Microfinance: How to Start a Savings Group

The critical importance of cash (money) cannot be overstated, because it can be used to solve many of life’s problems, like food, shelter, medication, etc. Money is an essential thing in life. It gives financial freedom. Money is necessary to live the good life. According to Nidhi Dhameliya, “money is not everything in this world but everything in this world needs money.” Money defines class. But savings is just as important as cash itself, because not everyone can afford the luxury.

Savings is very important because not too many people have access to excess money, either as a civil servant, farmer, entrepreneur, etc., but we all want to live comfortably and happy. This will probably not be possible, especially for low-income earners or low profit makers, until they have adequate savings.

Savings is also important for emergencies. While some people live on savings, others live on loans, and to some people, saving is almost an impossible task. This is why in the next few weeks, we will be talking about microfinance. Our focus today will be on how to start a savings group. We will also be sharing a practical animation video put together by the SAWBO team on this topic. So if you are in any of the categories mentioned above, I urge you to stick around a little longer and you will not be disappointed.

What is a Savings Group?

Savings groups are social organizations of a group of selected trusted individuals comprising friends, family or even members of the community with a common goal of saving together and taking loans from their savings when necessary in order to gain financial freedom. Savings groups give members the opportunity to frequently and continuously save in small amounts, depending on the financial capacity of the members. They give access to credit on flexible terms. They also have a basic form of insurance. They are owned and managed by members and they are designed to be financially sustainable.

Important Benefits of a Savings Group

Apart from gaining access to flexible loans and making contributions according to capacity, there are other key benefits such as:

• It encourages disciplined saving
• It increases the strength of social networking (the opportunity to meet more like-minded people)
• Savings become fun when you are used to it
• It helps to prepare for future events or projects
• It provides the opportunity to be financially free
• The convenient loan facility may provide opportunity for business expansion

With all these explanations, I am sure you have seen why it is important that you either setup or join a savings group. Now, let me show you how to start a savings group.

Please Note: Savings groups are not restricted to women only.

The SAWBO animated video

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This animated video you are about to watch was put together by the renowned team of researchers known as Scientific Animations Without Borders (SAWBO), after thorough research. The video is also available in other language variants, so you can watch in your preferred language for free if you click the “select a language” button.

If you want it translated into your local language, please feel free to contact the SAWBO team via email on contact@sawbo-animations.org.

Importance of this video

One of the significant things about the SAWBO videos is that their illustrations are clear and easy to understand.

This video clearly explains how to start a savings group.

Click to watch, download or share video in English language below:

How to Start a Savings Group

Or click HERE to watch, download or share video in your favorite language:

Please share this animation by sharing the link on WhatsApp, Twitter, Instagram, Facebook, etc.

You can also share by downloading it to your computer, broadcast, Smartphone and cell phone.

As stated earlier, saving is just as important as cash because it helps individuals prepare for unexpected events or projects. It is also a pathway to financial freedom. This is a very good reason you should share this information.

Sharing is free.

Remember:

“If you would be wealthy, think about saving as well as getting” – Ben Franklin

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