Give Thanks By Giving a Micro Loan

By Amanda Pendolino on November 25th, 2009

microlending-1 Thanksgiving gets overshadowed by Black Friday a little more each year — but instead of getting swept into the shopping frenzy of toys and TVs, you might consider spending some of your money on people around the world who can really use it to change their lives.

Microlending has gained popularity in the last few years, and several websites have made the process even easier. Kiva.org is a great place to start: just browse through all of the people seeking loans and choose the entrepreneur you’d like to help. Often just $10 or $20 can make a huge difference in helping people finance their businesses, including general stores, auto repair, bakeries, and so on.

According to The New York Times, microlending to women in third-world countries has been especially successful. From ”The Women’s Crusade” (which I beg you all to read): Some of the most wretched suffering is caused not just by low incomes but also by unwise spending by the poor — especially by men. Surprisingly frequently, we’ve come across a mother mourning a child who has just died of malaria for want of a $5 mosquito bed net; the mother says that the family couldn’t afford a bed net and she means it, but then we find the father at a nearby bar. He goes three evenings a week to the bar, spending $5 each week.

One way to reallocate family expenditures in this way is to put more money in the hands of women. A series of studies has found that when women hold assets or gain incomes, family money is more likely to be spent on nutrition, medicine and housing, and consequently children are healthier.

Another NYT feature describes the success of microfinance here in the U.S. If this interests you, join with me in making a difference this holiday season — and empower women around the world!

(You can also check out a previous interview with Sloane Berrent, a recent Kiva fellow.)