According to the National Stokvel Association of South Africa, there are 800 000 stokvel groups in the country worth an estimated R49 billion.
Stokvels have been in existence for many years and are a common informal savings tool used across South Africa in which members contribute a fixed amount of money at regular intervals, usually on a rotational basis, as agreed to by the members – often during the December Festive or April Easter holidays. The members are free to choose how they spend their money.
While a spending spree might be the first thing that comes to mind, using the money wisely is advisable. Tessa Verwoerdt, HOD Money Solutions Centre at Bayport South Africa says that this additional income is extremely welcome for what is often a very long month to the next pay day and that recipients should combine financial planning and responsible spending with a little bit of spoiling.
There’s no harm in spoiling yourself, but be financially savvy about your spending choices: shop smarter by looking for discounts or added-value opportunities and consider taking a Sho’t Left holiday and explore Mzansi instead of blowing the budget on a Dubai shopping spree over the holiday.
“A stokvel pay-out is the result of many months of responsible saving so use your hard-earned cash wisely and start off the new year on a more financially secure footing,” Tessa concludes.Go back