Stokvel Recipe for Success: Relationships, support and understanding.

Did you know the National Stokvel Association of South Africa (NASASA) estimates that over 11 million South Africans are members of a stokvel? In case you didn’t know, that’s around 40% of the adult population – which makes stokvels a primary source of savings in a country with a poor savings culture.  

South Africa’s stokvel industry is worth R45bn and it only continues to grow, but uncertainty has turned managing stokvels into a daunting task. As a group savings platform, the success of a stokvel demands a mental shift into human understanding and relationship management to ensure its sustainability.

Relationships and support systems have the power to transform stokvel management stress into peace of mind and prosperity – it just needs to be nurtured in the right ways.

Build strong relationships within stokvels 

The backbone of any collective agreement for mutual interests, like stokvels, burial societies, associations and the like, is the strength of the relationships among its members.  Open and honest communication, mutual respect for boundaries, and a foundation of trust are the cornerstones of harmonious stokvel dynamics. Regular meetings provide opportunities for members to voice concerns, share ideas, and celebrate milestones, which in turn fosters a sense of unity and solidarity within the group.

Understand and address member concerns 

Financial education is often a significant concern for stokvel members. Many who may lack the necessary knowledge to make informed financial decisions. Access to financial advisers and financial literacy resources can empower members to navigate financial challenges and mitigate risks effectively.

While often not considered, one of the key relationships to nurture in this journey is definitely with a financial adviser. That can make all the difference between failure and sustained success, especially when large groups are involved and the monetary contributions at play are growing at scale.

Additionally, the prospect of member's passing raises legitimate concerns within a group that’s working towards a common financial goal. A quick claims payouts and clearly defined processes for beneficiaries can help ease the burden on grieving families and ensure continuity within the group.”  

Support in times of need 

Stokvels traditionally provide financial assistance to members' families in the event of a death. This support helps alleviate the financial strain associated with funeral expenses and provides much-needed peace of mind during difficult times. Something as simple as a funeral plan can make sure that your stokvel contributions continue after death (adequate cover for your surviving family members added to the plan).

By offering payment protection on funeral cover

Empowering Communities for the Future 

By fostering strong relationships, promoting financial literacy, and embracing innovative solutions, stokvels have become powerful vehicles for economic empowerment within South African communities.  

Through collective action and mutual support, stokvel members can navigate the challenges of today's economic landscape and build a brighter future for themselves and their families.

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