The higher life.—There are other needs of family life for which money must be spent besides the material ones of food, shelter, and clothing. In the division of some family incomes little thought is given to this phase of living. After the income reaches a certain amount, it is possible so to plan that education, recreation, philanthropy, and savings all figure in the division of expenditures. Some writers say that 25 per cent of the income of $1000 to $5000 should be spent in this way. If thought is given to this, it would mean opportunities for books, periodicals, lectures, and membership in societies; some travel and vacation, social clubs, theaters and concerts; charity and church expenditures; life insurance and other savings. It is the idea of ownership of property, of homes, of possessions of all kinds that has led from primitive living to advanced civilization. And with advanced civilization comes the need for the higher life which should be satisfied and can be through wise division of funds. The choice of things to satisfy this higher life rests with the individual; it may be music, it may be the cultivation of altruistic feeling in the help given to neighbors; it may be a bank account for some future good, or money spent on excursions, lectures, or theater. Whatever it is, it satisfies the emotional, spiritual, and intellectual life of man and distinguishes him as one of advanced civilization.

Savings.—Something should be saved yearly even if at first it is but little. Small amounts put away regularly in a savings bank mount up to a considerable sum at compound interest, for regular saving is the only kind that counts. Life and sickness insurance are other forms of saving.

Allowances.—Each member of the family should have a personal allowance, even though it is small. One mother gave each of her children five cents a week, beginning at five years of age, and increasing a cent a week each year, until they were old enough to be trusted with more. Even at this age opposite characteristics showed themselves. One boy saved his allowance until he had a quarter to spend at one time; another was in debt before the end of the week. Each had a bank, and kept accounts, as well. It is sometimes better for a child if he “earns” his allowances by performance of such household duties as seem best adapted to promote his development.

Suggested and typical budgets.—In preparation for the division of one’s income it is helpful to study the budgets of other families or individuals. Mrs. Richards in her book on “The Cost of Living” gives a theoretical division of incomes, which is shown in the accompanying table headed Suggested Budgets. It is interesting to study this account and then those of families who have worked out their problems (either with or without the preparation of definite budgets in advance) as shown in the table of Typical Budgets.

In New York City it has been estimated by those studying the problems of the cost of living of to-day that it is impossible for the average family of mother, father, and three children under 14 years to get food enough to keep the body in good condition with clothing and shelter to meet the most urgent demands of decency for less than $900.

This amount in other localities would probably buy more. This means that in New York City for $900 a family of five can have a very bare existence, and that with $1000 this family can begin to maintain a decent standard of living unless there is long sickness or other catastrophe. At $1200 a normal family standard can be maintained so as to preserve health, and so that the family will have opportunities to develop in a self-respecting manner. When one considers that many families subsist on $500 or $600 a year, it is necessarily under conditions of shelter and with limitations of food and clothing, not conducive to the best development.

Suggested Budgets[23]

Key: F  Food R  Rent O  Operating expenses, Wages, Fuel, Light, ETC. C  Clothes H  Higher Life, Books, Travel, Church, Charity, Savings, Insurance

Percentage for
Family IncomeFROCH
Two adults and
two or three children
(equal to four adults):
  Ideal division2520±15±1525
  $2000 to $40002520±15±2020
  $800 to $10003020101525
  $500 to $8004515101020
  Under $500601551010