Abstract: Abstract:Using Hubei rural Household monthly data, this paper investigate how rural households smooth their food, education and medicine. Results indicate that they smooth their food consumption but fail to do so when the medicine expenditure occurs. The predictable expenditures mainly are smoothed by saving, and unpredictable expenditures are smoothed by loan. The saving and loan play the more important role than wage and household business income on large amount of consumption smoothing, which is the case even for food