Thursday, July 03, 2014

1962 cost of Living

Comparatively speaking, food was more expensive in 1962 than today, according to this chart. In 1962 we bought our first home, $14,000, but our income was more like $4,000, and a wife's income did not count in mortgage applications unless s...he was a nurse or school teacher (considered safe jobs). Banks were strict; no more than 1/3 of income could be home related. My father financed our 2nd mortgage. We rented the upstairs apartment for $65/mo which was the mortgage amount. Rental real estate is the only home that isn't a hole in the ground where you bury money. Tuition, fees and housing at the University of Illinois was probably about $1200/year ($30,300 today). I don't recall specific prices for food, but a good size candy bar was 10 cents. Yes, gas really was that cheap, but automobiles were very inefficient and less safe 40-50 years ago--I had a huge 4  door '69 Olds that got about 10 mpg. My husband had zero benefits in 1962--no insurance, no vacation, no pension. We purchased a hospitalization policy and a small life insurance policy--I think they were about $30/quarter. We paid cash for doctors and dentist. All that said, I think higher education has gone up faster than health care (1,120% since 1978; medical 601%), food or housing--probably because of all the government assistance and loans, and it will only get worse now that the government has taken that over completely.

Photo: Which one surprises you the most?

We were not church members then, and if our "giving" was $10/year, I'd be surprised. We were definitely in Joe Biden territory. We always had month left over after the money ran out until we started to tithe.

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