I watched a great documentary today on Netflix called Living On One Dollar which was about 4 students interested in economics and poverty who go to live on one dollar a day in Guatemala and talk about the finances of the people in poverty. Something that really interested me was the use of micro-financing so after I watched it I googled micro-loans and you can actually loan people small amounts of money (or large if you want?) all over the world. They pay it back and then when you’ve been paid back you can loan it out to someone else. There’s a video here about how it works http://www.kiva.org/about/how
I like this idea way more than just giving to charity because its personal, you get to pick who you lend your money to, and its usually a loan for something that will eventually generate more income and then will be passed on to someone else. The gift that keeps on giving!
I chose to lend to a lady called Justine from Uganda, a single mother of four, who wanted a small loan to buy a bale of used clothes which she’ll then sell. I’m assuming its the used clothes that people donate to charity shops..? Three other people loaned her money too to make up her loan and now its fully funded. Simple!