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Show How Your Family Can Cope with INFLATION Here are dollar-saving tips designed to trim your budget and put muscle in your money By Dr. HEROLD C. HUNT Chairman, National Committee for Education in Family Finances with Theodore Irwin N MANYcities the price of a haircut has risen to $2.50. Some supermarkets used to give away dog bones. Now they package them and charge 25 cents. In California; a marriage license has jumped from $5 te $6. The reason is, of course, inflation. Inflation has been defined as “when the dollar isn’t what it used to be.” The consumer-price index indicates that in 1968 living costs will rise about 4 percent. It means that for every dollar you spend, you'll be penalized four cents. In- Consider, too, the various hedges against spiraling prices. During an inflationary period, it is sound economics to invest in real property. Owning a home, rather than renting, eventually pays off—provided the house is in a neighborhood that will grow, not deteriorate. Your equity increases as the home’s value generally keeps pace with the national economy. well-insulated house costs less to small tubes and check them your- Investing in common stocks and bonds, particularly in growth industries, may turn out to be a good hedge because they represent own- heat and cool, so if you add insulation and storm windows, they will self at an electrical-service store. Conservefuel by keeping your home pay off in the long run. In buying, a larger down payment will save you mortgage interest. If possible, get. a house that already has a mortgage you can take over; chances are it will be at a lower interest rate than you can obtain today. During periods of inflation, a homeowner should learn to be a jack-of-all-trades, Through library books, government pamphlets, or at a constant temperature. Take ership in tangible assets that ad- although in-reased earnings often do not entirely offset higher prices. More and more, men are moonlighting for a second income and some vance in value during inflation. But remember that stocks can go down as well as up. You should consult a reputable broker. As for the other main attack on inflation, paring expenditures, the strategy is to get the most mileage out of your dollar. Probably your spending habits will have to be readjusted, your buying better organized. Tackle each phase uf family consumption with an eye to pruning. Here are some fundamentals: Shelter-Home Maintenance. Housing takes 20-30 percent of your net annuai income or an average of 15-million wives are working. 24 cents of your spending dollar. As A higher-paying job is, of course, one sound answer to inflation. I know of one man who took advan- apartment rentals go up, payments flation has become one of the biggest problems facing our country. How are you and your family faring? Rather than complain, fight the phenomenon by taking practical countermeasures. Let’s start with somebasic principles, You can earn more, cut expenses—or, most likely, do both. Most Americans do have a larger income today than a few years ago, tage of his company’s offer to pay for a course in electrical work and thus boosted his annual wages from $6,200 to $9,300. 6 Family Weekly, February 18, 1968 wa Inflation can wreck the family budget. But the husband and wife who watch I've said, owning a home can be 2 wise hedge during inflation. While on your mortgage stay the same. When you buy, unpainted brick or stone is cheaper to maintain than frame, stucco, or painted brick. A advantage of thrift shops, bazaars, auctions, and churchfairs. Food. From 22 to 29 cents of yorr dollar goes to feed your family. Store managersfind that male shoppers generally choose attractive but high-priced extras (cocktail snacks, etc.), 80 it’s best for the housewife to do the major marketing. When possible, buy in large quantities— the classified ads. To save on tv re- family-size cans of tuna and twopound cans of coffee, for example. Watch your newspaper’s food pages for the Department of Agriculture’s food “plentifuls”; buy them in volume after each crop arrives, then can or freeze what is not eaten. Time your buying of canned or frozen foods to benefit from end-of-summer surpluses. Plan your menus around the weekly supermarket special. Weekend specials are usually good buys. Avoid food shopping early in the week when prices are generally pair charges, you caa take out the highest. Note: beef, veal, and es- adult-education courses, you can master many do-it-yourself skills, thereby paring costly homerepairs. Buyingpractical tools is a shrewd investment. On expensive equipment, however, like a power snow remover, you may be able to work out a pooling arrangement with your neighbors. Household Expenses. As money becomestight, more families are buy- ing used major appliances (freezers, refrigerators) from friends or neighbors on the move. Also watch |