How allocating money to those in need is an important part of personal finance?

Growing up, you must have heard the saying, “happiness is increased when shared.” You can indeed enrich your happy moments by sharing them with others. Sharing, giving, and expressing gratitude have deep-rooted relevance in our culture. Whether it is langars in the Gurudwaras or Qurbani in Islam, every faith and culture in India emphasises the act of letting go and giving back to the world.

The festive season is here. Those who are fortunate to have good health, a loving family, and adequate money have plenty to celebrate and be thankful for. But some are not so blessed. By realising your privilege and giving back to society, you can help everyone grow together. So, this festive season, do not just celebrate your blessings but also try to make others around you happy. Here are some ways to do this:

Donate Your Money

A lot of companies offer bonuses and hikes during the festive season. You can use some of this money to make a donation that can help the underprivileged like street children, diseased individuals, women, and others. Moreover, donating money also enables you to avail yourself of tax benefits under Section 80G of the Income Tax Act. So, in your one act of kindness, you accomplish two feats – helping others, and reducing your tax and maximising your savings. However, before you give money to an organisation, make sure to verify its credibility. Charities Aid Foundation (CAF), the Council for Advancement of People`s Action and Rural Technology (CAPART), Right to Information (RTI), etc., are some portals that can provide you with information on non-government organisations (NGOs). Make sure to check the credentials of the charity or NGO, and then proceed with any financial contributions. You can also ask the charity to show you reports of how they have and are likely to spend your money.

Donate Old Clothes, Electronics, Household Items

Fast fashion, use and throw products, and the latest technological innovations have increased consumerism. Millennials today are more likely to buy new things and discard their older products. However, instead of lying idle or ending up in dumpsters, it may be better to give them to others who need them. The practice of reuse can also help the planet that is grappling under the weight of excessive production and waste. You can start by giving your old clothes, mobile phones, kitchen items, books, etc., to your house help. You can also learn about some NGOs in your locality that take old and used items and distribute them to underprivileged communities. This way, you can reach out to a wider audience.

Give Your House Help a Bonus

Just like your company may pay you a festive bonus, you can do the same for your house staff. You can add some cash to their current salary and make a monetary donation so they too can enjoy their festivals with a little more zest. It can also help to ask them if they need money for a specific thing. Perhaps your cook’s child wants a new cycle, and you can use your credit card reward points to buy them that cycle. This can benefit you and, at the same time, be great for your cook. For instance, IDFC FIRST Bank Credit Cards offer 10 reward points on every Rs. 100 spent through the card. There is no expiry on the rewards, and you can redeem at no additional fee. So, the rewards you accumulate can be used to make someone else happy.

You can also organise a drive in your society or colony and collect money for someone in need. For instance, if someone you know is in dire need of funds for health treatment, you can organise a donation drive and encourage people to contribute to the cause.

1. Sponsor a Child’s Education:

The past year and a half have been particularly difficult for many low-income, underprivileged families. The lockdowns imposed due to COVID-19 impaired many people’s ability to work and earn. As a result, a lot of families had to make cuts. Children were forced to quit school. Moreover, with a shift towards online classes, studying also became difficult for those who did not have smartphones and an internet connection. The economic repercussions of COVID-19 are prevalent today. To make things better, you can consider sponsoring a child’s education. You could do this by enrolling them into a school if they were forced to drop out. Alternatively, if they lack the means like a smartphone or an internet connection to attend classes, you can pay for these things and help them cover up what they have missed in the last session.

2. Teach Your Staff Personal Finance:

“Give a man a fish and you feed him for a day. Teach him how to fish and you feed him for a lifetime,” so goes the saying by Lao Tzu, the founder of Taoism. Educating your house staff like your maid, driver, gardener, laundryman, cook, plumber, etc., can ensure that they are able to make better financial decisions for life. You can do your small bit by talking to those around you and helping them understand how to manage, save, and invest their money. Most low-income families do not have a savings account in a bank. They save cash at their homes and lose the interest from their savings that they could have had if they had a bank account. The IDFC First Bank Savings Account offers a solution for all personal finance management issues and can be an excellent choice. You can also introduce them to savings schemes like the public provident fund (PPF), fixed and recurring deposits, etc.

To Sum It Up

All of these habits can help you help others. Moreover, they inculcate good financial discipline in you as you periodically save money to give to others. In addition to this, the tax benefits can also help you lower taxes and enhance your overall savings. By supporting the underprivileged with donations and charity, you can contribute to the development of society as a whole.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.