own home? Standards for Food Do we spend our food money for return in nourishment and health, or for satisfaction of appe- tite? Do we judge the worth of food by its cost, by its use in the body or by its flavor? Are our food standards higher than our income warrants? Are our meals too elaborate with too many courses, too much meat, too many rich desserts, too expensive and out of season foods? Have we simplified buying, cooking and service as much as possible, without sacrificing the health and comfort of our family? Do we consider milk as the basis upon which we should plan our meals, or do we count meat as the central food? Do we use enough milk? What can we omit from our diet in order to pur- chase the amount of milk and fruit and leafy vege- tables which it is desirable for our family to eat? 160 QUESTIONS FOR DISCUSSION Standards for Operating Have we analyzed our housekeeping expen- ses? Do we know whether we are spending minimum or maximum amounts for operating? Are we adding to our housekeeping or operating expenses by living in a fashion more formal and with more expensive details than is consistent with the kind of house and the quality of food and clothing which we are able to provide? If so, is this done on account of the health of some member of the family, or because we fancy that business reasons make it necessary, or have we drifted into a careless attitude toward operating expenses? What are our standards For Service regular service, " outside help," laundry done? For Heat hot water, hot air, steam or stove heat? For Light electric, gas or oil light? Do we waste water through neglect of dripping or leaking faucets or by careless use of running water? Are we careful to use lights only when we need them? 161 SPENDING THE FAMILY INCOME Are we particular not to use electric bulbs with more wattage than is necessary? Are we careless with our gas for cooking? Do we control our fires so as to conserve the coal, or are we careless with the dampers? Do we know what size of coal is best adapted to our stove or furnace? Do we coal our range with a shovel or pour the coal from the hod? Do we keep our fires at the top of the lining or waste coal by filling the fire-box too full? Do we clear the ashes from under the grate? Do we keep the flues clean? Do we clean the heating surfaces from soot? Do we know what our laundry costs are for labor, food, utensils, material, wear and tear? Could we reduce the laundry by care in use of towels and bedding and unironed sheets? By the use of untrimmed, seersucker or knit underwear? By economy hi the use of table linens the use of doilies and runners in place of tablecloths? Do we have unnecessary telephone service? Standards for Clothing Do we make our purchases for the family ac- cording to a definite plan, after study of our in- come; do we decide the amont of money it is right 162 QUESTIONS FOR DISCUSSIONS for us to spend and the especial needs of each mem- ber? Do we think of suitability, serviceability and cost, before buying for the family? What kind of underclothing shall we provide, knitted, seersucker or muslin? Trimmed or plain? Economical or luxurious? Light weight or heavy? Does our underwear allow freedom of motion? Do we know something of the durability, fast- ness of color, effects of laundering, amount of siz- ing and shrinkage of materials before we buy? Do we consider all the social functions for which clothing must be used, or do we buy for one occa- sion which is not likely to be repeated? What are rational requirements in the style of a suit, dress or evening gown? Does our clothing meet these requirements? Making. What is the best plan for us? To buy ready-made garments or to make at home all or a part of them; machine or hand sewing; new gar- ments or remodeled? Dressmaking at home or outside? Home care. What kind of laundry work is pos- sible for us? Do we buy our clothing with that in mind? Do we prolong the life of the clothing by dry 163 SPENDING THE FAMILY INCOME cleaning, dyeing, retinting with soap, careful darn- ing and mending, removal of spots and stains? Do we have clothing washed or cleansed at once, or let it hang with dirt and dust on it? Do we pack garments away carefully, or leave them to hang during long periods of time when they are not to be worn? Standards for Development What are our standards for our children and for adults in the family in Health? Travel? Recrea- tion? Philanthropy? Education? Culture? Social Life? Vacation? Gifts? Are we allowing our money for development to be frittered away for small purchases which are of transient worth, or are we spending our margin for those things which will remain of value in the home or in the mind? Is our family life well-balanced, with oppor- tunity for work, sleep, play and culture? If we believe the church is a desirable institution in our community and wish it to continue there, have we a duty toward its support? Do we plan for service to others, through philan- thropy and social intercourse, or by sharing time, money or strength with those in need? Do we keep our social life on the right plane at a 164 QUESTIONS FOR DISCUSSION cost which is consistent with other expendi- tures? Are we growing by accumulation of things or of ideas? Are we spending more for luxuries than we are saving? Are we buying luxuries on the installment plan, or using our savings to purchase or support luxuries? Do we remember that luxuries should be pur- chased from current income or from a special fund saved for the purpose but never from regular sav- ings? Are we procuring from our income a reasonable amount of health, happiness and comfort? Are we buying ability to work happily? Is our home producing efficient citizens? Money Standards for Children Are we giving our children a regular income in order to teach them the possibilities of saving, the limitation of money, the responsibility of spending and the joy of giving? Are we teaching our children how to spend wisely, or are we allowing them to develop care- less habits in spending? Are we giving them responsibility in regard to the spending of money and holding them to it? 165 SPENDING THE FAMILY INCOME Are we ready with advice and help in regard to spending, showing an interest in the children's suc- cessful use of their money, or do we merely scold them for their failures? Do we give our children complete freedom in the final decision in spending, allowing them an oppor- tunity to learn by experience that foolish spending brings its own punishment? Do we encourage the saving of small sums with some regularity? Do we put a premium on judi- cious use of money and a penalty on careless use? If we have a system of fines for habits of careless- ness, wastefulness and untidiness, have we also a system of rewards for corresponding virtues? Are we teaching our children that saving small sums will develop greater purchasing power, or do we allow them to believe that only older people have a duty toward saving? Are we teaching them to measure the real value of an expenditure before they make it? Do our children realize that the cost of family life is increased by each additional member of the family; that each individual has a duty toward the family income; that each individual has a duty toward community interests and should make his own contribution toward their support? Do we consider that each member of the family 166 QUESTIONS FOR DISCUSSION should realize the cost of his living and contribute toward it, either by wise planning, by service, by wise use of materials or by saving? Do we realize that the best time to learn how to plan, to buy and to use is while the child is in the care of the family, when mistakes will not be se- rious? Do we teach our children that they should spend not to gratify whims, but in accordance with a plan which provides For saving. For needs. For giving. For play. For growth. 167 SPENDING THE FAMILY INCOME BIBLIOGRAPHY "The Cost of Shelter." Mrs. Ellen H. Richards. Macmillan Company. "The Cost of Food." Mrs. Ellen H. Richards. Macmillan Company. "The Cost of Living." Mrs. Ellen H. Richards. Macmillan Company. "The Business of the Household." C. W. Taber. J. B. Lip- pincott Company's Series. "The Modern Household." Talbot and Breckenridge. "The Woman Who Spends." Bertha J. Richardson. Whit- comb and Barrows (Boston). "Putting the Home on a Business Basis." Edythe P. Hershey. University of Texas. Published by University of Texas. "A Manual of Home Making." Van Rensselaer,"_Rose and Cannon. Macmillan Company. "Household Engineering." Christine Frederick. American School of Home Economics. "Standards of Living." Bureau of Applied Economics. U. S. Treasury and Agricultural Department Thrift Bulletins. Monthly Labor Reviews. U. S. Department of Labor. "The American Business Woman." John Howard Cromwell. S. P. Putnam's Sons. "Household Management." Bertha M. Terrill. American School of Home Economics. "The Household Budget." John P. Leeds. Published by W. R. Lane. "Money What it is and How to use It." William R. Hay- ward. Houghton Mifflin Company. "Cornell University Reading Course." "Thrift Series." "Building an Income." C. L. Stewart. University of Arkan- sas Bulletin, Vol. 13, No. 15. * 'Marketing and Housework Manual." S. A. Donham. Little, Brown, and Company. 168 INDEX INDEX ABUNDANT LIFE, 11, 29 Accounting, Household, 88 Personal, 91 Accounts, Checking, 89, 157 Children's, 97 Headings for, 95 Individual, 81, 96, 114 Joint, 5-7 Summary of, 98 Allowance, Children's, 123, 129-131 Household, 7 Personal, 115 Analysis of Standards, 16 Apartment, 31, 32, 63, 109 BANK, COOPERATIVE, 27, 28, 158 Savings, 26, 27, 28, 158 Bank Account, 5 Boarding, 109, 112 Budget, Definition of, 8 Food, 45 Household, 8 How to make a, 83 Ideal, viii Income, 8 Individual, 109, 115 Reasons for, 10 Revision of, 9 Time, 143 Budget Charts, 87 Building, 158 Business Forms, 148, 153 Business Man, 11 Business Principles, 125 CALORIES, 46 Card Catalogue, 150, 153 Cash, Petty, 89, 90 Children's Allowance, 123, 129, 131 Children's Foods, 142 Choice of Expenditures, 13, 69 Circles, Graphic, Family, 101, 104, 107 Individual, 117 Students', 133 Citizen, Duties of a good, 19, 142 Clothing, Care of, 50 Choice of, 48 Cost of, 48, 80 Individual, 112 Purchasing, 53, 54 Quality of, 48 Quantity of, 47 Standards for, 50, 64 Suitable, 77 Clothing Budget, 47, 51 Clothing Charts, 56-60 Comfort Income, 14, 23, 156 171 INDEX Community Dining Room, 39 Community Interests, 166 Cooperation, 2, 9, 83 Credit, 157 DEFICIT, 156 Desires Gratified, vi Development, 70, 80, 82, 118 Questions for Discussion, 164 Development for the Indi- vidual 113, 115, 118 Dining Room, Community, 39 Distribution Chart, 87 ECONOMICS, Food, 39 Education, 27, 124, 158 Efficiency, 20, 69, 83 Efficient Life, 12 Work, 6 Electricity, Cost of, 61 Emergency, 23, 26, 124, 158 Engel's Laws, 75 Equipment, 18, 66 Personal, 134 Professional, 97, 114 Estate, 23, 24, 26 Existence Income, 14 Expenditure, Balanced, 100 Expenditure Planned, 12, 114, 133 Experience, 121 FAMILY, BUDGET, 83, 148 Conference, i, 6, 157 Finance, 120 Financial Responsibility, 6 Food, Adequate, 77, 79, 82, 111 Choice of, 39 Cost for individuals, 111 Cost of, 40, 42 Minimum Allowance for, 43, 79 Values of, 41 Food Budget, 45, 148 Food Economics, 39 Furniture Inventory, 152 GIVING, 70, 131, 164, 165 Graphic Circle, Family, 101, 104, 107 Individual, 117 Students', 133 HEALTH, 32, 44, 82, 103, 156, 161 Heat and Light, 99, 161 Heating, 61 Home, Saving to Purchase, 18, 27 Home Cooking, 42 Home Ownership, 32 IDEALS, 68 Income, Additions to, 4, 140 Comfort, 14 Continuous, 29 Existence, 14 Family, 120 Increase in, 31 Living, 14 Luxury, 14 Material, 4 What Constitutes, 3-4 Income Money, 4 172 INDEX Income Taxes, 76, 101 MARGIN, 69, 79, 83 Industry, Development of, Materials, List of, 50 19 Individual, Budget for, 109, 115, 119 Clothing for, 112 Development of, 112, 114 Food for, 110, 111 Operating for, 109 Saving for, 109 Shelter for, 110 Individual Accounting, 114, 119 Individual Boarding, 109, 111 Individual Living at Home, 112, 113 Insurance, Endowment, 27, 28, 158 Life, 28, 158 Insurance Statistics, 22 Interest Tables, 25 Inventory, 2, 149, 152 Investment, Plan of, 28, 158 Safe, 26 LAUNDRY, 64, 162, 163 Leaks, 65 Liabilities, 2, 93 Life, Well-rounded, 11, 12, 68, 70 Lighting, 62 Linen Supply, 149 Lists, 149, 154 Living Income, 14, 156 Luxury, 21, 29, 71, 72, 73, 156, 165 Luxury Income, 14, 156 Maximum Comfort, 23 Meals, Planning of, 45 Minimum, Amount of money, 82 for Safety, 23 Money Value, of Housewife's Work, 140, 156 of Children's Work, 142 NECESSITIES, v , 68, 70 OPERATING, INDIVIDUAL, 110, 113 Necessary, 60, 78 Questions about, 161 Standards of, 60, 161 Operating Percentage, 65 PARENT'S EXCUSES, 125 Partners, 7 Percentages, Mrs. Richards', 74 Saving, 20, 74 Percentages for Operating, 65 Petty Cash, 89, 90 Planned Spending, 13, 14, 133, 156 Plan of Life, 13 Property, 1, 32, 34, 35 RECORDS, 88 Responsibility, Children's, 121, 130 Mutual, 5, 7, 120, 121, 165 Parents', 126 173 INDEX Rules for Children's Finances, 129 SATISFACTION, DURABLE, v Saving, a Civic Duty, 19, 166 by Plan, 23, 157 Constructive, 26, 29 How much, 26 Percentages, 20, 74 Students, 132 Securities, 19 Shelter, Choice of, 31, 35, 159 Cost of, 34, 36 Essentials of, 34 Questions for discussion, 158 Reasons for low rental of, 34 Safe, 77, 79 Standards for, 36 Sinking Fund, 35, 92 Spending by Plan, 13, 14, 133, 156 Standards of Living, 16 Student Account Sheet, 137 Graphic Circle, 133 Headings for Account Sheet, 134 Systematic Spending, v TAXES, INCOME, 76, 101 Telephone, 162 Time Budget, 143, 148 WELL BEING, 21, 157 Wise Planning, 167 Wise Spending, 156 Woman's Work in the Home, 141, 156 174 THIS BOOK IS DUE ON THE LAST DATE STAMPED BELOW AN INITIAL FINE OF 25 CENTS WILL BE ASSESSED FOR FAILURE TO RETURN THIS BOOK ON THE DATE DUE. THE PENALTY WILL INCREASE TO SO CENTS ON THE FOURTH DAY AND TO $1.OO ON THE SEVENTH DAY OVERDUE. 1938 FE6 7 1939 APR 3 riNTER-LlBRART LOAN JAN 12 1979 MAY 15 104/1 iLfttflR. FCBnU*^ HBBC.CIR.Mflf 58^ / 19 1946 W4Y 6 1BU 1 * 1 UNIVERSITY OF CALIFORNIA LIBRARY