The Savings circle: This type of savings involves a group of people, it must consist of two or more people, the maximum number has never been set yet but experts recommend you keep the number of people below 20. Basically it involves people setting up a fixed monthly amount which everyone must contribute, a total amount must be reached which is the principle and then one of the members takes the total of the money on a monthly basis, for example say that X, Y and Z have decided to do the circle, they each agree to an amount of 150 a month, at the end of that month X will take the total of everyone’s contribution, then the following month Y will do the same and then finally Z, the process will repeat itself going round in a circle just like a merry-go round

The Pros

The saving circle scheme is seen as a social saving initiative, it is presumed to have an economic social impact as it involves many people and gives equal saving opportunity. It is greatly appreciated in women financial circles and seen as a tool for women financial empowerment

It is definitely worth noting that once one’s chance is reached, it feels like you’ve hit jack pot, a large sum of money coming in all at once is a great financing opportunity for possible investments. Definitely a plus

The waiting game can get tedious but on the flip side, waiting can actually give you time to do enough research for potential investments or carefully think out how you’ll spend the money coming in so embracing the waiting is a plus.

The cons.

If you are not patient, the waiting as previously mentioned can get tedious. Depending on how large the group is and what position you are in the queue, patience is definitely a virtue you need to bring in this savings game.

Usually and commonly, a fixed amount of contribution money is expected from each participant on a monthly basis, and failure to do so might involve a penalty as most circles set up rules to regulate the savings game.

Traditional saving at home: We commonly know it as a “piggy bank” but it doesn’t necessarily have to be one. Basically we need an object where we can put small notes or pennies in and it should not be able to be opened easily.

The Pros

Saving at home especially with the kids creates financial literacy at such a young age and parents can teach their children hands on the importance of saving.

Families that save together stay together, what I mean is it’s an activity that will create a bond, and families need that, bonding activities that will mean quality time together.

The number one criterion for this saving is that money should easily enter but not be physically easy to remove. This is very important in curbing down on temptations to remove money that has been strictly allocated for savings.

It can come in handy during emergencies, no one loves anything more than knowing you have money kept aside for that unfortunate sudden trip to the hospital, better prepared is better equipped

The cons

It is honestly not a viable source for huge financial investments. This is a family hands on activity, if you are looking to save for a business, then this is not for you. The little money saved is definitely a downer buy hey, memories and bonding is worth more than anything right?

Those are two wonderful ways to save that is a little close to home and easy to understand, implement and begin so… which one suits you?

Fatima- She is a Business Administrator with specialization in Accounting/Health Services Management. Her specialization in Bsc Accounting/BBA Health Management make her knowledgeable in Business Administrative Management functions coupled with understanding of Health services Management and Public Health issues.