web analytics
April 21, 2014 / 21 Nisan, 5774
At a Glance
Blogs
Sponsored Post
Spa 1.2 Combining Modern Living in Traditional Jerusalem

A unique and prestigious residential project in now being built in Mekor Haim Street in Jerusalem.



When Giving Charity Enables Bad Habits

Sometimes, you need to be the recipient of your own tzedakah because the bottom line is that you are the only person who can really help yourself.
Goldstein 485x300

Share Button

A few weeks ago, I received a telephone call from a well-meaning young woman. She was making cold calls from a list of members of the local community to ask for donations for a poor family. “The parents have no money. Both of them are working, but they can’t make ends meet. Right now, they and their five children are living in a very small rented apartment with no beds and debts that are impossible to pay,” she told me.

But while I felt very sorry for this family, I wondered if the answer was to simply raise money and hand them a check. (Before you read any further, don’t think I am suggesting that charity is a bad idea. Quite the opposite! I encourage everyone to try to give 20% of their income to charity. See this great example of kids giving charity.)

As I don’t know the particular circumstances of this individual family, I can’t say too much about their specific situation. However, many times I’ve noticed how families enter the cycle of debt because they have never been taught how to use their money properly. Even if both parents are working, they can drown in debts that may have started right from the beginning of their life together. Perhaps when they first got married, they were so sure of their new independence and life together that they didn’t stop to think how much money they were spending. Right at the beginning, they wanted a new dining room set, or they decided that as a young couple they should eat out at restaurants twice a week. They wanted to start out with an easy lifestyle. Perhaps they wanted to live higher than their parents who had nothing, or maybe they didn’t want to face a drop in the high standards that they enjoyed while living at home during their single years until they could make enough money to be able to maintain that kind of lifestyle themselves.

There could be so many reasons, but the underlying cause of the problems of many families is insufficient financial education and learned negative spending habits. If you grow up in a home where there is no concept of saving, and borrowing from one loan fund to pay off enough is considered as standard financial behavior, it’s very likely that you will end up inheriting the same bad fiscal habits unless you make an effort to learn differently.

The greatest gift that you can give to someone who needs your financial assistance because they are overwhelmed with debts is to encourage them to help themselves. While your check can pay off their current debt, it will only act as a Band-Aid, keeping them out of trouble until the next time. But if you can encourage them to look for a better-paid job, take a course on budgeting and money management, and to open a savings plan at the bank, you are giving them something that is a lot more valuable than any money.

Of course, charity doesn’t only mean giving to others. Sometimes, you need to be the recipient of your own tzedakah because the bottom line is that you are the only person who can really help yourself. So if you want to know more about planning for retirement, saving, and running your personal finances more effectively, start by reading self-help articles, attending budgeting courses, and adopting better monetary habits.

Share Button

About the Author: Douglas Goldstein, CFP®, is the director of Profile Investment Services, Ltd, a financial planning firm located in Jerusalem. He specializes in working with clients in New York, Florida, and Israel and is a licensed financial professional both in the U.S. and Israel. Securities are offered through Portfolio Resources Group, Inc., Member FINRA, SIPC, MSRB, SIFMA. Accounts held at Pershing LLC., Member NYSE/SIPC, a subsidiary of The Bank of New York Mellon Corporation. Neither Profile nor PRG gives tax or legal advice. Before immigrating to Israel, it is advisable to consult with a tax attorney who is knowledgeable about Israeli law. Doug’s newest book The Expatriates’ Guide to Handling Money and Taxes is available at www.expatguidetomoney.com. He hosts a weekly finance show, Goldstein on Gelt, on internet radio. Listen live or download podcasts. Toll-free from U.S. 1-888-327-6179, Jerusalem: (02) 624-2788. Follow on Twitter: @DougGoldstein or contact at doug@profile-financial.com.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

Leave a comment (Select your commenting platform)

4 Responses to “When Giving Charity Enables Bad Habits”

  1. the key, doug, imho, is to not only strive for rambam's highest level of giving (giving someone a handup instead of a handout), but to do the due diligence required to be sure that the recipient is indeed in need. way too many problems with giving tzedakah out there….please give wisely!

  2. Diana Davidson Lerner says:

    absolutely!

  3. Harry Cohen says:

    How about striving to Rambam's level of science and medicine in Haredi schools?

  4. at my church we have needy families and we all contribute to help them, but they also have to take advise from the elders how to minimize their debts and spend wisely.

Comments are closed.

SocialTwist Tell-a-Friend

Loading Facebook Comments ...
Loading Disqus Comments ...
Douglas Goldstein
Current Top Story
BDS targets Zabar's; Carole Zabar promotes BDS proponents.
All in the Family: BDS Protests Zabars; Carole Zabar Promotes BDS
Latest Blogs Stories
Community Surveillance.jpg

The Justice Department allows the FBI to use demographic mapping, but the NYPD no longer can.

The Trophy System creates a protective dome which shields tanks from anti-tank missiles.

Check out the IDF’s most innovative weapons (at least the ones they can tell us about.)

Baruch Mizrachi Funeral

When will the State of Israel decide the Palestinian Arabs are a hostile enemy and treat them as such?

Israeli troops guarding the northern border.

Like Hamas, Hezbollah also builds tunnels. Those tunnels pose a serious danger to IDF border patrols.

Visa has ads in an Egyptian magazine in which a story describes Jews as vampires. And worse.

World Council of Churches expresses solidarity with “Palestinians” ‘languishing’ in Israeli prisons.

The Seder: We starve (during the sometimes endless recitations and discussions) and we feast.

The unique skills of people on the autistic spectrum adds great breadth to IDF intelligence work.

Passover is a road that we still travel, a long journey from slavery to freedom.

In Iran, 131 offenses are punishable by death, including blasphemy, adultery and homosexuality.

Women must eat Matzah on Pesach too but that is also a time bound positive commandment.

Pro-Israel leaders on campus are as important as the troops in the IDF and professional hasbaraniks.

The seder reminds us of our freedom now that we are home again in the land of the Nation of Israel

IDF helicopters are ready to act on a moment’s notice to defend the State of Israel.

The Samson Super Hercules aircraft ensures the IDF can safeguard Israel from far beyond her shores.

More Articles from Doug Goldstein, CFP®
Doug Goldstein, CFP

Factors that you need to take into account when deciding whether to rent or buy a home.

Doug Goldstein, CFP

The president of the Cambridge Satchel Company talks about the exponential growth of her company.

He won the Nobel Prize for chemistry, now Dan Schechtman wants to be president of Israel.

gnite Social Media created social media programs for companies such as Microsoft, Nike and Disney.

Learn how to navigate the new business paradigms so customers can find and purchase your products.

Stable banking systems: by design or by default?

In the first part of this week’s podcast, Diane Coyle, professor of economics at Manchester University and author of GDP: A Brief But Affectionate History and The Economics of Enough, talks about measuring economic progress. What is the GDP (gross domestic product), and is it really an accurate benchmark for understanding economic performance? Find out […]

    Latest Poll

    Now that Kerry's "Peace Talks" are apparently over, are you...?







    View Results

    Loading ... Loading ...

Printed from: http://www.jewishpress.com/blogs/goldstein-on-gelt/when-giving-charity-enables-bad-habits/2013/01/17/

Scan this QR code to visit this page online: