Solution Manual for Focus on Personal Finance 5th Edition by

Kapoor Dlabay Hughes Hart ISBN 0077861744

9780077861742
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CHAPTER 2
MONEY MANAGEMENT SKILLS

CHAPTER OVERVIEW

Successful money management is based on organized financial records, accurate personal financial
statements, and effective budgeting. This chapter offers a discussion of the importance and type of financial
documents. This is followed by an explanation of the components and procedures for preparing personal
financial statements—the balance sheet and the cash flow statement. Next, the chapter covers the basics of
developing, implementing, and evaluating a budget. Finally, savings techniques for achieving financial goals
are discussed.

LEARNING OBJECTIVES CHAPTER SUMMARY

After studying this chapter, students will be able to:

Obj. 1 Identify the main
components of wise
money management.
 Obj. 2 Create a personal balance Successful money management requires a coordination of
sheet and cash flow personal financial records, personal financial statements, and
statement. budgeting activities. An organized system of financial records
and documents should provide ease of access as well as security
for financial documents that may be impossible to replace.
A personal balance sheet, also known as a net worth statement, is
Obj. 3 prepared by listing all items of value (assets) and all amounts
owed to others (liabilities). The difference between your total
assets and your total liabilities is your net worth. A cash flow
Develop and implement a
statement, also called a personal income and expenditure
personal budget.
statement, is a summary of cash receipts and payments for a given
period, such as a month or a year.
Obj. 4
Connect money The budgeting process involves seven steps: (1) set financial
management activities goals; (2) estimate income; (3) budget an emergency funds and
with saving for personal savings; (4) budget fixed expenses; (5) budget variable expenses;
financial goals. (6) record spending amounts; and (7) review spending and saving
patterns.
The relationship among the personal balance sheet, cash flow
statement, and budget provides the basis for achieving long-term
financial security. Future value and present value calculations
may be used to compute the increased value of savings for
achieving financial goals

2-1

INTRODUCTORY ACTIVITIES

• Ask students to comment on the “3 Steps to Financial Literacy" feature at the start of the chapter (p.
44).
• Point out the learning objectives (p. 45) in an effort to highlight the key points in the chapter.
• Provide an overview of the “Your Personal Financial Plan Sheets” for this chapter (p. 45).
• Ask students to provide examples of problems that could result from not having a definite system for
storing personal financial records and documents.
• Point out common methods of budgeting that help a household achieve financial goals and prevent
money problems.

CHAPTER 2 OUTLINE
I. A Successful Money Management Plan A. Components of Money Management
 B. A System for Personal Financial Records
1. Money Management Records
2. Personal and Employment Records
3. Tax Records
4. Financial Services Records
5. Credit Records
6. Consumer Purchase Records
7. Housing and Automobile Records
8. Insurance Records
9. Investment Records
10. Estate Planning and Retirement Records
II. Personal Financial Statements
A. Your Personal Balance Sheet: The Starting Point
1. Listing Items of Value
2. Determining Amounts Owed
3. Computing Net Worth
B. Your Cash Flow Statement: Inflows and Outflows
1. Record Income
2. Record Cash Outflows
3. Determine Net Cash Flow
III. A Plan for Effective Budgeting
A. Step 1. Set Financial Goals
B. Step 2. Estimate Income
C. Step 3. Budget an Emergency Fund and Savings
D. Step 4. Budget Fixed Expenses
E. Step 5. Budget Variable Expenses
F. Step 6. Record Spending Amounts
G. Step 7. Review Spending and Saving Patterns
IV. Money Management and Achieving Financial Goals
A. Selecting a Savings Technique
B. Calculating Savings Amounts

2-2
I. A SUCCESSFUL MONEY MANAGEMENT PLAN
(p. 45) • Use PPT slides 2-1 to 2-3

• Money management refers to the day-to-day

financial activities necessary to handle current
personal economic resources while working toward
long-term financial security.
Components of Money Management (p. 45) A System for Personal
• Personal financial records, financial statements, and Financial Records (p. 46)
• Organized money
spending plans (budget) are the foundation for
management requires a
planning and implementing money management
system of financial records
activities.
including the following
categories:
 1. money management records
2. personal and employment records
• PPT slides 2-5 to 2-13.
3. tax records
4. financial services records
5. credit records • Text Highlight: Exhibit 2-1 (p.
6. consumer purchase records 47) provides an overview of a
7. housing and automobile records system and suggested locations
for storing financial records..
8. insurance records
9. investment records
10. estate planning and retirement records
• Exercise: Have students suggest methods that could be used to
organize and quickly access personal financial documents and • Practice Quiz 2-1 (p. 48)
records.
• Text Reference: “Apply
• Use PPT slide 2-4. Yourself” activity (p. 48).

II. PERSONAL FINANCIAL STATEMENTS (p. 48)

• A personal balance sheet and cash flow statement
provide information about a person’s or household’s
current financial position and a summary of current
income and spending.
Your Personal Balance Sheet: The Starting Point (p.
48)
• A balance sheet, also known as a net worth statement,
specifies what you own and what you owe.
Items of value minus amounts owed equals net
worth.
• Assets, the first item on the balance sheet, are cash and
other property that has a monetary value.

• Use PPT slide 2-14.

• Discussion Question: How
accurate is a balance sheet for measuring the financial progress of
an individual or household?

• Text Highlight: Exhibit 2-2 (p. 49) explains the process for
creating a balance sheet.

• Use PPT slides 2-15 to 2-19.

CHAPTER 2 LECTURE OUTLINE Instructional Suggestions
Liquid assets are cash and items of value that can easily
be converted into cash.
Real estate includes a home, condominium, vacation
property, or other land that a person or family owns.
Personal possessions are the major portion of assets for most
families.
Investment assets consist of money set aside for longterm
financial needs.
Liabilities are amounts owed to others but do not include
items not yet due, such as next month’s rent. Current
liabilities are debts that must be paid within a short time,
usually less than a year.
Long-term liabilities are debts that are not required to
be paid in full until more than a year from now. Your
net worth is the difference between your total assets
and your total liabilities: Assets - Liabilities =
Net worth
The balance sheet of a business is usually expressed as:
Assets = Liabilities + Net worth
Insolvency is the inability to pay debts when they are
due; it occurs when a person’s liabilities far exceed his or
her available assets.
“Figure It Out” (p. 51) Text Reference Refer students
to a summary of financial ratios
• A person or household experiences financial improvement
on page 51. (“Figure It Out”
if net worth increases over time. box) (PPT Slide 2-23)
• Debt-equity ratio—liabilities divided by net worth—
may be used to indicate a person’s financial situation; a
low debt ratio is desired.
• Current ratio—liquid assets divided by current
liabilities—how well a person will be able to pay
upcoming debts.
• Liquidity ratio—liquid assets divided by monthly
expenses—indicates the number of months that expenses
can be paid if an emergency arises.
• Debt-payment ratio—monthly credit payments divided
by take-home pay—provides an indication of how much
of a person’s earnings goes for debt payments (excluding
a home mortgage).
• Savings ratio—amount saved each month divided by
gross income—financial experts recommend a savings
rate of about 10 percent.

Your Cash Flow Statement: Inflows and Outflows (p. • Cash flow is the actual
51) inflow and outflow of
 cash during a given time period. • PPT slides 2-20 to 2-22.
• A cash flow statement is a summary of cash receipts • Discussion Question: What
and payments for a given period, such as a month or a information does a cash flow
year. statement provide that is not
available on a personal balance
• Income is the inflows of cash to an individual or a sheet?
household. For most people, the main source of
income is money received from a job. • Exercise: Have students list the
various sources of income (cash
• Cash payments for living expenses and other items inflows available for spending)
make up the second component of a cash flow of people in our society.
statement.
• Fixed expenses are payments that do not vary from • Discussion Question: What
relationship exists between the
month to month. balance sheet and cash flow
• Variable expenses are flexible payments that change statement?
from month to month.
• The difference between your income and your cash
outflows can be either a positive (surplus) or negative
(deficit) cash flow. A deficit exists if more cash goes
• Practice Quiz 2-2 (pp. 54)
out than comes in during a month. This amount must
be made up by withdrawals from savings or • Text Reference: “Apply
borrowing. Yourself” activity (p. 54).
• Text Highlight: Exhibit 2-3 (p. 52) provides an overview of the
process for creating a cash flow statement.

III. A PLAN FOR EFFECTIVE BUDGETING (p. 54) • Use PPT slides 2-24 to 2-31.
• Discussion Question: Is every
• A budget, or spending plan, is necessary for individual and household forced
successful financial planning. The main purposes of a to budget, with some more
budget are to help you 1. live within your income organized and planned than
2. spend your money wisely others?
3. reach your financial goals • Exercise: Have students suggest
4. prepare for financial emergencies common financial goals.
5. develop wise financial management habits

• Budgeting may be viewed in seven main steps:

1. Set financial goals
2. Estimate income
3. Budget an emergency funds and savings
4. Budget fixed expenses
5. Budget variable expenses
6. Record spending amounts
7. Review spending and saving patterns

• Your lifestyle is how you spend your time and money

and is strongly influenced by your career, family,
and personal values.
Step 1. Set Financial Goals (p. 54)
• Financial goals are plans for future activities that require
you to plan spending, savings, and investing.
• How much you budget for various items will depend on
current needs and plans for the future. Sources that can
assist with planning your spending include:
your cash flow statement
sample budgets from government reports
articles in personal financial planning magazines
estimates of future income and expected inflation
magazine articles, and
Step 2. Estimate Income (p. 55) estimates of future income
• Available money should be estimated for a given time and expenses.
period—such as a month. • A “spending diary” of past
• Income variations (due to seasonal work or sales expenses can also assist
commissions) should be based on the recent past and with this task.
realistic expectations.
Step 5. Budget Variable
Step 3. Budget an Emergency Fund and Savings Expenses (p. 57)
(p. 55) • Planning for variable
• An emergency fund and savings for irregular payments expenses is more difficult
should be first set aside to avoid not having anything than fixed expenses.
left for savings.
• These expenses will
fluctuate based on
household situation, time of
the year, health, economic
• Text Highlight: Exhibit 2-6 (page 57) provides suggested budget conditions, and other
allocations for different life situations. factors.
• Exercise: Have students allocate budget categories (using
percentages) for different household situations.
Step 6. Record Spending
Amounts (p. 57)
• A budget variance is the
difference between amount
Step 4. Budget Fixed Expenses (p. 55) budgeted and the actual
• Definite obligations (rent, mortgage, and credit amount received or spent. A
payments) should be allocated first. deficit exists when actual
• Assigning amounts to spending categories can be based spending exceeds planned
on your cash flow statement, government data, current spending. A surplus is
when actual spending is
less than planned spending.

Step 7. Review Spending and Saving Patterns (p. 58) may need to be reviewed in
detail to determine areas of
• The results of your budget may be obvious—having
needed changes. The most
extra cash, falling behind in payments. Or the results
 common overspending areas are entertainment and • People commonly prepare
food, especially awayfrom-home meals. a balance sheet on a
• At this point of the budgeting process, you should also periodic basis, such as
evaluate, reassess, and revise your financial goals. every three or six months.
Between those points in
Successful Budgeting (p. 59)
time, a budget and cash
• A successful budget should be: flow statement help plan
well-planned and measure spending and
realistic saving activities.
flexible
clearly communicated Selecting a Savings
Technique (p. 62)
Selecting a Budgeting System (p. 59)
• Since most people find
• Commonly used budgeting systems are: mental,
saving difficult, financial
physical, written, and computerized. advisers suggest several
methods:
write a check each
payday and deposit
it in a distant
financial institution
use payroll deduction,
direct deposit
• Text Reference: The “Personal Finance in Practice” box (p. 58)
save coins
suggests guidelines for a SWOT analysis for money management
activities and budgeting. spend less on certain
items
Calculating Savings
• Question: What factors can contribute to unsuccessful budgeting?
Amounts (p. 62)
How can these situations be avoided?
• To achieve financial
• Practice Quiz 2-3 (p. 60)
objectives, you should
• Text Reference: “Apply convert your savings goals
Yourself” activity (p. 60) into specific amounts.
• Your use of an interest-
V. MONEY MANAGEMENT AND ACHIEVING earning savings plan is
FINANCIAL GOALS (p. 60) vital to the growth of your
money and the
• Personal financial statements and a budget help achievement of your
achieve financial goals with financial goals.
1. the balance sheet reporting current financial
position—where you are now.
2. the cash flow statement: telling what was • Use PPT slides 2-32 to 2-40.
received and spent over the past month.
3. a budget for planning spending and saving to • Additional Example: People
achieve financial goals. unable to save regularly are
usually:
 individuals without specific savings goals

people who always seem to use up savings for

unexpected expenses

those who overuse credit

people who buy to have the same things as others

individuals who lack common financial goals with other

family members

• Text Highlight: “From the Pages of Kiplinger’s Personal

Finance” (p. 61).

• Practice Quiz 2-4 (p. 63)

• Text Reference: “Apply
Yourself” activity (p. 63).
 CONCLUDING ACTIVITIES

• Discuss “Your Personal Finance Dashboard" and possible financial planning actions (p. 63).
• Point out the chapter summary (p. 64) and key terms in the text margin.

• Assign and discuss selected end-of-chapter Problems, Questions, Case in Point, and Continuing Case.
• Encourage students to maintain a “Daily Spending Diary” (p. 69 and Appendix D)
• Discuss “Your Personal Financial Plan” worksheets.
• Use the Chapter Quiz in the Instructor’s Manual.

YOUR PERSONAL FINANCIAL PLAN WORKSHEETS FOR USE WITH

CHAPTER 2

Sheet 5 Financial Documents and Records

Sheet 6 Creating a Personal Balance Sheet
Sheet 7 Creating a Personal Cash Flow Statement
Sheet 9 Developing a Personal Budget

CHAPTER 2 QUIZ ANSWERS

True-False Multiple Choice
1. F (p. 46) 6. A (p. 54)
2. T (p. 48) 7. C (p. 49)
3. F (p. 50) 8. D (p. 50)
4. T (p. 51) 9. B (p. 51)
5. T (p. 57) 10. B (p. 55)

Name Date

CHAPTER 2 QUIZ

TRUE-FALSE
1. Most financial records should be kept in a safe-deposit box.
2. A personal balance sheet reports the financial position of a person or family on
a given date.
3. Assets represent amounts owed to others that must be paid within the next year.

1
-9
 4. Spending less than your income will increase net worth.
5. A budget deficit exists when actual spending exceeds projected spending.

MULTIPLE CHOICE
6. A(n) is a specific plan for spending.
a. budget
b. balance sheet
c. income statement
d. bank statement

7. An example of a liquid asset would be

a. a home.
b. an automobile.
c. a checking account.
d. retirement account.

8. represents amounts owed to others.

a. Current assets
b. Expenses
c. Mutual funds
d. Liabilities

9. A personal cash flow statement presents

a. amounts earned from savings.
b. income and payments.
c. assets and liabilities.
d. amounts owed to others.

10. Definite financial obligations are referred to as

a. variable expenses.
b. fixed expenses.
c. equity.
d. investment assets.

2-10
SUPPLEMENTARY LECTURE

Financial Ratios to Measure and Evaluate Financial Progress

Type Calculations Example

A. Debt-equity ratio liabilities divided by net worth $50,000/$40,000 = 1.25

Interpretation: These items express the relationship between your debts and personal net worth. A lower
debt ratio is desired.

B. Current ratio liquid assets divided by current $7,000/$4,000 = 1.75

liabilities

Interpretation: Indicates how well you will be able to pay upcoming debts. A higher number is more
desirable.

C. Liquidity ratio liquid assets divided by monthly $7,000/$2,800 = 2.5 expenses

Interpretation: Indicates the number of months a person will be able to pay expenses if an emergency
situation arises. Again, a higher number is desired especially if uncertainty exists regarding continual
employment.

D. Solvency ratio total assets divided by total $98,000/$67,000 = 1.46

liabilities

Interpretation: Shows the relationship between the value of assets and what is owed. A higher number is
desired.

E. Debt Payments ratio monthly credit payments divided $450/$2,500 = 0.18

by monthly take

Interpretation: Expresses portion of monthly earnings going for credit payments. A lower ratio is
desired.

F. Savings ratio additions to savings plans divided $2,080/$32,800 = 0.065 by take-home

pay

Interpretation: Presents the portion of annual earnings that has been saved.

G. Investment assets ratio investment assets divided by net $77,000/$101,000 = 0.76 worth

Interpretation: Indicates portion of net worth that contributes to long-term financial goals.

2-11

Supplementary Lecture: Money Management Troubles and Debt

Difficult economic conditions often create

difficult personal financial situations, often in the
form of increased debt.
The process of getting out of debt may include
actions to:

- Evaluate your credit situation

- Track your spending

- Plan to make payments on time

- Consider other income sources

- If appropriate, seek assistance

2-12
ANSWERS TO PRACTICE QUIZZES, PROBLEMS, QUESTIONS,
AND CASES

PRACTICE QUIZZES
Practice Quiz 2-1 (p. 48)
1. What are the three major money management activities?
The three major money management activities are (1) storing and maintaining financial records and
documents, (2) creating personal financial statements, and (3) creating and implementing a budget.
(p. 45)

2. What are the benefits of an organized system of financial records and documents?
An organized system of financial records provides a basis for: (1) handling daily business activities,
such as bill paying; (2) planning and measuring financial progress; (3) completing required tax
reports; (4) making effective investment decisions; and (5) determining available resources for
current and future spending. (pp. 46)

3. For each of the following records, check the column to indicate the length of time the item should be
kept. “Short-time period” refers to less than five years.
Document Short time period Longer-time period
Credit card statements X
Mortgage documents X
Receipts for furniture, clothing X
Retirement account information X
Will X

Practice Quiz 2-2 (p. 54)

1. What are the main purposes of personal financial statements?
(1) Report your current financial position in relation to the value of the items you own and the
amounts you owe; (2) measure your progress toward your financial goals; (3) maintain information
on your financial activities; (4) provide data that you can use when preparing tax forms or applying
for credit. (p. 48)

2. What does a personal balance sheet tell you about your financial situation?
A balance sheet consists of assets (items of value), liabilities (amounts owed to others), and net worth
(the difference between the total assets and total liabilities.) (pp. 48-50)

3. For the following items, identify each as an asset (A), liability (L), cash inflow (CI), or cash outflow
(CO):

2-13
_CO_ monthly rent L automobile loan
_CI interest on savings account A collection of rare coins
A_ retirement account L mortgage amount
_CO_ electric bill A market value of automobile
4. Jan Franks has liquid assets of $6,300 and monthly expenses of $2,100. Based on the liquidity ratio,
she has 3 months in which living expenses could be paid if an emergency arises.

Practice Quiz 2-3 (p. 60)

1. What are the main purposes of a budget?

The main purposes of a budget are to help you: (1) live within your income; (2) spend your money
wisely; (3) reach your financial goals; (4) prepare for financial emergencies; and (5) develop wise
financial management habits. (p. 54)

2. How does a person’s life situation affect goal setting and amounts allocated for various budget
categories?
Different life situations will affect household goals and plans for spending based on needs and desires
of those involved. Delayed marriage might mean more spending for travel and leisure; deferred
parenthood might be due to plans for advanced career training and returning to school; divorce will
affect housing size needs and could mean child care expenses.

3. For each of the following household expenses, indicate if the item is FIXED expense or a
VARIABLE expense.

VARIABLE food away from home FIXED cable television

FIXED Rent VARIABLE electricity

FIXED health insurance premium VARIABLE auto repairs

4. The Nollin family has budgeted expenses for a month of $4,560 and actual spending of $4,480.
This would result in a budget SURPLUS or DEFICIT (circle one) of $ 80

Practice Quiz 2-4 (p. 63)

1. What relationship exists among personal financial statements, budgeting, and achieving financial
goals? The balance sheet and cash flow statement provide information about a person’s current
financial situation. These allow a person to plan his or her budget to set spending and saving plans
that relate to achieving financial goals.

2. What are some suggested methods to make saving easy? Suggested savings methods include “pay
yourself first,” payroll deduction, saving coins, and eliminating spending on a certain item. (p. 62)

2-14
3. If a person desires to obtain the following information, check the box for the document that would
be most useful.

Financial information needed Balance sheet Cash flow Budget

statement
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Ja keskellä korpea kolkkoa

se taisteli, taisteli, kesti,
ja hallan ja nälkäkuoleman
sen kuokka ja kirves esti.

Vaan milloinkaan se ei sortunut,

ei konsa sen pettänyt tarmo,
sen oma kuntonsa kohotti,
ei antimet eikä armo.

Ja keskellä korpea kolkkoa

se kannelta helkytteli,
ja metsän pimeässä pirtissä
sen laulujen henki eli.

Ja se peistä ja nuijaa heilutti

kun uhkasi sorto, väärä,
ja se tunsi sen: valohon, vapauteen
oli sillä matkansa määrä.

Ja siksi se valon ja vapauden

sydänverellä omakseen osti,
ja siksi se valon temppelin
joka korven laitahan nosti.

Mut pimeät vallat ne pelkäsivät

valonvirtaa voimakasta,
ja pimeät vallat ne tahtoivat
valon estää virtaamasta.
 Ja pimeät vallat ne nousivat,
ukonpilvinä valon ne peitti,
ja keskelle kolkkoa korpea
ne kansan pimeään heitti.

Mut valonvirta on voimakas,

ken vois sen kulkua estää,
se ikuisuudesta syntynyt on
ja ikuisuutehen kestää.

Ukonpilvet ne valon jos peittääkin,

uhka haihtuva on se vain hetken;
sen jälkeen kahta näät kauniimman
valon valtavan voittoretken.

Sen jälkeen entistä uljaammin

taas nousee jumalan tammi,
sen jälkeen entistä armaampi
on loiskina metsälammin.

Sen jälkeen kahta kauniimmin taas sinelle siintää salo, sen

jälkeen kahta kirkkaammin joka majahan välkkyy valo.

Kylänkarkelo.

käy karkelohon kylän kasvava kansa, pelimanni jo soittaa

parhaillansa, ja kuluvi kesäinen ilta! Pian lampi tyyni on lailla
peilin, kera karkele, poikanen, nyt oman heilin, jotta notkuvi
sininen silta!
 Vain virrassa lainehet lipattaa, liikkuu ja järvellä sorsat
soreasti kiikkuu ja aaltoaa vihannat viljat. Ylös poikaset,
kuuset te kevähäiset, ylös neitoset nuoret, pellavapäiset, te
tään kylän lempeät liljat!

Kas, heinät ne heiluu ja nurmet ne nuokkuu, ja illan tuuli

niin hiljaa huokuu ja sävelet soivat, soivat Kas, tuoresna
tuoksuu kuunahan kukka ja nuori on neitonen pellavatukka ja
vainiot vihannoivat

Oi, soios soitto ja vinkuos viulu, pois kirvehes poika, pois

neitonen kiulu, tää ilta se ilta on ilon! Ota, poikanen, heiliäs
hellää vyöstä ja karkele huoleti päivän työstä nyt päällä sen
sillan silon!

Ja sävelet soivat ja lintuset laulaa ja poika se neitoa norjaa

kaulaa ja laskevi kesäinen ilta. Ja murheet murtuu ja huolet
ne haihtuu ja arkisurut ne riemuksi vaihtuu ja notkuvi sininen
silta.

Kas, kentät ne kukkii ja läikkyy laihot ja nuoruus surmahan

suistaa kaihot ja haihtuu elämän arki. Ja yksin nyt itkee tuima
Tuoni, povet nuorten kun paisuu ja sykkii suoni ja rinta ei
huolia harki.

Ja soios soitto ja vinkuos viulu, pois kirvehes poika, pois

neitonen kiulu, tää ilta se ilta on ilon! Ota, poikanen, heiliäs
hellää vyöstä ja karkele huoleti päivän työstä nyt päällä sen
sillan silon!
Tarina Pekasta ja vallesmannista.

Hän korven kolkasta tullut on nyt tietojen, taitojen maille.

Hän kuokan jätti ja lapion, oli oppia jäänyt vaille, mut
vanhanakin hän tahtoi koittaa ja vanhanakin hän tahtoi voittaa
viel' oksan tiedon ja taidon puusta.

Vaan kotikylässä elämä nousi, ja sana kulki nyt suuhun

suusta, ja kaikki virttä yhtä soittaa: jo herraksi Pekka tahtoo
koittaa!

Ja vallesmannikin ihmeissänsä nyt yhtehen hykersi

käsiänsä: "Mikä mieheltä mielen vienyt on, hän mennyt on
kansanopistohon! Voi ihmettä kummaa! Voi herranen aika! On
miehelle varmaan tehty jo taika. En ymmärrä mikä päähän
pisti, hän kohta on täysi sosialisti. Hän lehtiä lukee ja lausehet
pukee kuin oppia paljonki saanut ois. Hänen kerran kummia
kertovan kuulin ja päästä jo pyörälle tulleen luulin. Hän lausui:
'laps mökin pienenkin on oikeutettu oppihin.' Ja yhtä hyvin
kuin viljan hinnat tuns' Juhani Ahot ja Päivärinnat, ja draamat
Shakespearen tunsi hän — ties mitä ne kaikki lienevätkään, ei
mulle hyötyä moisesta työstä, mä ilman niitäkin osaan
ryöstää. Mä nauroin hälle, vaan vakavana näin virkkoi mulle
tuo vanha aasi: 'Sua, herra, työhön käskee maasi." Mä
lausuin hälle: "mä työtä teen, mä rästit kannan ja ryöstöt
annan?' Hän huokasi silloin syvähän, ei mitään virkkanut
enemmän. Kai huomasi, turha on vastaan koittaa, kai näki:
tyhmän ja pöllöpään mies sivistynyt aina voittaa." — Ja
tyytyväisenä, mielissänsä hän yhteen hykersi käsiänsä.
 Ja Perälän pitäjän vallasväki se eessään viisahan herran
näki, ja koko kylä se kertoa ties: "Niin viisas on meillä
nimismies, on sivistynyt ja vakainenki, ei häntä villitse ajan
henki. Ah, tällaisia jos kaikki ois, niin sovussa kansa elää vois,
ja Suomen kansa ja Suomen maa niin rauhassa saisi
kukoistaa!"

Pimeän pesä.

(Vuorilegenda.)

Ne tuikki ne tuhannet kynttilät ja valot kirkkahat välkkyivät,

oli valon juhla jalo. Ja vaikka joutui ilta ja yö ja vaikk' oli
päättynyt päivän työ, valoin välkkyi joka talo. Ja vaikka talvi
kattoi maan ja vaikka vihurit vinkui vaan, niin oli rinnoissa
kesä. Mut yks oli maja valoton, se pimeyden hengen asunto
on, se oli peikon pesä.

Ja valot ne välkkyi ja välkkyi vaan ja peikko katseli

kauhuissaan, hän silmiä siristeli ja vavistuksessa eli ja
huokasi: "ollappa oikea yö, niin silloin mullekin alkais työ,
minä valkeutta pelkään ja pelkään omaa selkään. Oi yö, sinä
suloinen lohtujen tuoja, oi yötä jos ijäti antais Luoja! Oi yöni, oi
yöni, mun peikon työni sä ijäti kätkisit maailmalta ja ijäti
kestäis peikkojen valta."

Ja peikko se tuimasti tirkisteli ja peikonsilmiään sirkisteli,

mut valoja syttyi ja syttyi vaan, ja peikko se potki kauhuissaan
ja pelosta pysähtyi veri. — "Mi joukko kumma kujalla käy, ei
 muita kuin valon soihtuja näy, siell' aaltoaa tulimeri." Ja peikko
pakenee joukkoa ja etsii pimeintä loukkoa. "Oi, kohta nyt
hukka jo perii!"

Ja valot valtavat virtaili, mut yks oli pimeän pesä. Ja kansa

valosta riemuitsi ja rintahan koitti kesä. Mutta peikko se
pelkäsi valoja ja pelkäsi toisia taloja; ne kaikki valoa virtaili —
Mut yks oli pimeän pesä.

Voiton saatte!

Lietsokaatte, lietsokaatte valonahjot valkeaa! Pilvet raskaat,

taivas tumma pimeyttä uhkajaa, vaarassa on isänmaa, kaikin
voimin lietsokaa! Lietsokaatte, lietsokaatte valonahjot
valkeaa! Lietsokaatte, voiton saatte!

Valaiskaatte, valaiskaatte maata valon airuet! Valaiskaatte

rikkaan majat sekä salon sydämmet, valaiskaatte köyhän tie,
joka metsäpirttiin vie! Valaiskaatte, valaiskaatte maata valon
airuet! Valaiskaatte, voiton saatte!

Taistelkaatte, taistelkaatte eestä ikitotuuden! Taistelkaatte

vastaan yötä, vastaan valtaa vääryyden, taistelkaatte eestä
lain, eestä oikeuden vain! Taistelkaatte, taistelkaatte eestä
ikitotuuden! Taistelkaatte, voiton saatte!

Seisokaatte, seisokaatte rivissä nyt joka mies, että rauhass'

aina palaa saisi pyhä kotilies! Vapautta puoltakaa! Teitä
 siunaa kansa, maa. Seisokaatte, seisokaatte rivissä nyt joka
mies! Seisokaatte, voiton saatte!

Lietsokaatte, lietsokaatte valonahjot valkeaa! Pilvet raskaat,

pilvet tummat vielä kerran halkeaa. Suomen, valon morsion
päivä silloin kirkas on. Lietsokaatte, lietsokaatte valonahjot
valkeaa! Lietsokaatte, voiton saatte!

Maamiehen kevätlaulu.

Oi kevään kauniin antaja, oi taivahainen Luoja! nyt viljaa

nuorta, nousevaa sä varjele ja suojaa.

Sä hoivaa hennot tähkäpäät

niit' ettei veisi halla,
niin paljon nuorta toivoa
nyt uhkuu kaikkialla.

Ja kevään hengen valaista suo pimeätä Pohjaa, ja poveen

salon synkänkin sä onni, rauha ohjaa.

Tahdon ikitulta.

Taivas! elä mulle anna kiiltokultaa; paljon, paljon enempi

tahdon, taivas, sulta.
 Tahdon, taivas, sulta
vaadin valkeoita,
innon ikitulta,
tulta, salamoita.

Niillä isken yöhön,

niinkuin isket itse,
salamoita singotan
maitse, manteritse.

Niillä isken yöhön,

ohi tähtisarjain,
kautta avaruuden,
halki vuorten harjain.

Niillä isken yöhön,

mik' ei kestä, särjen,
vasten valtaa väärää
käännän nuoles kärjen.

Niillä isken yöhön,

kaadan konnat, peikot,
nostan valoon, valtaan
sorretut ja heikot.

Halpa lahjas oisi kunnia ja kulta — Tahdon, taivas, sulta

tahdon ikitulta!
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