Seniors continue to embrace stokvel savings. This is according to data from FNB. The Bank says its data shows that 23% of its stokvel members are seniors. At the same time, 37% of their stokvels have two or more senior members in the group. A spokesperson for the Banking Institution says this could indicate how tradition is being passed down to the younger generation as seniors and youth are part of the same stokvels.
FNB says Seniors continue to embrace stokvel savings
The Strategic Business Developer at FNB Cash Investments, Cebile Magongo says Group savings have historically been used as a collective savings vehicle to help adults raise families and create communities of like-minded people.
She says Senior Citizens continue to embrace this culture while passing on knowledge and principles to younger generations.
Magongo added, “They believe that its crucial for people of their age, as it helps them to socialize because they are likely not to be actively working and may use stokvel gatherings for purposes other than just collecting contributions.”
Magongo says they’ve observed that seniors in stokvels save for various reasons. She says some of the trends of members joining stokvels are for social benefits.
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This could be beneficial, such as organizing group trips or getting together for events at various locations.
Stokvels: The Practise of Collaborative Savings
According to Magongo, their data further indicates that stokvels with more senior members are prevalent in the Eastern Cape with 34%. Limpopo follows this with 28%.
“The growth in Limpopo speaks to the strong culture of community which is a favourable breeding ground for the practice of collaborative savings,” she said.
She says this isn’t surprising as what started as stock fairs and eventually evolved into stokvels originated in the Eastern Cape.
Foster a culture of saving
She says being a part of a Stokvel is one of the most popular ways that South Africans foster a culture of saving.
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Magongo says the challenge has always been in ensuring that the stokvel savings are effectively managed to satisfy the objectives of the stokvel group.
Magongo concluded, “Stokvels have been instrumental in promoting a culture of saving and encouraging groups to save towards a common goal.”
She says they continue to see that more seniors are becoming cautious about their finances and often prefer to save in stokvels because of the low risk and familiarity with the stokvel concepts.
