Our data shows that 23% of their stokvel members are seniors. Additionally, 37% of stokvels have two or more senior members. This suggests that tradition is being passed down to younger generations. Seniors and youth often belong to the same stokvels.
Group savings have historically served as collective savings vehicles. They help adults raise families and create communities of like-minded individuals. Senior citizens continue to embrace this culture while passing on knowledge and principles to younger generations.
Reasons for stokvels
We have observed that seniors save in stokvels for various reasons. Many join stokvels for social benefits like group trips. Others participate to attend events at various locations. They believe socialising is crucial for people of their age. Seniors, often not actively working, use stokvel gatherings for more than just collecting contributions.
Our data shows stokvels with more senior members are prevalent in the Eastern Cape at 34%. Limpopo follows with 28%. This trend is unsurprising, as stokvels originated in the Eastern Cape, evolving from stock fairs.
The growth in Limpopo highlights its strong culture of community. This environment fosters the practice of collaborative savings effectively.
Minimal administrative cost
Members continue to adopt digital stokvel solution due to its minimal administrative cost – no monthly account fee, transparency, and accountability as all stokvel members can see the stokvel balance. This allows seniors to maximise their savings without incurring high fees.
Being a part of a stokvel is one of the most popular ways that South Africans foster a culture of saving. The challenge has always been in ensuring that the stokvel savings are effectively managed to satisfy the objectives of the stokvel group.
Stokvels have been instrumental in promoting a culture of saving and encouraging groups to save towards a common goal. We continue to see this as 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.
Cebile Magongo | Developer | Strategic Business | Cash Investments | FNB | mail me |
Related FAQs: Stokvel saving for seniors
Q: What is a stokvel and how does it work for seniors?
A: A stokvel is a practice of collaborative savings where individuals, often seniors, contribute a fixed amount of money to a common pool. This pool is then distributed among members at agreed intervals, helping them save together. Seniors continue to embrace stokvel savings as a way to manage their finances and support each other.
Q: How can seniors open a stokvel account?
A: Seniors can open a stokvel account through banks. They will need to provide identification and relevant information about the group involved in the stokvel. The bank will guide them through the process to set up a savings club account that meets their needs.
Q: What types of stokvels are available for seniors?
A: There are various types of stokvels, including savings stokvels, grocery stokvels and investment stokvels. Seniors can choose the type that best fits their financial goals, whether it’s to save for groceries at the end of the month or to invest for future needs.
Q: Do stokvel accounts earn interest?
A: Yes, stokvel accounts can earn interest with competitive interest rates. This allows seniors to maximise their savings while benefiting from the power of saving collaboratively.
Q: How do interest rates for stokvel accounts compare to regular savings accounts?
A: Interest rates for stokvel accounts can vary but are often competitive with regular savings accounts. Seniors should compare different banks to find the best rates available for their stokvel savings.
Q: What are the benefits of seniors participating in stokvels?
A: Participating in stokvels helps seniors save money collectively, provides a support system and it allows them to earn interest on their savings. This practice fosters community and can help members access money to manage expenses more effectively.
Q: Can seniors withdraw money from their stokvel account anytime?
A: Withdrawal policies may vary depending on the specific stokvel agreement and the bank’s terms. Generally, seniors should check the rules of their stokvel account to understand when and how they can access their funds.
Q: What is the role of a credit provider in a stokvel?
A: A credit provider, including banks, may offer financial services to support stokvels, including loans or financial advice. This can help stokvel members manage their contributions and withdrawals more effectively.
