A study o f the spending patterns and budgeting practices o f Malay and Chinese housewives in Kuala Lumpur showed that more than 50% o f the 173 families investigated had incomes o f less than $600.00 per month. On the whole, Chinese families had larger incomes, spent more, and saved more than their Malay counterparts. The credit buying patterns o f the two groups were similar, although about a third o f both groups never used credit. It is suggested that education in the effective management o f family resources could lead to an improvement in the quality o f life o f the families.