KEEPING HOUSEHOLD ACCOUNTS

7. NECESSITY FOR KEEPING ACCOUNTS.--Practically every family is limited to a definite sum of money that may be spent for food. The first consideration, then, while it may not be the most important one, is that of making each dollar buy all that it possibly can in order that the income may meet all the demands upon it. Various conditions arise that affect the proportion of the income to be used for this purpose. For instance, two women whose husbands have equal incomes would, under the same conditions, have an equal amount of money to spend for food, but as a rule there is something to cause this amount to become unequal. One woman may have two children in her family while the other has none, a condition that means, of course, that the woman with the children will have less money to spend for food and with that money she must feed more persons. Her family must be, if possible, as well nourished as the other one. In order to accomplish this task, it will be necessary to supply all the required food material in a form that will cost less than the food purchased by the woman who has a smaller family to feed and clothe.

An excellent way in which to keep expenses down and consequently to live within one's income is to keep a simple record of household expenses. Such a record will enable every housewife to determine just what each item of household necessities costs and whether or not the proportion of cost to income is correct. To keep a record of expenditures will not prove much of a task if it is done systematically, for a few minutes a day will be sufficient time in which to keep accounts up to date. However, if account keeping is attempted, it should not be neglected even for a day, for it will soon assume the proportions of a large task and will have a tendency to discourage the housewife with this part of her work.

8. EQUIPMENT FOR HOUSEHOLD ACCOUNT KEEPING.--For convenience in keeping household accounts, a small desk like the one shown in Fig. 1 should, if possible, be secured and placed in an unoccupied or convenient corner of the kitchen. Here can be kept cook books, recipes, suitable books or cards for account keeping, the marketing pad, a file for bills from the grocer and the butcher, labels for cans and jars, etc. Here may also be placed an extension telephone, which, by being so convenient, will save the housewife many steps. A white desk with a chair to match is the most attractive kind to select for kitchen use, but a dark one may be used if preferred. The desk illustrated was a simple wooden one that was enameled white after it was bought, but it is possible to buy white desks for this purpose. A small, plain table will, of course, answer very well if no desk is available and it is desired not to buy one.

9. METHODS OF HOUSEHOLD ACCOUNT KEEPING.--If the housewife runs a credit account with the grocer, she will learn that different grocers have different ways of recording her purchases.

In some cases, she is provided with a "store book," which she takes to the grocer each time she makes a purchase and in which he records the date and the items bought by her. Then at the end of a stated time, usually the end of the month, when a settlement is to be made, the amounts for the month are totaled and a new account is started. With such a plan, the housewife does not have to keep any record for herself. To be certain that the grocer's account is accurate, she simply has to check the entries each time they are made in the book by the grocer.

In other cases, the grocer merely makes out a slip, or bill, for each purchase and at the end of the month presents his statement for the amount due. In such an event, provided the housewife does not wish to make entries into a suitable book, she may file the slips as she receives them in order that she may check the grocer's monthly bill as to accuracy. A bill file like that shown in Fig. 2 is very convenient for the filing of bills. However, if she does not wish to save each slip she receives, she may adopt one of two methods of account keeping, depending on how much time she has to devote to this matter.

10. If she desires to be very systematic and has sufficient time, it will prove a good plan to record each purchase in a suitable book in the manner shown in Fig. 3. Books for this purpose can be purchased in any store where stationery is sold and are not expensive. In this method of recording, as a page becomes filled with items, the total is carried forward to each new page until the bill is paid at the end of the month. Then, for the next month, a new account may be started. This same method may also be followed in keeping accounts for meats, milk, and such household expenses as rent, light, heat, and laundry. All these accounts, together with an account for clothing and one for miscellaneous expense, make up a complete expense account.

GROCERY ACCOUNT

With ___John Smith, 420 Fourth Avenue__________
10/15	1 pk. Apples	$ .45
	1 doz. Eggs	.55
	1 lb. Butter	.53
	2 lb. Sweet Potatoes	.15
	2 cans Duff's Molasses	.54
	1 pt. Vinegar	.10
10/17	1 cake Yeast	.04
	6 lb. Crisco	1.98
	1 box Coconut	.35
	1 can Pineapple	.25
	1 lb. coffee	.40
	2 qt. Carrots	.10
10/19	1 box Matches	.10
	2 bars Laundry Soap	.12
	1 head Lettuce	.08
	1 can Corn	.20
	1 bu. Potatoes	2.00
	1 qt. Maple Sirup	.65
Forwarded		$8.59

FIG 3

11. A somewhat simpler plan and one that requires less time is shown in Fig. 4. When the slips are received, they should be checked to see whether they are correct and then added to get the total. Only this total, together with the date, is placed in the book kept for the purpose, the slips then being discarded. Such a plan will prove very satisfactory for the various household expenses if care is used in checking the items of the slips and in adding them.

Regarding the settlement of her accounts, the housewife who buys on credit will find it a good plan to pay her bills by check. Then receipts will not have to be saved, for the returned check is usually all that is required to prove that a bill has been paid.

12. The housewife who buys for cash does not necessarily have to keep a detailed record of her purchases, for by simply filing her purchase slips in the manner shown in Fig. 2 she can determine at any time what her money has been used for. Still, in every well-regulated household, it is advisable to keep a daily record of income and expenditure; that is, to put down every day how much is spent for food, laundry, cleaning, and, in fact, all expenditures, as well as how much cash is received. Indeed, if such an account is kept, the tendency of money to "slip away" will be checked and a saving of money is bound to result.

GROCERY ACCOUNT

With______John Smith, 420 Fourth Avenue_____
10/2	Groceries	$ 2.10
10/3	Groceries	2.76
10/6	Groceries	.42
10/8	Groceries	4.12
10/10	Groceries	1.09
10/13	Groceries	.32
10/15	Groceries	2.30
10/17	Groceries	2.13
10/20	Groceries	1.93
10/22	Groceries	3.97
10/24	Groceries	1.69
10/27	Groceries	4.10
10/29	Groceries	1.12
10/31	Groceries	3.35
Forwarded		$31.40

FIG. 4

13. A simple plan for keeping such a record is illustrated in Fig. 5. For this record it is possible to buy sheets of paper or cards already ruled at any stationery store, but it is a simple matter to rule sheets of blank paper that will answer the purpose very well. As will be observed, there is a space provided for every day of the month and columns into which may be placed the expenditures for groceries, including fruits and vegetables, as well as for meats and fish, milk, laundry and cleaning, and miscellaneous items, such as ice and other necessities that are not ordinarily classed as groceries. Of course, the number of columns to be used can be regulated by the person keeping the account, the illustration simply showing the general procedure. However, one column should be devoted to the daily expenditure, the figures here being the amounts of the total money spent for the different items each day. In the last column should be recorded the various amounts of money received by the housewife during the month for the settlement of her bills. At the end of the month, all of the columns should be totaled. The total of the daily outlay should equal that of the preceding columns. The difference between this total and that of the money received will show the housewife just how she stands with regard to income and expenditure for foods and kitchen supplies. In this case, there is an excess of expenditure amounting to $10.68, and this sum should be forwarded to the June account. On the other hand, should the housewife find that her expenses exceed her allowance, she will know that it will be necessary for her to curtail her expenditures in some way.

Expenditures and Receipts for the Month of ___May___, 19___
Date	Groceries	Meats and Fish	Milk	Laundry and Cleaning	Miscell- aneous Expend- itures	Daily Outlay	Money Rec'vd
1	$ 2.10	$.60	$.28	$ 1.50		$ 4.48	$ 5.70
2		.40	.28			.58
3	2.76	1.90	.28		$.35	5.29	15.00
4			.28			.28
5			.28			.28
6	.42		.28		.35	1.05
7		.36	.28		.10	.74
8	4.12		.28	2.00	.40	6.80
9			.28			.28
10	1.09	1.83	.28		.38	3.60	15.00
11			.28			.28
12			.28		.35	.63
13	.32	.76	.28			1.36
14			.28		.19	.47
15	2.30		.28	1.50	.12	4.20
16		.53	.28			.81
17	2.13	1.63	.28		.60	4.64	15.00
18			.28			.28
19			.28		.22	.50
20	1.93		.28		.40	2.61
21		.90	.28			1.18
22	3.97		.28	2.00	.40	6.65
23	2.10		.28			.28
24	2.10	2.24	.28		.80	5.01	15.00
25			.28		.10	.38
26			.28	1.50		1.78
27	4.10		.28		.35	4.73
28		.38	.28			.66
29	1.12	.46	.28	1.50	.40	3.76
30			.28			.28
31	3.35	1.87	.28		.55	6.05	15.00
Total	$31.40	$13.88	$ 8.68	$10.00	$ 6.66	$70.02	$80.70

FIG. 5

Such a method of record keeping could also be followed with good results for showing the distribution of the entire income of a family. It would simply mean the planning of suitable columns for the different items of expenditure.

14. Too much cannot be said of the merit of following some such simple account-keeping method as the ones here outlined, for, as has been explained, it will enable the housewife to know with a fair degree of accuracy what she has spent her money for. In addition to the satisfaction this will give, it will supply a basis from which she can apportion, or budget, her yearly income if she so desires. By giving careful consideration to the various items of expense, she may find it possible to reduce some of them in order to increase her savings account or to have money for other items that require a larger expenditure.