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The Family Budget
“John, honey, we’ve just got to increase our budget--the cost of our food at the supermarket is just out of this world--and you know we're not eating very fancy. And we didn’t count on the children's books costing as much as they do--” John, probably, will drop the magazine he is leafing through to his lap, take a thoughful puff on his cigarette and reply *hu huh— yes, Mary, guess we should.” Ralph, handing over to his wife, Elizabeth, what's left out of his pay envelope, says “Honey, we just haven t figured out our budget very good. We didn't count right on how much the car was going to cost and we didn’t put anything down for repairs to the tractor—and we didn't figure on the new table and chairs we had to get—.” Martha says to Fred “We would have been all right^ honey, except for those taxes. The typical conversations set forth above illustrate Budget Fallacy Number One with regard to budgets. Home conversations about the family budget almost always revolve about tfee need for increasing the budget. Such is, of course, a futile procedure. A BUDGET is simply--and only--a list of how one’s income is to be spent—planned spending of available income. This is true whether it be an
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