The Ultra-Orthodox of Israel are a close-knit community which values a good wedding, but often doesn’t appear to be able to afford it. How do they achieve a good wedding? AL Monitor’s Mordechai Goldman explains:
In most basic terms, there are two components to how the ultra-Orthodox manage to marry off their children: a system of interest-free loans and restrained consumption (especially compared with the broader society). …
One type of charitable institution actually lends money. Dozens of such banks operate in the ultra-Orthodox community, lending sums large and small, at 0% interest and without commissions or other costs, to anyone who asks. Smaller loan societies deal with amounts up to $1,000, while the larger ones might lend as much as $15,000 to individuals. Charitable wealthy individuals provide the funding for these institutions, hoping to help individuals in need.
Less-familiar charitable institutions for personal savings operate alongside the free-loan societies. When the time comes for depositors to withdraw their money, they also have an opportunity to obtain a loan under extremely favorable terms. For example, the main savings society in the ultra-Orthodox town of Beitar Illit allows families to open a savings account for each child when the baby is born. The monthly deposit is limited to about $30 per child. Twenty years later, when the “child” is ready to marry, the accumulated sum ($7,200) is returned, and the depositor is eligible for a loan double the accumulated amount, at 0% interest and paid back in 80 to 160 monthly installments.
So this informal banking system works to ensure the cohesiveness of the culture – not just make money. In fact,
The main loan society in Beitar Illit explained that deposits are limited to just $30 per month for fear that if people saved more, they would have more money to withdraw, and the weddings they arranged would become too extravagant. A source at the society who requested anonymity told Al-Monitor, “We reached the conclusion that 120,000 shekels — savings of 40,000 shekels and an 80,000-shekel loan — is a reasonable amount for marrying off a child, including the cost of the wedding and dowry. If we were to allow people to deposit more, they would only waste more. This would be detrimental to our guiding principles of saving money and avoiding unchecked consumption.”
Good? Bad? That judgment will pivot on your view of unbridled individualism, which I’ve certainly explored over the years, but have come to distrust bit by bit as the costs – especially those unloaded on the environment, which can neither fight back nor send a bill – become more apparent. But it’s fascinating to see how various segments of society, as focused by a religious order, pull together to ensure certain customs remain active and vital.
