ABHA: A number of experts and analysts have said that social networking sites such as Snapchat and Instagram and a culture of bragging and showing off increase Saudi families’ financial burdens during Ramadan.
According to economic analyst Mohammed Al-Omran, 85 percent of Saudi families lack a culture of saving and spend more than 10 percent of their basic income during special seasons, such as Ramadan, the summer holiday and the two Eids.
He said that there is need to spread awareness about a “savings culture” and avoid borrowing, stressing that according to recent statistics, 90 percent of Saudi employees are borrowers. This figure represents two-thirds of the Kingdom’s population.
Al-Omran noted the impact of this phenomenon on Saudi budgets as the culture of consumption affects up to 85 percent of Saudi families.
He also noted the impact of social media, especially Snapchat and Instagram, in the “bragging culture,” as Ramadan has turned into a month in which people show off their iftar meals.
“There are no accurate figures about the debt ratio during the month of Ramadan. However, all indications are that Saudi families experience severe economic hardship due to the culture of consumption and people not saving,” he added.
He said that such acts stem from an inferiority complex among prominent social media figures who feel the need to brag about their food, cars and luxury banquets in order to compensate for a lack of personality.
The economic analyst said that the General Administration of Statistics is responsible for giving details about the rates of consumption in Ramadan, while the central bank also compiled a series of statistics that reveal the extent of the consumption and savings cultures among Saudis. The studies emphasize families’ appetite for borrowing, with people preferring to show off which makes them fall into debt despite the economic situation of their family.
“Those who are used to wasting money on unnecessary expenses cannot change this habit easily, as they are in a constant state of extravagance, and frequently visit shops that sell food and other goods,” he said. He also pointed out the need for civil society institutions to fight this phenomenon through educating consumers about the seriousness of extravagance, and by emphasizing that the family needs to re-evaluate its budget and study its needs.
Writer and economic analyst Khaled Al-Rubaish highlighted the role of Saudi women in promoting the culture of saving in the family and said, “The seasons of Ramadan, Eid and the summer holidays are three dangerous seasons for the Saudi family which should pay attention to their budget and plan expenditures carefully for those times.”
He also said that both Saudi men and women must be taught about the consequences of loans and the negative impact on the family’s future.
“The cultural aspect is linked to generosity and sumptuous meals, yet this is one of the most important aspects that tends to lead to budget problems during the month of Ramadan,” Al-Rubaish said, noting that the retail and food sectors are very popular during Ramadan, especially during the last 10 days, which may lead to revenues that are equivalent to an entire year’s profit.
Al-Rubaish stressed the need for intelligent planning for this stage and for families to identify expenses over three successive seasons that could put Saudi families in greater debt than normal. He concluded that the majority of Saudis lack a culture of saving, which is the inevitable result of high prices, relatively low incomes and increases in the cost of living.
According to economic analyst Mohammed Al-Omran, 85 percent of Saudi families lack a culture of saving and spend more than 10 percent of their basic income during special seasons, such as Ramadan, the summer holiday and the two Eids.
He said that there is need to spread awareness about a “savings culture” and avoid borrowing, stressing that according to recent statistics, 90 percent of Saudi employees are borrowers. This figure represents two-thirds of the Kingdom’s population.
Al-Omran noted the impact of this phenomenon on Saudi budgets as the culture of consumption affects up to 85 percent of Saudi families.
He also noted the impact of social media, especially Snapchat and Instagram, in the “bragging culture,” as Ramadan has turned into a month in which people show off their iftar meals.
“There are no accurate figures about the debt ratio during the month of Ramadan. However, all indications are that Saudi families experience severe economic hardship due to the culture of consumption and people not saving,” he added.
He said that such acts stem from an inferiority complex among prominent social media figures who feel the need to brag about their food, cars and luxury banquets in order to compensate for a lack of personality.
The economic analyst said that the General Administration of Statistics is responsible for giving details about the rates of consumption in Ramadan, while the central bank also compiled a series of statistics that reveal the extent of the consumption and savings cultures among Saudis. The studies emphasize families’ appetite for borrowing, with people preferring to show off which makes them fall into debt despite the economic situation of their family.
“Those who are used to wasting money on unnecessary expenses cannot change this habit easily, as they are in a constant state of extravagance, and frequently visit shops that sell food and other goods,” he said. He also pointed out the need for civil society institutions to fight this phenomenon through educating consumers about the seriousness of extravagance, and by emphasizing that the family needs to re-evaluate its budget and study its needs.
Writer and economic analyst Khaled Al-Rubaish highlighted the role of Saudi women in promoting the culture of saving in the family and said, “The seasons of Ramadan, Eid and the summer holidays are three dangerous seasons for the Saudi family which should pay attention to their budget and plan expenditures carefully for those times.”
He also said that both Saudi men and women must be taught about the consequences of loans and the negative impact on the family’s future.
“The cultural aspect is linked to generosity and sumptuous meals, yet this is one of the most important aspects that tends to lead to budget problems during the month of Ramadan,” Al-Rubaish said, noting that the retail and food sectors are very popular during Ramadan, especially during the last 10 days, which may lead to revenues that are equivalent to an entire year’s profit.
Al-Rubaish stressed the need for intelligent planning for this stage and for families to identify expenses over three successive seasons that could put Saudi families in greater debt than normal. He concluded that the majority of Saudis lack a culture of saving, which is the inevitable result of high prices, relatively low incomes and increases in the cost of living.
