Most Saudi families face financial troubles after Ramadan and Eid Al-Fitr when they spend lavishly without bothering about their income. People spend heavily on foodstuffs, furniture, Eid clothing, perfumes and entertainment during the holidays.
This spending spree forces many people to take bank loans while others tend to use credit cards. As a result of the huge expenses during Ramadan and Eid, heads of families struggle to meet basic needs after the holy month.
“Rationalized spending is essential to avoid financial crisis after Ramadan,” said Salim Bin Saeed Baujaja, professor of accountancy at Taif University.
“We have to inform family members about our actual income in order to convince them about the need to reduce spending and avoid financial problems,” he said while speaking to Okaz/Saudi Gazette. He stressed the need to set up a balanced family budget.
Baujaja said families should learn how to balance spending with their monthly income. “Families should prioritize their requirements before start spending on them and should not spend their hard-earned money on unnecessary things,” he said.
“We should have a good planning on how to spend our monthly income on specific things during specific periods of time. We have noticed heavy wastage during Ramadan and Eid Al-Fitr when people spend money unmindful of their income,” he explained.
Baujaja urged people to prepare family budgets in order to restrain unnecessary spending and avoid a subsequent financial crisis, which leads to taking bank loans.
He urged the authorities to enlighten the public on the importance of family budgets. “Management of household expenditures is an art and it should be done efficiently,” he told Okaz/Saudi Gazette.
“Proper management of the family budget would help avoid overspending and wastage of hard-earned money. Many families suffer from financial crisis not because of low income but because of mismanagement. Through proper management they can overcome the cash crunch,” he said.