EID ADDS TO A COSTLY MONTH FOR PARENTS
▶ Some families take loans to cover school fees and holiday presents
Many parents are wondering how they will be able to afford new school year expenses and Eid Al Adha in the one month.
School fees are due and supplies such as books and school clothes need to be bought, in addition to the gifts that children usually receive during Eid.
All of this is leading some parents to use credit cards or take out loans to make ends meet.
Eid Al Adha, which honours the willingness of Ibrahim to sacrifice his son as an act of obedience to Allah, is a time when children are traditionally given money, gifts and new clothes.
One Jordanian father said that he did not plan in advance for this month’s unusually high expenses, and had taken a loan to cover the cost.
“I didn’t know that it was going to be that expensive,” said Akram Salasmah, 31. “This is the first time I’ve paid for schools here. My son was studying in Jordan before we decided to move the family to Dubai and when I started to look for a school, I was really surprised by the fees.
“I need to pay Dh10,000 in fees for Grade 1 first term along with Dh800 for books and about Dh700 for uniform, plus school supplies. I won’t be able to cover all of this with my salary, along with Eid costs, so I applied for a loan to cover it until I figure out a plan.”
Lana Kaati, 37, a Syrian mother of two, said she had planned for the extra costs.
“It’s a tough month for most families because we need to cover many expenses with only one pay cheque,” the Abu Dhabi resident said.
“School fees had to be paid this month, along with buying school supplies and preparing for Eid. There is no magic formula to balance the budget but it’s something that should have been thought of at least three months back, because saving money makes it easier to handle the situation.”
Ms Kaati said that Eid traditions were important, and that children should enjoy it and learn its meaning.
“We don’t want to lose our culture just to save money,” she said. “Parents can plan, and during the sale season they can get a bargain and keep it for the occasion.
“Families have to enjoy Eid and, if they are struggling financially, they can still have fun as most of the malls offer free entertainment for kids.”
Another mother said she saved on annual costs by buying good quality school bags and lunchboxes so she did not have to replace them each year.
“If you don’t need it, then don’t buy it,” said Shahenda Al Bakri, 30, an Egyptian mother of two in Abu Dhabi.
“Many parents I know buy school supplies, although their children have ones in good condition that can be used for the new term.”
Ms Al Bakri said children needed to understand the value of money so that they were not always pushing parents for new items.
“If your child has a bag or a lunchbox that is in good condition, then don’t buy a new one just because they ask for one,” she said. “Teaching children how to take care of their stuff and engaging them in the family’s financial situation is very important.
“We made a mistake four years ago and didn’t save for the school fees of our children, and we ended up borrowing money to pay the fees and cover the charges. Since that day we started saving money each month to deal with such situations.”
As for Eid, Ms Al Bakri said too many people bought into the commercialism of the occasion.
“Cooking a meal at home will save families a lot of money during Eid, instead of spending too much on food outside,” she said. “We tend to overrate everything, instead of enjoying the simplicity of the occasion.”
Financial experts said that setting an annual budget, tracking spending and prioritising payments would help families to manage their finances.
“Given that Eid, school fees and associated costs all come at the same time, we advise families to treat their finances like a company and make a budget for the year, showing things like income and expenditure, so they can plan early,” said Sam Instone, chief executive of AES International, a financial advice company.
“Turn your annual budget into a long-term plan and map out your cashflow for the coming years, so you can see times where high costs coincide and prioritise paying off expensive debt such as credit cards.”