Saudi families spend twice what they earn
Published: Mar 9, 2010 00:42 Updated: Mar 9, 2010 00:42
JEDDAH: Saudi families spend nearly twice what they earn, according to Kuwaiti economist Jassem Al-Mutwwa.
“Education, amusement and eating out account for more than 181 percent of a family income in Saudi Arabia,” said Al-Mutwwa who delivered a lecture on personal finance in Jeddah on Saturday.
According to his research, Saudi families overspend on personal articles and services by an average of 8 percent.
However, he noted the money spent on housing and health care was considerably less than in other parts of the world. “While only 44 percent of the family budget is spent on housing, health care represents 39 percent,” the speaker said.
He also noted that Saudi families spend ever more each month on hotels and cafes, beverages, personal articles and services.
They had to rationalize their spending habits, he said, so that they could keep their spending within the limits of their income.
He also stressed the need for the Gulf society to change from a consumer society to a productive society in order to cope with the rapid developments in the world.
The lecture covered various aspects of home economics such as planning the family budget with cooperation of all family members, management of loans and identifying priorities for spending.
The speaker also said that families should curb negative habits that undermine the budget and throw them into burdensome debts.
The Kuwaiti economist recommended to Saudis to cultivate the habit of monthly saving and regular debt repayment.
He also warned them against falling into debt traps through predatory lending practices. He reminded the audience about the Islamic injunctions against squandering money and usury.

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