Any goal-oriented institution/organization must have certain rules and each of these rules have penalties and punishments. One such penalty is the use of fines (amount paid for violating a rule).
In this series today, we will be looking at how to impose fines for missing meetings and payment in a savings group. Kindly watch the SAWBO video below for clarification and better understanding on this.
What are fines?
Fines area sum of money imposed on a person or organization as punishment for an offense or contract breach.
Having setup the savings group and having elected committee members for the savings group, the next step is to determine the rules and regulations that will guide group members, which also includes penalties/punishments for defaulters. One such penalty is the use of fines.
Importance of Fines
Fines are important to savings groups because they ensure that members follow the rules. They can also be another medium of generating revenue for the group.
Please Note: Establishing rules and penalties, including fines, must be a collective effort. Every member of the group should be part of this process and a majority should be in agreement with decisions reached. These policy decisions should be documented and shared with all members of the group.
In this case, every member is aware that breaking the rule, such as missing a meeting or missing a payment, will in cure a certain fine.
The SAWBO animated video
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 describes the concept of fines that can be applied when one misses a group meeting, and in the same order, fines that can be applied when one misses a savings payment.
Click to watch, download or share video in English language below:
Or click HERE to watch, download or share video in your favorite language:
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As stated earlier, any institution/organization that is goal oriented must have certain rules, and each of these rules should have penalties and punishments. It is therefore very important that rules and penalties, including fines, be a collective effort. Every member of the group should be part of this process and a majority should be in agreement with decisions reached.
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Remember:
“Fines are preferable to imprisonment and other types of punishment because they are more efficient. With a fine, the punishment to offenders is also revenue to the state” – Gary Becker
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