Savings Group
- Save a Little, Save a Lot -
Asia/Pacific Cultural Centre for UNESCO (ACCU)
Kamala:
What happened, Maya?
Maya:
Well, my son is sick.
Kamala:
Why are you crying?
He has a strange rash on
his body, and a high fever. What should I do?
My neighbours advised me to send him to
hospital. But I don’t have enough money.
Do you think I should borrow some from
the money lender?
2
Oh, don’t do that, Maya!
It’s too risky!
The interest he will charge you will be
incredible! He can ruin your family’s lives.
I have some savings. I can help you this time.
Two days later...
Maya:
Hello, Kamala!
Thanks for the money, my son
was able to see a doctor. I was so worried.
My friend lost her daughter because she could not
buy medicine for her.
Maya:
But how did you manage to save money?
I thought you were as poor as I am.
Kamala:
Oh, actually, it’s because of the savings group!
Do you want to know what a savings group is?
Kamala:
It’s always important to save some money for
emergencies.
Let’s learn about a savings group!
3
What is a Savings Group?
A savings group is a group you can form with your
neighbours and friends to solve financial problems by
saving small sums of money together.
It’s like a drop of water in
a bucket.
You can’t do anything with
a drop of water, but once
it accumulates, you can
do many things: wash
your face, use it for
cooking, and drink it.
“Each and every drop fills the pitcher”
“Unity is strength!”
It’s the same with money. Let’s each save a little bit
and put it together!
A little bit of money from everybody will gradually
make a lot of money for the group to do many things.
4
How can the Savings Group benefit me?
1. At the group level
2. In the community
In a savings group, you will always have access to cash for
emergencies at very low interest or none at all.
You and your group members might want to consider a savings
group as a starting point for improving your lives.
It is a good idea to use the money for the benefit of the
community, say, digging a well for the village.
When you need a large sum of money for starting your own
business or sending your kids to school, you can ask the
savings group for a loan.
Use the savings group meeting as an opportunity to discuss
important issues in your lives.
5
Kamala,
the savings
group seems
very interesting.
How can I save
money at home?
How can I save money
at home?
Each and
every drop
fills the
pitcher!
Remember?
Make up your mind to do it!
Try saving by cutting unnecessary
expenses.
Where there is a will, there is a way.
Prepare a small bottle or a box.
Save money in it every day.
You don’t have any money to save?
Think about the bad habits that you and
your family have.
Cigarettes, alcohol, gambling...
Stop these bad habits, and save money!
You can save small change
from your income as well!
Why don't you save 3 apees* a day?
Yes, it’s not much, but if you do it every day,
it comes to 90 apees a month!
*“Apee” is an imaginary invented currency unit.
6
How Can We Form a Savings Group?
1
4
Make a group
together with 5
to 10 trustworthy
people.
Every member will hand in
the same amount to the
leader for group savings.
The record keeper writes
down the money flow in
a group ledger. A report
should be made regularly.
2
5
Decide who is to
be the leader and
who will be the
record keeper.
Group members get
together regularly
and discuss their
problems together.
3
6
Make rules for
your savings
group with your
group members.
Make sure
everyone agrees
with the rules.
When the money
mounts up, group
members can take
loans from the
savings, or the group
can deposit some of
the money in a bank.
If your group faces any difficulty, seek outside advice from those with experience.
For example, community learning centres and non-governmental organizations.
7
I have very
little money.
Is a savings
group really
safe?
Forming a Savings Group - Note 1
Choosing a Leader and
a Record Keeper
Yes!
The leader and
the record keeper
are really
trustworthy.
We need to have a good leader and a good record
keeper to form a strong savings group. What kind of
persons are appropriate for these positions?
I collect money from
every member regularly.
I keep order in the
group. I check what the
record keeper writes in
the group ledger.
Whenever each
member puts
money in the
group savings, or
takes it out,
I write it down in
the group ledger.
The Leader needs to...
• Be trustworthy
• Be decisive
• Know how to read, write,
and calculate
• Have a safe place at
home to keep the group
savings
• Have enough spare time
to manage group savings
The Record Keeper needs to ...
• Be trustworthy
• Be good at reading, writing, and
calculating
8
Forming a Savings Group - Note 2
Setting Rules
Rules like this will help your group to avoid conflicts. And we recommend you decide on your own group’s rules
together.
Rules (Sample)
1. Members should attend the meeting regularly.
2. Each member hands in 10 apees to the leader at the meeting to be held on the 1st day of
each month.
3. If a member misses handing in the savings, the member will be fined 1 apees, which will
be added to the total.
4. If a member does not hand in the savings for more than 5 months, the member will be
automatically dismissed from the group.
5. When a member asks for money for an emergency or loans, the group discusses and
decides if it is agreeable. The member has to return the money in 5 months.
6. Loans are available to 2 persons at a time.
9
Forming a Savings Group - Note 3
Procedure at the Bank
Once your group has enough money in the savings, say, 1,000 apees, it might
be wise to deposit the money in a bank. It’s not safe to keep a lot of money at
an individual’s home. It could be stolen!
1
First, take the necessary steps to open the group's bank account.
If you need an identification card to open the account, you’ll have to
request one from your local government or people’s representative.
2
Then go to a bank!
There are various types of bank accounts.
Ask the clerk about the differences between
them. Choose one.
You will receive a passbook and a checkbook.
Keep them at the leader’s house, where it is
safe.
3
Now your group has opened an account. Your group can deposit
the group's savings in the account.
Of course, the group can always withdraw the money when they
need it. Group leader and record keeper can take care of this.
4
The money deposited in the bank will accumulate interest
according to the amount that you deposited.
You see, interest is the money that banks give to the people who
deposit their money there.
So, your group’s money will gradually increase in the bank!
Isn’t it great?
10
Be Happy with a Savings Group!
I want to buy a small cart to carry
the vegetables grown on the farm
to the bazaar.
I want my
daughter to
continue her
education.
Maybe we can buy three carts,
and let everybody in the group
use them!
Solve your money problems as a group
for the benefit of yourselves, your families,
and your communities!
11
Let’s think about it...
Can you think of some people that you want to form a savings group with?
How much do you think you can save each day? How can you do it?
What do you want to achieve through saving money with a savings group?
Guide for Utilisation
Target:
Theme:
Neo-Literate learners at self-learning level
Forming and operating a savings group
Type:
Motivational/Instructional
Objectives:
1)
2)
To introduce the idea of a savings group
To motivate learners to form a savings group
3)
4)
To encourage learners to adopt the habit of saving money every day
To provide learners with practical knowledge to start a savings group
2)
Ask them what they want to do if they have some money to improve their lives.
3)
4)
Distribute the booklet to the learners and ask them to read it through.
Ask learners if they want to form a savings group. Discuss why or why not.
Note:
1) It is recommended to use this textbook with Micro-Credit -Things to Remember when
2)
Borrowing Money- (AJP material 2000).
This booklet is a prototype version meant for local adaptation. Any organization is
5) To enhance learners’ literacy skills
Application:
welcomed to adapt this booklet with written permission from ACCU. It is encouraged to
modify the contents, reflecting local conditions such as currency, the use of and the
1)
procedures at the bank, who to contact in case of trouble. Please contact ACCU for
further information.
Before distributing the booklet, discuss with learners whether they have put some money
aside for emergencies, and what they will do in an emergency if they do not have any
money.
ASIA/PACIFIC CULTURAL CENTRE FOR UNESCO (ACCU)
6 Fukuromachi, Shinjuku-ku, Tokyo 162-8484 Japan
e-mail: [email protected] URL: http://www.accu.or.jp/litdbase
This booklet is planned and produced under the Asia/Pacific Joint Production Programme for
Neo-Literates in Rural Areas (AJP) in co-operation with UNESCO Bangkok.
Illustrated by Ismail Lahri (State Resource Centre for Adult Education, M.P., Bhartiya Grameen
Mahila Sangh)
12 Asia/Pacific Cultural Centre for UNESCO 2002
AJP No.59