As a child I remember sitting on my maternal grandfather's lap while he read through extensive records on costs in the United States in its Post-Depression period. He constructed a four-story brick Colonial home and medical office with a detached two-car garage with a slate roof, two kitchens, beautiful interior and exterior finishes and detailing for $7,000!
This past weekend, I had the opportunity to read my Mother's college senior "Consumer Education" class "Life Time Budget" report for which she was given an "A" grade. It was divided into "life period" chapters on "Savings and Establishment of Family"; "Child Bearing and Pre-School"; "Elementary School"; "High School"; "College"; "Recovery"; and "Retirement"). Mother had met my Father, and they were engaged to be married the following summer after her graduation. After a post marriage military assignment in Virginia, they planned to move to Westchester County to raise their predicted family of three children (and they had four). It was VERY interesting to look back to compare the economic predictions with the life that unfolded for our family...
In 1954, Dad would be earning $240 per month as an Army First Lieutenant, and Mother would be earning $200 per month as a bank teller. This placed them in a 20% tax bracket. Their partially furnished two-bedroom rental home with utilities and homeowners insurance was $80 per month. Groceries were budgeted at $70 and meals out at $10 per month were budgeted. Their Chevrolet convertible cost $279 per year for gas, oil, maintenance, license and registration, and his and her insurance policies (note, that Dad's was $40 and Mother's was $100 per year). Their combined annual health insurance plan with Blue Cross was $42 per year! After expenses, $1,203 ($600 in US Bonds) in savings of their $5,280 combined annual income was budgeted!
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