121 209 .THS METHODS OF HANDLING MONEY INCOME IN 360 SELECTED FAMILIES 1N MICHIGAN Thesm for the Degree of M. A Eunice A. Pardee 1936 . d. r E I I. {IQ r i (.3? In: METHODS OF HANDLING MONEY DICOME IN 560 SELECTED FAMILIES IN MICHIGAN A Thesis Submitted to the Faculty of MICHIGAN STATE COLLEGE In Partial Fulfillment of the Requirements for the Degree of Master of Arts -Department of Home Management and Child Deve10pment Division of Home Economics by EUNICE ANDERSON PARDEE ~‘fl". " "' 1956 ACKNOWLEDGMENT The writer wishes to express her sincere appreciation to Dr. Ruth Lindquist for her interest and criticisms and to Dr. Marie Dye for her suggestions. The writer is grateful to Miss Edna V. Smith for her cooperation, and to Kiss Julia Pond and Miss Helen Hayes for their help in collecting the data. The help received from Prof. S. E. Crows in analyzing the data statistically is also gratefully acknowledged. 105409 CONTENTS Page CHAPTER I AN APPROACH TO THE STUDY OF INCOME DISTRIBUTION OF FALIILIES 0 O O 0 O O O O O O O O 1 CHAPTER II THE COOPERATING FAMILIES AND THEIR HOMES . . . _ 10 CHAPTER III FINANCIAL PATTERNS AND PRACTICES USED BY FAMILIES 28 CHAPTER IV SOME FACTORS RELATED TO FINANCIAL PATTERNS AND PRACTICES IN FAMILIES . . . . . . . . . 45 CHAPTER V SUGGESTED STUDIES IN FAMILY PATTERNS AND PRACTICES O O O O O O O 0 O O 0 O 52 W MID CONCLUSIONS 0 O O O O O O O O O O O O 56 BIBIJImR-APIH O 0 O O O 0 O O O O O O 0 0 O O 59 APPENDICES I SCIiEDUIJE O O O O O O O O O O O O 61 II PROBLDAS INDICATING METHOD OF SECURING CORRELATIONS.......... 65 No. 10 12 15 14 15 16 17 18 19 20 LIST OF TABLES Place of Residence of COOperating Families Place of Birth of Husbands and Hives Ages of Husbands and lives Ages of Children in Cooperating Families Others in Household Classified as to Financial Status in the Family Formal Education of Husbands and Wives Formal Education of Children Types of Occupations of Husbands Types of Occupations of Women before Marriage Types of Occupations of Women after Marriage Type of Farm Operated Acreage under Cultivation by Families of Farm Operators Extent of Farm Ownership among Cooperating Families Sources of Money Income from Husbands in all COOperating Families Portion of the Money Income Contributed by'Nembers of the Family The Use of the Family Council in the Management of Financial Matters Plans for Division of Responsibility in Financial Decisions Age at which Children Begin to Participate in Financial Decisions Extent and Type of Budgeting in Cooperating Families Methods Used in Providing Access to the Money Income, by Type of Family Methods Used in Providing Access to the Money Income, by Location of Family Page 14 15 16 18 19 2O 22 25 25 26 27 29 50 51 53 56 57 39 No. 22 25 24 25 26 2? 28 29 LIST OF TABLES (Continued) Procedure in Use to Provide Money for Children Extent of Record Keeping in Families Extent of Financial Practices among Parents with Different Educational Background Correlation of Certain Patterns and Practices with Formal Education of Husbands and Hives Extent of Financial Practices among Families Representing Different Occupational Groups Correlation of Certain Financial Patterns and Practices with Occupation of Husbands Extent of Financial Practices among Families with Different Numbers of~Children Correlation of Certain Financial Patterns and Practices with.Number of Children in the Family Page 40 44 45 47 49 50 1. CHAPTER I AN APPROACH TO THE STUD! OF INCOME DISTRIBUTION OF FAHILIES. Families of this generation differ in many respects from those in earlier generations, but probably no single difference is as pervasive in its effects as the degree of dependence upon money income. A hundred years ago, when a large proportion of the population lived on farms and manufactured its own clothing, soap and candles, there was little need for money. The earlier area. have been those marked by using and trad- ing home products; the present one is distinguished by the practice of purchasing with money and of promising to pay through the use of credit facilities. All families, both rural and urban, are dependent upon money and credit to supply a majority of the physical needs and to pro- vide comfort for adults and children. Without financial resources existence itself is threatened. writers of fiction and biography have long been aware of the problems of life which this difference created and with unusual insight they have succeeded in portraying them. For example, in Edna Forber’s "So Big", the theme is that of the transition from using to selling in the farm family and some of the changes that accompany the new order in the realm of mother-son relationships. Another excellent example in a different section of the country is Ellen Glasgow's "Vein of Iron”, which shows how little one family actually depended upon money income as long as they lived a simple life on the old farm. A large part of the book, however, deals with the difficulties and struggles that came when the Fincastles moved to town and were forced to depend on money income. Through the years of the depression it dwindled to almost nothing and the lack of it brought hardship, starvation, and death. These are but two of the many examples which might be given. The educator, busied with the routine of his 36b, has less fre— quently recognized these situations or, if he has been aware of them, the reasons for them have not been studied. A further factor that has interfered with a comprehensive attack upon these new problems, arising from the importance of money and credit in families, has been the ten- dency to set up courses and units of one kind for men and another kind for women. The result has been that some teachers and other leaders encourage and help farmers to produce a larger amount of stock, farm crops, or dairy products while others help women to want to bring more health, comfort, and beauty into the farm home. Sometimes there has been much too little knowledge and appreciation on the part of educators of women and children of the economic problems involved in earning and safeguarding the money income. Not infrequently the men gain little knowledge and appreciation of the importance of these wants. Many evidences of discord over financial matters are apparent today. These discards may be due to lack of infermation on the part of some members as to the amount of the income, its distribution in the family, and its final use. Often a feeling that some members use more than their fair share may cause resentment. One of the chief causes for discord in the farm family, of which the writer has been conscious for many years, is pointed out by Carla Zimmermanlx '....the primary competition in the budgets of farm families is between the investments centered around land ownership, its rights and privileges and the increased consumption of material goods of the present." l. Zimmerman, CarleC. - _- r .- ._ Cit! Familieg, 1927-1928, p. B. Bulletin 255, university of Minne- sota Agricultural Experiment Station. 2. 0p. 0113933838 80 Any one who knows rural women through extension classes is aware of the struggle over money, due to the desire on the part of the woman for more home improvements, more education for the children or for other out- lays for immediate consumption as contrasted with the very great desire of the man to put money back into the land and farm business for further security and welfare. Children often increase the discord by their demands for more and more things which only money can provide. The plan for distributing this money income among the members of the family, old and young, is one which has no basis in practices of earlier generations. To secure an equitable and satisfying method is a problem which belongs largely to those of the present generation and of the recent past. This competition is prevalent not only in rural families but also in urban ones. Particularly does one observe it in those families in which the money income of the man is derived from business ventures and other sources that bring irregularity or uncertainty. Modern novels and plays are frequently written around this theme, while daily observation of family relationmhips gives additional evidence of the competition. PURPOSE OF THE PRESENT STUD! The present study was undertaken because the writer had long had an appreciation of these struggles and conflicts. Its purpose was to determine, if possible, what actual practices in handling money income are being used in families today. A special interest in farm families has grown out of experience in teaching classes of farm.women. If this study can throw light on present practices and some of the satisfactions and dissatisfactions resulting, it may help to pro- vide information of value for educators, for financial counselors, and 4. for men and women who are eager to achieve understanding and harmony as members of families. SCOPE AND METHOD OF THE PRESENT STUDY There was no attempt made to secure a random sample of families in Michigan. Rather the cooperation of the home economics staff of the Extension Service of Michigan was sought. The fact that extension groups of local leaders in home management projects were asked by the two extension specialists in this field to provide information resulted in a further selection on the basis of interest. This selection, however, while it resulted in interested women,did not necessarily bring about the choice of a group of men equally interested in establishing practices satisfactory for all members of the family. For this reason the cooper- ating families may have represented a less selected group than this method of choice would seem to indicate. The information for the study was Obtained by questionnaire from 560 homemakers living in twenty counties distributed over the state. There were 246 farm, 78 town, and 56 small city families. The form was given at the local leader training schools with an explanation as to why the information was being sought. The specialists briefly explained the form and answered questions on points not clear to those who were cooperating. The plan of securing the information made checking of the data seem less necessary, but also more difficult to accomplish. Neither was an effort made to compare the patterns and practices with samples selected from other areas and occupational groups, though there is a keen appre- ciation of the value such comparisons might have. 5. REVIEH OF LITERATURE There is still a dearth of information on methods used by families in handling their money income. Many studies have been made of standards of living in both rural and urban areas. The nature of purchases and the purposes for which money is used have been investigated. Such studies as Leila Houghteling's "The Income and Standard of Living of Unskilled Laborers in Chicago” presents information on the expenditures of un- skilled laborers' families in Chicago. Jessica Peixotto's study “Getting and Spending at the Professional Standard of Living" gives a picture of expenditures with a different class of city families. E. L. Kirkpatrick's "The Farmers' Standards of Living" provides a great quantity of informa— tion on goods and services which were part of the plane of living in farm families in 1922-24. So far comparatively few studies have included any consideration of the way the money income is distributed among the members of the family. Three1 of those published which do concern themselves with these problems will be reviewed briefly. Of special interest to the present study is the one reported by Josephine Fuller, which summarizes the findings of 176 families of women students at Michigan State College in 1935. The families lived in cities, small towns, and on farms. About one-fourth of the fathers and mothers were high school graduates, and about one-sixth had graduated only from l. Fuller, Josephine - method of Handl Famil ance in omos of Women College Stggents.e A Master's Thesis, Michigan State College, 1955. Woodhouse, Chase Going - "Managing the Money in Successful Families", Journal of game Economics, Vol. 25. Lindquist, Ruth ~ A:§tudy of Home Management in Its Relation to 1d pgvelogment, published as a Joint issue of "The Candle“ of Phi Upsilon Omicron and Omicron Nu Magazine, Dec. 1929, Pittsburg, Kansas by 'Moore Brs. the district school. Twenty-five per cent of the fathers and 18.9 per cent of the mothers were college graduates. The findings include the following: '....In over two-thirds of the families a system of Joint control existed between the two parents in deciding how the money was to be spent .... The Joint account system was the most popular, found in nearly one-half the cases .... Budget making was carried out by only one-fourth of the families, and was done mainly by the father and mother .... The mother alone did the buying in over one-third of the cases. In only a few instances did all members share in this activity.... Only two-fifthsof the college girls took part in deciding how the family money was to be spent and this was generally by expression of opinion or stating needs .... Two-thirds of the college girls had only partial knowledge of the amount of the family income and 10 per cent had no knowledge at all. In only 57 per cent of the families did all members discuss the uses to which the family fund was put. Training by means of an allowance was found in over one-half of the cases and the amount had been increased to meet school requirements. About four- fifths of the girls were given money upon request with or without a basic allowance. Less than one- third of this proportion received allowances also.... The practices of handling money did not seem to be related to the education of the parents with the exception that more girls from homes where the parents had gone no further than the district school received money on request than by means of allowance. ..... More of the older children participated in business men's and farmers' families.“- A second study of interest is the one of 68 successful families made in 1928 by Chase Going Woodhouse. There were two criteria used in Judging the successful families in this study. Firszfghe adjustment of husband and wife in their personal and community relations when Judged by qualified observers who knew the family well. The second criterion was the ability which they showed in bringing up their children. With few exceptions Mrs. Roadhouse reports both husbandsand wives in the group were college trained and all families belonged to the business 1. 0p. cit, pp. 82-84. 7. and professional classes. '....In dealing with family finances there are two main problems - who has control of the money and what expenditures are made? ....The general picture is one of Joint control, or perhaps bette§,mutual con- trol of the family funds .... The Joint account was the most popular, found in nearly one-half the families .... In the actual handling of money and payment of bills there seemed to be a usual and well defined division of labor. Payments on house, interest, insurance, and coal had a masculine trend. The wife usually cared for purchases of fbod, service, operating expense,except coal, her clothes and per- sonal expenditures, and those of the children..... 'When deciding on expenditures, in three-fifths of the families husband and wife Jointly made the decision and in one-sixth more this was true of all large items. 0 00 "An effort was being made to teach these children how to earn money and the parents for the most part were making a conscious effort to find real work for them. The general practice was to give the children allow- ances from the time they were six years of age, start- ing to school. The allowances were spent at first for school supplies, ice cream, candy, penny bank, and Sunday School. With increasing age and respon- sibility came larger allowances and more items to be cared for until usually at adolescence, and in nearly every case upon entering college, the allowance was covering clothes and personal expenditures and in many cases all expenditures.... ”Mutual control of funds, mutual agreement as to expendi— tures, an endeavOr to develop a philosophy of spend- ing in accord with the earning power of the bread winner, teaching the children how to earn and how to spend, making a real financial partnership out of marriage, such were the methods by which these families felt that they were working out their financial problems. All through their discussions of hindrances and worries runs one guide thread, the importance of planning, of knowing where the family is financially and where it is going...."1 "A Study of Home Management in Its Relation to Child Development" reported by Ruth Lindquist deals with 355 selected families. The lo Op. Cite, ppe 1-8. 8. selection was based upon the amount and the type of formal education of the women. Eighty women and sixty-eight men out of each hundred have degrees from a college or university. Twenty-two in addition have attended college. In fifty-two of every one hundred homes both parents are college graduates. One-fourth of the men and one-tenth of the women have advanced degrees. The majority of the men are in trade, agricul- ture, and professional service. Miss Lindquist reports the following findings: "A plan for using the income insures less waste and greater satisfaction in one-third of the homes, where members pin their faith to living by a budget .... One-fourth of the group have something of a plan which covers one or more items and an additional third report that they have noneat all. In this latter group are two—thirds of the rural families .... Sixty per cent of the total number approve of and use the family council. 0 e e e ”The degree to which children participate in making decisions is slight, due in part to the fact that such a large percentage - eightyetwo - are under ten years of age .... In the matter of allowances for the children there is a wide variation as a result of the attitudes of the parents and the amount of system in the home. Very nearly one in three report regular allowances and of these the majority begin at the age of six years or earlier 0 e e 0 "There is no one method of budgeting which is recommended by all of the families and it is apparent that the present plans have been evolved after testing several types. The difference is largely one of detail and of the frequency with which the decisions regarding what can be afforded are made. In all cases it is the needs and the resources of the individual family rather than figures or percentages found in books that determine the division of the income....- “The value of records of past expenditures has been suggested. A few find periodic examination and classification of check stubs sufficiently detailed to provide a basis for the new budget. One out of every five women prefers a careful record of all expenditures.... 9. 'There is one conclusion that can be drawn which holds for all families - that a financial pattern for spending which is based upon the needs and resources of the individual family, when it becomes the guide, improves spending, lessens worry, and increases the satisfactions for all."‘L lo 0p. Cite pp. 30-57. 10. CHAPTER II THE COOPERATING FAMILIES AND THEIR HOMES The cooperating families described in this chapter live on farms and in towns small and large. The men and women who are the heads of these homes include both native and foreign-born. There are those who are childless and those with fourteen children. In age, we find some chil- dren still in their infancy and others who have passed the zenith of life. The life cycle1 of some of the families is in the pre-school stage, some are in the post-school stage, while many are in the grade and high-school stage. Of the 560 families who cooperated in this study 56 livedin small cities of 2500 to 25,000, 78 lived in towns of less than 2500, and 246, or 68.5 per cent, lived on farms. Twenty per cent of the families had no children; 25.89 per cent had but one child. More than one-half of the families had two or more children, while almost one-half of this latter group had four or more. All of the families but four were un- broken; in these four farm families the husband had died. This informa- tion is presented in Table l on page 11. The husbands and wives in the great majority of these families were, as shown in Table 2, Americanéborn. Only 6.1 per cent of the husbands and 5.6 per cent of the wives were foreign-born. A comparison with the rural population of Michigan is of interest since the cooperating families were so largely rural. The census for 1950 2 shows that 11.5 per cent of the rural population was foreign born. 1. For a description of the characteristics of the different stages in the life cycle see "The Life Cycle of the Farm Family' by Kirkpatrick, Tough, and Cowles. Bulletin 121, Wisconsin Agr'l. Exp. Station. 2. Fifteenth Census of the United States 1950, Population, Vol. III, Part I, page 1115. . 11. Haeoa sham Aoomw can» mmoav shes Ane>o one oomwv ammo Hesse 0.00H on o.ooa wad o.ooa mm o.ooa up 0.00H own m.mw we samw Nm «.3. do ”.3 Mo néo dflN m.~N ma b.ma ow m.>H ma «.mw Hm >.HN mu m.m m m.oa «A H.m a m.ma m OH on .IlllndouluuMIqumu .usec mom «om anew mom .oz usuwxnem .oa. ammo new .02 noanafino seneawmo - one: no usom I“ means so one sense one once assesses flee senses one an emmwaaao no sense: seem mo soapeooq mquHSdh quadmmmooo ho mozwnHmum ho medqm H mumSH 12. 0.00H mmN 0.00H mmN odooa Nb 0.00H Nb o.ooa om» 0.00H own H.N How m.» m w.u.. AH m Hum n.0m 0mm HH m.m 5H 04. . u I Q 0' «he enemas: assesses asap amaaaasa ‘wddw \H I I m.H s H.n HH momm mm H.mm no moom own m.om bun Hench nebwm voz shopsebapez m.~ N m.m m o.n as H.@ «a aaonnamaoaoa .9 0e 04 o- n. O. u- as 0.1 en co 0. can: eqapmsm and: sadness nonsense on see: uoaaaeaa and auasapaz emaneaaa mm>HB 924 meadmwbm ho mHmHm ho momqm N manda. 15. Heads of families in this sample were largely under 50 years of age, and there were a large number of wives under 50. With this exception age groups were very much alike for husbands and wives. As would be expected, there was a larger percentage in the group without children 20—29 years of age than in the group with children. The range in age is indicated in Table 5 on page 14. In Table 4 the ages of children are given and show a range from under one year to more than 25 years. One-fourth of the entire number were under 10 years and one-fifth were between 10 and 15 years. One hundred eight, 15.5 per cent, were over 25 years. Since so large a proportion of children were under 15 years, the study throws less light on the attitudes and financial practices of families in which there were adolescents than it does regarding families with younger children. Many of those whose children are now grown related practices which had been used when the children were adolescents. This period of the teens is the part of the life cycle, according to Kirkpatrick, Tough and Cowles, in which financial problems are most likely to create discord. In 151 families, as seen in Table 5, there were persons other than father, mother and children living in the home. Only 22.2 per cent of the families with no children had others in the home. In these 16 homes, one was a hired man and the others were all relatives. Five of them were wholly dependent, seven were partially dependent and three were not dependent on the family for financial support. In the group 6f families with children, 50.6 per cent had others in the household. Seven were boarders and 52 were full-time hired men. Seven families had a hired man for a part of the year. The amount of formal education of husbands and wives varied from 14. o.ooH emu o.ooa mew o.ooH «a o.ooa «a o.ooa own o.ooH own Hence I s Ijqumunan .. a u u a u H.H IIIJWI assesses H.m a H.m a m.m m m.~ N H.» HH a.» He needs poz a.H m ~.m ma m.~ N m.m m m.H a m.m Hm nose new as ¢.aH om m.om mm m.m m n.m o m.mH en H.me mm . .mmuom m.~m em m.mm nee ”.ma Ha m.m~ ea ~.o~ mos m.~m and . sauce n.mn mm H.m~ em e.¢m mm a.mm mm e.mn and H.Hn and . anion m.HH mm m.e an e.am mm «.mm as ”.mn mm n.m on . mason o. H I munch ow some: I #.H H I I no N I I #333 and“ new .oz name new .02 peso sea .02 oh: . essence 8:. 333m one: .eafimsm owe amneaaao span noneaaeo om sea: «madness ”Ha meanness mmafieaea E Q5 mazqmmbm ho mung was .15. o.o0H mam o.ooH «we o.ooe com Hence was 5 d4 2 {Maul we condemn m.HH we H.m mm o.m mm eu>am.eoz m.me .ae e.ea Hm m.mH woe . mm peso o.m om a.mn mm o.aH mm . mmuom m.mH we «.mfl an a.a~ awe . o~:me ~.om we m.ae am o.o~ owe . sauce m.mH oe m.mn oa m.aa oee . can» e.a mm a.» an a.a an mason mud m. n I I o. m use.» A some: uses nom Jamil some mom .02 pass mom .02 means when assesses flea owe $324k ofiaamooo 2H Egg ho mums “can. 16. .mmsapeHoa mH .waap mesaepuosp use eases H .oaap eHaenoao nos emaHe m .oaap HHse use eoan mm .msoesaon e moesHoaH AHV me an om o.OOH mHH Hence “Hams oH mmw m.om we seem m m n e.aH on area H u H a.H m apes amneHaeo esHs mmHHaaaa a a m o.oOH eH Hence a 11s .Jim o.me NH ease I u H ~.m H mace u n n m.mH n asHo noneHaeo on eeH: mmaHHaem psmusooopsfi . pmwwsmqop psoomvoeo Immwo hom1;.0z .oz aHHsHasea .oz aHHoes .oz aaHHeeae HHa moHHHaae no sane amazes me mspmpm Hmfiosmnwm HAszh mma 2H whamem AdHOZdZHh 08 m4 nHHhHmmqqo nqommmbom 2H mmmmao m mumuom HoOHuoHo o.N o N.H H o.N oH ooHseom oHHnsm N.» mN o.oH o o.» oo oOH>som HoaoHoooeoam o.HH on e.HN oH m.mH an eaapooaoaooasa one means o.oH No o.oH NH o.aH «a ANvuooao o.oH so o.oH NH H.oH oo AHVoaaunsuoo .mqaanaa o.Ho neH H.oo on o.oo naH oaHouHHse .maaesoa ammo pom «amz some mom .02 some pom .oz nmnoadno emauddno on use Add one: mongoose one. nonsense ooHpoasuoo no «one magmas 8.989388 so mag 0 Hands 21. Information regarding vocations entered by the wives and mothers both before and since marriage is contained in Table 9. Edghty per cent of the wives who had no children had been gainfully employed before marriage. This is a considerably larger per cent than was found for those who were mothers, since only 65.6 per cent of that group had been employed outside the home. In the former group, which consists of 72 wives, almost one out of every two had been teachers, but only a little more than one out of every three had been teachers in the group of mothers. Probably the explanation is that those in the latter group had married at an earlier'age. Clerical occupations were listed second in order of frequency. One-fourth of the wives had held clerical positions while one-fifth of the mothers had been engaged in this field. Very few had worked in factories or as maids. Table 10 shows that 45.8 per cent of the wives with no children had been employed at some time following marriage. However, the findings showed that only 25, or 51.9 per cent, were working. Sewing, laundering, substitute teaching and other part-time employment accounts for those who were employed at the time of this study. Seventy-four, or 25.7 per cent, of the mothers have been employed following marriage, but only 17 of the 288 were working in 1956 and they were employed only part time. Fifty- three per cent of all wives living in small cities had work at some time after marriage; 28.8 per cent of all town wives and 24.8 per cent of all women now living on the farm had worked. This doubtless shows that the farm women in this study did not have as great an Opportunity to work for pay as did either city or town women. This condition is one which might well receive more consideration by those interested in the welfare of families. 22. o.ooa mam o.ooa S. 0.02 8... 309 m .3 i am e. 2 an I: 32 2n 3 .. u ed 3 393835: 23 we can we «.8. ow to: @0230 ed. a o.» m «.5 3 3E8 182mm 93 038.com o.om mm «.5e em N.en mud ooepaom Heaoeumoeoum e...“ 2. e4 H we“ e 3E8 335m pace pom .oz eoaeflflno neat amen- pewo hem .oz awnefifino on an“: mop“: ammo hem .oz nose. Had noeneeseoo no ache Magda magmm Eon ho mZOHadeooo mo mm; was 23. o.ooa mwm o.ooa. we 0.00H own Heaoa ndep dam H.¢m an n.oe mmw onoz e. N 2m e e; e manganese”; m.m «N H.mH mH N.0H pm Ago: Hmofinoao m.» OH I I m.~ 0H oowbhom Hmcomnom use oepmoaon N.~H mm N.NN mH N.¢H Hm mafibhom HesoammoMOQm o.H m I I m. n ooa>hom swansm 1.1 .teoé Lem .ch Peoc (~an .02 £50 gen .02 1| noneafleo mmpeaflro on sweet HH< scapegsooo no oaks £3 $5: $9 .85: it. .1- mdemm4fi.mmshd zwzog mo mZOHadeooo mo mmmna 0H ganda 24. Among the rural families general farming is found most frequently since 62.2 per cent of the farms were reported by the c00perators under this heading. Other types of farming included in the table are mainly poultry, truck, and grain. This information is contained in Table 11. Almost 50 per cent of all farm families lived on farms of less than one hundred acres. Thirtyasix per cent of the families without children lived on farms of 100 acres or more, but 41.1 per cent of those with children lived on these larger farms. Only 2 per cent of all families lived on farms of 500 or more acres. Small truck and poultry farms were Operated by 12.2 per cent of the farm families. The most important finding noted in Table 15 is that 65.5 per cent of those families with children owned their own farms, which is consid— erably higher than the percentage found for the group without children in which only 52.4 per cent were owners. If there is added to these percentages those for partial owners, the findings are even more striking. Ehghty-three per cent of the former group is than contrasted with 66.7 per cent. The explanation may be one of difference in age; it may point to the tendency to settle down after the coming of children; or there may be a number of factors affecting this finding. 25. Anpfifiafiagaxuagt.eufiflmguafiga.fiua3$ 3335 nympho Had AHV o.ooa ecu o.ooa we o.ooa mew dance I, e.mH mm naea m m.ma ‘Iwm nape» eoz n.m ma m.m e m.m mm havmnweuo flea e.m ma e.~ H e.“ ea passe m.m me a.» n m.m mm enema n.Hm mma e.mo mm N.No mma enhance Illddudludq -94 lemma 3% aoz pcoo pom .mz - amaefiaao an“: amneaaao on- moaaaaac Haa ease moamfiadm 5“: mofiduach aegmo 53% be ME Hm Human. 26. 0.00H «on we c.00H mew Hence ”.5 mm m Iii mm.-. 8.3 sea m.H w H o.N m hobo one com I I. H e. H mmwlomm e.e m n m.¢ «H meNIoom b.eH on m m.¢H mm mmHIomH H.0N He m >.mH we meHIOOH m.wm we HH «.mm em mmIom b.nH mm e o.mH mm meImm m.HH mm a N.NH on mm can» whoa ammo pom .02 come pom ammo pom .ow noucHHno spew amneHHno on moHHHeeM HH4 moped - mofiHHeeh- anu moaHHemm‘ . no hopaflz «Haw meoaémao 2mg .8 3335 E 23.23960 amaze mgoe 27. o.8H eon o.ooH me 062 men H309 1m.» m I: H J. n he HH 83m 82 mg: a New. HH «.mH 8 Essex 25H 8 3H m HéH we eofio Dena 2mm 3H ens «N 3% 3H 885 pnoo .25 .02 9:00 .Hom .oz pace .Hom .02 Bean 5? fineHEo on $228 a cannon. mmHHHaaa fir. mmHHHaae mmHHHEE gagmooo 0,834 amazao 25$ .mo 92mg 2.. an. CHAPTER III FINANCIAL PATTERNS AND PRACTICES USED BY FAMILIES Two out of every three of the cooperating families lived on farms. Not all of these depended upon farming as the only source of money income since a little more than one-third of the group reported earn- ings from business enterprises or from wages. The frequency with which the different sources were reported is shown in Table 14. Families in this study were maintained very largely by income supplied by the husbands. Table 15 shows that very nearly half supplied all the money income and almost all of the remaining contri- buted more than one-half. Only sixteen husbands provided less than this portion. One-half of the wives with children contributed some money to the family fund, whereas one out of every three women without children helped to supply the income. The sum contributed by wives is largely that obtained from the sale of farm products, since the group is so largely a rural one, and this probably explains the above find- ing. Slightly less than three women out of every ten provided part of the income from the sale of poultry or of other farm products. Only slightly more than one in ten reported earnings from wages and but twelve of the entire group increased the money income by returns from investments. Very few of the children contributed any amount and those who did help contributed only small portions. Only nine of the 568 women reported that no discussion of the use of income occurred. The most common method was discussion by husband and wife. In one of every three families with children, discussion by all members was the custom. Ten other families permitted the older children to enter into the discussion. Table 16 presents the additional 29. .anoo man no nOHpcanomcH on ovum hHHsdu and .OHpep one nH oOHI9 copmHH one was acumen on: some once scum osoqumlae can condemn: qunIheHHm .npeoc mHn mo osHp meg as nopmnomo anew e new deepen: on» nOHgI qH eoHHHsem know moanouH mHna AHV o.OOH we» o.oOH mm . o.oOHAvame Hence m. n II I I b. n mammspmobcH n.m~ ooH e.em mm e.mm ”NH some: H.HH mm e.H~ mH H.mH on “sandman acne mpHeonm e.mm vow m.om me n.5m mam maHanae ammo pom .02 noon pom .oz pace pom .on aoueHHao avneHHao on uoHHHaau HHa ”cannon span meHHaam ape: mmHHeaam mmHAszm GZHHimmmooo Add 2H wnzdmmbm 20mm HEODZH szo: mo mmombom «H mania so. .vhe denoeov Scum who! once man :H mmethco 0&8 ANV .emme.onm meanness nook “Hy o.oo.H awn 0.00H hoe 0.8H mmw 0.00H we 0.00H emu 903 up H309 12.8 one mime 1%» qom 3H, 5.8 we I .. .. .. Sou m.~. em 06H mm «.3 «MH m.Hn am e. u I I MHenIooo acne amen w. m I I a.» HH ¢.H H m4 mH «H H M12725 I I I I n. “NVH: I I m.nm an m.Hn mm MchIono can» one: I I m. H I I I I o.ov oHH 5.8 we HH< .mmwo mom .oz econ pom .oz acme pom .02 name Mom .02 anon mom .02 name mom .oz enopnmsme meow nothHeo nmAeHHno on noneHHno noneHHno on copanneooo coHpAom awthHnu mobHB Avaufldnmflm HAHSdm mug ho mmmmawa Hm maybmHmazoo MEOOZH Hmzoa mma ho ZOHHmom mH MHMdB 51. .coHpmoso «He» no noHpm3pomnH on eoHHoonm moHHHde unmao anOHmmoomHv on we: chose peep oopeOHenH moHHHseM onHz AHV 0.00H 0H 0.00H m 0.00H mmH c.00H HOH 0.00H new Heeoa o.oo. m o.om e mqnm HQHI «mom Hm m.mm wad shah o.om N o.ow H m.m~ He m.NH nH b.0m em once 06.... N I I 5.3 6H m6 2. 2m 8 .38 ancHHno anh uoHHHeem I I 0.00H H c.00H pm I I c.00H mm Hence I I I I «.mm an I I «new mm seem I I I I m.mm mH I I m.em mH once I I 0.03 H 22 m I I “.3 0H .38 noncHHno on apr moHHHssh a o .H 0 £80 .8 o Ammo mom! .0“ pace .8 33 on» 3 88a". 2... teases 232a m5 adage qupHH mopreHou mo each one poms noncHHno oun was ceenmdm ImmsomHo moHHHseH no thHeooH HHe can hHHseh mpconem HHe one mesonsm no menace Hepoa use omhfl A3383 4:”an ho “SEE—Hz; E 2H .HHUZboo N.H—”Sam man. no man a mH mam¢a 52. fact that in twelve other families all relatives living in the home joined with the family in discussion of financial matters. In that matter of interesting conjecture, who makes the decisions as to how the money shall be spent, only fifteen families left the decision regarding the use of the money income to one person. That men continue to have the dominant role in money matters seems apparent for eleven of the fifteen who made the decisions alone were men. Except for the six who did not answer the question, all others indicated that there was some system of joint control in making decisions. The term joint control used here means that control in handling money is in the hands of more than one person in the family. It may be husband and wife, husband, wife, and older children, or husband, wife, and all children. Approximately 75 per cent of the families who had children permitted them to participate in making decisions as to how the money should be spent. The age at which children began, indicated in Table 18, varied from less than 10 years in 59 of the families to those 14 years or over in 59 families. Other studies in this field provide information on this point. In "A Study of Home Management in Its Relation to Child DevelOp- mentul, Ruth Lindquist found that 60 per cent of the families in the study used the family council in making decisions and Josephine Fuller2 :found in "Method of Handling Family Finance in Homes of Women College Students" that in over two-thirds of the families of girls studied that the husband and wife made the decisions. Very nearly one family out of five made no plans for spending the income. Probably the meaning of their statement was that they did not 10 LindquiSt - Op. Cite, p. 55 2. Fuller — 0p. cit., p. 82. 55. .ooHpmosw man Holmes poo eHe coach MHm AHV 908 new o.ooH HH Hence «.2. HmH 23 m Ema o.om mm Hd H 55H. are mm H.a H .38 dthHHno anB c.00H em c.00H e Hopes elem mm oaInH m Ema m.mm om o.mm H area «.mH m I I heHo cmnoHHeo 02 uses pom .02 I. mmuo Mom, I02 Honpooo choh coupon moo mo .hHHseh no mo seemhm meson oH osoonH thHdOOH use make AvaZOHmHqu 44HOZHZHM 2H MBHHHmHmzomwmm ho ZOHmH>HQ mom mzqqm pH ugmda 54. o.8H 3H o.ooH me 0.03 2 0.03 eon H38. ism 3 0.3 H onf ml as“ mm .88 Ba mama S 28 we do a 23 m 2H“ 3. .. eHINH 2H» 3 2mm NH new m «.8 mm .. “HIS e.NH 2 QB H «.3 m H.mH a... 28» 0H scene ammo .HmmIIqoz pcoo .35 .02 noon .Hom .ddIt anon new .02 mmdoMMIoIMHII same 869 .33 Hence wZOHmHomQ HdHOZdZHh 2H meemHOHHm«m OB ZHHEm ZHmQAHmo SOHmB 94 mH mnmda mufl 55. consciously apportion the income for various expenditures. Less than one in ten budgeted all of the money income according to a written plan. A like number budgeted some income in writing, but the most pOpular method recorded in Table 19 was that of apportioning the income accord- ing to an unwritten or mental plan. Sixty-four per cent of the families budgeted this way. Nineteen families reported that they used both a written and an unwritten budget. Josephine Fuller1 reports that budgets were made and used by one- fourth of the families. The findings in the present study correspond quite closely with those in the study by Ruth Lindquist2 in which she reports that one-third of the families studied had no plans at all. Principal headings under which expenditures were budgeted include clothing, food, insurance, supplies and fUInishings. In addition to the above, which were listed most frequently, car, recreation, and taxes were named in approximately half as many cases. The arrangement for access to the family income found most fre— quently was that of the common purse; Seventyanine per cent of the families used this method, though in many families it was not used exclusively. A number reporéSthat both the common purse and joint bank account were used. Approximately one-half of the families had a joint bank account, as Table 20 shows. Ninetybfive wives had household allowances and twentyatwo of these stated that the income from the sale of certain farm products constituted this allowance. In these cases it was not a definite amount each month, a condition which added to the problems of management. 10 mer - Op. Cite, p. 82 2. Lindquist - op. cit., p. 52. .mneHm on owes oanIthHm one .hHoou poo uHc aooprm «neHo nopthnnu one sopthw neon ones can componHz AHV 0.00H me 0.00H mw c.00H «N c.00H mmm Hopes «.2. SH H5 eHII. 28 HH «.8 I. 3H Ewe m.>H mm n.mn HH m.Hn e n.H~ Hm once 23 o« o..." H «.3 e 23 m« .38 soneHHno meH: o.OOH we c.00H e 0.00H m c.00H mm Hence qu5 on eqom a men» n mane mm sham o.mH w o.om m m.e¢ e m.m~ eH nice 2... e I I «.«« « «.0H o .38 noaeHHoo oz pqomlpdfll do. a! pace .Hom weal p33 econ .HIoIm .02 I sde coethwns omHo noppHnw on quo soethw op mneHo hHHssm no on manaooom MdHenooos oo:0Hp quonoooe ponoHp quMul no oooOHpnooos osoosH Income osoosa osom Income osoonH HHd Hence thHsooH one some AvaHHAHEdh QZHHHMMmooo ZH GZHBMQQDm mo mea Q24 Hzmafim mH mqmda 57. .ueoe one awesome: noon me .wmn do women omswnoouom AHV a.m« «a I I 52.. «a 833.5 m.HH mm H.HH a «.H H« 0.3. m6 «« «5 m «.m on 383.3" wooedIOHHe Henomuom H.«« Hm «.mH «H «.8 mm 8553.. «Hostage «.3 3H «.9... m« «.8 8H nuances Han «flow «.8 «m« 0.2. «m «.3 8« 8.3a 858 Home pom .oz pane head .02 ammo hum, .02 as; «5 H83 5.330 fin. 5.320 on «Had H: Beams «0 on? utHHHaaa fie- «magma MAHfldh ho mmwa Mm .mEOOZH Nazca may 08 mmmooq quQH>omm 2H nmwpmnomaw: ON Hands 58. Personal allowances were not used frequently in the families studied. Only 8.5 per cent of the husbands and 11.4 per cent of the wives had personal allowances. Twentyhfive per cent of the families gave some or all of their children allowances. The most common plan in use was that of’giving children money on request, as shown in Table 21. Fifty-five per cent used this plan. Fifteen families did not give the children money, but allowed them to earn it, and fourteen paid them for work done at home. Children in fortybeight families received money in more than one way. Twentyanine received it by allowance and request. For seventeen it came by request and from the common purse. Two had access to a joint bank account and the common purse. The question might well be raised as to whether orInot those indicating that children had access to the common purse fully understood the point. A slightly larger per cent of both town and city families gave children allowances than dkifarm families. The explanation may be that the income of the farm family is irregular and uncertain and that the background of rural parents is not likely to include allowances. Throughout the study, however, attention is called to the fact that only 56 city families and 78 town families are studied, while there are 246 farm families. Had the groups been of more equal size some of the percentages might have presented a different picture. The data in.Table 22 show that 61.4 per cent of all families kept some records of expenditures. Slightly less than one family in four, however, kept records of all expenditures. Those who kept partial records listed Operating expenses, clothing, food, insurance, car expenses and taxes most frequently. .hwheHHho span hoHHHeae HHa «mm« . . smashmOhom Ame .««« . . «mashmohoa H«v .esov one meanness meow we «own no women owopsoouom AHV m.>H ee m.mw 0N m.>m 0H b.mN we AnvuwthHno m.w 5H ¢.vw mH m.mH m ¢.HH Ho OMHB mxv fiVNH >.mH mH m.mH m «Km on AHVoHchmHHm occhOHHe Hmoomnom H.H« «a e.m« «m o.m« « «.e« mm toaapOHHa «Hohomsom m.«« hOH m.Hh o« m.ne m« e.m« «oH panacea asap aaHoe a.me emH «.ma ow n.»« on «.«a om« smash aoeaoo mmwu pom .02. Race Hem. .02 undo pom. .oz ummmluomI .om Aw««v Hmav Home Howey sham . hues auHo uoHHHaau HHH sonata mo than MHHEdh mo ZOHHQOQH wm «MEOOZH Mmzoz may OB wmQOOH GZHQH>Qmm 2H mam: maomymz HN mgmda 40. .choo mHnw so oOHpesnOM:H has owa poo ch opHMIMpnom AHV 0.00H bow 0.00H mm 0.00H mm 0.00HAHVHmN Hdpoa we «H I I I I m.« «H than a. shoe «.m H «.m n. as H H5 mH each @338 shoe m.H « I I I I «.H « .fSa «fiancee p52. «.0H «m «.m n I I w.m mm chasm soasoo op mmoooe m .HN 3 m .mm ON 5. mm 0H m .mm 3. 00203 H.«m «HH «.3 on. «.8 pH m.«m 3H sewage peso pom .Oz puma new .02 some pom .02 some mom .Oz III Ema . 859 BS «0333 a zfldQAHmo mom Nazca NDH>Omm oa_mwp 2H mmmbmmocmm NN mamma Hence a 030m monopHucooHo HH< o.o0H m«« o.OOH «a c.00H we o.OOH own IIHIH.«i HOH he... on «I«« m melee “$1 «.8 as m.«« n... 0.8 «H «.8 3H a.«« on «.«H mH m.a« oH m.«« H« '3 news 3H 61343: 3% Ioz Eu... 389 .33 $228 3 ”Hannah 2H 03% @002 mo BEE mm gm. 42. The survey failed to show that there was any difference in the patterns for expenditures and paying bills among farm, town and city families. Men tended to carry only the responsibility of buying their own clothing, paying for the insurance, fuel, taxes, car, lights, and telephone. Fortybone per cent of all families indicated that definite responsibilities for expenditures were not assumed by the same member at all times, but rather that there was a shift from person to person. Women generally assumed the responsibility of buying their own and the children's clothing, the food and household supplies and furnishings. The data showed that there was no difference in the patterns followed in families with no children when compared with those having children. Due, perhaps, to failure in interpreting the questionnaire, the data showed that children had. little responsibility in making expen- ditures. Those responsibilities assumed were for school supplies, recreation, and clothing. These were mentioned only in comparatively few cases, although it was evident that educating children to use money in these families was not limited to those having allowances. For example, twice as many children had responsibility in buying some articles as those who had allowances. The collection of data and the findings in this study have raised further questions in regard to distribution of financial income in families. In Chapter V some of them are presented for the consideration Of those interested in this field. 43. CHAPTER IV SOME FACTORS RELATED TO FINANCIAL PATTERNS AND PRACTICES IN FAMILIES A general picture of the cooperating families has been given and their practices in handling financial matters have been presented. Some of the factors which may bear a relation to these customs have been studied, and these relationships are the subject of this chapter. The influence of formal education of husbands and wives, the occupation of husbands and the number of children in the family were given special attention. The six practices included in this study of relationships were: Planned spending Family discussion Allowances for children Joint bank account Keeping records Joint control of the family purse. Hazel Kyrk in "Economic Problems of the Family" uses1 the term joint control to mean mutual rights. The writer interprets this term to mean that decisions are not left to one person, but rather that the husband and wife or husband, wife, and children make decisions together. The influence of formal education of husbands and wives was first considered. Since the size of the groups varied, percentages in each group following the practice indicated were determined. These percent- ages are shown in Table 24. The classes of families were arranged by 1. Kyrk, Hazel - “Economic Problems of the Family', p. 185.v e - 'VQT‘W‘I‘T‘I'W 'r';: '.T,'—‘ 7—,- ?T r—_ ,3 {TIT/W r.“ ,I T FYTTTT 3f, ' -U,x; I»¢., -‘~ -‘-——- {memlfi‘m~_‘~~1 .1 .0 . r... H.HH ,3 -—-—~.. , D? r‘ ’\ .L ll '..', .. . »~"\ . ~.-., ~ ,.:. -.-. \~-" . I’U , _ ._ z, ,' 3:": 5.1:».-. ”1"“ xi. F. , .4 v .:.. Husband and wife “In more than 4. Wife more Husband " ’5 Husband and Wi”€ 9~l2 grades Wife Owl? grgn' husband .355 with wife Husband and grades formal education as follows: 45. Husband and wife with more than twelve grades of schooling Wife with more than twelve grades, husband less Husband with more than twelve grades, wife less Husband and wife with 9-12 grades Wife with 9-12 grades, husband less Husband had had 9-12 grades, wife less Husband and wife had had 4~8 grades, inclusive. Rank correlation was employed in determining the significance of the findings and is merely a comparison of the ranking of educational levels from the highest to the lowest. TABLE 25 CORRELATION OF CERTAIN PATTERNS AND PRACTICES WITH FORMAL EDUCATION OF HUSBANDS AND WIVES Practice Correlation A__ Keeping records + 1.0 Allowances for childred + .994 Joint bank account + .57 Joint control of the family purse + .55—1/3 Planned spending + .29 Family discussion - .71 A coefficient of +1 in rank correlation indicates that the highest educational group had.a corresponding highest per cent of families following the practice considered; the next highest educational group, the next highest percentage, etc. down through all of the groups. A coefficient of -1 shows that the highest ranking educational group had 46. the lowest per cent of the total group following the practice considered, the second highest educational level, the second lowest per cent, etc. on down to the lowest educational group, which had the highest per cent of the total group following the practices. A coefficient of 0 indicates no correlation. An example illustrating the method of obtaining rank correlation is found in Appendix II. A study of Table 25 shows that for the families in the present study there is a perfect correlation between formal education of husbands and wives and the practice of keeping records, and almost a perfect correla- tion with the practice of giving allowance to children. In other words, the more education husbands and wives had had the higher the percentage of families who kept records and gave children allowances. It is like- wise true that the more education the greater was the percentage having joint bank accounts. There was a slight tendency for more to make plans and to follow a system of joint control, when those families were in hdgher educational groups. As for the correlation regarding the practice of family discussion, which indicates that the more education, the smaller the percentage of families using the council plan, an eXplanation may throw some light on this. Many of the families have only one or two young children who are not old enough to enter into family financial discussion. This, of course, would be reflected here. The second factor considered was the occupation of the husband. These groups were arranged in what seemed to be a logical order: professional, clerical, public service, trade and transportation, farmers, part-time farmers, laborers. The findings are presented in Table 26 o 47. m.h¢ mm 0.50 on «.0H NH m.m r m.0H m m.¢¢ mm op mhmhonsq N.om mo m.m> 0m m.>m 0H o.om 5H soda mH n.05 on 00 whoshsm maflalphwm p.00 00H b.ww NHH N.No mp m.mH um b.0n um N.mm «ed mbH muoshmm b.0m on m.wm hm H.0N 0H H.HN NH m.0H 0 H.m¢ 0N hm GOdpsphoamndha cad ovens 0.0m N 0.00 m 0.0a H 0.0 0 0.0 0 0.0¢ o 0H cowhhmm Gdansk 0.00H b 0.00H r 0.0N N m.~¢ m m.¢H H 0.00H .b b Hwofihoflo ¢.0& hm ¢.0> 5N H.b¢ 0H m.mm 0 0.HH o n.~m mm on HsnOHmmoMOHm peso nod .02 some pom .02 name 8mm .02 once pom .02 name .3m .02 peso new .02 dsonfisfi H9350 p56“ apnoea #5609» Moon god—ho you monsoon? Madonna moassm 96.5 go 83.8 mfiaoom pfioe 808.83 3an 393 ..‘ @358 .33 mm00m0_A¢20HH¢m0000 BzmmmmmHQ OZHBzmmmmmmm mquszh 02024 mMOHBU.wm OHH mmH conga no 0:9 m.mm mm m.mu mm m.mm mm H.mm mm >.mm mm m.mm ms mm oaano one o.nm so o.m> em m.oo mm I I I I m.Hm mm as soaoaflno oz pom. pom aoz 0:00 new .02 psoolonm .02 0:00 mom .02 9:00 new .02 94.80 pom .oz moo. n% as H9380 peach. 30.300.» 0.8503 Moon 83% you manages—.3 genome wedges...“ anon". mo sopmhm mammog— psdoh. 30ququ hdwsdu 0.35— .4. vegan each EGAN—”mo ho 0%qu BEVEMHQ EH3 madam 0205 WMUHaoddm AdHofisz ho 92939 am an. if 50. The same method of securing the correlations was used as in the previously cited factors. The findings are presented in Table 28. TABLE 29 CORRELATIONS OF CERTAIN PATTERNS AND PRACTICES WITH NUMBER OF CHILDREN IN THE FAMILY fi—O-O—un-Q—OHOC.-- ‘ Practice Correlation Allowances for children + 1.0 Keeping accounts + 0.8 Joint control of the family purse + 0.2 Joint bank account - 0.1 Planned spending - 0.8 Family discussions - 1.0 ‘Explanations are required in applying rank correlation to this section. Here we find that for practices two and three there are only three levels considered since in group one there are no children. Therefore in considering the families which discuss financial matters with the entire family, or give allowances to their children, we con- sider only those groups that have children. Thus in practices two and three the grouping starts with those having one child. An example of the method used in obtaining these correlations is found in Appendix II. This study shows what might, perhaps be expected, that is, that the more children there are in the family the more plans are made for spend- ing. This no doubt is especially true in families with adolescent children who are in high school. Demands for money become more and more numerous and pressing, as a result some sort of planning or'tmdgeting must be done to make ends meet. The same holds true, naturally, for all 51. large families regardless of age of children, where demands are many and dollars few. The study shows also that a larger percentage of fami- lies with more children had joint bank accounts and family discussions. The findings show, however, that a larger percentage of those families with fewer children gave allowances and kept more records of expendi- tures. An explanation may be that younger parents are using the newer ideas of management, also it may be that the younger woman with only one child has more time for keeping records than does the mother with a large family. From the schedules it is evident that the practices followed in connection with children's allowances vary widely; A most interesting family practice in teaching children the value and use of money is described by one cooperating farm family. The two children, now in college, were given one cent on each dollar of’gross income when they were ten years of'age. This amount was gradually increased as they grew older. In addition to this, they were paid for all extra work such as picking berries and harvesting potatoes. The father invested this money for them throughout the years. This investment, together with the income from current sales, has been the principal source of money for college expenditures. It has meant financial responsibility and has created a feeling of ownership in the farm. 52. CHAPTER‘V SUGGESTED STUDIES IN FAMILY PATTEENS AND PRACTICES Home management specialists, counselors, and parent educators often have presented to them preplexing problems which center around the distribution of the financial resources of families. The lack of information regarding what constitutes successful practices makes difficult constructive suggestions. Often the inability of the family to face and analyze their financial problems together, constitutes a tragedy for themselves and perhaps a very great one for society. The present study has suggested to the writer other questions for which answers are needed. There are at least two types of studies in this field, that which deals with the financial patterns and practices, and the type concerned with attitudes which occasion the patterns or emerge from them. The present study is of the former type. In inves- tigations dealing with patterns there is still the question as to whether the data collected by means of the questionnaire is as satis- factory and complete as that collected by one or more field workers who interview singly heads of cooperating families. In the latter probably a less detailed form would be used, and the cooperating member encouraged to express himself. The use of the interview might serve to encourage a free expression of Opinion. If it were used with husband, wife, and children, the study would be a more comprehensive one, and therefore one of greater value to educational policy in this field. Among the questions for study, which seem desirable, there is the matter of home ownership in its relation to the presence of children. In the study reported in these chapters there seemed to be a tendency 53. for rural families with children to attempt home ownership. Facts were not available regarding the nature and extent of sacrifices, if any, which were involved in such an investment, or the compensations result- ing from it. Carle Zimmermanl has pointed out the tendency of farm families to invest their profits in the farm business. Another frequent form of investment has been stock in community banks. With the coming of the depression these two forms of hitherto “gilt edge securities“ have often involved additional expenditures as well as loss of principal. A study of special interest would be trends in investment programs of farm families when there is again a margin between income and out—go. Use- ful facts would be available if one could learn the frequency with which insurance and other forms of investments, yielding the entire principal in the form of cash payable periodically, were purchased. The kind and amount of policies as well as the frequency with which they we found are of importance. Closely related to the above are investigations on the subject of adjustments, economic and otherwise, which widows of farmers make. The present study of 560 families included only four which had lost the husband and father by death. The 1950 Censusa shows, however, that one in twelve rural families were without husband and father for this reason. In urban families very nearly one in eight families were without the bread winner. This difference suggests that perhaps the explanation may lie in a tendency for widows of farmers to move off the farm. If this be true and the explanation is their inability to act as 1. Op. cit., p. 8. 2. 0p. Cite, p. 90 54. executives of the farm business, then the problem becomes a more diffi- cult one for the family and for society. One of the sources of income which was very infrequently mentioned by the 360 cooperating families was the returns from investments and legacies. It is possible that the recent depression helped account for this. If a sampling of families could be made in which this source were found more frequently it would be of interest to study the effect upon relationships, particularly when a part of the income is derived from the wife or her family. The factors affecting financial patterns and practices in the study did not include the size of the money income. An investigation designed to determine the correlation between size of money income and the financial customs observed in the home should be of interest. There is need also for more specific information on children's allowances. At the present time the information which we have is largely in the form of generalizations and we know too little regarding such matters as the specific ages at which different responsibilities were assumed, the process of growing into increased responsibility, and the outcome in adulthood of early financial training. One may well ask the question of the effect that a family's practices has upon the different children when they regard a checking account in a bank as unnecessary or undesir- able. For example, one girl whose family had never had a checking account believed it was wiser to go through life without one, and to pay all bills promptly with cash. Whether or not this attitude was passed on by the parents is not known. Many other families without checking accounts or those with a household account in the hands of adults have apparently 55. given no thought to teaching such procedures as the writing of checks. The result has been that these children have later used checking accounts without ever knowing the correct from the incorrect method. Nor has the school recognized its responsibility in an are marked by the use of credit devices. From an educational standpoint the value of such studies as those suggested above, and others which occur to leaders, cannot be over- estimated. The incentive which research funds already available has given to studies of family life needs no comment. If graduate students, research workers, and administrators do see the importance of increased attention to such investigations, and the c00peration of families is secured, the way ahead is likely to be marked with significant milestones of achievement. 56. SUMMARY AND CONCLUSIONS Three hundred and sixty families were included in this study; two hundred and fortyhsix were farm families, seventyheight lived in towns and thirty-six were residents of small cities. Questionnaires were obtained from leaders of home economics extension groups, under the direction of the home management Specialists in the Extension Service at Michigan State College. The husbands and wives were largely American—born. Only 6.1 per cent of the husbands and 5.6 per cent of the wives were foreign-born. Heads of families were largely'under fifty years of‘age, and a large number of wives were under thirty years. One-fourth of the children were under ten years and almost another fourth were between ten and fifteen years. Twentybtwo and two tenths per cent of the families with no children had other persons living in the home, while 50.6 per cent of those families with children had others in the household. The formal education of the men and women was above the average. Only 5.6 per cent of the group without children had less than a high school education, while 17.? per cent of those with children had not attended high school. In general, wives had had more education than had husbands. Almost hue-half of the husbands were farmers and an additional fifth were part-time farmers. The second largest occupational group is that of laborers and approximates twenty per cent. Before marriage 80.6 per cent of the women in the group with no children had been gainfully employed. But only 65.6 per cent of those in the group with children had been employed. After marriage 45.8 per cent of the first group had been employed at some time, and 31.9 per cent of the second group. Fifty-three per cent of all women living in small cities had worked at some time since marriage; approximately 50 per cent of town wives and about 25 per cent of the women now living on the farm had been employed. Almost 50 per cent of all farm families lived on farms of less than 100 acres. Only 2 per cent lived on farms of 500 or more acres. 0f the families with children 65.5 per cent owned their own farms, but only 52.4 per cent of those farm families without children owned their farms. Very nearly one—half of the husbands in the study supplied all of the money income; only sixteen supplied less than one-half. One-half of the wives with children contributed some money income and about one- third of those with no children contributed. The money contributed by wives was largely from the sale of farm products. Of the 560 families, only nine reported that they did not discuss financial matters. The most common method used in considering these questions was that of husband and wife talking together, but, in one- third of the families with children, discussion took place in the whole family. In fifteen families the decisions as to how the money should be spent was left to one person - eleven husbands and four wives. About one-fifth of the families made budgets. Less than one—tenth tmdgeted all the money using a written plan. Approximately the same number budgeted only part of the income using a written plan. Sixty-four per cent used an unwritten or mental plan. About one-half of the fam- ilies had a joint bank account. Ninetybfive women had a household allow- ance. Allowances for husbands was the custom in eight per cent of the 58. homes, for wives in eleven per cent and for children in twenty-five per cent. Approximately forty per cent of all families kept some records of expenditures, but less than one-fourth of the families kept records of all expenditures. The husbands tended to carry the responsibility of buying their own clothing, paying for insurance, fuel, lights, and telephone. The wives generally assumed the responsibility of buying their own and the children's clothing, food, household supplies and furnishings. Forty-one per cent of the families indicated that the reaponsibility for expenditures was not definitely assumed by certain members of the family. From the data it was determined that the more formal education husbands and wives in the study had the more they tended to keep records, give children allowances, have joint bank accounts, make plans for spending and to follow some system of joint control. There is a tendency for families in higher groups, classified as to occupation of husbands, to keep more records of expenditures, have more joint bank accounts, more plans for spending the money income and more frequently to give children allowances. Families with a larger number of children made more plans for spend- ing, had more joint bank accounts, and more family discussions, but children in these families less frequently received allowances. 59. BIBLIOGRAPHY Ferber, Edna. So ig. New York: Doubleday, Page and Company, 1924. Fuller, Josephine. Mgthod of Bandlingrzamily;iinance in Homes of Women College Students. Master's Thesis, Michigan State College, 1955. Glasgow, Ellen. Vein of_;ron. New York: Harcourt, Brace and Company, 1955. Houghteling, L. The Income and Standard of LiVing of Unskilled Laborers in Chicago. Chicago: University of Chicago Press, 1927. Kirkpatrick, E. L., Tough, Rosalind, and Cowles, May L. f cl of the Earm Egmilz, Research Bulletin 121, Agricultural Experi- ment Station, University of Wisconsin, 1954. Kirkpatrick, E. L., The Farmers' Standards of Lizing. New York: The Century Company, 1929. Kyrk, Hazel. Economic Egoblems of the Eamilz. New York: Harper and Lindquist, Ruth. t o ome nt ts lation to Child . ‘Dezelgpgegg, Published as a Joint Issue of "The Candle" of Phi Upsilon Omicron and Omicron Nu.Magazine, December, 1929 at Pittsburg, Kansas by Moore Bros. Peixotto, Jessica B. thting and fipgndigg gt the Professional_Standard 'g§_L;ging,, New York: Macmillan Company, 1927. 60. United States Bureau of the Census, Fifteenth Census of the United States, 1930. Eopglation, Volume III. Washington, D.C.: Government Printing Office, 1951. Woodhouse, Chase Going. "Managing the Money in Successful Families". igurnal of Home Economics. Volume 25. Zimmerman, Carle C. Income and Expenditures of giggesota Earm and City Igamilies 1927-1928. Bulletin 255. Agricultural Experiment Station, University of Minnesota, 1929. APPENDIX I yi-I-II--IIIIIIIIIIIIIIIIIIIIIIIIIIII-IIIIIIIIIIIIIIIIIIII T "\*t"("§f‘.”T'-‘ .L L“ ‘.J _ '3) H ~| q 1 4 ;l 3 . 4i hi ,I ’4 | -l f? l’..4 V71 “4 l w ,-~ ,. 7 ,7—1 * ~ ' 7 , - 1". fl STIDY 3T .bTPQDS Tin ‘u- . I . ° General Information “q," - m ‘..—1.....-“an m County We...” .... w— .“ ' " - ( \ Q ‘11 5:1-.. (jar-rm“ _::_c_fr~,rv-x Place on res;aefice: g? anal- -l.u l>;.~ ., W _ _m“‘w‘_ . "w" .lllll “\ qr- -~ w, I". , ,7 ,L * - - 0 can w 34 I ' I. ~' 5‘ l I L} a ' ~ ‘ I .1 C ' E" C ‘ ~ rmwuucy-ew wx‘m «v-u—qw—p-wv—«er ,, >m' - ,._,.,V. .. —l — ——— —‘—m‘wc— —-— ~‘ ~ MM"?! —~—w ---‘.-.:.—-_ new I 7 we .. ' J , FL" .1 " , -.,_.,.._...-- Wm (’1‘ T\1“~‘,-lv"1‘\/-':~3 .1 panama? /‘ 1. “L: TF1 {3 [1“ FT! 1' ,\ ’ ' ’ a- - { _\\ ,A, _ ‘4 ”u " -" ’“ " " "1“" " v "W ‘ " ‘ Neale. .-— v ‘ ‘" ,...,_. - - a -_- we, 1...... .. .. l .3 . “.4 1 » . n \ -, L , .3 ( r 7‘.‘ 1.31:1, ‘__) 31': AL n‘d‘) ( ‘. p~ . ) ‘>- / ——. WW*—.~ rennin... «e -~-~——~. M - we b +1. . enacts II 0 IflfOi inf} g“; on a C L». e. 31,6 b if Hull... 1 7 _ _ __ “Milaglmm, _ W. a “a..." 1”...” ,7, all—all”. _ -m 1...... "9---“. _ M. 1......l...w.e.~—.m lien—l ~ . . .- w ._—.-w-w..,- .- .. _ . w- — -- > - -7 ,.,-.l._.lr-..--. ~~--.M~»~— w. m w- o z 1 g g a: ’3" g (f a ~=‘ 0 a .' e . a ".2 e . } «2 ‘.. I P 3 w - . a- -. :1 P: 2-71 .. .:J , H ”L ' .-. ,. 3 »' s 7.77-.-- . “ ~ ea... "‘ ._ ~ ~ - 7-; - — 7‘..- e .. r. ._ .r fi , . Vfi -_‘ .1 ._ . ‘ '1‘ T f‘ . 1 "‘ 7.- . 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A e. a a: x r I: 9 a a) .1. , . ‘-—— . m—W»~M’~ - —- —V - \ ‘m— ‘V‘ " TM; 7 . ,. - " C t T M w£flilun-- . .. *fif‘mmm‘ H.’9~"> :M‘f‘fr\r. "n—n’ .- 7.. wFV—- ._. haw-r 7-; .7 u—n..- >7 . .7 - ww , 1..- c .» g H s / - .. a _ .— ‘ _ _ H- a . . . - - k, , . “A.-. H 9 1.... I a ‘.. ’ 5..., -—-. _ .. - - I l - ,, ., .. - .. ,_ , ,_ - _ _ _._ , - - .- .. ., a . ., .. t . . . .. .~ 4- ‘ :~ '— s .. . b .— .» ._‘ -~—. -—- .. -_ ~ ‘——-lv—-v : 4.. h...» ..- -. ~ -—4r~o c—OW—¢P.v-Ml— - ._ m— ~ - - 9 2 ° 9 t , ' _.‘_, _ : -—:IF-"' "7_,f;:_" _ ‘...W-‘x * '1; 1.“. 1.. 3;: _ ,g 1" “—1: "t—v-h—j-d' A ~ .. 1.; T423; ‘é.::“.‘2-*,__..~ v :. ,,..,.....A,, 1...; :7:— l e _- . - M“"’"’*‘:‘""" 1"" ‘1": i... " ”“2 ' '. '__T f- ” V 7 ‘.-. ‘2.“ 2A-?”t'r‘c—f'1-“72‘f’7’f' T'fiwz'2; _‘- “'..-f. 3“ ’~ ”if-2.7;; 2‘.“ ‘ ~.. - _ '1 .n,._,--1 -- - -. , ., ‘-.: . Others in V; VI? ¢x r~.;woiroe to <2 -v .7J - " ' an - .f _ . 1- fl __ ‘” - ' ”‘2 e. - 1‘ . .w ’.. .i 1.. d__ «‘..—4’“ «‘..-‘..a A .. .. —- n——— — ~ < mu.- (1 .o G ‘ 3. -. _ . . . meWWW—r—t .r—ci. a,;—~me—~wl W.— o "J - 4 e . . e ‘. .—-L‘~- .Ww-W ‘ c W‘Aogi ’9‘ w‘-"-31 _-r‘:r.-—VM‘ R ., he )H~ “—4 .1.-.A.-—- - -- -.., . -.-_,_..,.. , fl , _.__.._ ,.__,-._.— ~.—.——.—~. Q 5‘ —-e.-->-sr~,-se~-c --‘——<—-r~o,« «W» 1 €- wg‘rfi—mll‘o‘e or ‘W-.“.e..o—..~.—.— .17.. .. Leg... 4.- ‘MLWMM‘W ~~ , (fistNI‘OF-J 5 cu ‘ ‘ , . «wee... a... - «M rm¢ - i t i E 5 I f «Mao-Q»an-_a- l 5 I I WAAg ,d_. t ”‘..‘m.). 3.3—..u ",,‘_q__,.-_l. .__L_.A.‘-. - B. Indicate the home products or services exchanged for groceries or other family needs in the following spaces. In some .ii_. In return for Always In some seasons Years_ eggg butter poultrv iruit Eggetables baked goods senned goods m nurs 90 co .0 za- 4 $4-3.A.‘ .0 a. A...~r'¢...¢..~> m-r‘ .1 .4 .9 O. .0 .0 handicraft cleaning laundering cleaning 3 .. co .0 .0 o. oo o. I. ., o. 00 o. no 00 oo oo o. co o. .. co co 00 o. o. oo o. co .. oo o. oo o. 00 oo o. 1.. 00 no 64. C. What arrangements are made for access to the family income. (check) 1. Joint bank account— 2. Common purse___ 5. Household allowances___ 4. Personal allowances: Father Mother Boys___pir1s___. D. How do the children receive money? E. Dresses finderwear flats and Caps 1. Allowances: a) State amount received at earliest age b) How much is it increased 2. Requests Yes___ No— 3. Access to money income in common purse Yes___.No___ 4. Joint checking account Yes___.No___. Indicate which of the following items the children spend money for without supervision. Age Age of boys; of girls fihoes fifliiii Hose_ Goats Scarfs._Handkerchiefs. etci, flggies and other entertainments Qlub Dues __ gapdy;_§odasl,etc. Cosmetics fiagpline_i [apations School.$uoolies SchoolflLunch figurch : z a z a i 3 leyes and Mittens : z x a L z : Books Magazines Egauty Egrlor Services Qiftg ”CO””“N”M”P”“M“~NP~N~”“ V. Keeping Home Accounts 1. 2. 5. 4. 5. 6. 7. 8. (check) Do you keep a record of all money income contributed by the family? ‘Yes___lkr___ Do you keep a record of all that contributed by husband? Yes No___ Do you keep a record of some contributed by husband? Yes___,No Do you keep a record of that contributed by sons? Daughters___ Do you keep a record of income from sale of eggs____Poultry___ Hilk;___Cream Butter___‘Vegetahles____Fruit___ Do you keep a record of a11 items of expenditures? Yes____No Do you keep a record of expenditure for some items? Yes____No;___ List principal ones__. APPENDIX II 66. METHOD OF SECURING CORRELATIONS Formula for finding r (the correlation coefficient) is 6 d2 , where "d‘I is the deviation in rank and 'n" is the n n2 - 1) rzl- number of groups. ALLOWANCES FOR CHILDREN Educational group Corresponding ranking of percentages in case :1 d2 1. Husband and wife more than 1 O 0 12th grade 2. Wife more than 12th grade 2 0 0 5. Husband more than 12th grade 5 O O 4. Husband and wife 9-12 grades 4 O O 5. Wife 9-12 grades 5 0 0 6. Husband 9-12 grades 6 1 1 7. Husband and wife 4-8 grades, 7 1 1 inclusive 2:12:22 r=1~6dz =16x2=1-1=1-.056 H II + O (O O) “=- O 67. ALLOWANCES FOR CHILDREN Occupational group Corresponding ranking of percentages in case_l __. d d21__.__. 1. Professional 2 1 1 2. Clerical 6 4 16 5. Public service 1 2 4 4. Trade and transportation 4 0 O 5. Farmers 5 0 0 6. Part-time farmers 7 1 l 7. Laborers 5 4 16 d2=58 r = 1 - 6 d2 n(§¥ - 1) r = 1 - 6 x 58 = 1 - §§_= 1 - .68 7 x 48 56 r = +.52 ALLOWANCES FOR CHILDREN Grouping as to number Corresponding ranking of percentages W411i in case d a? 1. With 1 child 1 o o 2. With 2 or 5 children 2 o o 5. With 4 or more children 3 0 0 c12 = o r = 1 - 6d2 - 6.0 n n - 1 5 x 8 r = 1 - O = +1 5:531. ill. I. ‘1 L.,...IMInhEiqiu in... .7..uu..i IIIIIIIe- .- .l .i i: .1-.- 49... O I i. O I! Ill If. 1-1.I4J1 .1 4 .1n. 1. ML}- I: (II. c . 11.1.1! 1' -1 I‘ 73 . gill: . . ‘.5 coll iii; I... "rwu.!huwu“~§dfi.l.‘ ‘ I . . o ‘1. a no 1. |l|IllnflluljlfllfllflllIJJIIHIIIIIUHIHIIIII|||WIHIH 3142 734