FAMILY EXPENSES

Dominion, Volume 24, Issue 65, 10 December 1930, Page 9

FAMILY EXPENSES

Where Money Goes LIVING COST ANALYSED An exhaustive analysis of retail prices and household expenditure just prepared by the Government Statistician discloses that it now takes £l/11/3 to buy what could have been purchased for £1 in July, 1914. An interesting survey has been made of the bousAold outlay in New Zealand homes dependent on very modest and low wages. To obtain data booklets were distributed to householders in various towns and cities and the recipients were requested to enter all details of expenditure for 13 consecutive weeks within the period March to June. 1930. In all 318 budgets is sufficient detail for the analysis were returned. Prizes were given for the most carefully compiled records. The'iverage earnings of the heads of households who gathered the statistics were £5/6/- a week, while the total family receipts, including contributions from members of the family and boarders, averaged £5/19/-. The International Labour Office has urged all statisticians to adopt a 1930 basis in revising retail-price index numbers, and it was for this purpose that the household budget collection was undertaken in New Zealand. The geographical distribution and the number of budgets supplied to the Statistician was as follows:—Auckland, 73; Wellington. 35; Christchurch, 25; Napier, 13; Dunedin, 12; New Plymouth, 10; Nelson, 10: Wanganui, 9; Palmer, ston North. 7; Hamilton, 7; Timaru, 7; Gisborne. 5; Oamaru, Greymouth, Masterton. Hastings, and Whangarei, 4 each; Rotorua, Temuka and Ashburton 3 each. From Invercargill, Westport, and twelve smaller towns, two returns each were received, while one return was also received from each bf 48 small towns and rural localities. Food Greatest Item. The average number of persons in the household included in this inquiry was 4.33. The actual figures are: Two in family. 47; three, 61; four, 80; five. 69; six, 34; seven and over, 36. The occupations of the heads of households were as follow: Clerical, 140; farming, 16; labourers, 34; salesmen and shop-assist-ants, 27; tradesmen, 82; other occupations, 19. The data shows that in the wage group contributing, food accounts for 29.52 per cent, of the household expenditure, while housing averages 21.93 per cent., and clothing, drapery, and boots and shoes account for 12.61 per cent. Following are details :— Percentage of total expenditure. Bread 3.23 Flour 0.87 Meat 5.62 Bacon and ham ~ 0.90 Milk 3.57 Butter 3.57 Sugar 1.14 Tea, coffee, and cocoa ........ 1.33 Fresh vegetables and fruit ... 3.45 Other foods 5.84 Total food ......... 29.52 Housing 21.93 Clothing and drapery ......... 9.77 Boots and shoes 2.84 Fuel and light 6.17 Insurance 3.78 Fares 3.46 Superannuation ............. 2.40 Medical expenses 2.38 Sports and amusements 2.20 Papers, books, and postage .. 1.62 Furnishings 1.55 Tobacco ........ 1.30 Household cleaning supplies . 1.09 Other miscellaneous items .... 9.99 Total 100.00 How Outlay Fluctuates. The 1930 results compare very closely with an analysis taken in 1910-11. Expenditure on food has dropped from 34.13 to 29.52 per cent, of total expenditure ; the proportion spent on housing has risen slightly; clothing shows a slight decrease; while fuel and light and “miscellaneous” items of expenditure are now responsible for a higher proportion of total household expenditure, than was the case in 1910-11. The 1919 results differ from the results of the two other budget collections, in that the abnormal conditions caused by the late war are reflected in the distribution of expenditure as revealed by that inquiry. Food prices were abnormally high, while rent had not at that time increased to anything like the same extent. Consequently food was shown in 1919 to be responsible for 38.32 per cent of total expenditure, or 8.80 per cent, more than was the case in the 1930 collection; while housing in 1919 accounted for only 13.07 per cent., as compared with 21.93 per cent, in 1930; the com bined expenditure on food and rent be ing 51.39 per cent, of total expenditure in 1919, and 51.45 per cent, in 1930 The proportion of expenditure on cloth ing has decreased from 15.86 in 191' to 12.61 in 1930. The analysis covers families of frou two to ten persons, and it is noted th.T the proportion of expenditure on food i higher in large households than that ii those of smaller size, the proportion in creasing from 24.9 per cent, in hous> holds of two members to 37.4 per cent in households of seven members or more As would be expected, the proportionalexpenditure on housing shows a progres sive decline as the membership of th< household increases. The proportions ex pended on clothing, drapery, and foot wear do not show any definite trend when considered in conjunction with th<size of the household, the percentage varying between 11.5 and 14. The pro portion of expenditure on fuel and light is practically constant for households of all sizes, varying between 6 and 6.3 per cent, of total expenditure. The percentage ol expenditure on miscellaneous items shows a definite decrease in the large: households, the maximum (31.6 per cent.) being recorded in the ease of households of two persons, while the minimum (27.7 per cent.) is shown to have been expended by households of seven members or over. The figures indicate that the proper ' tion of expenditure on food steadily de creases as the total income of the family increases. The proportion spent on hous ing is greatest in the lowest-income group and lowest in the highest-income group The groups between £6 and £7 per week however, show increases as compared with the immediately preceding groups Expenditure on clothing, drapery, am footwear is higher proportionately in flu higher-income groups than in the lower income groups. Fuel and lighting is re sponsible for between 5.5 r.nd 7.6 pei cent, of the total expenditure, the hivhesi figure being recorded in the case of incomes of between £4 and £4/10/- per week, while successive decreases in the proportion spent on this item are shown to have occurred as the income increases beyond £4/10/- per week.