The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1922-01-13
BUDGET SYSTEM SUGGESTED
FOR FAMILY ECONOMY,

article of more than passing interest.
/ Prof. Morton, the writer deals with
very timely topic, 1.-THE Family Bud
get" and in these days when strict
economy should be the habit of nine
/ ty-nine per cent of the families, IL
would be we'll if the spirit of the
facts of the article might be under
stood and practiced by larger num-
| bre of American families.
/ Believing this article will prove
beneficial as well as be appreciated
/ by the readers of The Recorder it is
published in full. Prof. Morten says:
Every family should have budget.
/ Every family should spend its income
Systematically. The smallest income
| leaves no room for careless ard
thoughtless spending. Even large
| incomes need 10 be managed careful
/ ly, if they are to be properly con-
served and leave margin for safe
investment.
The family, then, should have {
/ budget to guide its expenditures and
/ should plan for savings and invest
ment. The budget is the spending
plan of the family and careful adhe-
ence to it should mean ultimate ac-
emulation of some tangible evidence
Of thrift in investment and provision
for education Of children and protec-
tion for oli age and the period OF les
sened earning capacity.
! The government thinks this sub
ject so important that it has issued
q pamphlet urging the housewives Of
! America to adopt the budget system
in the family bookkeeping. II has
adopted the budget system and has
asked General Dawes, an experienced
banker and financier, to establish the
proper budget. The result already
Indicates that considerable saving
will accrue TO the government. News
papers and magazines are advocating
the adoption of the budget for family
finances and the American Bankers
Association is now distributing in
formation on this SHINE subject.
Alexander C. Robinson says: The
family, not the individual, is the unit
of which the nation and civilization
are built. Everything depends on
the education and nurture Of the next
generation lin normal, happy, and
reasonably prosperous homes. The
war has brought enormous unsettled
factors, mental state Of unrest and
most demoraliZing. Added to these
there has been wanton waste Of cap
ital in the war which demands the re-
building Of capital relerye u 4ermit
me rebuilding Of da astated world.
L is largely to ,he SavinRs Of the
average American faadiy th8t we
must look for this new capital.
We give herewith a number Of sug.
! 4. ~ 4
on monthly incomes Of $75 500, SIPS,
Sl75, 5000, S225, and $50. The
monthly budbet is suggested because
most people would rather have a
monthly expenditure program. The
monthly budget allows more frequent
comparison and checking Of expen IL
lures. The budgets given are shown
in the table appended.
Some provision for savings is
urged, even with the lowest income,
for the habit Of saving should be de-
veloped from the very first. The
savings, as proposed in these budgets,
increase about | per cent per month
until the income reaches 1926 per
month, when il is suggested that the
same percentage be used until the in
come raches $500 per month. At
$3.50 per month, the savings are plac-
ed at 10 per cent The amount of
savings thus is increased with the
increased income.
The insurance item in the budget
is considered real necessity. II Is
actually an addition TO the savings,
at least for the amount Of the cash
surrender or loan value each year.
This amount increases with every
additional premium paid.
Provision is made for health,
amusement, and charity. All these
things should be carefully considered
in every family budget. As the income
grows, the percentage allowed for
and some place provided for them in
these items may be lowered.
Education is separately provided
for, because every family should have
availafle le some educational reading
matter When there are children, il
is always necessary 10 supply play
things, books, encyclopedias and other
Items of an educational nature
Fuel, water and lights are shown
apart from the rent budget. 1t is of
ten advisable to keep comparative rec
ords for these items and each should
be provided for monthly. In the
summer months ice will replace fuel.
for ice is summer necessity in most
sections Of the country.
The clothing budget, we think, is
fair and should be adequate for the
family of average size and income.
We think Of a family of five in pro-
posing these budgets.
The miscellaneous budget is to take
care of extra items which are bound
TO occur in every household, such as
additions to furniture or repairs of
furniture, new light bulbs, light man
ties, occasional plumming repairs and
supplies of various kinds. This item
is decreased in percentage but the
amount allowed win not be materially
decreased as the income becomes
larger.
| L. 5. Labor Bureau statistics in
dicate that the average income for