■H4 A LIBRARY OF CONGR,Sl Hi 014 230 090 4 ij^il;«««T. Cr rX 326 H4 ^opy 1 )7-4101-320-3iii University of Texas Bulletin Nu. 2003: January 10, 1920 Putting the Home on a Business Basis HY EDYTHE P. HERSHEY Home Economics Extension Lecturer PUBLISHED BY THE UNIVERSITY SIX TIMES A MONTH, AND ENTERED AS SECOND-CLASS MATTER AT THE POSTOFFICE AT AUSTIN, TEXAS. UNDER THE ACT OF AUGUST 24. 1912 «»n«graptv k The benefits of education and of useful knowledge, generally diffused through a community, are essential to the preservation of a free govern- ment. )am Houston Cultivated mind is the guardiaz? genius of democracy It is the only dictator that freemen acknowl- edge and the only security that free- men desire. Mirabeau B. Lamar f n, of a. uiAV 3 iy20 y^ CONTENTS The purpose of this bulletin is to serve as a guide for those desiring to put the home on a business basis by keep- ing records and making a budget. It may also serve as an outline of suggestive material for clubs wishing to study the problems of household administration. The subject is discussed in the following form: I. The Budget .5 The value and use of a budget, showing its relation to the high cost of living and the appor- tionment of the income. Suggestive budgets to be used as a guide in the determination of divisions of the income for food, shelter, clothing, etc. II. Steps in Making a Budget 11 III. Household Accounts .- 15 The value and purpose of household accounts. The classification of expenditures and system for the keeping of records. IV. Personal Accounts 20 V. Business Methods for the Home 21 Suggestions for methods to be used in the business of the household. VI. Considerations in Budget Making 23 Discussions of items in budget: Housing, operating expenses, food, clothing, health, dona- tions, education, recreation, saving. VII. References 34 A list of references for the practical house- wife. Putting the Home on a Business Basis PUTTING THE HOME ON A BUSINESS BASIS A Budget Is a Plan for the Future. A contractor would not attempt to build a home without a blueprint. He may- have a very clear idea of the type of house desired and the arrangement of rooms, but it is absolutely essential that he have the plans drawn in full detail before purchasing build- ing materials or starting to build. The same benefits are derived from making a written plan for spending your in- come as are gained from the blueprint for the builder. To budget your income means to make a written plan for spend- ing and saving. This makes it necessary to consider your necessities and your desires, so that you may apportion your income to satisfy these in the most desirable and efficient manner. In so doing you make a conscious choice, and there- fore determine the standard of living for your family. The income will to a large extent determine the kind of house in which you live, the clothes you buy, and in fact the way you provide for the needs and desires of your fam- ily. But, in addition, your choice will depend somewhat on the conditions under which that income is earned, the neighborhood in which you live, and the apportionment you make of your income to provide for your needs and desires. These factors will determine the way you live and the values you choose in life. This may be called your standard of living. The standard of living depends less upon the income than upon its intelligent expenditure. The income may be suffi- cient to provide for normal living, but extravagant expendi- tures may be made for food or clothes at the sacrifice of health or educational needs. "A normal standard of living may be defined as that which permits each individual to live as an efficient, healthy, human being, mentally, morally, and physically." In normal living provision must be made for each of the following : 6 University of Texas Bulletin 1. Housing adequate in space, air, and light to meet the personal and social needs of the family. 2. Operating expenses to maintain the house by providing heat, light, water, service, etc. 3. Food sufficient in kind and quantity to provide adequate nourishment. 4. Clothing not only sufficient for protection but also to meet social requirements of the indi- viduals. 5. Recreation as an essential phase of normal liv- ing. 6. Education in order to further self-development. 7. Donations to meet obligations of church, charity, or dependents. 8. Savings to provide for "a sunny opportunity rather than a rainy day." With the rapid increase in the cost of living, it is essen- tial that the home be put on a business basis if the proper standard of living is to be maintained. The first step to- ward this goal is making a budget. Each family has its own particular problems and must, therefore, work out a budget to suit its individual needs. Every family can, however, be classified under one of the following divisions: 1. The poverty or pauper level is that which signi- fies that the income is not sufficient to provide for adequate food, shelter, or clothing. Fam- ilies of this class are generally charity cases. Charity organizations bring these cases to the mere sustenance level, so that they may exist. 2. The mere sustenance level is that which has an income only sufficient to provide physical re- quirements for food, shelter, and clothing. The food requirements can be measured very accurately, so that a budget can be determined for food, shelter, and clothing. These are the only items allowed in this level. 3. The normal standard has an income which pro- vides for the physical requirements of life and also is sufficient to satisfy desires for improve- ment, such as health, recreation, education, religion, and savings. The suggestions given in this bulletin are for those who ivish to con- sider the normal standard. Putting the Home o?i a Business Basis 7 4. The luxury level has an income which provides for normal needs and desires and also allows for increased expenditures for one or all of the needs without reducing any of the normal expenditures. The problems of this group are not so much in their choice of values but rather the relation of their choice to the group in which they live and society as a whole. With the constantly changing costs of commodities and the present high prices, it is very difficult to give other than approximate averages, as conditions arid prices vary in each locality. The budgets given on page 8 are suggestive but not ideal. The ideal budget for any family can only be deter- mined after careful records have been kept and the actual expenditures determined. The apportionment of the income may differ widely from the suggested budgets because of the needs of the individ- ual family. In many sections at the present time rents are extremely high. In order to maintain your standard of living, you may find it advisable to pay more for rent than is allowed in these budgets. If so, it will be necessary to reduce some other item, and it probably will be recrea- tion, education, or donations. Better housing conditions may reduce health expenditures. 8 University of Texas Bulletin The following budgets are suggested as guides for in- comes from $1,800 to $5,000 a year. These budgets are compiled on the basis of an average family consisting of husband, wife, and three children under fourteen years of age. YEARLY DIVISION OF INCOME Operat- ing Ex- Cloth- Educa^ Recrea- Dona- Sav- Rent pense Food ing Health tion tion tions ings $1800 $216 $180 $720 $540 $50.40 $27.40 $27.40 $12.60 $27 2000 260 220 760 560 60 40 40 12 48 2200 330 242 770 561 66 50.60 48.40 22 110 2500 425 300 800 600 75 75 75 25 125 3000 540 360 810 720 99 75 75 75 246 4000 680 480 840 800 148 212 200 240 400 5000 750 600 900 1000 150 250 200 400 750 MONTHLY DIVISION OF INCOME Operat- ing Ex- Cloth- ] Educa- Recrea- i Dona- Sav- Rent pense Food ing Health tion tion tions ings $1800 $18 $15 $60 $45 $ 4.20 $ 2.25 $ 2.25 $1.05 $ 2.25 2000 21.65 18.35 63.35 46.65 5.00 3.33 3.33 1.00 4.00 2200 27.50 20.18 64.17 46.75 5.50 4.21 4.03 1.83 9.16 2500 35.42 25.00 66.67 50.00 6.25 6.25 6.25 2.09 10.40 3000 45 30 67.50 60 8.25 6.25 6.25 6.25 20.50 4000 56.66 40 70 66.66 12.33 17.66 16.66 20.00 33.33 5000 62.50 50 75 83.33 12.50 20.85 16.66 33.33 62.50 DIVISION OF INCOME BY PERCENTAGES Operat- ing Ex- Cloth- Educa- Recrea^ Dona- Sav- Rent pense Food ing Health tion tion tions ings $1800 12 10 40 30 2.8 1.5 1.5 .7 1.5 2000 13 11 38 28 3 2 2 .6 2.4 2200 15 11 35 25.5 3 2.3 2.2 1 5 2500 17 12 32 24 3 3 3 1 5 3000 18 12 27 24 3.3 2.5 2.5 2.5 8.2 4000 17 12 21 20 3.7 5.3 5 6 10 5000 15 12 18 20 3 5 4 8 15 Putting the Home on a Business Basis 9 Operating expenses will probably remain about the same unless service is employed. This, again, is a problem for the individual family. The food requirements can be measured more accurately than any of the others. At present food prices, the mini- mum cost of food for the average family of five will average $650 to $750 a year. Great care must be used in the se- lection of food as the allowance approaches the minimum; otherwise the quality will not be sufficient for nourishment and development. The average housewife has only a very limited knowledge of food values, and therefore will not be able to make selections as advantageous as those of a dieti- tian. An allowance of 10 per cent should be added to the standard food budgets for the waste brought about by un- wise selection. The cost of clothing will vary greatly with the individual family, depending on whether home sewing is done; the social and professional needs of the individual; and the care and utilization of garments. The allowance for health is made on the basis of the cost of care and prevention of sickness. Emergencies, such as operations or prolonged illness, must be provided for from past savings; otherwise the family will go into debt. The items of recreation, education, and donations will de- pend on the individuals and their interests. The education cost will be increased according to the age of the children. Special training or higher education must generally be pro- vided from the savings fund for those on a low income. In many cases the child earns his own way through f^chool. Keep in mind that these suggested budgets are on the basis of the average family of five, husband, wife, .ind three children under fourteen. In working out the budget for your family, make adjustments according to the number in the family. The lower the income, the greater the proportion spent 10 University of Texas Bulletin. for food, clothing, operating expenses, and shelter, and the less spent for improvements such as health, education, rec- reation, donation, and savings. The following table gives the percentage spent for fixed expenditures and that for improvements, according to in- come: Percentage of income for: $1,800 $2,000 $2,200 $2,500 $3,000 $4,000 $5,000 Fixed expenditures 92% 90% 86.5% 85% 81% 70% 65% Improvement 8 10 13.5 15 19 30 35 Budget planning is of comparatively little value unless used to help understand problems of living costs and in adjusting expenditures to the income. Adjustments will not come from written plans alone, but self-control and guidance in spending must be used to make intelligent choice of what should be provided for the family. Too many families are attempting to live according to the standards of the neighbors or according to social conven- tions and habits, without making an intelligent choice of those things which would mean the most to them as indi- viduals. Living on a budget system means using intelli- gence and pleasure to buy those things which give the most happiness. Better satisfaction comes from money spent with conscience regulation of the expenditure according to right ideals and standards. The physical wants must first be met, and the remainder used to provide for intellectual and spiritual wants. Individuals must choose for them- selves those things which they most desire in life, but in- telligence should make the choice rather than blind imita- tion of fashion, fad, or neighbors. Putting the Home on a Business Basis 11 STEPS IN MAKING A BUDGET I. In order to determine your present financial status, it will he necessary to make an inventory of your assets and liabilities. Are you in debt, just able to meet expenses, or getting- ahead ? Assets Liabilities Investments : stocks, bonds, All outstanding debts, mort- mortgages, life insurance gages, accounts, and notes (surrender value), fire in- payable. surance (to be considered an asset only in that it is a guarantee against loss). Accounts and notes receiv- . able. Real and personal property: ownership of buildings or lots, live stock, automobile, equipment, and furnish- ings. Cash on hand and in the bank. Compare your total assets with your total liabilities. Which of the following do your assets represent? 1. Sound investments which bring fair interest? 2. Savings which have been made because of wise expenditures and careful planning, or at a sacrifice of health and standards of living? One can not afl'ord to reduce the expenditures for food, clothing, and shelter in a way which might lower the health of the family. 3. Does your real and personal property tend to increase or decrease your expenditures? Is your automobile an asset or a liability? Which of the following do j^our liabilities represent? 1. Debts incurred to provide for the necessities of life because of a deficit the preceeding year? If there was a deficit last year, it may be that by careful planning you can avoid such deficit this year. 12 University of Texas Bulletin 2. Payments due on investments such as your home or education? Such payments will increase your assets. 3. An attempt to keep up with your neighbors or social set in order to maintain your social position? Debts of this nature can not be justified, since they are the result of living beyond one's means, and therefore your stan- dards of living are on a false foundation. In planning your budget for the coming year, will your savings be added directly to your assets, or will they be used to pay previous debts ? II. Estimate yow income for the coming year. This should include: 1. All money income such as salary, interest from investments, gifts, or other sources of money income. 2. Material income such as food commodities raised at home, and any means of support provided ' rather than procured from the money income. This may be food, shelter, clothing, or fur- nishings. If you use five dozen eggs a month which were produced by your own chickens, you will have added to your income the mar- ket value of those eggs. Another important contribution to the real income is the money value of the labor of the unpaid services of members of the family. No attempt should be made to calculate this material income when apportioning the money income for ex- penditures, but it should be considered in or- der to realize that certain expenditures may be reduced because of the material income. Unless the source of income is regular, such as for those who are on a salary basis, this esti- mate may only be a rough guide. In this case it is advisable to make your plan for spending on a possible minimum income rather than the maximum. Consider the ways in which the various mem- bers of the family contribute to the income. Is the responsibility shared by all? To what extent does the housewife contribute to the Putting the Home on a Business Basis 13 income by her work in the home? If the housewife does her own sewing, cooking, washing, or other housework, her labor is a means of increasing the income. If the labor is done by employed service, in what way does the housewife meet her obligations ? A trained woman who has a business or profession may desire to continue her work outside the home and have her housework done. By so doing the actual income may be increased, but what will be the effect on the life in the home? It must be remembered that homemaking is a profession and should be recognized as such. III. Estimate last year's expenditures for: HOUSING Rent or taxes on property, insurance on property, repairs and additions, carfare to and from work. OPERATING EXPENSES Water, light, heat (cooking and fuel), sewer rent or tax, telephone, replacement of furniture and utensils, service, incidentals (cleaning rugs, tuning piano, etc.), cleaning materials. FOOD All food purchased. If there are home products, make note of approximate value of amounts consumed. CLOTHING All articles of clothing, upkeep and repair, remodeling, pressing and cleaning, mending materials, and ma- terials used in making garments. HEALTH Physician, dentist, occulist, nurse, other specialists, glasses, replacement of lens, drugs, extra foods, toilet articles, travel for health. DONATIONS, PHILANTHROPY, RELIGION, GIFTS Charity, church, gifts, dependents, general contributions. EDUCATION Periodicals, newspapers, books, schooling, lectures, music, dancing, art, language. Cost of education for those away from home includes tuition, living expenses, fees, and books. 14 University of Texas Bulletin RECREATION, AMUSEMENT, ENTERTAINMENT Clubs, sports, concerts, theatres, movies, entertaining, travel, automobile. INCIDENTALS Expenses the family may incur not included in the above classification. SAVINGS - - Bank accounts, stocks, bonds, life insurance (surrenfler value), real estate. War Savings Stamps, and other investments. Unless actual accounts have been kept of the expendi- tures for the past year, the above estimates can only be approximated. Which expenditures could have been decreased to an ad- vantage? Which could have been increased? To what ex- tent did your expenditures fulfill the needs of the family as a whole and those of the individual members? IV. From the above analysis of last year's expenditures make an approximate estimate of your expenditures for the coming year, basing your estimates on your probable in- come, and considering your present financial situation. Fixed Expenditures Improvement Housing Health Operating expenses Donations Food Education Clothing Recreation Savings This will be your estimated budget. It ivill only be a guide, as a real budget can not be made tmtil actual accounts are kept for one year. Study each item carefully to determine the best appor- tionment and its relation to your standard of living. How much of your income is spent for the fixed expenditures and what proportion remains for advancement? Putting the Home on a Business Basis 15 HOUSEHOLD ACCOUNTS It is only by a careful study of your income and expendi- tures that you can make a budget suitable to the require- ments of your family. To make such study necessitates the keeping of accurate records of expenditures. There are two types of accounts : 1. The unclassified record of expenditures, simply giving a statement of expenditures as they are made. 2. The classified record which separates the expen- ditures according to the kind, as indicated in the budget. The purposes of keeping records are : 1. To indicate the amount and distribution of expendi- tures. 2. To compare relative costs. 3. To detect leaks. 4. To estimate intelligently future needs. 5. To focus the attention on the budget. 6. To compare with standard budgets. 7. To indicate the character and wisdom of expenditures and, therefore, the standard of living. Finally, the study will reveal the philosophies of life and lead to new estimates and appreciation not only of money but of time and vitality. The greatest value will be gained from classified accounts. Most women hesitate to keep records because of lack of bookkeeping knowledge and a feeling that it takes too much time. A classified system should be used which will be com- prehensive, simple, and definite. A Financial Record Book is published by the University of Texas which enables women to keep systematic records. The classifications are made as indicated in the budget, and indexes are provided to facilitate the use of the various sheets. The book is in loose-leaf form, so that it may be adjusted to suit the needs of the individual family and new leaves may be replaced when necessary. 16 University of Texas Bulletin The classifications in this system are made as follows: 1. Annual Financial Inventory: Assets and liabilities 2. Income: Salary Income from other sources 3. Savings: Bank accounts Real estate Stocks and bonds Government saving stamps Life insurance Others 4. Housing Record: Rent or taxes Insurance on property 5. Ope7'ating Expenses: Repairs and additions Carfare to and from work Water Replacement of furniture Light and utensils Cooking heat Service Fuel Incidentals Sewer rent or tax Cleaning materials Telephone A monthly summary is made and separate sheets are provided to itemize the operating ex- penses for each month. Food Purchases: Meat Milk and cream Poultry Bread Fish Sugar Eggs Staples Fruit Luxuries Vegetables Ice Butter Miscellaneous A monthly summary is made and separate sheets are provided to itemize the food pur- chases for each month. Putting the Home on a Business Basis 17 7. Cost of Home Pr^oduction: Fruits, vegetables, poultry, milk and butter, other productions. Record is made of the investment, labor, and miscellaneous costs of production. 8. Home Production and Consumption: Record is made of the amount of food produced, the amount used at home, and its market value; the amount sold and receipts from sale; giving the total value of the amount produced at home. A monthly summary is made of the cost of pro- duction and total value of food produced at home. 9. Clothing: An itemized record of clothing expenditures is made for each member of the family. A general record is made of materials pur- chased. 10. Health: A record is made of health expenditures for each member of the family, giving cost of: Physician Drugs Dentist Extra foods Occulist Toilet articles Nurse Miscellaneous Other specialist Travel for health Glasses Record of illness Replacement of lens 11. Philanthropy, Religion, Donations, Gifts: Charities Dependents Church General Gifts 12. Christmas Gifts: Cards, ribbons, seals Kind of gift and to whom given 18 University of Texas Bulletin . Education: General education: Periodicals Music Newspapers Dancing Books Art Schooling Language Lectures Individual education: Tuition Room and board Fees Miscellaneous Books 14, Recreation, Amusement, Entertainment: Clubs Sports, equipment, supplies Concerts, theatres, movies Entertaining Travel 15. Automobile Expense: Oil and gas Miscellaneous Replacement and Mileage Repairs Additions Record is made of initial cost of car, serial num- ber, license number, engine number. 16. Incidentals: Other items not included in above classifications. 17. Monthly Summary of Expenditures: Income — Salary, miscellaneous income Expenditures — Savings, housing, operating ex- penses, food purchased, cost of food produc- tion, clothing, health, religious donations, ed- ucation, recreation, incidentals. Balance: Total income Total expense Cash balance 18. A Budget History Record: Provided to make note of any factors influencing the yearly expenditures. Putting the Home on a Business Basis 19 A separate sheet is allowed for each of the classifications given. In keeping the record it is suggested that as daily cash purchases are made they should be jotted down in a small memorandum book to prevent the memory from being taxed or items being omitted. The items should be entered at the end of the day or summed up at the end of the week. Daily entries keep the records more accurate. Items paid for weekly should be classified and entered, making note of actual date of payment. At the end of the month, the expenditures under each class of iiems sliould be added. These totals are transferred to a monthly summary sheet, so that expenditures may be compared from month to month. The total cash income for the month plus the cash balance at the first of the month less the cash expenditures for the month should equal the cash balance at the end of the month. The purpose of keeping accounts is not to account for every penny but to control expenditures; therefore, one should not be discouraged if the calculated balance differs from the actual balance from time to time. The cash balance includes money on hand and the balance in the bank, which would be the amount remaining after all checks from that month had been paid out. At the end of the year the total expenditures under each classification are compared with the suggested budget. A budget is then made for the coming year based on these past expenditures. Only articles for which payments have been made should • be entered in the record book. In entering items from bills, note the date of payment, not date of entry. The record is a means of keeping the exact date of payment. 20 University of Texas Bulletin PERSONAL ACCOUNTS The same general principles are used for keeping per- sonal accounts and making a budget as are used for tlie household. The following classifications are made: I. Income II. Savings III. Maintenance; Room rent Telephone Carfare Stamps and stationery Fuel Furnishings Board I^aundry Extra food IV. Clothing V. Health VI. Philanthropy, Religion, Donation, Gifts VII. Education VIII. Recreation IX. Incidentals X. Monthly summary XI. Budget history In making a study of the personal expenditures, there are many factors to be considered, such as whether one lives at home, or rooms and boards, or is partially dependent, independent, or has dependents. The clothing demands depend largely upon the profes- sional or business requirements as well as social needs. If you live at home and contribute to the home, the amount in excess of your room and board is an expenditure to be considered under dependents. Putting the Home on a Business Basis 21 BUSINESS METHODS FOR THE HOME If the home is to be put on a business basis, the work of the household must be systematized. When accurate finan- cial records are kept and a budget is made the basis for all expenditures, a big step will have been taken in this direc- tion. Whenever possible, bills should be paid by check. The endorsed check is a legal receipt. A cardboard letter file will be convenient to file bills. The unpaid bills can be kept in the front of the box and filed as paid. Every woman who is managing a home should have a desk where all the bills and records are kept in order. This will save time and loss of important papers. The purpose of introducing systematic methods is to reduce time and energy expended in the work. It is necessary, therefore, to be sure that the system itself does not complicate your work. Card catalogues will be found helpful to file receipts, ad- dresses and telephone numbers, as well as for other pur- poses which the individual housewife may find. A study should be made of the arrangement of the house, especially the kitchen, since it is the workshop, so that the placing of the equipment may reduce steps, time, and en- ergy. A well thought-out plan should be used to carry on the work of the home, whether it be the financing, the making of the menus, the housecleaning, the marketing, or in fact 'the entire daily routine. An inventory of the household articles should be made, giving : Article Date purchased Where purchased Value at date of inventory 22 University of Texas Bulletin The inventory can most easily be made taking one room at a time. It is well to classify the articles. The following form is suggested : Furniture, listing that in each room Kitchen and dining-room equipment and utensils, in- cluding china, silverware, cooking utensils, etc. Clothing for each member of family Linens — bedroom and dining-room Pictures Books Jewelry Musical instruments Miscellaneous — bric-a-brac and other articles not listed. This inventory is most necessary when fire insurance is carried. Record should be made of the policy, giving pre- miums paid, expiration, amount of policy, company, and agent. This inventory should be placed in a strong box along with all valuable documents such as deeds, wills, insurance policies, stocks and bonds. Storage will be provided by the bank at a small yearly cost and will safeguard loss. With the Federal Income Tax, it now becomes necessary to take complete stock once a year of assets and liabilities. A family council should be held frequently to study and discuss the problems of the home. Each member of the family should have a fair share of the labor and responsi- bility and help to decide what the budget should be. The children should be given responsibility and taught to spend wisely and to save. Putting the Home on a Business Basis 23 SOME CONSIDERATIONS IN BUDGET-MAKING Housing: What proportion of your income is spent for shelter? Compare your expenditure with those sug- gested : Income Per Cent Monthly Cost Yearly Cost $1800 12 $18.00 $216 2000 13 21.65 260 2200 15 27.50 330 2500 17 35.42 425 3000 18 45.00 540 4000 17 56.66 680 5000 15 62.50 750 If you own your home, have you estimated the cost of ownership by allowing a fair interest on your investment? Real estate dealers expect to have gross returns of ten per cent on their investments as a minimum. This will mean that a house costing $10,000 will probably cost about $200 a year for upkeep. The interest on this $10,000 would be $800, making the cost $1,000 a year. Can you afford to pay this much for rent, or by owning are other expenditures re- duced ? Is your property protected by insurance? What are the advantages and disadvantages of ownership rather than renting? A stronger influence will be exerted on community conditions by an owner than a renter. Busi- ness and social relations are more firmly established when the home is owned. In ownership not only is shelter pro- vided but a permanent investment is made by acquired property. Is there any better investment than owning one's home? When the home is owned are there not advantages derived by the family, especially where there are children, M^hich can not be calculated in terms of money value ? The care and respect for property is generally a stronger char- acteristic among children whose parents own their home. 24 University of Texas Bulletin How does the location of your home effect your standard of living? The environment controls in a large measure the ideals and standards the children form. Have you con- sidered the needs of your children or the social standard of the adults in choosing the place in which to live? Do the children miss school in bad weather because of the dis- tance? It is the natural tendency to do as the neighbors do. Do your neighbors have slipshod habits rn caring for their property or themselves? Does the location and type of house have any relation to the health conditions of the family? There should be suffi- cient space, light and air, and arrangement of rooms to fa- cilitate housework. Sufficient rooms should be provided to allow for privacy and comfort. If the house is properly screened, the dangers of infection from disease carried by flies and mosquitoes are decreased. Improper disposal for waste may contaminate the water supply. Are the heating facilities adequate for cold weather? Is the environment increasing or decreasing the value of your property? Study carefully the needs and cost ot re- pairs and additions to avoid depreciation. Operating Expenses: What proportion of your income is spent for operating expenses ? Compare your expendi- ture with those suggested : Income Per Cent Monthly Cost Yearly Cost $1800 10 $15.00 $180 2000 11 18.35 220 2200 11 20.18 292 2500 12 25.00 300 3000 12 30.00 360 4000 12 40.00 480 5000 12 50.00 600 Operating expenses include: 1. Water: Do you know the source of your water sup- ply? What means are employed to protect the health of the community by controlling the water supply? Is the Putting the Home on a Business Basis 25 water tax included in your rent? What provisions are there for the disposal of waste? 2. Light: What system of lighting is used? Do you read your gas and electric meters to detect leaks and wastes ? Is your lighting system the best possible for the protection of your eyes? 3. Fuel: What kind of fuel is used for heating? For cooking? How do these increase or decrease the labor nec- essary for operation? Have you studied the comparative costs of fuels? 4. Telephone: Is the expense for a telephone justified? To what extent is it advantageous to order by telephone? How does it better establish your business and social rela- tions? Is there a temptation to pay toll rather than post- age ? Is your telephone the cause of many unnecessary in- terruptions? Has it become your master or servant? 5. Furnishings and Utensils: When buying these, do you consider them as investments or merely purchases to fulfill a need? Does your household equipment tend to in- crease or decrease the labor expended in housekeeping? When making purchases of furniture or utensils, do you make your selections according to utility, durability, general fitness in relation to other furnishings, relative cost, sani- tary and aesthetic qualities, or are you attracted by adver- tising bargains or imitations of social standards of others? 6. Sei'vice: What kinds of service do you employ? If you provide maintenance for them, have you approximated the cost? What is the influence of living conditions, hours of labor, lack of standards, and wages on the domestic serv- ice problem? Do you understand the servants' work so that you are in a position to plan their duties and teach them methods ? What are you doing to help standardize the work of domestic labor? Do the furnishings and arrangement of the house increase the need for service? By what means could the amount be reduced? If no service is employed, could your time be spent to better advantage and increase the income sufficiently to provide service? 7. Cleaning materials: Have you considered the expen- diture you make for cleaning materials? In purchasing, do. 26 University of Texas Bulletin you consider the value and efficiency of the various types so as to reduce the cost? Is there any appreciable waste of these commodities? How does your total expenditure for operating expenses compare with that for shelter? Does the type of house you live in tend to increase the operating expenses? The cost of heating, lighting, and service can often be materially reduced by a better built and more simply arranged house. Food: What proportion of your income is spent for food? Compare your expenditure with those suggested: Income Per Cent Monthly Cost Yearly Cost $1800 40 $60,00 $720 2000 38 63.35 760 2200 35 64.17 770 2500 32 66.67 800 3000 27 67.50 810 4000 21 70.00 840 5000 18 75.00 900 In purchasing foods, do you understand relative food values and utilize this knowledge to get the greatest returns for money spent? Do you plan your meals according to the principles of nutrition? Do you plan your meals ahead? Do you fully realize the relation of diet to health? The responsibility of the housewife in feeding her family is to provide food adequate in kind and quality to meet the phys- ical needs of the body and, therefore, apportion the amount to be spent for food in order to make the wisest selections. Do you knov/ the cuts of meat or do you rely wholly on your butcher for this information ? Do you know the seasons for various foods? In what ways do you keep in touch with current market prices? Have you studied the local market facilities, or do you use the most convenient stores? What is your method of purchasing? Do you use tele- phone, mail orders, delivery, or cash and carry? How does your method affect the cost? What are advantages and dis- advantages of large quantity buying? Do you have ade- quate storage facilities? Does a large quantity tend to cause waste by spoilage or extravagant use? Putting the Home ov a Business Basis 27 To what extent do you use ready prepared foods? Do you find them an economy of time and labor? Is this econ- omy sufficient to warrant the increased cost? Do you raise home products? In estimating the returns from these, have you allowed for a fair interest on the in- vestment? Do your returns compensate for the expendi- tures including those of time and labor? Are there values derived other than those which are measured by dollars and cents? Do you dispose of surplus materials in the most profitable way? The food requirements necessary to provide for the needs of the body are as follows : I. Building materials: 1. Protein which is found in meat, fish, poultry, eggs, milk, cheese, nuts, legumes, and ce- reals. 2. Minerals : lime or calcium, phosphorus and iron found in milk, cheese, eggs, celery, onions, green vegetables, fruit, meat, outer layer of the grains. II. F^iel foods: 1. Starch, as found in rice, potatoes, macaroni, cereals. 2. Sugar, found in sweet fruits, honey, sugar, sirups. 3. Fats — meat fats and vegetable oils, found in milk, butter, cheese, bacon, nuts. III. Regulating foods: 1. Bulky foods, such as cereals, fruits, and vege- tables. 2. Acids found in fruits and vegetables. 3. Water. 4. Minerals. IV. Certain unknown chemical substances which are nec- essary to provide for growth and proper development. There are three types: 1. Fat Soluble A — found in milk, cream, butter, eggs, animal fats, cod liver oil, leaves and stems of plants, i. e., spinach, lettuce, cab- bage. 28 University of Texas Bulletin 2. Water Soluble B — found in milk, dried peas and beans, cereal products having outer lay- ers of grain, eggs, etc. 3. Water Soluble C — found in orange and lemon juice, cabbage, tomatoes, milk, fresh meat, etc. In an average well-mixed diet these requirements are gen- erally fulfilled. When the allow^ance for food is limited, there is danger of improper diet detrimental to health. At the current prices for food, the minimum allowance for a family of husband, wife, and three children under fourteen will be from $650 to $750 a year. In order to provide proper nourishment, it is suggested that the following division be made for those living within this amount: 1. Milk: Allow one-fifth of total expenditure for milk. Each child should, if possible, be given 1 quart daily; each adult, 1 pint. 2. Fruit and vegetables: Allow about the same expen- ditures for these as for milk. 3. Cereal foods: About one-fifth for cereal foods, but if the vegetables, such as potatoes, dried peas, and beans, are increased, cereals may be decreased. 4. Fats: Allow about two ounces per adult and one ounce for child each day. 5. Sweets: Allow one to two ounces per person daily. 6. Meat or meat substitutes: Allow not more than one- fifth of the expenditures for these. As the food allowance is increased, cereal foods are de- creased and fruits and vegetables increased. Eggs are bought in larger amounts and meats are increased. If ade- quate milk is provided, cream and more butter are added. Clothing: What proportion of your income is spent for clothing? Com.pare your expenditure with those sug- gested : Income Per Cent Monthly Cost Yearly Cost $18000 30 $45.00 $540 2000 28 46.65 560 2200 25.5 46.75 561 2500 24 50.00 600 3000 24 60.00 720 4000 20 66.66 800 5000 20 83.33 1000 Putting the Home on a Business Basis 29 Do you purchase all garments ready made? When you do your own sewing, do you consider the cost of the labor which you put into making the garment? Can the time used for home sewing be utilized to any better advantage? When purchasing materials, do you base your selections on knowledge of textiles? Do you understand the care of the various textiles so as to avoid loss of color and shrink- age and undue deterioration? Do you purchase each garment as needed, or do you plan your needs from year to year so that the expenditure may be divided and selections made on the basis of color har- mony, appropriateness, and utility? Do you consider only the initial cost rather than the final cost of a garment in- cluding upkeep, repairs, and additions or remodeling? Have you formed your own standards of dress suited to your needs and individuality as well as income, or are you guided entirely by fashion ? When are bargains an economy? Do bargain sales induce you to make more purchases than you otherwise would? Is the quality of goods in installment stores equal to that in the other stores? Do you purchase through mail-order houses ? To what extent does good care lengthen the service of a garment? Do you teach your children to care for their clothes properly? A clothing budget will assist you in living within your clothing allowance as well as avoid large expenditures com- ing within a short space of time. Make a list of the clothes on hand. Considering the condition of these, make note of those which will need replacing this year or additional gar- ments needed and the probable cost. By considering your clothing needs for the year, you will be better able to ap- portion your expenditures and make the most profitable se- lections as well as avoid excesses and extravagances. The following form is suggested for making your clothing bud- get: 30 University of Texas Bulletin Number Needed Garment Number on Hand This Year Probable Cost * Health: What proportion of the income is spent for health? How does this compare with those suggested? Income Per Cent Monthly Cost Yearly Cost $1800 2.8 2000 3 2200 3 2500 3 3000 3.3 4000 3.7 5000 3 4.20 $ 50.40 5.00 60.00 5.50 66.00 6.25 75.00 8.25 99.00 12.33 148.00 12.50 150.00 What are the health conditions of your family and the factors influencing these conditions? Proper food, shelter, and clothing are the prerequisites of health. The health should be protected by preventive measures such as care of teeth and other physical conditions. This can best be ac- complished by regular examinations. Do you understand and apply the principles of personal and community hy- giene? Have you reduced some expenditures at the sacrifice of health or could you reduce some in order to avoid ex- cesses and so improve health? Physical well-being should be the first consideration of the family. All other interests and activities should be sub- ordinated to health. The health standards of your family have a direct relation to those of the community, and vice versa. Are you fulfilling your obligations to both your family and the community ? Donations, Philanthropy, Religion, Gifts: What proportion of your income is spent for these items ? Compare your expenditures with those suggested : Putting the Home on a Business Basis 31 Income Per Cent Monthly Cost Yearly Cost $1800 .7 $ 1.05 $ 12.60 2000 .6 1.00 12.00 2200 1 1.83 22.00 2500 1 2.09 25.00 3000 2.5 6.25 75.00 4000 6 20.00 240.00 5000 8 33.33 400.00 Do you do your giving systematically or wait until requests are made and give if possible at that time? Do you make pledges without stopping to consider the means of fulfill- ment? Do you intelligently consider the use to be made of money given or does it depend on the force of the appeal made to you ? Should gifts be made at the sacrifice of nor- mal living for your own family? Is the custom of giving gifts for various occasions a burden to you which you feel obliged to meet? Many personal gifts which are either given as remembrances or to repay social obligations are often extravagant and useless. Would it not be well to re- duce these and increase donations for the promotion of community welfare? Education: What proportion of the income is spent for education? Compare your expenditure to those sug- gested : Income Per Cent Monthly Cost Yearly Cost $1800 1.5 $ 2.25 $ 27.40 2000 2 3.33 40.00 2200 2.3 4.21 50.60 2500 3 6.25 75.00 3000 2.5 6.25 75.00 4000 5.3 17.66 212.00 5000 5 20.85 250.00 Every family should subscribe to a daily newspnper and periodicals. Where there is a public library, good litera- ture may be obtained at little or no cost. Opportunities for public lectures and concerts should be taken advantage of. Special lessons in music or art are often given to mem- bers of the family who are not gifted. Is this justified, es- 32 University of Texas Bulletin pecially when the income is limited ? A musical instrument increases the means of entertainment within the home and further develops the appreciation of music when wisely used. Your support should be given to the concerts and lectures held locally, otherwise the number of these oppor- tunities will be reduced. Educational costs can be reduced to an advantage while children are young, in order to pro- vide for later training and study. In what ways are you meeting the educational needs of your family? Recreation: What proportion of your income is spent for recreation? Compare your expenditure with those suggested : Income Per Cent Monthly Cost Yearly Cost $1800 1.5 2000 2 2200 2.2 2500 3 3000 2.5 4000 5 5000 4 1 2.25 $ 27.40 3.33 40.00 4.03 48.40 6.25 75.00 6.25 75.00 16.66 200.00 16.66 200.00 Education, health, and recreation are closely inter- woven. Recreation is an essential requirement for nor- mal living. True recreation brings rest and renewed vigor to the body, refreshment to the mind, and adds to the cul- tural assets. When wisely chosen and directed, recreation will tend to increase earning power. Can the form of rec- reation provided for your family truly be called recreation, or is it temporary entertainment? Recreation need not mean much money expenditure, as it can be taken in the form of athletics, picnics, hikes, reading, etc. To what extent does the moving-picture house supply your recreation? This is a cheap form, but has its limita- tions and is not the type to be recommended for children. In all forms of recreation consider whether they are con- structive or destructive. Putting the Home on a Business Basis 33 Savings: What proportion of your income did you save last year ? Compare your savings with those suggested : Income Per Cent Monthly Cost Yearly Cost $1800 1.5 $ 2.25 $ 27.00 2000 2.4 4.00 48.00 2200 5 9.16 .110.00 2500 5 10.40 125.00 3000 8.2 20.50 246.00 4000 10 33.33 400.00 5000 15 62.50 750.00 Do you have a system for regular saving ? Savings should be made possible because of wise expenditures, but not at a sacrifice of health and the needs of normal living. Sav- ings make a reserve fund possible so that unforeseen emer- gencies such as sickness, labor conditions, or change of oc- cupation may be met without lowering the standard of liv- ing. The most careful consideration should be given before making any kind of investment. It is well to consult a competent banker or lawyer. The government bonds are one of the most secure forms of investment. The average family can not afford to speculate on new enterprises. The interest on investments should be watched carefully, and when received the interest should be redeposited to com- pound it. Study your investments carefully to determine whether you could be taking advantage of another invest- ment giving a greater yield. We are beginning to learn that true thrift means a study of the present needs and desires of today in their relation to the needs and desires of tomorrow, so that we may attain those values in life which make for the greatest happiness. In planning for tomorrow, don't forget today. 34 University of Texas Bulletin REFERENCES The following books are suggested as a reference list for the practical housewife : Feeding the Family, Rose : Macmillan Co., Dallas. Boston Cooking-School Cook-Book, Farmer : Little, Brown & Co., Boston. Care and Feeding of Children, Holt : D. Appleton & Co., New York. Clothing for Women, Baldt: Lippincott, Philadelphia. Housewifery, Balderston: Lippincott, Philadelphia. Household Engineering, Frederick: American School of Home Economics, Chicago. Home and Community Hygiene, Broadhurst: Lippincott, Philadelphia. Business of the Household, Tabor: Lippincott, Philadel- phia. Personal Hygiene and Home Nursing, Lippitt: World Book Co., Yonkers, N. Y. Health Service, Treasury Department, Washington, D. C. LIBRARY OF CONGRESS 014 230 090 4 #