Stokvel is an old South Aftican money saving scheme that was started by house wives in the early 1940’s who were looking for a way to help each other and their husbands during festive time.
When stokvel started the idea was to save enough money by the end of the year to spend on things they, and their families desired. Today it has changed enormously to the fastest money saving scheme of all time.
Women around the townships and every other places have made stokvel a genuine business, some have started stokvel burial plans, grocery plans and some even save for their trips the stokvel way.
How does it work?
Stokvel normally consist of more than 5 members and each member contributes an equal amount of money monthly, weakly or fortnightly depending on each stokvel.
That money is collected at the meeting that are held in one of the member’s home; some stokvels hold meetings at one member’s home only and some move around every member’s homes.
The money is then taken and put into a group bank account, due to success of stokvel over the years some banks in South Africa now offer stokvel accounts, where stokvel groups can come and open one and save bucks.
Like any other business and financial institute stokvel has key members and rules.
Each club selects Chair man/woman
Minute’s keeper/ secretary
To make meetings fun and enjoyable, usually each member brings foods and snacks to share in every meeting, or they all take turns to cook for the meeting.
If you fail to pay your contributions on time there are fines like real and professional financial institutions.
And in time of need like a funeral, or a family remember of one of the member’s needs financial assistance immediately, a member is allowed to borrow from the stokvel and pay back the money with bit of interest.
Black adult South Africans invest approximately R12 billion in stokvels a year.
Clearly this is a winning way.