Social savings clubs are groups of people with similar savings goals who pool their money. Members of the club could be saving for large ticket items, Christmas or retirement. Members meet weekly or monthly to contribute to the group savings plan. The group is also an excuse for members to gather, much like a book club or dinner club.
Things You'll Need
- Like-minded people
- Money for savings
- Bank account
- Membership agreement
Determine the members of your social savings club. Ten to 15 members is a manageable number. This is a big enough group for people to help and encourage each other without being so big that people feel overwhelmed. Members should have similar savings goals.
Choose a monthly savings amount and number of meetings. The number of meetings you host and the total monthly contribution should be based on what everyone is capable of contributing. Individuals are required to bring their savings contributions to meetings as determined by the group.
Set a schedule for payouts based on the group's common goal. For example, if the members of your group are saving $600 for Christmas, each individual will pay $50 at each monthly meeting. The money will be paid out to all members at the end of the year.
Choose a bank. Your group's funds should be deposited into an FDIC insured bank account. You can choose to set up one account or multiple accounts depending on your group's goals. If the individuals in your group are going to contribute varying amounts each month, set up separate accounts, or keep very careful records of contributions.
Select a committee. Your social savings club should determine a voting process for any controversy that might arise. Assign a president, a treasurer and a secretary to keep everyone on track and honest. Careful record keeping is important.
Schedule meetings. Meetings can be held at members' homes or local restaurants and coffee shops. Establish a system for contributing if a member is unable to attend the meeting.
Sign a membership agreement. The agreement should be specific, listing a member's name, address and the agreed-upon savings amount and payout date.
Tips & Warnings
- Make sure that you like and trust the members of your social savings club. Someone in the group will be handling your money, and you want to know that your funds will be in good hands.
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