, 1922-02-02
THE FAMILY BUDGET

The December issue of the
a magazine published by
the j. C. Penney Company. $40
Seventh Avenue, New York City,
contained an article OF more than
passing interest. Prof. Morton. the
writer. dealt with a very timely topic.
The Family Budget; and in these
days when strict economy should be-
come the habit of ninety-nine percent
of h families, it would be well If
the spirit of the facts OF the article
might be understood and practiced
by a larger number OF American
families.
Believing this article will prove
beneficial as we'll as be appreciated
by the readers of The Republican. we
are publishing it in full. Prof. Nor
ton says:
Every family should have a budget.
Every family should spend its income
Systematically. hesmallest income
leaves no room for careless and
thoughtless spending. Even large in
N need to be managed carefully.
f they are to be properly conserved
and leave a margin for safe invest
meni.
The family, then. should have a
budget to guide its expenditures and
should plan for savings and invest
ment. The budget is the spending
plan of the family and careful adher-
ence TO it should mean ultimate ac-
emulation of some tangible evidence
Of thrift in investments and provi-
sion for education of children and
projection for old age and the period
Of leSscned earning capacity.
T1,n I;rr tLt, ,,l
iect so important that it has issued
a pamphlet urging the housewives of
America to adopt the budget system
in family bookkeeping. 1t has
adopted the budget system and has
asked General Dawes, ar experienced
banker and financieI. to establish the
proper budget. The result already
indicates hat a considerable saving
will accrue to the Government news
papers and magazines are advocating
he adoption ofthe budget for family
finances and the American Bankers
Association is now distributing in
formation on this same project.
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 in normal. happy and ga
sonably prosperous homes. The war
has brought enormous unsettling
factors, a mental state Of unrest and
extravaganza Of all classes which Is
most demOralizing. Added to these
there has been a wanton waste of
capital in the war which demands
The rebuilding Of capital reserve to
permit the rebuilding of a devastated
world. it is largely to the savings of
the average American family that we
must look for this new capital.
We give herewith a number of sug-
gestive budgets. These are based on
monthly inUmes of SIS, 500. $125,
$t75. $500. 1925 and $3.50. The
monthly budget is suggested because
most people would rather have a
monthly expenditure program. The
monthly budget allows more frequent
comparison and checking Of expend-
itures. The budgets given are shown
in the table at the bottom of this
article. 3
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 bud
gets. increase about l per ent per
month until the income reaches S125
per month, when it is suggested that
the same percentage be used until the
income reaches 5000 per month. At
$3.50 per month. the savings are
placed at 10 percent. The amount Of
sayings thus is increased with the
increased income.
The insurance item in the budget
is considered a real necessity. 1t Is
actually an addition to the savings.
at least for the amount of the cash
or loan value each year.
This amount Increases with every ad-