Chapter 164
[Ill.u.s.tration: FIG. 1]
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.
[Ill.u.s.tration: FIG. 2]
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. b.u.t.ter......................|.53 | 2 lb. Sweet Potatoes..............|.15 | 2 cans Duff's Mola.s.ses............|.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 ill.u.s.trated 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 s.p.a.ce 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 cla.s.sed as groceries. Of course, the number of columns to be used can be regulated by the person keeping the account, the ill.u.s.tration 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___ ================================================================ | | Meats | |Laundry | Miscel-| | Date| Groc- | and | Milk | and | laneous| Daily | Money | eries | Fish | |Cleaning| Expend-| Outlay | Rec'vd | | | | | itures | | ---------------------------------------------------------------- 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 |
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.
COST OF FOODS
FACTORS INFLUENCING COST
15. Certain factors that enter into the production of food add so much to the cost that they must be taken into consideration when food is purchased. The housewife who disregards these factors fails in the purchase of food, for she does not know so well what foods to buy nor how to buy them in a way to keep down the cost as the woman who is familiar with these matters. It is possible that the cost of a food may be out of all proportion to its value because of the profits that must necessarily be paid to each person through whose hands the food pa.s.ses.
In the first place, the overhead expenses of the food dealer must be paid by the housewife, who is regarded as the _consumer_. These expenses include his rent, light, and heat, his hired help, such as clerks, bookkeepers, delivery men, and the cost of delivery. In addition, the cost of transportation figures in prominently if the foods have to be s.h.i.+pped any distance, the manufacturer's profit must often be counted in, and the cost of advertising must not be overlooked. With all such matters, the housewife must acquaint herself if she would buy in the most economical way.
[Ill.u.s.tration: FIG. 6]
16. CHART OF FOOD PROBLEM.--To a.s.sist the housewife in her mastery of the purchasing side of the food problem, a chart, Fig. 6, is presented.
This chart shows the various routes through which foods travel before they reach the housewife, or consumer. The lines used to connect all dealers from the producer to the consumer represent transportation or delivery, and the increase in cost due to overhead expense and profit is indicated by the black s.p.a.ces, which increase in size as the number of dealers increase. The _producer_ may be the manufacturer, but in most cases he is the farmer, the stockman, the dairyman, or the fruit grower. The dealers handling the food between the producer and the consumer are known as _middlemen_. They include the wholesaler, the jobber, and the retailer. The retailer is the grocer, the butcher, or the green grocer.
17. So that this chart may be clearly understood, several concrete examples are given. Thus, the farmer who delivers vegetables directly to the consumer is an example of plan No. 1. He has very little overhead expense and consequently can sell cheaper than dealers who have a large overhead expense. However, when the farmer delivers his vegetables to the grocer and the grocer sells them to the consumer, an example of plan No. 2 is afforded. Food bought in this way costs more than that bought directly from the farmer. In plan No. 3, the farmer, for instance, sells his vegetables to a wholesaler, who perhaps buys from other farmers and then sells small quant.i.ties of them to the grocer for sale to the consumer. This plan, as will readily be seen, is more involved than either No. 1 or No. 2, but a still more roundabout route is that of plan No. 4. In this case, for instance, the farmer sells his vegetables to a canning factory, where they are canned and then sold to the grocer, who sells them in this form to the consumer. Often two wholesalers, the second one being known as a jobber, are involved in the transaction, as in plan No. 5. In such an event, the farmer sells to the wholesaler, who sells to the jobber, who, in turn, sells to the grocer, from whom the consumer secures the goods. The most complicated route is that shown in plan No. 6. This ill.u.s.trates the case of the farmer who sells his cereal products to a manufacturer, who makes them up into breakfast foods. He then sells them in large quant.i.ties to the wholesaler, who sells them in 50- or 100-case lots to the jobber. From the jobber they go to the grocer, who delivers them to the consumer.
From a study of this chart, it can be readily seen that the cost of food may be reduced if the middlemen can be eliminated. For instance, the housewife will be able to get fruits and vegetables cheaper if she buys them from a farmer instead of a grocer, for she will not be called on to pay any of the grocer's overhead expense or profit. Again, if she buys her staple groceries in a store that is able to eliminate the wholesaler or the jobber, she will get them at a lower price than if she deals where these agencies must receive their share of the profits.
18. NATIONALLY ADVERTISED GOODS.--Much is said about the fact that the consumer, in buying package foods that are nationally advertised, must pay for the package and the advertising. This statement is absolutely true; but it must be remembered that where large quant.i.ties of foods are handled, the materials can be bought by the manufacturer or the wholesaler at a lower price than by one who purchases only a small amount. Then, too, if great quant.i.ties are sold, and this condition is made possible only through advertising, the profit on each package sold can be much smaller than that which would have to be made when less is sold. Often, therefore, in spite of the advertising cost, a widely advertised food can be sold for less than one that is not advertised at all because a much greater quant.i.ty is sold.
19. CHAIN STORES.--The principle of selling great quant.i.ties of food at a comparatively small profit on each item is put into practice in chain stores, which are operated by different companies throughout the United States. Such stores are a boon to the housewife who must practice economy, for they eliminate a middleman by acting both as wholesaler and as retailer. Because of this fact, foods that are purchased in large quant.i.ties from the producer or manufacturer can be offered to the consumer at a lower price than in a retail store not a part of a chain.
Therefore, if foods of the same quality are not lower in price in chain stores, it must be because the buying is not well done or a greater profit is made in selling them. In addition, chain stores generally require cash for all purchases made in them and they do not usually deliver goods. Consequently, their overhead expense is materially reduced and they do not need to make such a large profit.
ECONOMICAL BUYING
20. APPORTIONMENT OF INCOME.--When the housewife thoroughly understands the qualities of foods as well as their comparative food values and is familiar with the factors that govern food prices, she is well equipped to do economical buying for her family. Then it remains for her to purchase the right kind of food and at the same time keep within her means. A good plan is to apportion the household expenses according to a _budget_; that is, to prepare a statement of the financial plans for the year. Then the amount of money that can be used for this part of the household expenses will be known and the housewife will be able to plan definitely on what she can buy. If necessary, this amount may be reduced through the housewife's giving careful attention to the details of buying, or if she is not obliged to lower her expenses, she may occasionally purchase more expensive foods, which might be considered luxuries, to give variety to the diet. The amount of money that may be spent for food depends, of course, on the income, and the greater the income, the lower will be the proportion of money required for this item of the household expense.
21. To throw some light on the proper proportion of the family income to spend for food, Table I is given. As the basis of this table, a family of five is taken and the proportion that may be spent for food has been worked out for incomes ranging from $600 to $2,400 a year. As will be noted, an income of $600 permits an expenditure of only 19 cents a day for each person. When food prices are high, it will be a difficult matter to feed one person for that amount, and still if the income is only $600 it will be necessary to do this. To increase the food cost over 39 cents a day per person, which is the amount allotted for an income of $2,400, would denote extravagance or at least would provide more luxury than is warranted.
TABLE I
PROPORTION OF FAMILY INCOME FOR FOOD ================================================================ Income Per Cent. of Amount Spent Amount Spent Amount Spent per Income Spent per year for per Day for per Day per Year for Food Food Five Persons Person ---------------------------------------------------------------- $ 600 60 $360 $.98 $.19 800 55 500 1.36.27 1,000 50 576 1.57.31 1,200 48 576 1.57.31 1,500 44 660 1.80.36 1,800 39 702 1.92.38 2,400 30 720 1.97.39 ================================================================
Various conditions greatly affect this proportion. One of these is the rise and fall of the food cost. Theoretically, the buyer should adjust this difference in the food cost rather than increase her expenditures.
For instance, if in a certain year, the general cost of food is 20 per cent. greater than it was in the preceding year, the housewife should adjust her plan of buying so that for the same amount of money spent in the previous year she will be able to supply her family with what they need. Of course, if there is an increase in the income, it will not be so necessary to work out such an adjustment.
22. ECONOMIES IN PURCHASING FOOD.--Through her study of the preceding lessons, the student has had an opportunity to learn how to care for food in order to avoid loss and waste, how to prepare it so that it may be easily digested and a.s.similated, and how to make it appetizing and attractive so that as little as possible is left over and none is wasted. She should therefore be thoroughly acquainted with the methods of procedure in regard to all such matters and should have worked out to her satisfaction the best ways of accomplis.h.i.+ng these things to suit her individual needs. But, in addition to these matters, she must give strict attention to her food purchases if she would secure for her family the most wholesome and nouris.h.i.+ng foods for the least expenditure of money.
23. To purchase food that will provide the necessary food value for a small outlay is possible to a certain extent, but it cannot be done without the required knowledge. In the first place, it means that fewer luxuries can be indulged in and that the family dietary will have to be reduced to necessities. It may also mean that there will probably be a difference in the quality of the food purchased. For instance, it may be necessary to practice such economies as buying broken rice at a few cents a pound less than whole rice or purchasing smaller prunes with a greater number to the pound at a lower price than the larger, more desirable ones. The housewife need not hesitate in the least to adopt such economies as these, for they are undoubtedly the easiest ways in which to reduce the food expenses without causing detriment to any one.
24. Further economy can be practiced if a little extra attention is given in the purchase of certain foods. As is well known, the packages and cans containing food are labeled with the contents and the weight of the contents. These should be carefully observed, as should also the number of servings that may be obtained from the package or can. For instance, the housewife should know the weight per package of the various kinds of prepared cereals she uses and the number of servings she is able to procure from each package.
Let it be a.s.sumed that she buys two packages of different cereals at the same time, which, for convenience, may be called package No. 1 and package No. 2. She finds that No. 1 contains 16 ounces and No. 2, only 12 ounces; so she knows that No. 1 furnishes the greater amount of food by weight for the money spent. But, on the other hand, No. 2 may go farther; that is, it may serve a greater number of persons. This, in all probability, means that the cereals are similar in character, but that the food value of the servings from No. 2 is greater than that of the servings from No. 1. No. 2 is therefore the more economical of the two.
Matters of this kind must not be overlooked, especially in the feeding of children.
Then, too, the housewife should work out carefully which she can use to greater advantage, prepared or unprepared cereals. If she finds that unprepared cereals are the more economical and if she can depend on their food value as being as high as that of the prepared ones, she should by all means give them the preference. Of course, she may use prepared cereals for convenience or for varying the diet, but the more economical ones should be used with greater regularity.
25. Canned goods should be carefully observed. A certain brand of tomatoes, for instance, may have 16 ounces to the can, whereas another brand that can be bought for the same price may have 24 ounces. There may be, however, and there probably is, a great difference in the quality of the tomatoes. The 24-ounce can may have a much greater proportion of water than the 16-ounce can, and for this reason will not serve to the same advantage. As it is with canned tomatoes, so is it with canned corn, peas, and other canned vegetables, for the price depends altogether on the quality. Therefore, several brands should be compared and the one should be purchased which seems to furnish the most food or the best quality of food for the least money, provided the quality continues.
26. In the preparation of meat, there is always some waste, and as waste is a factor that has much to do with the increasing of costs, it should be taken into consideration each time a piece of meat is purchased. If there is time for some experimenting, it makes an interesting study to weigh the meat before and after preparation, for then the amount of shrinkage in cookery, as well as the waste in bone, skin, and other inedible material, can be determined.
An actual experiment made with a 4-pound chicken showed that there was a loss of 2-3/4 pounds; that is, the weight of the edible meat after deducting the waste was only 1-1/4 pounds. The following shows how this weight was determined: