You might be thinking of joining a stokvel soon, or perhaps you rely on a stokvel as your main source of income security. But, do you know how they work?
In the November 2016 issue of Essays Of Africa magazine, Bulelwa Mokori asks experts just how a stokvel works.
What Are They?
Mokori says, “Stokvels act as a self-help mechanism to social and financial security. Using stokvels as a strategy of social protection enables the participants to save and invest, which ensures an accumulation of assets.”
According to Thabiso Masudubele, founder of the Stokvel and Burial Societies Indaba, “Stokvels are an informal group savings scheme, where members voluntarily agree to contribute a fixed amount to a common pool on a regular basis. This could be weekly, fortnightly or monthly and these savings provide tremendous socio-economic benefits to the society.”
Stokvels teach you a culture of saving, while playing an important role in improving the lives of members and your families. There are different types of stokvel and can be used to supplement a spouse’s income:
- Savings stokvels
- Burial stokvels
- Investment stokvels
- High-budget stokvels
If you’d like to find out about the benefits of joining and participating in a stokvel, get the November 2016 copy of Essays Of Africa magazine from CNA, Pick n Pay, Woolies and Exclusive Books, where Mokori explains in detail.
Are you part of a stokvel? Is it something you would recommend to someone? Share your thoughts on our social media platforms with #Stokvel.