THE UNIVERSITY OF ILLINOIS LIBRARY G3CX7 Cop- OP LtBRARY CHECK FOR UNBOUND CIRCULATING COPY Living Expenditures of A Group of Illinois Farm Families 1930, 1931, 1932 By RUTH CRAWFORD FREEMAN UNIVERSITY OF ILLINOIS AGRICULTURAL EXPERIMENT STATION Bulletin 406 CONTENTS PAGE SOURCE OF DATA 367 FAMILY CHARACTERISTICS AND SURROUNDINGS 369 ANALYSIS OF INCOME AVAILABLE FOR FAMILY USE 374 CHANGES IN INCOME UTILIZATION 381 Use of Realized Incomes in 1930 381 Use of Realized Incomes in 1931 383 Use of Realized Incomes in 1932 384 Savings and Investments 384 Food 386 Operating Expenditures 392 Shelter 392 Clothing 393 General Expenditures 396 Home-Production Activities 397 EXPENDITURES OF 56 IDENTICAL FAMILIES OVER THREE- YEAR PERIOD 400 SUMMARY.. 404 Urbana, Illinois September, 1934 Publications in the Bulletin series report the results of investigations made by or sponsored by the Experiment Station Living Expenditures of a Group of Illinois Farm Families 1930, 1931, 1932 By RUTH CRAWFORD FREEMAN, Extension Specialist in Home Accounts 1 MONEY MANAGEMENT is a real problem for every home- maker and her family regardless of the size of the family in- come. The three years 1930, 1931, and 1932 studied and re- ported in this bulletin were all years of declining income for farm families and constitute a part of the so-called depression period of the business cycle. The reduced income has made a greater challenge for wise money management in the home than was made during years of larger and more stable incomes. The purpose of the study was (1) to ascertain as accurately as possible how farm families use their income and thru this knowledge to judge something of the plane of living enjoyed by the farm families of Illinois, and (2) to compare one year's expenditures with another's in order to ascertain what adjustments have been made by these fami- lies to meet the changing economic conditions. The author wishes to acknowledge the excellent cooperation of the farm families whose records are the basis for this study. Their in- terest in the project and the accuracy with which they kept their records have contributed greatly to the value of the study. SOURCE OF DATA Four hundred and twenty-nine farm family records are analyzed in this report, distributed over the three years 1930, 1931, and 1932 as follows: 111 in 1930, 159 in 1931, and 159 in 1932. This number includes all complete records sent in to the University of Illinois for summarization during these years. Fifty-six of these families have sent in records for this continuous three-year period. Each record is for a continuous 12-month period, the majority of the records be- ginning January 1 of each year. A few of the records do not conform to the calendar year but to the fiscal year beginning some time after May and ending in the same month of the following year. 'For helpful criticism and advice in the presentation of this material, the author is indebted to Dr. Paulena Nickell, Assistant Professor of Home Man- agement. 367 368 BULLETIN No. 406 [September, 159 FAMILIES 1932 56 IDENTICAL FAMILIES 1930-1932 FIG. 1. LOCATION OF FAMILIES FROM WHICH THE 429 HOME ACCOUNTS ANALYZED IN THIS STUDY WERE RECEIVED The 429 farm home accounts analyzed in this study covered a twelve- month period and were distributed over three years as follows: 111 in 1930, 159 in 1931, and 159 in 1932. Fifty-six families sent in records for this con- tinuous three-year period. 1934] LIVING EXPENDITURES OF ILLINOIS FARM FAMILIES 369 The location of the families from which home-account books were received was approximately the same for all three years (Fig. 1). The same plan for conducting the study was followed as reported in Bulletin 372 ( 1929-30). * Each homemaker, in addition to her com- plete home-account record, filled out a questionnaire which supple- mented the information in the record in regard to the family's general standard of living. FAMILY CHARACTERISTICS AND SURROUNDINGS The "family" consisted of parents and children totally or partially dependent for support on the family income, including children away at school. If a relative lived in the home and was totally dependent on the family, that person also was counted as part of the family. The "household" included all persons living in the home nine months or more of the year. Besides a record of the family meals, a record was kept of all meals served to hired help, both farm and house, and to guests. Size of Family. About one-third of the families each of the three years were composed of four members (Tables 1 and 2). The percent- age of families with three members was greater in 1931 than in 1930, TABLE 1. AVERAGE NUMBER OF MEMBERS IN ILLINOIS ACCOUNT-KEEPING FARM FAMILIES Year Total number of families Number per family Number of families with 2 members 3 members 4 members 5 members 6 or more members 1930. . . . 111 159 159 3.8 3.9 4.1 19 28 32 25 41 26 32 50 49 21 19 26 13 21 26 1931 1932 TABLE 2. PERCENTAGE OF FAMILIES HAVING NUMBERS OF MEMBERS INDICATED Year Total number of families Percent of families with 2 members 3 members 4 members 5 members 6 or more members 1930.. . 111 159 159 17 17 20 23 26 16 30 31 31 19 12 16 11 14 17 1931 1932 '111. Agr. Exp. Sta. Bui. 372, September, 1931. 370 BULLETIN No. 406 [September, as was also the percentage of families with six members or more. In 1932 there were more families with two members and with six mem- bers or more, than there were in 1930 and 1931. Ages of Members of Family. Both husbands and wives in the 111 families whose records are included in the 1930 data were, on the average, younger than those in the 159 families included in the 1931 data and also younger than those in the 159 families in the 1932 data (Table 3). The husbands' ages ranged from 26 years to 65 years in 1930 on all income-levels, 27 to 60 in 1931, and 26 to 90 in 1932. The TABLE 3. AVERAGE AGES OF MEMBERS OF ACCOUNT-KEEPING FAMILIES Realized income Average age in year indicated Husbands Wives Children at home 1 1930 1931 1932 1930 1931 1932 1930 1931 1932 $ 500-g 999 . . 32 34 40 42 42 41 38 37 43 34 36 43 40 41 42 39 47 29 30 37 38 40 38 34 35 40 38 35 38 38 39 40 37 44 7 6 12 10 10 13 9 10 10 12 12 11 9 10 11 11 13 1 000- 1 499 1 500- 1 999 2 000- 2 499 2 500- 2 999 3 000 and over 1 'Children dependent or partly dependent counted in family. *In 1932 there were no records received from families with incomes higher than $2,999. wives' ages followed about the same range as the husbands' except that the wives were three years younger in each extreme of the range. For both husbands and wives the mode is found each year nearer the younger age limit. The children, in all three years, were largely of preschool and grade-school ages. The average age in 1931 and 1932 was higher than in 193P because of the greater number of older children (18 years and older) at home, 43 children of that age-group being at home in 1932. Thirteen of the older group were in school part of the year, 4 worked but stayed at home, and the remaining 26 helped at home. Seventeen of the 26 were sons helping to operate the farm ; the other 9 were daughters helping in the home. Education. In 44 percent of the 1930 families at least one par- ent had attended college one year or more ; in 24 percent of the fami- lies both parents had attended college (Table 4). In the 1931 group the parents had a slightly lower formal educational background; in only 40 percent of the families had one of the parents attended college 1934] LIVING EXPENDITURES OF ILLINOIS FARM FAMILIES 371 15 * ** If! -C b* * > a; . =^ s O o - S - " -i ot^oo ao __-.__ oo fo o>ao-oo 3vo l-tNtN (SO -* S; o f)!O (S (SO OO~"- vooi O t^<5 O O (si^f)- OWOfOOO >O1O (S-OOOO O o o to OOtNOOO (N(S O ^-OO (SIS m u u a 2 (S O O OO CSO) 2 -HOO -I -on 2 * <^o**o w O fs <*5 O * ^ O -t^\OU1CS^ tst tSrt t iot^ IO O U) -H tf. ft O fs >O f5io 10 tSXlO^tSt*! >OO CSN t^I~-'OO ts O">o 1^0 ioiiao*^ >ooo r^W OOO t <-O "5 H tS^ u SSS2X > ^ ^ 5 1 ^ ^ o r r r w I^^l ^ ^--"~"> || li|S|| : 5>v$-5>,f5> ; ^--(^^1 ioooOu^5 ,3** ^- ^1 -- ioiii c ooooo 10 o 10 o 10 rt o --NN 2^ * H0< 372 BULLETIN No. 406 [September, a year or more, and in only 17 percent had both parents attended col- lege. The proportion of families in which both parents had only eighth-grade education or less was much greater in the 1931 group than in the 1930 group, 10 percent of the 1930 group having been limited to eighth-grade education and 28 percent of the 1931 group. Among the 1932 families the number of parents who had attended college was about the same as in the 1931 group, but the number in which both parents had attended high school was greater 17 percent in 1931 and 25 percent in 1932. In the 1932 group there were fewer families in which the parents had had eighth-grade education or less only 19 percent compared with 28 percent in 1931. Tenancy. There was a much higher percentage of owners and part-owners in the 1930 group of families than in the groups of the two later years (Table 5), the combined owners and part-owners con- TABLE 5. TYPES OF TENANCY IN ACCOUNT-KEEPING FAMILIES 1 AT DIFFERENT LEVELS OF REALIZED INCOME Realized income Number of owners Number of part- owners Number of tenants 1930 1931 1932 1930 1931 1932 1930 1931 1932 $ 500-$ 999. . 5 14 22 3 8 52 47 5 14 6 10 4 4 43 27 11 21 10 3 2 47 30 1 2 4 7 4 18 16.5 4 9 9 4 3 3 32 20 10 10 7 1 28 17 11 14 2 11 2 40 36.5 6 35 22 12 4 5 84 53 26 38 13 6 1 84 53 1 000- 1 499 1 500- 1 999 2 000- 2 499 2 500- 2 999 3 000 and over Total Percent In one of the 111 record-keeping families in 1930 the husband was a hired man, not classed as a tenant, so that no data on this family are given in this table. stituting 63.5 percent of all families in 1930 and 47 percent in both 1931 and 1932. Since among the 56 families that submitted records for all three years, only two changed their status with respect to tenancy, it may be assumed that one reason for the greater proportion of tenant-operated farms in 1931 and 1932 was a difference in the make-up of the 1931 and 1932 groups. Number of Acres Farmed. Both owners and tenants farmed about the same number of acres, on the average, in all three years, the yearly averages of owners being 212, 197, and 213 acres, and of tenants 202, 209, and 216 acres (Table 6). The part-owner group farmed much larger tracts of land than 1934] LIVING EXPENDITURES OF ILLINOIS FARM FAMILIES 373 the others, averaging 301 acres in 1930, 453 acres in 1931, and 293 acres in 1932. In 1930 and 1932 these part-owners owned about half the total number of acres they farmed; in 1931 they owned only about one-third. Thus it would appear that one effort made by these part- owner families in 1931 to prevent their incomes from declining further was to farm more land. One year's experience with increased acreages TABLE 6. AVERAGE NUMBER OF ACRES FARMED BY OWNERS, PART-OWNERS, AND TENANTS IN ACCOUNT-KEEPING FAMILIES AT DIFFERENT LEVELS OF REALIZED INCOME Realized income Average number of acres farmed by owners Average number of acres farmed by part-owners Average number of acres farmed by tenants 1930 1931 1932 1930 1931 1932 1930 1931 1932 $ 500-$ 999. . 124 156 245 210 250 272 197 166 201 260 281 261 213 90 385 160 306 439 301 154 247 307 471 388 606 453 203 273 374 780 293 193 203 196 203 240 202 170 209 215 203 326 214 209 209 221 197 201 550 216 \ 000- 1 499 171 208 205 249 248 212 1 500- 1 999 2 000- 2 499 2 500- 2 999 3 000 and over Average seemed sufficient, the average number of acres rented by part-owners declining markedly in 1932. Part of the decrease, however, can be attributed to the difference in the samples. Living Conveniences of the Homes. Eight rooms, including four bedrooms, was the average number in the homes of the 1930 families ; seven rooms, including three bedrooms, was the average for the 1931 families ; and eight rooms, including three bedrooms the average for the 1932 families. Altho there was sleeping space in these houses sufficient to supply ^ bedroom per person, which previous studies show is the average necessary for adequate sleeping accommodations for a family, 1 the present data do not show whether these families used all rooms that were available. Since there is a tendency for farm families not to use all the space available for sleeping, 2 no statement can be made about the adequacy of the sleeping quarters actually used by these farm families. 'The President's Conference on Home Building and Home Ownership, p. 8. Report of Committee on Farm and Village Housing. 1932. See also Standards of Living. Bui. 7, rev. ed., p. 15. Bur. Appl. Econ. U. S. Dept. Agr. 1920. 'Nickell, P. Rural Housing: A Study of the Housing of 316 Master Farm Homemakers With Special Reference to Adequacy. Unpublished thesis, Uni- versity of Minnesota, 1932. 374 BULLETIN No. 406 [September, More than half the homes in these groups were supplied with a heating plant of a modern type. The heating system in 60 percent of the homes covered by the 1930 data was of the circulating warm-air type, hot water, or steam, with the remaining 40 percent of the homes heated by pipeless furnaces or stoves (Table 7). The percentage of families having a more modern type of heating system warm air, hot water, or steam was lower in 1931 (54 percent) than it was in 1930 (60 percent) or than it was in 1932 (57 percent). That the general plane of living of the 1930 group of families was slightly higher than that of the 1931 and 1932 groups may explain this difference in the heating system. Electricity was used for lighting in slightly less than half the homes included in this study (Table 8). Of the 1930 families practically half used electricity for lighting. One out of six of the 44 families using electricity owned its lighting plant, and the remainder had public utility service. Over half the 1931 families used electricity for light- ing, one out of four having its own lighting plant. Half the 1932 families used electricity for lighting, about one out of six having a home-owned plant. These farm homes had somewhat better heating systems than light- ing systems. The amount of income seems to limit the use of elec- tricity, for there is a high cash operating cost for service both from the public utility companies and from home-owned plants. The better heating systems may be due to the greater economy of fuel and labor in heating a number of rooms with a central heating plant than with stoves. The high percentage of tenant-operated farms does not seem to explain satisfactorily the lack of either a modern heating or a light- ing system, for married sons or daughters are often tenants on the family homestead. Thirty-eight percent of the homes of the 1930 group were equipped with running water under pressure, 39 percent of the 1931 group were so equipped, and 42i/ percent of the 1932 group. The increase in these figures may reflect some of the results of a campaign carried on in Illinois in which the goal was "running water in every rural home." ANALYSIS OF INCOME AVAILABLE FOR FAMILY USE The total cash income available for family use, plus the money value of the food furnished by the farm, 1 fuel, gifts, and the rental 'Food furnished by the farm includes dairy and poultry products, butchered meat, cereals, and fruits and vegetables used fresh, canned, or stored. 1934} LIVING EXPENDITURES OF ILLINOIS FARM FAMILIES 375 rs w i 2 1 - M rtio (S ^< *^ 8 S 0> CS(S (*) ^H N V. o> OtTj-UI ^IO Tt< 3 i s s ")rC TfTj-m - - B O V 9 3 w> - 8 1 | O- I'", t- " C V) 1 g^o . (S 8 SS8- : B : umber o amities 5 S5SS- B : 2 1 * m w M w> (s . u ]8 ^^(SKS* 11 AA X A X | i (N S b> ^ M i a Electricdt 1 CO 9>OOO M M 1"*iOOOO >ft | t i 00>0s0y5(v) a, - o\ cs ^ ^ ^ o* ^* D /) i 3 > U 4 X 3 s o> M -* o B r. i | "2 y i ti ~a> 1 k -< V e o s S^-S " * 5 J B 4 IM < O ">. /> d I 1 C O X OC 00 O J Ov *^ ^ 3 t < (4 9 S S s "i tsoo tso M *H ^ T } B J * 1 * - S 5 2S!8S < " 0> 2 : S 3 9 Z n I **5 -t 10 x ^* <^i (s u 9< -H (N rs ^* ^ ON 4 *^ H d | H ]! f!!!!| * ^^^ > 376 BULLETIN No. 406 [September, value of the farm dwelling, constitutes the "realized income." The money value of the products used by the family was computed at the local retail market price. The rental value of the farm dwelling for each year was estimated at 10 percent of the total value of the dwelling minus all cash repairs, fire insurance, etc., for the year. Decline in Realized Income. The average realized income of the 111 families in 1930 was $2,190; for the 159 families in 1931, $1,791 ; for the 159 families in 1932, $1,308 (Table 9). Increase in Commodities and Services Furnished by Farm. Of the realized income for the 1930 group 28^ percent was furnished by the farm in commodities and services, including all the home-produced food used by the family, such fuel as wood and cobs, and the rental value of the house. For the 1931 group, commodities and services con- stituted 36 percent, and for the 1932 group, 42 percent, of the total realized income. Because of the lowered price-level for food (page 387) a comparison of the money value of these commodities for the three years does not show completely the increased use of home- produced products in the two later years. Decline in Cash Income. The average cash income available for family use declined from $1,555 in 1930 to $748 in 1932, or 52 per- cent (Table 9). For the 56 families whose records extended over the three-year period there was also a decline of 52 percent in cash income -from $1,794 in 1930 to $863 in 1932. The average cash income of 70 identical families included in both the 1930 and 1931 groups declined approximately $450 between the two years, while that of all families declined $409. Sources of Cash Income. The cash spent by the 429 families whose records are included in this three-year study represented net cash income from the farms on which they lived, together with cash from all other sources, such as work away from the farm, income from investments, borrowed money, and use of capital. Since this is pri- marily an expenditure study, detailed information of sources of cash income are given here only from the home-account records of 100 families from the 1931 group and of 100 families from the 1932 group (Table 10). The amounts of capital (accumulated savings) and credit used by each of these groups of 100 families are shown in Table 11. The average total capital and credit used by the families in each income-group is less significant than the number of families using the various kinds of capital and credit. Among the 1931 families there was a tendency for those in the lower income-groups to use savings LIVING EXPENDITURES OF ILLINOIS FARM FAMILIES 377 I! l 2^S 3S Silt M o li l^ 2 r^CNfj escs^" (M S ~~~ 8 a-- a : i~ r . 2 o a co :*="" ; O ^* ("* O PO fS t* * v* M l M ir.-,-?^-? (N pisg . M(JPO( C JJ - o , --" a * S 00 * >O 00 tA. W - :! - j 1 .-aggj g- T , assl Oi -te s to ^^ ^ . pp OOCN POO-* C 8 SSS3S2 S8 & M8sa ^--eseM* g . ! s . 5 -H 00 ^** II 378 BULLETIN No. 406 [September, and for those in the higher income-groups to sell investments, and a marked tendency for the higher income-groups to use credit in some form either to pay past obligations or to maintain a standard of living already set. There was an almost equal use of these two methods of raising cash, 24 using past savings and 26 making use of credit. Four showed a deficit in the farm business, but the other 96 remained sol- vent. By comparing the sources of income available for family use in TABLE 10. SOURCES OF CASH INCOME AVAILABLE FOR FAMILY USE IN Two GROUPS OF ACCOUNT-KEEPING FAMILIES, 1931 AND 1932 Cash income available Number of families Average cash income per family Total From farm Work away from the farm 1 Interest, dividends, and other sources 1 1931100 families Under $500 8 $ 408 $ 310 $ 55 $ 43 $ 500-$ 999. 35 612 522 31 59 1 000- 1 499 21 1 019 805 106 108 1 500- 1 999 15 1 539 1 259 92 188 2 000- 2 499 13 1 882 1 535 141 206 2 500 and over 8 2 806 1 887 768 151 1932100 families Under $500 27 $ 320 $ 241 $ 37 $ 42 $ 500-$ 999 57 545 379 84 82 1 000- 1 499 9 835 388 337 110 1 500- 1 999 6 1 603 1 425 91 87 2 000- 2 499* 1 2 344 1 636 661 47 'The income earned away from the farm includes that received for personal services such as judg- ing, clerking, jury duty, lecturing, selling of insurance, managing of farms, teaching, etc.; for services with equipment, such as trucking, grinding, wood sawing, shoveling, road work, driving a car, etc.; income from keeping boarders, selling home-produced food, flower bulbs, etc.; and income from gifts, prizes, interest, dividends, rents, and returns from estates. J No records in this group received from families with incomes higher than $2,499. the 100 families in the 1932 group with those of the 100 families in the 1931 group, one observes a decline in income from investments and an increase from work away from the farm, as well as a lower net cash income from the farm business. The outstandingly low amount of cash income indicated as coming from the farm (Table 10) may not, however, give an entirely accurate picture, for no record was included of inventory values of commodities raised during the year and not sold. Twenty-three families in 1932 used past savings and 32 made use of credit (Table 11). Only 6 families sold investments in 1932, in contrast to 11 in 1931. Thus it may be assumed that these families had already used the major part of their past savings, and that their debts were increasing. LIVING EXPENDITURES OF ILLINOIS FARM FAMILIES 379 rrowed from her sources * "^3 * ^888 4>Mw>vi iHj, <*>'O (N o ^5 "O MM^^- i^oeTM 5 ^ ! 3 3 3 .2 I o arrowed on nsu ranee ^ 1 1 10108 e >o Mt>. Or~OO O 1 1 **5 t^ * ^J N'o^ "* E/T (2 S V 18 amwvj Tin'jv \ n 'I 100 famil 8 S K !Q lfl00 '7 ^ O-> (SlO ,il)ii. il or cr ?r than $2,4 5 2 *s 5 2-2.2.S 2 CJS-2.22 -s s e w * : H * 5 ,5 1 |] i|i "> ~ O(N10*>0 "JJ fN <) ^J" 00 O O>^" ts ^ "5 ~* using the kin cash incomes -b - i B i 1 ; families ooio-i'^oc W>fS (N1O of families milies with E C 4 1 i 3 cate the numbel received from h ^ * d i 4 Cash income availa i|8|8| i! : - : i t|i J^ __-.-: -> jiiil O ^* * fs J, , , | -^ 3** 'The figures in italics indi 'No records in this group 380 BULLETIN No. 406 [September, That these 100 families are fairly representative of the whole group of 159 families studied in 1932 is shown by the fact that their average cash income available for family use was $756, while that for the whole group was $748. Marriage Ages and Income-Levels. The relation of the ages of the husband and wife at marriage to the amount of their annual re- alized income is shown in Table 12. In the 1930 families in the higher TABLE 12.- -RELATION OF AGE OF HUSBAND AND WIFE AT MARRIAGE TO ANNUAL REALIZED INCOME IN ACCOUNT-KEEPING FAMILIES Realized income 1930 families 1931 families 1932 families Husband's age at marriage Wife's age at marriage Husband's age at marriage Wife's age at marriage Husband's age at marriage Wife's age at marriage $ 500-$ 999. . . 24 25 25.8 26 25.5 26 21 21.8 20.8 22.4 22.6 24 26 26 25 28 23 27 23 24 23 23 22 23 26 25 26 24 27 24 22 23 22 24 1 000- 1 499 1 500- 1 999 2 000- 2 499. 2 500- 2 999 3 000 and over realized income-groups both the husbands and wives were older at marriage than those in the lower income-groups. In the 1931 and 1932 families the average age of the husband at marriage again appears to show the same relation to the income-level, but the average age of the wife at marriage shows no such relationship. Thus it would appear that, within certain ranges of ages, a man's age at marriage has some relationship to the amount of money he earns later in life. This re- lationship could be affirmed definitely, however, only if one were certain that all factors other than age had been held constant in the different groups being compared. Education and Income-Level. The amount of formal education possessed by the husbands and wives in this study is shown in Table 4 (page 371). In the 1930 group all but one of the 16 families in which both parents had attended college for one year or more had realized incomes of $2,000 or more; while only half (26 out of 53) of the other families enjoyed this income. For 1931 and 1932, how- ever, which were very abnormal years from an economic standpoint, there appeared to be no relation between amount of formal education and amount of income. It is obvious that it would be necessary to check such a relationship thru a complete business cycle to arrive at any valid conclusions concerning it. 1934} LIVING EXPENDITURES OF ILLINOIS FARM FAMILIES 381 CHANGES IN INCOME UTILIZATION Use of Realized Incomes in 1930 The total savings and money value of the living of the 111 families in 1930 ranged from $885 to $6,561 ; the average was $2,190, 17 per- cent or one-sixth of the families having less than $1,500. The distri- bution of the realized income of these families is indicated in Table 13. The savings and investments of these families for 1930 averaged $331, or 15 percent of the total realized income. Money invested in the farm business, such as that used for limestone or new machinery, is not included here under family savings and investments. Exclusive of savings, the money value of living averaged $1,859 per family for the year. In the higher income-groups, up to the $3,000-)- income-level, the amount used for living constituted a de- clining percentage of the total realized income (Table 14). The two highest income-groups had the same percentage of savings (23 per- cent) and consequently the same percentage of expenditures for living. Both savings and general expenditures increased more rapidly in pro- portion to increase in income than did expenditures for operating, shelter, and clothing. The percentage of expenditures for food and shelter showed a very definite tendency to decline as income increased. Operating and clothing expenses have remained fairly constant on the percentage basis in all income-groups above $999. At the $2,000 + income-level, savings showed a much higher percentage increase with increase in income. Above $1,500, general expenditures showed but a slight percentage increase but a marked increase in absolute amounts. With increasing income-levels there was a very definite trend in the 1930 families for all general expenditures, such as those for per- sonal items, automobile, health, recreation, education, church, and gifts, to increase both in actual amounts and on a percentage basis. The $3,000 -f- income-group spent by far the highest percentage of real- ized income for education. The number of members in the family seemed to influence the dis- tribution of money at all income-levels. In the lower income-groups, food and clothing expenditures increased in proportion to the increase in the number of persons in the family; and general expenditures, shelter, and savings decreased in actual amounts and on a percentage basis, as one would expect. At incomes of $2,000 and above, expenditures for food and cloth- ing likewise increased as the size of the family increased. Expendi- 382 BULLETIN No. 406 [September, 23 "23 S s " 11 t^^^OrNO mSfO^ - r<5i/ " /> - Ja ^-r^xo^j *c ^ i/> *N 5aS * S " ?S " - =r >Oj*OOO O>C>r- O XOfO -*>.*. OCQ r~ i/> fS fj * O W-*NOO to O ^| O* O o 11 J ; ; u . . 11 jj 1934] LIVING EXPENDITURES OF ILLINOIS FARM FAMILIES 383 TABLE 14. PERCENTAGE DISTRIBUTION OF REALIZED INCOME IN ACCOUNT-KEEPING FAMILIES Realized income Sayings and invest- ments Food Operating Shelter Clothing General expendi- tures 1930111 families $ 500 J! 999 46 5 1 000- 1 499 7 34 9 1 500- 1 999 7 29 8 2 000- 2 499 13 26 8 2 500- 2 999 23 24 7 3 000 and over 23 17 10 Average 15 25 8 1931159 families $ 500-? 999... 3 41 11 1 000- 1 499 7 38 8 1 500- 1 999 13 33 8 2000-2499 13 30 8 2500-2999 23 23 10 3 000 and over 35 20 6 Average 15 31 8 1932159 families t. 500-JS 999. . . 4 41 8 1 000- 1 499 11 36 8 1 500- 1 999 14 33 8 2000-2499 14 24 11 2 500- 2 999 14 27 10 Average 11 34 8 25 23 22 19 17 15 19 20 19 26 26 20 27 25 22 22 19 20 17 12 19 15 19 20 22 20 20 20 22 21 17 17 19 25 27 19 tures for shelter and savings decreased as the number of members increased, but general expenditures changed very little either in actual amount or proportion of the total realized income. The amount of money spent for education seemed more closely related to the ages of the children than to the' number of children in the family. In the families with children of college age, educational expenditures in- creased markedly and savings declined. This would seem to indicate that some of the savings had been accumulated for educational purposes. Use of Realized Incomes in 1931 The total money value of living and savings for the 159 families in 1931 ranged from $621 to $5,199, the average being $1,791. The distribution of the realized income is indicated in Table 13. Nearly half these families (46 percent) had a realized income of $1,500 or less, in sharp contrast to only 17 percent with like incomes 384 BULLETIN No. 406 [September, in 1930. These figures are significant of the lowered income in 1931, since these data include 70 identical families in the two years. In 1931 the percentage distribution of the realized income in the groups of families below the $3,000 income-level corresponded quite closely to the distribution in 1930 (Table 14). In the $3,000+ in- come-group, 65 percent of the total realized income was used for liv- ing expenditures in 1931, in contrast to 77 percent in the previous year. This percentage decrease was offset by a corresponding increase in savings and investments. In the 1931 group of families, just as in the 1930 group, 8 percent of the realized income was used for operation, and 19 percent for shelter (Table 14). The distribution for clothing was practically the same, being 7 percent for the 1931 group and 8 percent for the 1930 group. Five percent less was spent by the 1931 families than by the 1930 families for general expenditures, the principal reductions being in the expenditures for automobile, health, and recreation. Thirty-one percent was used for food for the family in 1931 and 25 percent in 1930. Thus it would appear that with the lowered income of 1931, the 5 percent of the realized income utilized in 1930 for general ex- penditures was shifted to food in 1931. Use of Realized Incomes in 1932 The total money value of living and savings for the 159 families in 1932 ranged from $644 to $2,984, the average being $1,308. The distribution of this realized income is indicated in Table 13. Nearly three- fourths (73 percent) of these families had, on the average, a realized income of $1,500 or less, in contrast to 46 percent who had this amount in 1931 and 17 percent in 1930. Since the 56 identical families in the three-year period suffered a corresponding decline in income, the outstanding change in living and savings would appear not to be due wholly to the type of sample, but to actual changing economic conditions. The percentage distribution of the lowered income of 1932 (Table 14) shows that the 1932 families shifted 4 percent from savings to such necessities as food and shelter. Savings and Investments The percentage of the total realized income laid aside in savings and investments by the 1930 families was the same as for the 1931 families (15 percent), but in absolute amount was less for the 1931 group because of a lowered income. The average amount saved per 1934} LIVING EXPENDITURES OF ILLINOIS FARM FAMILIES 385 family in 1930 was $331, while in 1931 it was $274. More than half (53 percent) the $274 savings in 1931 was used for life insurance premiums (Table 15). The percentage of savings invested in life in- surance declined markedly in the higher income-groups. Fifty-eight TABLE 15. AVERAGE DISTRIBUTION OF SAVINGS IN ACCOUNT-KEEPING FAMILIES AT DIFFERENT LEVELS OF REALIZED INCOME Realized income Number of families Number per family Savings per family Total Life insurance Other investments 1931 159 families $ 500-$ 999. . 15 2 8 % 28 $ 18 Perct. 64 S 10 Perct. 36 1 000- 1 499 ... 58 3 5 91 88 97 3 3 1 500- 1 999 37 4 1 232 202 87 30 13 2 000- 2 499 26 4 4 273 169 62 104 38 2 500- 2 999 11 4 4 624 318 51 306 49 3 000 and over 12 4.6 1 268 185 15 1 083 85 Average 3 9 $ 274 $145 53 $ 129 47 1932159 families $ 500-$ 999 . . 47 3 3 $ 38 $ 35 92 $ 3 8 1 000- 1 499 69 4 134 117 87 17 13 1 500- 1 999 30 5 229 175 76 54 24 2 000- 2 499 9 4 3 306 175 57 131 43 2 500- 2 999 . . 4 5 2 374 238 64 136 36 Average 4.1 $139 $110 79 $ 29 21 families with an income between $1,000 and $1,500 invested 97 per- cent of their savings in life insurance, while families with incomes of $3,000 and over invested only 15 percent of their savings in life insurance. Since 60 percent of these 58 families were tenant farmers with a smaller amount of capital invested in farming than the $3,000 -f- income-group, a greater protection was necessary for the family and could be carried with a smaller cost in life insurance than in any other type of investment. The percentage of the total realized income saved by the 1932 families (11 percent) was less than that saved by the 1930 families (15 percent) or the 1931 families (15 percent). But the decline in the absolute amount saved per family in 1932 was even more significant because of the lowered income that year. On the average, over three- fourths (79 percent) of the $139 saved was devoted to payment of life insurance premiums (Table 15). Even in the higher income-levels the percentage of savings used for life insurance was higher in 1932 than in 1931. The average amount used for insurance premiums in the 386 BULLETIN No. 406 [September, 1932 families, however, was lower than in 1931, $110 as compared with $145. Food The total money value of food consumed, both purchased and home-produced, was one- fourth (25 percent) of the total realized in- come of the 111 families in 1930. In contrast, one-third (31 percent) of the total realized income of the 159 families in 1931 was used for food and 34 percent of the income of the 159 families in 1932 (Table 14). This higher percentage would be expected with a lowered income. The money value of the food furnished by the farm in relation to the money value of all food used by these families is shown in Table 16. The average total money value of food consumed per family in 1930 was $547, of which 40 percent was purchased food TABLE 16. RELATION OF HOME-PRODUCED FOOD TO PURCHASED FOOD IN ACCOUNT- KEEPING FAMILIES AT DIFFERENT LEVELS OF REALIZED INCOME Realized income Number per family Average value of food per family Total Purchased Raised Amount Percent Amount Percent 1930111 families $ 500-$ 999 4.0 3.3 3.6 4.0 4.2 4.3 3.8 $406 414 495 567 651 688 $547 $ 96 155 170 224 287 343 $220 24 37 34 39 41 50 40 $310 259 325 343 364 345 $327 76 63 66 61 59 50 60 1 000- 1 499 1 500- 1 999 2 000- 2 499 2 500- 2 999 3 000 and over Average 1931159 families $ 500-$ 999 2.8 3.5 4.1 4.4 4.4 4.6 39 $354 488 595 657 644 716 $556 $120 155 193 241 249 334 $195 34 32 32 37 39 47 35 $234 333 402 416 395 382 $361 66 68 68 63 61 53 65 1 000- 1 499 1 500- 1 999 2 000- 2 499 2 500- 2 999 3 000 and over Average 1932159 families $ 500-$ 999 3.3 4.0 5.0 4.3 5.2 4.1 $344 448 547 534 744 $448 $ 98 134 172 237 326 $141 28 30 31 44 44 31 $246 314 375 297 418 $307 72 70 69 56 56 69 1 000- 1 499 1 500- 1 999 2 000- 2 499 2 500- 2 999 Average 1934] LIVING EXPENDITURES OF ILLINOIS FARM FAMILIES 387 and 60 percent was produced on the farm. In 1931 the amount was $556, which is slightly higher even with a declining food cost. But the percentage of food purchased (35 percent) was lower and of home-produced food consequently higher (65 percent). In 1932 the total money value of food consumed ($448) was much lower than that for 1930 and 1931, and the percentage of purchased food was also lower (31 percent). Thus it would appear that one adjustment which these families made to meet their lowered incomes was to pro- duce a larger proportion of their food at home. In order that valid comparisons may be made between years in the amounts of food used by these families, changes in food prices during those years should be taken into consideration. The money value of the home-produced food used by these fami- lies in 1930, 1931, and 1932, at prices current during those years, is shown in the upper part of Fig. 2. The value when adjusted to the 1930 1931 1932 1930 1931 1932 VALUE AT CURRENT PRICES 327 YJW/JWW///7/AF////W//^^ 307 I I 1 VALUE ADJUSTED TO PURCHASING POWER OF FOOD DOLLAR 324 400 FIG. 2. AVERAGE MONEY VALUE PER FAMILY OF FOOD FURNISHED BY THE FARM IN ACCOUNT-KEEPING FAMILIES, AND VALUE ADJUSTED TO CHANGED PURCHASING POWER OF THE FOOD DOLLAR A great deal more home-produced food was used per family in 1931 and 1932 than in 1930, as shown by the solid bars in the lower part of the above graph. changed purchasing pow : er of the food dollar 1 is shown in the lower part of the figure. The same facts for the purchased food and for all food are shown in Figs. 3 and 4. While the money value of the home-produced food used per family in 1931 increased as compared with 1930 when expressed in current 'Based on index numbers of prices paid by farmers for commodities bought for family maintenance, compiled by the Bureau of Agricultural Economics, U. S. Department of Agriculture. 388 BULLETIN No. 406 [September, food prices, a much larger increase is shown when the money value of this food is adjusted to the changed purchasing power of the food dollar, indicating that the amount of home-produced food used by these families increased markedly during these years. In 1932, tho the 1930 1931 1932 I I ACTUAL AMOUNT SPENT 220 195 AMOUNT SPENT ADJUSTED TO PURCHASING POWER OF FOOD DOLLAR 100 200 DOLLARS 300 FIG. 3. AVERAGE COST PER FAMILY OF FOOD PURCHASED BY ACCOUNT- KEEPING FAMILIES, AND COST ADJUSTED TO CHANGED PURCHASING POWER OF THE FOOD DOLLAR These farm families bought more food in 1931 than in 1930, and as much in 1932 as in 1930, tho their actual expenditures for food were less each year. value of the home-produced food expressed in current prices had dropped below that of 1931, the value expressed in terms of the ad- justed dollar was still greater than in 1931, indicating that the amounts of home-produced food being used were still increasing. The actual amounts spent for purchased food declined gradually from 1930 thru 1932 (Fig. 3). When the amounts are adjusted to the change in price-level, an increase occurs in 1931 instead of a decrease. In 1932 a decrease occurs, as compared with 1931, but the purchasing power remains practically the same as in 1930. The money value of home-produced food and the cost of food pur- chased are combined in Fig. 4 to give the average total food cost per family in 1930, 1931, and 1932. A slight increase in food cost in 1931 over 1930 and a considerable decrease in 1932 compared with both previous years are shown to have occurred when amounts are ex- pressed in current food prices. When the amounts are adjusted to the changed purchasing power of the food dollar, a decided increase is shown in 1931 over 1930, but only a slight decline in 1932 compared with 1931. Since even at the adjusted price-level the values of both purchased food and home-produced food had increased, it is fair to as- 1934} LIVING EXPENDITURES OF ILLINOIS FARM FAMILIES 389 sume that the total amounts of food used per family must have been greater in 1931 than in 1932 and considerably greater in 1931 than in 1930. This assumption is further borne out by the fact that the records show no change in the type of food used, such as out-of-season or luxury foods. It would be reasonable to assume that the higher food cost per family in 1931 might have been due partly to the larger number of members in the household that year (page 369). In 1931, because of 1930 1931 1932 1930 1931 VALUE AT CURRENT PRICES I I I I Y//y/y/WW///////S^^^ 547 Y//S///&///&//////7^^^ Y//y///////VS//////^^^^ 448 DOLLAR [ 499 VALUE A DJUSTED 7 "O PURCHA I SING POWER OF FOOD l 1932 i 100 200 300 DOLLARS 400 500 600 FIG. 4. TOTAL VALUE PER FAMILY OF FOOD USED BY ACCOUNT-KEEPING FAMILIES, AND VALUE ADJUSTED TO THE CHANGED PURCHASING POWER OF THE FOOD DOLLAR These farm families on the average consumed more food in 1931 and in 1932 than in 1930, as shown by a comparison of the total values per family of food consumed, both purchased and home-produced, adjusted to the changed purchasing power of the food dollar in 1930, 1931, and 1932. the combining of households, 18 grandparents lived in the homes of the 159 families for nine months or more, while in 1930 only one grand- parent and one aunt lived in the homes of the 111 families. Only 7 grandparents were included in the household of the 1932 families. The number of grown children dependent on the family for food and shelter was 4 in both 1930 and 1931, and 11 in 1932. The number of grown children in the household in 1932,' however, did not offset the larger number of relatives in the home in 1931. The increase in food cost per family in 1931 was not due to an increase in hired help. The hired help during these years was prac- tically limited to farm help, only 18 percent of the families keeping a hired man for nine months or more in 1931 compared with 21 per- cent in 1930. Since the data for the three years are not comparable as to age, sex, and number of members, it is necessary to ascertain the number 390 BULLETIN No. 406 [September, of adult male units per family in order to have a basis for compari- son. Dr. Edith Hawley's scale of adult male units, which takes into consideration the energy requirements of all members of the family according to sex, age, and activity of each member, is used in this study. 1 The average number of adult male units for each income-level and the daily food cost per unit are indicated in Table 17. The average daily food cost per adult male unit was 43 cents in 1930, 40 cents in 1931, and 31 cents in 1932. When these figures are adjusted to the changed purchasing power of the food dollar, the average meal cost per day was 31 cents in 1930, 36 cents in 1931, and 34 cents in 1932. Thus the higher food costs in 1931, on the basis of purchasing power (Fig. 4), were in reality not due to the larger household. The lower food cost in 1930 per adult unit must have been due partly to better management of this more selected group of families. The infor- mation on pages 372 to 374 leads one to believe that the 1931 families as a whole were the least selected group and probably were much less skilled in their food management. Another explanation for the higher food cost in 1931 over 1932, when costs are adjusted to the change in price-level, may be found in the slow adjustment made by many homemakers during this period to the greater purchasing power of the dollar. The daily food cost of the 56 identical families over the same three- year period will help check the above point. The daily adult food cost for the identical families was 43 cents in 1930, 38 cents in 1931, and 31 cents in 1932. When these figures are adjusted, for comparison, to the change in purchasing power of the food dollar for each of these years, the meal cost is 31 cents in 1930, 34 cents in 1931, and 34 cents in 1932. This would serve to show that this more selected group of families, which kept continuous records, was probably also slow to realize the changing price-level of foods. The changes in the amounts of home-produced food used by these farm families have been directly affected by the "Live at Home" proj- ects emphasized by the University in its agricultural and home econom- ics extension work. The actual amounts spent for purchased food were reduced less from 1930 to 1931 than from 1931 to 1932, partly because of the larger use made of home-produced food in 1932. The reduction in the actual amounts spent for purchased food over the three-year period, however, was due largely to reduced incomes. 'Dietary Scales and Standard for Measuring a Family's Nutritive Needs, U.S. Department of Agriculture, Technical Bulletin 8, p. 28. LIVING EXPENDITURES OK ILLINOIS FARM FAMILIES 391 2 a II ^ U oi ") *** OOM-OO - " T A j 2 ^ o s H H a O w o p 09 a H tf> Q H 3 (B B i 1 s * 3 2 & a i * f^ O 00 *O S-^f5 V> f! & o 1 .,, . .. (S aa*S=8 5 If 1 !! 3 "5 c M (S I 'O'Ji'OWW;* O> s i SJ g ^ 3 i -_. r /; ^ in i I vi"*^" * 8 ri i :::::: "3 :::::: :::... >, 1 ] a HMM || ::::: 3 8 S*S^S^ ^g | ( g Vi"** ^ fl< 392 BULLETIN No. 406 [September, Operating Expenditures The percentage of the total realized income used for operating expenditures was the same for all three years (8 percent), but there was a different distribution of the items that made up operating ex- penses (Table 18). Expenditures for light, power, telephone, and small supplies were reduced, on the average, very little during the three-year period. One explanation for this may be that the cost of utilities was not lowered to the same extent as the cost of other items. Any considerable reduction in operating expenditures would mean a change in the family's mode of living. These families, by increasing their home production and reducing their paid services, were able to retain their home conveniences and avoid any very radical change in their mode of living (see pages 397 to 399). Nearly a 50-percent reduction in purchased fuel, ice, and paid services occurred between 1930 and 1932. The reduction in purchased fuel was partly the result of using home-grown wood and cobs, and partly the result of heating fewer rooms. Tho ice and paid services were, on the average, low for all families (only $6 a year in the higher income year of 1930), yet they were reduced by half in 1932. Higher operating costs occurred at the higher income-levels, except in the highest income-group in 1931, which group of families made the greatest reductions in operating expenditures by lowering their paid services. Shelter Shelter charges include the yearly rental value of the house (esti- mated as 10 percent of its total value minus all cash expenditures for the upkeep of the house, such as repairs, replacements, and fire in- surance premiums). Taxes are not taken into consideration, for they are charged against the farm business. For a tenant family the rental value without any deductions is ordinarily taken as the rental charge. But if the tenant family makes any outlay for repairs, etc., not re- funded by the landlord, then deductions are made as explained above. The rental value of the farm dwelling during the three-year period constituted a large proportion of the cost of shelter (Table 19). The average amount spent per family for repairs was $39 in 1930, $30 in 1931, and $10 in 1932. This small amount was used for emergency expenditures, such as those for window panes and paint, and was borne by both tenants and owners. Furnishings and furniture expenditures are considered as shelter costs (Table 19). A very decided reduction in these expenditures 1934] LIVING EXPENDITURES OF ILLINOIS FARM FAMILIES 393 TABLE 19. AVERAGE DISTRIBUTION OF SHELTER EXPENDITURES IN ACCOUNT- KEEPING FAMILIES AT DIFFERENT LEVELS OF REALIZED INCOME Realized income Rental value of house 1 Cash spent for repairs* Cash spent for furnishings 1930 1931 1932 1930 1931 1932 1930 1931 1932 * 500-2 999 2200 243 307 276 271 421 $296 13 2158 245 292 397 297 264 $267 15 2177 252 273 279 288 $236 18 2 18 20 55 57 55 $39 2 2 20 10 10 60 103 70 $30 2 2 5 9 12 19 42 $10 1 2 22 23 51 101 134 142 $83 4 216 26 40 46 63 80 $38 2 214 19 47 67 48 $26 2 1 000- 1 499 1 500- 1 999 2 000- 2 499 2 500- 2 999 . 3 000 and over Average Percent of total money value of living and savings 'Ten percent of t IK- estimated total value of the house minus all cash repairs, fire insurance, etc., is figured as a year's rental value. 'Including fire insurance premiums. occurred during the three-year period, the 1930 families spending an average of $83 a family, the 1931 families $38, and the 1932 families only $26. A direct relationship apparently existed between size of income and the amount spent for each of the shelter items, for as the income- level increased, expenditures for each of these items increased. All cash items were markedly lower in 1932 than in 1930 and 1931, especially in the highest and lowest income-groups. This decrease was probably due to lack of funds in the lowest income-group and to cash obligations in the highest group. Clothing The proportion of the realized income spent for clothing changed little during the three-year period, being 8 percent for the 1930 and 1931 groups and 7 percent for the 1932 group, but since incomes were declining during this time this means that much smaller amounts were spent for clothing in 1931 and 1932. The distribution of clothing money between husbands and wives is indicated for the three-year period in Table 20. A greater reduction occurred in the amounts of money spent by the wives for their cloth- ing during the three years than by the husbands. In the 1930 group of families the husbands' average clothing cost was 20 percent of the $175 total clothing money, in the 1931 group it was 20 percent of $123, and in the 1932 group it was 22 percent of $91. The wives' average clothing cost was 36 percent of the total clothing money in 1930, 35 394 BULLETIN No. 406 [September, percent in 1931, and 31 percent in 1932. With the lowered incomes of 1932 the range of expenditures by the wives narrowed greatly from a range of $8 to $292 in 1930, to a range of $3 to $117 in 1932. This marked decline in the clothing cost of the wives, compared with that of the husbands, is probably explained by the relative ease with which women's and children's clothing can be made over, thus TABLE 20. AVERAGE CLOTHING COSTS OF HUSBANDS AND WIVES IN ACCOUNT- KEEPING FAMILIES AT DIFFERENT LEVELS OF REALIZED INCOME Realized income 1930111 families 1931 159 families 1932 159 families Num- ber of fami- lies Average clothing cost Num- ber of fami- lies Average clothing cost Num- ber of fami- lies Average clothing cost Hus- bands Wives Hus- bands Wives Hus- bands Wives $ 500-$ 999 1 18 32 31 15 14 $10 24 27 39 51 42 $35 $10 34 52 68 77 95 $63 15 58 37 26 11 12 $17 21 25 28 29 46 $25 $24 32 43 55 69 76 $43 47 69 30 9 4 $17 18 22 33 47 $20 $22 25 33 58 54 $28 1 000- 1 499 1 500- 1 999 2 000- 2 499 2 500- 2 999 ... 3 000 and over. . . . Average avoiding expenditures for new materials. 1 (No time charge is made for the work remodeling entails.) The clothing expenditures of children of all age-groups and of both sexes declined during the three-year period. The amount of money spent per capita for clothing was related to the number of chil- dren in the family, but the amount of income available and the ages of the children exerted a greater influence. The changing averages for children's clothing expenditures on different income-levels are given for the three-year period in Table 21. The income-level did not seem to influence children's clothing expenditures very materially until the realized income reached $2,000 or above. This is true for all three years. The average yearly clothing cost for boys of preschool age de- clined from $20 in 1930 to $10 in 1932. For girls of preschool age, the average was about the same as for the boys. For boys of grade- school age the average declined from $28 in 1930 to $15 in 1932. For girls of grade-school age clothing costs were a little higher than for "'Clothing clinics" organized by the Home Economics Extension Service have broadened the interest in this kind of economy. 1934] LIVING EXPENDITURES OF ILLINOIS FARM FAMILIES 395 B w 3 C 2 O u s& ~ < 00 o 1 o E 3 *f z "o B w 5 3 C 3 X ji 5 o a 1 I 3 5Z ^^ 3 C i "C |8 >. * O I 2 S - 3 O " r- o - ts m -n OO 00r"i TJ-IO O WiO (Nt-O 00 . XX (NO -O W >O (S (M (N O 396 BULLETIN No. 406 [September, the boys, the proportional decline over the three-year period being about the same for each group. For boys of high-school age the cloth- ing costs averaged $48 in 1930 and $25 in 1932. For girls of high- school age the clothing expenditures were $123 in 1930 (about 2y times as great as those of the boys) and $49 in 1932, or about twice as much as the boys' expenditures for that year. The boys of high-school age spent more for clothing than their fathers. The disparity between the fathers' clothing expenses and those of the sons of high-school age, however, was much less than that between the mothers' clothing expenses and those of the daughters of high-school age. The needs of the high-school girl may be greater than those of her mother, but there would seem to be too great a dis- parity between their expenditures when the daughter spends about twice as much as her mother per year for clothing. The average total expenditure per family for clothing between 1930 and 1932 declined more than the price-level change for clothing, in- dicating that less clothing was bought. The reduction per family in the actual amount spent for clothing between 1930 and 1932 amounted to 48 percent. General Expenditures General expenditures, including those for transportation, health, recreation, education, church, gifts, and personal items, declined more than any other class of expenditures between 1930 and 1932. Twenty- five percent of the total realized income, or $537, was spent by the 1930 families for general expenditures in contrast to 19 percent, or $245, spent by the 1932 families, a decline over the three-year period of 54 percent. Apparently these families were, on the average, somewhat re- luctant to reduce certain general expenditures, such as those for edu- cation, health, church, and personal needs (Fig. 5). The decline in these expenses over the three-year period was more gradual and less drastic than the decline in those for recreation, gifts, and automobile. The automobile and transportation expense per family was reduced 59 percent from 1930 to 1932; gifts, 65 percent; and recreation, 76 percent. Even tho the recreation cash expense was radically reduced, the families were having a good time participating in community parties, in combination picnics and dinners, and in getting acquainted with their neighbors, according to comments made by them in personal conferences with the writer. The largest proportion of the personal expense was for the husbands' smoking tobacco. The husbands who smoked spent an average of about $18 a year for tobacco. 1934] LIVING EXPENDITURES OF ILLINOIS FARM FAMILIES 397 1930 1931 1932 1930 1931 1932 1930 1931 1932 1930 1931 1932 1930 1931 1932 1930 1931 1932 1930 1931 1932 AUTOMOBILE EDUCATION '//////////!( 4\ RECREATION Y//y///S///Y//YZM\lQ 17 HEALTH Y///////////////A** CHURCH Y////////////J 2.* 49 PERSONAL Y////////A*~1 Y/////A2S 23 103 180 50 100 DOLLARS 150 200 FIG. 5. DISTRIBUTION OF GENERAL EXPENDITURES IN ACCOUNT-KEEPING FAMILIES The decline in the amount of money spent for education, health, church, and personal items during the three years of this study was more gradual and less drastic than the decline in the amount spent for recreation, gifts, and auto- mobile. Home-Production Activities During this period of lowered income homemakers increased their home-production activities. Nearly half the homemakers in the 1931 and 1932 families made their own bread in the winter ; about one-third of them made it in the 398 BULLETIN No. 406 [September, summer (Table 22). There are several explanations for homemakers' making bread in winter and not in summer. The fuel cost is less in the winter, for the kitchen range is being used for heating as well as for cooking. In cold weather it is often difficult for farm families to get to town to purchase commercial bread. Then, too, more bread TABLE 22. FOOD PRODUCED FOR HOME CONSUMPTION BY ACCOUNT-KEEPING FAMILIES AT DIFFERENT LEVELS OF REALIZED INCOME Realized income Num- ber of fami- lies Number of homemakers making the following for home use Percent of homemakers making the following for home use Bread Rolls Cake Butter Bread Rolls Cake Butter All year In winter All year In winter 1931132 families $ 50O-$ 999. 14 8 11 11 14 11 57 78 78 100 78 1 000- 1 499. 42 15 19 26 42 35 36 45 62 100 83 1 500- 1 999. 29 11 15 26 29 24 38 52 89 100 83 2 000- 2 499. 29 7 14 23 29 19 24 48 80 100 65 2 500- 2 999. 9 2 3 9 9 8 22 33 100 100 88 3 000 and over 9 3 3 5 9 7 33 33 55 100 77 Total 132 46 65 100 132 104 Average 35 49 76 100 79 1932129 families $ 500-$ 999. 36 19 24 25 36 29 53 67 69 100 81 1 000- 1 499. 55 11 22 34 55 49 20 40 62 100 89 1 500- 1 999. 25 8 12 18 25 17 32 48 72 100 68 2 000- 2 499. 9 3 4 8 9 5 33 44 87 100 56 2 500- 2 999. 4 2 2 3 4 2 50 50 75 100 50 Total 129 43 64 88 129 102 Average 33 49 68 100 79 is needed in winter to help in supplying the family's energy require- ment. The long baking process for bread in the summer increases the temperature of the kitchen and requires the homemaker to be in or near the kitchen. In the lowest income-group, however, more than half the homemakers (57 percent in 1931 and 53 percent in 1932) made their own bread thruout the year. In 1931 and 1932 the homemakers made all the cakes consumed by the family. It is interesting to note that the same number of homemakers in both groups of families (79 percent in 1931 and in 1932) made their butter for home consumption. In 1932 the income-level appeared to be a controlling factor, for in the lower income-groups a larger per- 1934] LIVING EXPENDITURES OF ILLINOIS FARM FAMILIES 399 centage of the homemakers made their own butter than in the higher income-groups. In 1931, however, the income-level seemed to have little effect on home-production activities. Only three homemakers among the 1931 families did not have the laundry done at home, but all did their own ironing. Four home- makers in the 1932 group sent their laundry away to be done, but all did their ironing at home. It is surprising that the lowered incomes in 1931 and 1932 did not seem to affect the sewing activities of the homemakers (Table 23). TABLE 23. AMOUNT OF SEWING DONE BY ACCOUNT-KEEPING FAMILIES AT DIFFER- ENT LEVELS OF REALIZED INCOME Realized income Number of families Number of homemakers doing sewing Percent of sewing done by homemakers All Part None All Part None 1931132 families $ 500-$ 999. 14 4 10 28 72 1 OOO- 1 499. 42 12 29 1 29 69 2 1 500- 1 999. 29 6 22 1 21 76 3 2 000- 2 499. 29 7 22 24 76 2 500- 2 999. 9 1 7 1 11 78 11 3 000 and over 9 1 8 11 89 Total 132 31 98 3 Average 24 74 2 1932129 families $ 500-$ 999. 36 9 25 2 25 69 6 1 OOO- 1 499. 55 10 44 1 18 80 2 1 500- 1 999. 25 5 20 20 80 2 000- 2 499. 9 2 6 1 22 67 1 2 500- 2 999. 4 4' 100 Total 129 26 99 4 Average 20 77 3 "Only mending. Fewer women did all their sewing, exclusive of overcoats, hats, etc., on the lowered income of 1932 than on that of 1931. Twenty percent did all their sewing and 77 percent part of it in 1932, while 24 percent did all and 74 percent part in 1931. Ill-fitting glasses, or the lack of glasses when they were needed, was one reason for some of these women doing little sewing. Individual entries in the account books indicate that the sewing largely concerned made-over clothing and mending, for very few yards of goods were purchased. Many times the homemakers are confronted with the question of intelligent choices in the use of time to gain the greatest benefit. In 400 BULLETIN No. 406 [September, 1931 and 1932 they probably turned their attention more and more to production and preparation of home-produced foods. It will be remembered that the food produced for home consumption during these years increased markedly, being on the average 70 percent of the total food consumed in 1932, and in extreme cases 90 percent (see pages 386 to 391). EXPENDITURES OF 56 IDENTICAL FAMILIES OVER THREE-YEAR PERIOD It has frequently been pointed out that the 1930, 1931, and 1932 groups of families are not completely comparable. For the purpose of comparison, the spending of 56 identical families in the above groups was analyzed for the same three-year period (Fig. 6). The total realized income of these 56 families and the changes made in the distribution of their income are given in Table 24. The total realized income shows a 40 percent decline from 1930 to 1932. The decline in cash income available for family use was even greater, being 52 percent. The average cash income of $1,794 in 1930 was supplemented with $663 worth of commodities furnished by the farm, while the average cash income of $863 in 1932 was supplemented with $602. On the lowered income of 1932, the $602 worth of commodities furnished by the farm constituted 41 percent of the total realized income, but the $663 in 1930 constituted only 27 percent of the total realized income. Thus commodities furnished by the farm in the form of home-pro- duced food and shelter became of increasing importance to the family living as cash incomes declined. Expenditures for furnishings, repairs, and recreation were re- duced 72 percent from 1930 to 1932, for cash gifts 67 percent, edu- cation 60 percent, automobile 57 percent, and savings 56 percent. Ex- penditures for clothing were reduced 46 percent during the same period, operating expenditures 44 percent, personal items 43 percent, church 40 percent, purchased food 37 percent, and health 35 percent. The changes made in distribution of the total realized income are given in Table 25 for the 111 families in 1930, the 159 families in 1931, and the 159 families in 1932. In these larger groups of families the percentage reduction from 1930 to 1932 in the total realized income and the decline in cash available for family living were exactly the same as in the group of identical families for the same period 40 percent and 52 percent respectively. 1934] LIVING EXPENDITURES OF ILLINOIS FARM FAMILIES 401 The percentage reduction from 1930 to 1932 in the average amounts of money spent by the larger groups of families for the dif- ferent purposes indicated corresponds closely to the percentage re- DOLLARS 100 200 300 400 500 600 1930-31 RECREATION '3I--32 3^33 FIG. 6. CHANGES MADE IN SPENDING BY 56 IDENTICAL FARM FAMILIES IN 1930, 1931, AND 1932 In both 1931 and 1932 savings and all divisions of expenditures except health showed a marked decline from the 1930 totals. The greatest decline for the three years was in cash spent for repairs and furnishings (shelter), recreation, gifts, education, automobile, and savings. 402 BULLETIN No. 406 [September, TABLE 24. CHANGES MADE DURING A THREE-YEAR PERIOD IN DISTRIBUTION OF AVERAGE MONEY VALUE OF LIVING AND SAVINGS OF 56 IDENTICAL ILLINOIS ACCOUNT-KEEPING FARM FAMILIES Item 1930 1931 1932 Percent reduction from 1930 to 1932 Number of farm families in group 56 56 56 Number of adult male units per family 3.7 3.7 3.7 Average money value of living and savings per family Average cash living and savings $2457 1794 $1998 1332 $1465 863 40 52 Average money value of commodities and services fur- nished by farm 663 666 602 Savings 431 317 191 56 Food Purchased 233 205 146 37 Raised 340 359 322 Operating Cash 205 148 114 44 Fuel furnished 5 11 9 Shelter House furnished 314 290 266 Repairs and furnishings 140 84 39 72 Clothing 183 135 99 46 General expenditures Auto 197 131 84 57 Health 69 73 45 35 Recreation . . . . 76 36 21 72 Education 109 85 47 60 Church 56 49 35 40 Gifts Cash 49 35 16 67 Raised products 4 6 5 Personal 46 34 26 43 duction in the same expenditures of the identical families. The great- est retrenchment in expenditures of both groups of families was in recreation, gifts, and repairs and furnishings. The reductions in ex- penditures for automobile, savings, clothing, and education also cor- responded closely to the percentage reductions for the identical fami- lies. The lower percentage retrenchments for church, operating, per- sonal items, purchased food, and health also occurred in the group of identical families. It is encouraging that in the three larger groups of families and in the group of 56 identical families the divisions of expenditures least reduced were those for health preservation and for food. If purchased food consumed is interpreted on the basis of the purchasing power of the food dollar, its consumption is seen to have been not materially reduced, since the estimated price change of food was 34 percent and the percentage reduction in value of food consumed by the larger groups of families was 36 percent and by the identical families 37 percent. Greater retrenchment occurred in health expenditures than 1934] 403 TABLE 25. CHANGES MADE BY ILLINOIS ACCOUNT-KEEPING FARM FAMILIES DUR- ING A THREE- YEAR PERIOD IN THE DISTRIBUTION OF THEIR REALIZED INCOMES Item 1930 1931 1932 Percent reduction from 1930 to 1932 111 159 159 Number of adult male units per family 3 6 3.4 3.6 Average money value of living and savings per family Average cash living and savings $2190 1555 21791 1146 21308 748 40 52 Average money value of commodities and services fur- nished by farm 635 645 560 Savings 331 274 139 58 Food Purchased 220 195 141 36 Raised 327 361 307 Operating Cash ' 175 136 102 42 Fuel furnished 7 9 11 Shelter House furnished 296 267 236 Repairs and furnishings 122 68 36 71 Clothing 175 123 91 48 General expenditures Auto 180 103 74 59 Health 63 68 41 35 70 29 17 76 Education 79 54 41 48 Church 49 39 28 43 Gifts Cash 54 31 15 72 Raised products . 5 8 6 Personal 37 26 23 38 in food, for not only did actual dollar expenditures for health decline, but the purchasing power of the health dollar remained practically the same, physicians' fees, which were the principal item under health ex- penditures, remaining on the whole practically unchanged thruout the three years. On the basis of the change in the purchasing power of the clothing dollar, which is estimated to have declined 25 percent between 1930 and 1932, the actual reduction in clothing expenditures was only about 21 percent in the group of identical families and 23 percent in the larger groups. The expenditures for repairs and furnishings during this same period declined 72 percent in the group of identical families and 71 percent in the larger groups. On the basis of purchasing power these reductions would represent actual reductions of only 43 and 47 per- cent respectively. For the three large groups of families and the group of identical families retrenchment in the various divisions of expenditures occurred in the same order. The greatest retrenchment was in recreation, then 404 BULLETIN No. 406 [September, in gifts, then in automobile, savings, education, repairs and furnish- ings, church, operating, personal items, health, and the least in cloth- ing. The foregoing statements are based on consumption values as indicated by the changed purchasing power of the dollar. Food con- sumption not only was not reduced, but the figures indicate that it was increased when the changed purchasing power of the food dollar is taken into consideration. The increase in food consumption consisted entirely of home-produced food. The similarity between the living expenditures of the 56 identical families from 1930 to 1932 and those of the larger groups of families during the same period indicates the degree of reliance that can be placed upon comparisons between the expenditures in the larger groups. Evidently what differences there were in the composition of the larger groups of families were not an important cause of the differences that occurred in the expenditures of these groups; chang- ing economic conditions, or at least the processes of adjusting to changed economic conditions, it may be assumed are faithfully re- flected in the histories of these three groups of farm families. SUMMARY Home-account records of 429 farm families covering the three years 1930, 1931, 1932 are analyzed in this report. Family Characteristics and Surroundings. The average number of members per family was 3.8 in 1930, 3.9 in 1931, and 4.1 in 1932. In at least 40 percent of the families one parent had attended college, while in 17 percent both parents had attended college. Of the 1930 families 63.5 percent were owners of the farms on which they lived. Among the 1931 and 1932 families 47 percent were owners. The number of acres farmed by these three groups of fami- lies averaged 202, 209, and 216 acres per farm respectively. The number of rooms in the houses occupied by the 1930 group of families was 8, the 1931 families 7, and the 1932 families 7.7. A heating plant of modern type was in use in more than half the homes each year. Electricity was used for lighting in slightly less than half the homes. Running water under pressure was used in 38 to 42i/ percent of the homes. Realized Income. The average realized income of the 111 families in 1930 was $2,190, of which $635 was the money value of commodi- ties and services furnished by the farm. 1934] LIVING EXPENDITURES OK ILLINOIS FARM FAMILIES 405 The 159 families in 1931 had an average realized income of $1,791, of which $645 was the money value of the home-produced food, fuel, and rental value of the farm dwelling. The 159 families in 1932 had an average realized income of $1,308, of which $560 was the money value of the commodities and services furnished by the farm. There was a tendency over the three-year period to use savings to offset a declining income and to supplement income by obtaining work away from the farm. Utilization of Family Income. The lower income-groups put a higher proportion of their savings into life insurance. The higher in- come-groups used other forms of investments to a greater extent than did the lower income-groups. On the basis of purchasing power, the amount of home-produced food consumed by the families in 1931 increased considerably over that for 1930 but the increase between 1931 and 1932 was only slight. The average daily food cost per adult male unit was 43 cents in 1930, 40 cents in 1931, and 31 cents in 1932. The reduction in the amounts spent for purchased food from 1930 to 1932 was due largely to reduced income. The reduction from 1930 to 1931 was less than that from 1931 to 1932, partly because of the slow adjustment made by many homemakers during this period to the greater purchasing power of the dollar. There has been a definite tendency to retain home conveniences and to make adjustments by producing at home a greater proportion of needed commodities. Eight percent of the total realized income was used each year for operating expenditures. Cash expenditures for shelter decreased markedly in 1932 in com- parison with those for the other two years, especially in the highest and lowest income-groups. The average amount spent per family for repairs for the home was $39 in 1930 but only $10 in 1932. Furnish- ings and furniture expenditures per family declined from $83 in 1930 to $26 in 1932. The average amount spent per family for clothing declined 48 percent from 1930 to 1932, which was an even greater decline than occurred in the clothing price-level. The amount of money spent for the wives' clothing was reduced more than that spent for the husbands'. General expenditures transportation, health, recreation, education, church, gifts, and personal items declined more than any other class of expenditures between 1930 and 1932. 406 BULLETIN No. 406 Comparison With Identical Families. In the three large groups of families the percentage reduction from 1930 to 1932 in the total realized income and the decline in cash available for family living were exactly the same as in the group of 56 identical families for the same period 40 percent and 52 percent respectively. The percentage reduction in the average amounts of money spent by the larger groups of families for the different purposes indicated corresponds closely to the percentage reduction in the same expendi- tures of the identical families. The similarity between the living expenditures of the three large groups of families and those of the identical families would seem to indicate that the variations in the composition of the larger groups was not a significant factor in causing the variation in incomes and income distribution that occurred in the larger groups from year to year. Comparative Retrenchment in Different Classes of Expenditures. On the basis of purchasing power of the dollar, the percentage of re- trenchment in expenditures from 1930 to 1932, on the average, for all families studied was greatest in recreation, next in gifts, then in auto- mobile, savings, education, repairs and furnishings, church, operating, personal items, health, and the least in clothing. Food consumption increased, the increase consisting entirely of home-produced food. UNIVERSITY OF ILLINOIS-URBANA