The most important reason for attempting to classify our wants and our provision for their gratification, is that thereby we may provide ourselves with a definitely recognized standard which can be reckoned with, studied, and, from time to time improved. Man shares with the brutes a low or primitive range of desires consisting of the satisfying of the physical demands for food, rest, shelter and clothing. Gradually he comes to desire other things, his standard is raised, and by the repression of his desires in the lower range he is able to secure satisfaction in the higher. The day laborer necessarily has standards as to food which differ from those of the scholar. The scholar must expend more for dress, perhaps, regardless of the difference of income but this difference is not vital, since all genuine and legitimate differences seem to promote progress in the people. The danger lies rather in "accidental accompaniments" which are not necessities.

In deciding upon a standard of life, one acts upon his best judgment at the time, independent of others, except as he recognizes that he may improve his standard by comparison with theirs. "Style of living," on the contrary, is thrust upon one from without Accepting it, he becomes its slave, entirely dependent upon what "they" will say as to this or that expenditure, never upon the consideration of the real good to be derived.

Only by keeping an accurate record of expenditures can one follow the outgo so as to find how the standards of the family measure up to the ideal. Without indisputable facts in black and white one is easily deceived. It is natural to feel that economy is being practiced when many a coveted article is resisted. The year's bill with its record of many other indulgences is sometimes a rude but wholesome awakening. Twenty-five cents to-day and another to-morrow for some luxury in food seems too slight to take account of, but multiplied by three hundred and sixty-five the increase in the food-expense becomes a considerable sum. It is well to look frequently to aggregated expenses like these.

In arriving at a basis for the classification of expenditures it is helpful to compare those of a large number of families, studying the avenues of expense to determine in what way the maximum of health; physical, mental, and moral is reached. Several such comparative studies have been made and a few typical budgets have been selected to illustrate the method pursued in attacking the problem.

In making a classification of one's own, it will be most useful to decide upon a tentative division of the year's income under the heads which seem most valuable to keep as separate divisions. These proportions may be studied in per cents, or the salary for each week or month or quarter may be divided and the amount for each division reserved to defray the expenses which arise in connection with that division during the period. As time goes on one is able to see how accurately the provisional division was made to fit the needs.

Such a theoretical division should always be decided upon as a check to undue expenditure, as one will try to bring the actual expense within the limits that seemed wise to set when all things were taken into account at the time of deciding upon the proportions.

A regular income is the fortunate arrangement in many families. This tends to develop thrift and to remove the tendency to run up bills leading to debts. The tendency for such is to live up to the limit of the income and the division for saving and higher life in general is usually small. It is found that salaried people seldom get deeply in debt, but also seldom accumulate very much.

For those without regular and known income the problem of apportioning expenditures is very difficult. The only safe course is to determine upon a definite minimum income. The surplus will then be an unexpected pleasure.

The actual per cent of the income allowed for each division will depend chiefly upon two things; namely, the size of the income, and the ideals or standards of the family. The necessities of life must be provided and if the income is small, barely enough to cover these needs, there is little choice left but to spend all for them. Yet as a matter of fact, choice is possible for most families. While a large wage-earning class are receiving smaller incomes than one would wish, at the same time we find choice playing an important role in determining the purchases of the day laborer, as well as of those who are not limited for money. In fact, it is with those who can least afford to be governed by caprices that the most pitiful lawlessness in these things prevails because of ignorance.

Enlightenment through education in real values is needed by all alike, that correct divisions may be made and lived up to, and that the division for higher life, most often cut to a discreditably low per cent, may be recognized and properly provided for.

The following table from The Cost of Living by Mrs. Ellen H. Richards gives some actual and typical family budgets:

Real Values

Budgets

Typical Budgets

From these budgets it will be seen that little choice is given the families of most limited means. The necessities cost about the same for all. It is in the range of luxuries that the greatest divergence is to be found. Only there can limitations be wisely set. In those where choice is possible, one observes a variety of results, showing that one family preferred to economize in one way, another in another. The comforts to be secured through increase of rent appeal to one, those of additional service, another, and so throughout the list.

Extravagance is most frequently found in the Food and Operating expense divisions. Individual extravagance occurs most frequently in clothes.

With these actual and typical budgets in mind note the Budgets, as suggested by Mrs. Ellen H. Richards, which give the ideal theoretical division of incomes varying from $500 to $4000. The interest and profit to the housewife in the comparison of these widely differing standards will be the stimulus to keep systematic accounts, that she may be able to determine the percentages of her own family expenses. Such an account with its day of reckoning is an excellent moral support since one will learn to think twice over the temptation to spend for personal gratification, or for those things which have at best little to recommend them either for pleasure or profit.

Ideal Budgets

Four laws have been formulated by Dr. Engel, which state the tendency in the changes of per cents noted in such budgets as we have been considering:

Dr. Engel's Laws

1. The proportion between expenditure and nutriment grows in geometric progression in adverse ratio to well-being; in other words, the higher the income, the smaller is the per cent of cost of subsistence.

2. Clothing assumes and keeps a distinctly constant proportion in the whole.

3. Lodging, warming and lighting have an invariable proportion, whatever the income.

4. The more the income increases the greater is the proportion of the different expenses which express the degree of well-being.

Division Of Income Chart Typical Family of Two Adults and Three Children

Running Expenses include Wages, Fuel, Light, Ice, Etc. With $1,000 Income the Children Would be Educated in the Public Schools.

The above chart was adapted from a large colored chart prepared under the direction of Mrs. E. H. Richards for the Mary Lowell Stone Exhibit on Home Economics.

The classes of expenditure discussed in the following pages are those which, on the whole, best represent the different divisions into which money expenditure may fall. These are Rent, or its equivalent paid for shelter, Operating Expenses, such as fuel, light, wages and repairs, Food, Clothes and Higher Life. The latter includes all that ministers to mental and moral well-being, as education, travel, amusements, charities, savings and insurance. These will be considered in order.