“Consumer” Advises On Budgeting

Press, Volume CVIII, Issue 31657, 18 April 1968, Page 10

“Consumer” Advises On Budgeting

Many people in New Zealand are beset by unnecessary financial problems, according to the Consumers’ Institute, in an article on budgeting in the latest issue of its magazine, “Consumer”.

“It is sad and curious that so many families with modest but adequate incomes fail to live within their means because they spend unwisely," it says. "Carried away by frothy advertising claims, they buy things they do not realb need: ignorant of the importance of 'shopping around,' they pay more than necessary; failing to make hard-headed comparisons, they buy goods of inferior quality.

for a replacement will damage your careful plan. Several unwise purchases could ruin it altogether. “Thus, using your budget as a base, you should plan ahead and set priorities for major purchases: learn what to buy, where to buy it, how much to pay: know how to avoid the pitfalls of hirepurchase: be able to recognise the guarantee that guarantees nothing; be able to see through the extravagant claims of many advertisements; learn how to spot misleading or fraudulent sales practices: know how to get the best out of goods through proper care and maintenance: and understand the mechanics and purpose of savings, insurance. investment.

“Although the great majority of us have the opportunity to live very well, many families are forced to accept lower-than-necessary standards of living because they do not control their spending. “This may be caused in pari by the general impression people have that anyone knows automatically how to spend money: all he needs to learn is how to make it. This is quite untrue. The very existence of the consumer movement is proof of the need to teach people how to spend. Budgeting gives them a spending plan.

“Your budget, then should be the first step towards a complete spending plan aimed at getting maximum value for the money you have and assuring the highest standard of living your income will allow,” says “Consumer.”

“But budgeting is only a way of portioning out your income. Equally essential is the need to get good value for the money you allocate to various purposes. The most carefully constructed budget will be quickly wrecked by ill considered purchases. If you allow $4O for a necessary article and it proves worthless, outlay of another $4O