The divisions of the income for which we should provide are food, shelter, including taxes and operating expenses, clothing, and the “higher life,” including recreation, education, and savings. The size of the income determines largely the proportion of money allotted to each division. We must be nourished and protected from the elements by shelter and clothing, and an income must at least provide for these necessities to be a living wage. Yet we justly claim something more from our income than mere existence.

In most families there is a fairly definite income. When the amount is not known it is wise to estimate upon the minimum income and have a surplus, rather than to expend too much. Seventy-five years ago things cost less and incomes were less, to-day the incomes have increased and cost of living is growing higher. The question is one to be studied relatively, and the cost of living will depend on the ratio between income and one’s methods of living.

Just what other satisfactions than the merely physical are to be gratified is the great question for the woman who divides the income. The problem is naturally hardest with the smallest income, where the “must be” crowds out the “may be.” But there is room for choice even with the small wage.

This work of dividing the income and deciding on the ideals should be shared by the family. When the home is first started the husband and wife should discuss frankly the problems of division and should agree on the methods of expenditure. This common understanding between members of a family forms a bond of union, and each feels a greater pleasure and pride in doing his part. The fact that there is a budget and a system brings orderliness in methods of work and freedom from worry and anxiety as well as a saving of money. And this saving of money and strength is the same as an increase in income. This budget or division of expenses acts as a sailing chart and can be referred to from month to month. It should not, however, become a burden, and one should not worry if every penny is not accounted for.

Statisticians tell us that about 75 per cent of the male adults of our country earn somewhat less than $600 a year. That in large cities $900 to $1000 a year is necessary to bring up a family to live decently and enjoy human happiness. Much depends upon how this income is divided as to whether results will tend to develop efficiency in the members of such a family. As the income increases from $1000 to $5000 it is possible to apportion the income and indicate certain percentages which represent wise family expenditures so as to include the higher intellectual and emotional life as well as the physical welfare of the family.

From comparison of many budgets statisticians have worked out certain percentages that are helpful in making our decisions, although they are not to be taken as fixed rules.

Expenditure for food.—On examining the budgets of families having incomes from $500 to $5000, it is found that the percentage spent for food increases as the income decreases, amounting sometimes to at least 50 per cent of the income. This means that there is a limit to the money spent per capita per day for food, below which we cannot go and maintain life with even sufficient efficiency for unskilled labor. Figure 77 shows that a $900 income gives about 45 per cent to food. An expenditure of thirty cents per capita per day for food in a family of five with an income of $1500, is 36.5 per cent; i.e. more than one third of the total income. Suggestions as to allowance for food in families of different incomes are contained in the tables of budgets given farther on in this chapter.

Thrift in buying and using is necessary with the small income, and highly important with the larger where we are prone to yield to a foolish impulse to please a whim of the palate.

Expenditure for shelter.—The increased cost of building and the general advance in rentals make the expenditure for shelter a large one.

The question whether homes should be owned or rented is a vital one. Ownership is possible for comparatively few, but there is probably nothing that contributes more to the upbuilding of a community and the development of good citizenship than the permanent residence of families in localities. The pride of the members is enlisted in the home, its surroundings and general community welfare. This sense of ownership makes a house more a home although real home spirit is not confined to ownership of buildings. There are of course advantages and disadvantages of ownership, and these should be carefully weighed. Preference for fresh air, more space, less crowded conditions even if they necessitate daily travel, have driven people of limited incomes and certain ideals from the crowded cities to the suburbs in search of homes. When it is possible it is certainly much more advantageous to own than to rent a home, when living means the attainment of certain ideals in the lives of the members of the family.

In deciding upon the proper expenditure, we must take into account the location, whether convenient to business, school, and church, sanitary conditions in surroundings and in the house or apartment, the appearance of the house and the attractiveness of the neighborhood as well as its convenience and healthfulness. The house should be adapted to the needs of the family and selected with this thought in mind. See the companion volume, “Shelter and Clothing,” Chapters II and III.

It has been estimated that 20 per cent of incomes ranging from $500 to $5000 will secure a home, not including operating expenses, with the proper sanitary conditions and one which will contribute to a right standard of living. If necessary to secure healthful surroundings more than 20 per cent may need to be spent, but 25 per cent of the income is the limit of the amount to be spent upon rent unless this also includes heat (as in many apartments) when as much as 28 per cent may be so spent. If more than this is paid, it is practically impossible to avoid debt when any unforeseen contingency arises. One thrifty German woman used 30 per cent of the small family income for rent, in order to have more bedrooms than most tenement-house dwellers can afford. She did make ends meet by working until midnight at the family sewing, and tailoring; but though she was the very soul of thrift in regard to food, and had never called in a doctor, she could not save money until the children began to earn.

Operating expenses.—The question of operating expense is closely associated with the selection of shelter and should be carefully considered with it in the division of the income. They are the expenses necessary to keep the house clean, warm, lighted, insured, and in constant repair. To these must be added in a suburban community water tax, property tax, perhaps even a fire tax.

In city apartments, heat and hot water are often furnished, and this must be taken into account in deciding between apartment and house, and between renting and ownership.

Labor is an important item in the running of the house. The close connection of selecting and operating a home will be seen. Should the administrator divide the family income in such a way that little is left for operating, the little things of everyday life become a constant source of worry.

The questions of the number of rooms, and their care, relative expense of heating by furnace, steam, or hot water, the cost of regular service in wages per week in order to attain one’s ideals, the cost of extra service, the lighting by gas, oil, or electricity are all problems of operating. Knowledge of sanitary science will make the homemaker demand cleanliness in her surroundings, quick disposal of waste, and the prompt removal of dust. Much care in planning is necessary here in order that there may be no leakage and that there may be the full share of comfort for each member.

For the income of from $500 to $5000 it has been estimated that a proportion of from 10 to 20 per cent must usually be spent for operating in order to secure comfort. Much must necessarily depend upon the amount of hired service required, which, in turn, depends largely upon whether the homemaker is to give her time chiefly to the care of her children or chiefly to the conduct of the housework.

Clothing.—A large proportion of the family income is spent on clothing. A knowledge of textiles and of purchasing is necessary in order to do this wisely and economically. Clothing is as necessary an expense as food, for it conserves the heat which the food furnishes and thus maintains body temperature. Health is the main factor in efficiency, and health is preserved by clothing which protects the body from sudden changes in temperatures, and conserves the energy for other purposes. Money should be spent on clothing to secure health, but too often more than the right percentage of income is expended because of love of display. The instinct for show, color, ornamentation is a primitive one, and the Æsthetic “want” is, in one sense, as real as the physical and should be considered in expenditures for this purpose. It is a duty to look well, but it is not necessary, nor does it show good sense, to sacrifice the health, happiness, and higher life of the family by economizing on food and other essentials in order to secure hats, shoes, gowns, and accessories that cater to a mania for show. If the income be limited so that the essentials of clothing only can be purchased, the margin of income which can be spent for pleasure may, if taste so dictates, be spent on clothing instead of pictures, books, or some recreation. That is a matter for the individual or family to decide. In the typical budgets cited below it will be seen that the expenditure for clothing was usually between 10 and 18 per cent.

The higher life.—There are other needs of family life for which money must be spent besides the material ones of food, shelter, and clothing. In the division of some family incomes little thought is given to this phase of living. After the income reaches a certain amount, it is possible so to plan that education, recreation, philanthropy, and savings all figure in the division of expenditures. Some writers say that 25 per cent of the income of $1000 to $5000 should be spent in this way. If thought is given to this, it would mean opportunities for books, periodicals, lectures, and membership in societies; some travel and vacation, social clubs, theaters and concerts; charity and church expenditures; life insurance and other savings. It is the idea of ownership of property, of homes, of possessions of all kinds that has led from primitive living to advanced civilization. And with advanced civilization comes the need for the higher life which should be satisfied and can be through wise division of funds. The choice of things to satisfy this higher life rests with the individual; it may be music, it may be the cultivation of altruistic feeling in the help given to neighbors; it may be a bank account for some future good, or money spent on excursions, lectures, or theater. Whatever it is, it satisfies the emotional, spiritual, and intellectual life of man and distinguishes him as one of advanced civilization.

Savings.—Something should be saved yearly even if at first it is but little. Small amounts put away regularly in a savings bank mount up to a considerable sum at compound interest, for regular saving is the only kind that counts. Life and sickness insurance are other forms of saving.

Allowances.—Each member of the family should have a personal allowance, even though it is small. One mother gave each of her children five cents a week, beginning at five years of age, and increasing a cent a week each year, until they were old enough to be trusted with more. Even at this age opposite characteristics showed themselves. One boy saved his allowance until he had a quarter to spend at one time; another was in debt before the end of the week. Each had a bank, and kept accounts, as well. It is sometimes better for a child if he “earns” his allowances by performance of such household duties as seem best adapted to promote his development.

Suggested and typical budgets.—In preparation for the division of one’s income it is helpful to study the budgets of other families or individuals. Mrs. Richards in her book on “The Cost of Living” gives a theoretical division of incomes, which is shown in the accompanying table headed Suggested Budgets. It is interesting to study this account and then those of families who have worked out their problems (either with or without the preparation of definite budgets in advance) as shown in the table of Typical Budgets.

In New York City it has been estimated by those studying the problems of the cost of living of to-day that it is impossible for the average family of mother, father, and three children under 14 years to get food enough to keep the body in good condition with clothing and shelter to meet the most urgent demands of decency for less than $900. This amount in other localities would probably buy more. This means that in New York City for $900 a family of five can have a very bare existence, and that with $1000 this family can begin to maintain a decent standard of living unless there is long sickness or other catastrophe. At $1200 a normal family standard can be maintained so as to preserve health, and so that the family will have opportunities to develop in a self-respecting manner. When one considers that many families subsist on $500 or $600 a year, it is necessarily under conditions of shelter and with limitations of food and clothing, not conducive to the best development.

Key:

F Food

R Rent

O Operating expenses, Wages, Fuel, Light, ETC.

C Clothes

H Higher Life, Books, Travel, Church, Charity, Savings, Insurance

EXERCISES

1. What definite aims should the wise homemaker have in mind in dividing the income?

2. What ideals should affect the amount spent for food?

3. What should determine selection of the house whether owned or rented?

4. What is meant by the operating expenses of a house?

5. What ideals should determine the amount spent for clothing?

6. In what ways should the “higher life” of the family or individual be considered in the division of the income?

7. Plan to keep account of every penny of spending money for one year. Look over and criticize at the end of the year.

8. Plan a budget for a family of five in your community having $1000. Suppose they have $2000, how would you change your budget?

9. Work out with your parents a budget or schedule of probable household expenditures for your home for the next month; the next year.