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Show 2 DESERET NEWS, THURSDAY, MAY 5, 1 Man Dear Abby Theater Do-- It Living 977 TV r What's Doing Today OF 1967 ' OF 1967 F & utl oil COill V expenses "NGas If rising prices have made it necessary to count every penny, then you have to make sure that every jxmny counts. It takes careful planning, budgeting, eon suiting with the whole family and doing all you can to make your dollars go farther. Here are some suggestions: & electru ity Gasoline. regular & premium 1975 1972 19G9 INCLUDED IN HOUSING INCLUDED INOLX TRANSPORTATION IN 1978 MRUARY 1977 INDEX HJL'HU w ,,, a:,"! .'! M VfA tv-f- : "1 f; 'J3 , - yy w Food BJUlAu-O- T ; ;7XV &KW-- "s AyV. ' j'S 4. r " ' " ;;i f .J r x'vrt firs inflationary trends over the years in five major areas: food, medical care, housing, transportation, apparel. 3. Switch to lower-cos- t alternatives. . qtriT general 1. Make a shopping list. Stick to your list, avoid impulse buying. Plan your list around . tamily preferences and special.--- Don't shop on an empty stomach, either, you're more susceptible to impulses. 2. I'se the food ads. Carclui lood shopping begins at home with newspaper ads. Plan meals to take advantage of special prices and coupons, liny things on special and freeze them lor use later. Cheaper cuts id meal and non lat dry milk, for instance, can save money. Stretch meat with soy rice, bread crumbs and other extenders. Servo casseroles I. Shop carefully. Head labels so you know yvlial you are getting. Use unit prices so you get tin- best buys. Buy by the serving (sometimes meat with lots of bone and lat provides fewer servings than a more expensive cut), buy food in season. 5. ITcvent wash1. Store food properly ami use within time limits to avoid spoilage. Use lood tile family likes. Y-- The Consumer Price Index shows Comics Music Ways to cut living ENERGY PRICES CONSUMER PRICE INDEX Weddings xy. x J4 :;t SsfcJ Housing rV Tracing the climb 1 j2 of consumer prices Carma Wadley Deseret News staff writer I -- A 3. , 1 ,i ' - I' T ''5A, X "V- - Af - h Ck -- ,''5 I sm; c By FOOD EXPENDITURES AND INCOME TRENDS OF 1967 Nowadays, it has been said, people track monthly Consumer Price Index fluctuations with an intensity once reserved only for major league batting averages and Dow Jones stock listings. The index is a pretty good indication of it traces what has happened to prices their upward climb and confirms in black and white suspicions that it costs more to live now than it used to. According to Consumer Price Index figures, medical costs have made the biggest jump in the last couple of years and have become, along with the energy policy, a main target of the Carter administration. Food, while it continues to increase in price, saw the biggest jump between 1972 and 1974. Prices on some grocery items have actually come down in price since those highs of 1974. Rises in food expenditures have tended to stay close to rises in income. Though food prices have gone up, families spent about the same percentage of their disposable personal income on food each year. Big leaps have also come in housing and transportation, in part reflecting increased energy costs. Since the 1973 oil embargo, energy costs have scampered upward Before that time the price of a gallon of gasoline had not changed more than a few cents per gallon (21 cents in 1944 ; 29 cents in 1954 ; 30 cents in 1904); since then it has nearly doubled in price. While many people are aware of the fact that the Consumer Price Index (CPI) continues to rise, many don't understand exactly what the increases mean, just how the index is determined and what it does Contrary to popular belief, the index docs not, and is not intended to, measure the cost of living. Nor do changes in the index necessarily mean changes in your expenses. Although it can be used in personal budgeting, the Consumer Price index is more of a general indication of inflation which is used in developing economic policy and in wage negotiation," said Mike Putman of the Bureau of Labor Statistics, the organization charged with compiling the monthly index. The CPI. started after World War I through a labor agreement with the shipbuilding industry and revised several times since then, measures the cost of a specific marketbasket of goods and services and compares the total with the cost of the same goods and services at an earlier time. Included in the marketbasket arc close to 400 items chosen on the basis of interviews with thousands of urban wage earners and clerical workers to determine items. It is the most commonly-purchaserevised approximately every 10 years to reflect changes in buying patterns. Among items priced are such things as new houses, used cars, bread, a visit to the doctor, an evening of bowling, a television set, a funeral. Once the marketbasket items are chosen, they are weighted to reflect their " baby-sittin- cheek leases and rental agreements carefully belure you sign. 3. Protect your housing investment. Routine upkeep and maintenance, care ol heating am! utility systems, attention to roof and exterior will stretch the housing dollar. t. Be adequately insured. Building and replacements costs have also continued to go up. Insurance companies recommend that a homeowner lie insured to 80 percent of current replacement value. 5. Insulate. Proper insulation is the most important thing you can do in reducing energy costs. Caulking and weatherstripping around windows and doors will also save on air conditioning in the summer, heating in the winter ,.XT Transportation 100 Pl.fJ PERCENT' Food j 17 So of incomu (DPI) 15 1972 1971 BASED ON DATA 1974 1973 Of DEPARTMENT Of COMMERCE 1. Take care of you car. Proper maintenance and careful checking can keep many problems from developing, will save on repair bills. 2. Shop carefully. When buying a new ear. shop around. Be sure you aren't paying for any extras you dont want or need. Shop, also, for luiancing. Credit is cheaper at some places mniMi iyb 1976 'hit than others. SEASONALLY ADJUSTED ANNUAL RATE 3. Investigate insurance. You car should be adequately protected by insurance, but rales and benefits vary from company to company. Make sure you are dealing with a reputable PRELIMINARY firm. 4. Save gas. Good driving habits, moderate speeds, proper equipment, steady driving, earelul planning to consolidate trips will help. 5. Don't drive. Whenever possible walk, curpool or ride the bus. You save money as well as conserve energy. HOW FOOD PRICES HAVE CHANGED Medical 1. Have a family doctor. Select a doctor before you need one; heed symptoms and lullow his advice when you consult him. 2. Practice preventative medicine. Take the illness you avoid costs you precautions relative importance in the way a family spends its income: roughly 33 percent for housing, 25 percent for food, 19 percent for health and recreation, 13 percent for transportation and 10 percent for clothing. day-to-da- y d 1. Know how much house you can altord. As a rule of thumb, you can go up to three times your gross income. If you make $10,006 u year, you can at ford a $30,000 house. 2. Consider alternatives. Decide whether it is cheaper to buy, rent or build. If you rent, Then these items are priced once a month in 39 major population areas and 17 smaller cities. The prices are checked and double-cheekefed into a computer and the result is the monthly Consumer Price Index. Index changes may not necessarily be reflected in your budget for several reasons. For one thing, the index is based on sitending habits of urban wage earners and clerical workers who comprise about 40 percent of the population. The spending habits of professionals, retired and unemployed people are not considered. A price boost may affect a limited area and though it drives up the index by a fraction it may not affect other parts of the country. Consumers also tend to adjust shopping habits to prices they find. If certain cuts of meat go up in price, for example, the consumer may switch to other cuts, which will not affect the overall spending pattem. Another reason why index prices may nut be immediately felt is that no one household buys all 400 items in any one month. Nevertheless the effect of the Consumer d, day-to-da- y Price Index is felt by many people because of its function as an escalator. Government estimates figure that more than 5.1 million workers ore covered by collective bargaining agreements that contain clauses providing for wage increases when the index goes up. The CPI also affects amounts of money received in Social Security benefits and by retired military and civil service workers, and is used as a base figure by many agencies. Poverty levels in many federal, state and local programs are tied to the index. It is also, as one government official said, a major yardstick by which the success or failure of the government is judged. Because of this extensive use. the Bureau of Lalxr Statistics is in the process of revising the CPI to include a broader base. A duel index will be issued, said Mike Putman; one done the way it is now, the other covering households of professionals, retirees and unemployed. The index was originally used in a much narrower way. But it has been put into so many contracts and such a substantial number of people are affected by it, that a broader index is needed Fall of 1977 is the target date for the new CPI. The index uses a base year of 1907. The number 100 is used to represent average prices during the base year. Prices are then figured in relation to how they have changed since that year. For instance, when the CPI climbed to 174 0 in February of 1977, it meant that it took $17.40 to buy goods and services that cost $10 in 1967. Tracing ihe CPI year by year, it shows the general upward trend of ju ices. Overall goods and services that cost $10 in 19G7 cost $10.40 in 1968; $10.98 in 1969: $11. 63 in 1970, $12.31 in 1971; $12.53 in 1972: $13.31 in 1973; $14.77 in 1974; $10.12 in 1975: $17.01 in 1970 and $17.40 by February of this year. The CIl is also broken down into lise major categories. Food that cost $10 in 1907 cost $11.49 by 1970; $12.35 in 1972; $14.14 in 1973: $16.17 in 1974: $18.09 in 1970 and $18.77 in February of 1977. Medical costs went from $10 to $12.00 in 13.25 in 1972; $15.05 in 1974; $18.37 in 1976; $19.58 in early 1977. 1970; Ti ansportation costs rose from $10 to .27 in 1970; $12 in 1972; $13.73 in 1974; $16.59 in 1970 and $17.51 in early 1977. 1 1 Housing index went from $10 to $1 .89 in 1970; $12.92 in 1972; $15 00 in 1971 and $18. 13 in 1977. Apparel and upkeep rose from $10 in 1907 to $1 .01 in 1970; $12.23 in 1972; $13.02 in 1971 and $15.20 in 1977. nothing. 3. Cut drug costs. Ask your doctor if a drug is cheaper by generic name rather than brand name. Shop around; drug prices vary at dilteront pharmacies. Use over the counter drugs only as needed. t. Have adequate insurance. Policies vary, but most include coverage for hospitalization, surgery, major medical expenses and disabili tv. Get group protection if you can. 5. Safety first. Many accidents are prev-nable. Take precautions and use common sense to avoid them when possible. t Apparel and upkeep 1. Comparison shop. Compare quality and price at dilierent stores. Prices vary greatly. 2. Take care of what you have. Regular attention to clothes and belongings, taking care ol minor repairs, cleaning and proper storage will stretch clothing dollars 3. Plan and coordinate. Plan needs ol the tamily well in advance. Coordinate wardrobes so new purchases will go with old. I. Shop the sales. If you have planned in advance, so you know what you need, you can olten find good buys in ofi season sales. Avoid impulse buy ing or purchasing .something just because it is on sale. 5. Learn to sew . If you don't already know how. investigate sewing. You can save as nun'll as !() (o 50 percent or more ol your clothing cost-- . |