San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1925-08-16
By ELWOOD LLOYD

Considering the fact that the first
year is really the foundation upon
which the home structure is built. it
can readily be seen that the manner
in which one starts. and the habits
acquired during that first year. will
have a very definite bearing upon the
future.
For this reason, il for none other,
the matter Of expenditures during the
first twelve months should be on the
basis of necessities only" Particu-
larry will the young married folks do
well to limit purchases TO necessities,
especially where the purchases are
made in the ii ID of installment pay
ments.
Rukeyser, in 'The Common Sense
Of Money and Investments" outlines
three rules concerning the partial pay
ment plan of purchases which suggest
a wise procedure for the young couple
during the first year.
CASH IF POSSIBLE.
al. Never buy consumption goods
on the partial payment plan il you
are able to pay cash. for the credit
substitute is expensive and the cost
falls on the buyer.
-. Limi. instdllment purchases to
commodities of an essential character
whose benefits will extend at least
over the entire period of payment. For
example, it valid be uneconomic to
buy theater tickets on the installment
plan. But it would be iustifiable to
buy permanent things such as a house
or even a piano on this basis. .
90. If necessary to buy on the in
stallment plan, play safe and figure
on adverse contingencies. such as loss
of time, which would reduce your in
come. In other words. don't mortgage
your current and prospective income
up to the hilt except for emergencies,
such as illness and operations, but
leave an ample margin"
RAISE STANDARD.
The installment system Of sales and
merchandising has manv beneficial
aspects, and tnquestiOnably has done
much toward raising the standard OF
life for the average American family.
But. on the other hand. the dollar
scheme of buIness holds certain haz-
ards for the young folks at the outset.
X. s. White. famous economist,
says it is an open question whether
or not the installment method Is
an unmixed blessing to the pub
lie. On one SIDE is the theory that
the plan has brought within the
reach of the small wage Garner many
Of the refinements and luxuries Of
life, thereby raising the standard OF
living in the American home. Opposed
to this is the contention that "easy
payments" operate TO lead improvident
people into expenditures and debt I'M
justified by their incomes and station
in society.
BE CONSERVATIVE.
Living well depends not only on the
size Of the family income, but also
upon the manner in which that income
is spent. Sometimes, when one can
make purchases on easy payments,
there is tendency TO make extray'
agant and non-essential purchases. On
the other hand, there is nothing wrong
or unsOund about the partial payment
plan when il is used to finance the
purchase Of permanent or semi-per'
manent things.
In the financing Of installment pur'
chases the men who supply the money
to carry on such business, recognize
the hazards confronting them, the cost
Of carrying accounts over long per
iods Of time, the necessity Of moro
thorough credit search. higher collHc
tion costs. possibility Of legal fees fol
repOssessiOn of articles on which pay
ments dcfault-nny many other costs
incidental to the deferred payment
plan.
ROAD TO SUCCESS.
These costs have to be met by thu
purchasing public - therefore II II
quite plainly seen that things pur
chased on the easy payment plan viii
be higher in price, or lower in quail
| ity, than when the articles are pur
chased for cash or on a regular credi