Savings Pools
Intention of Savings Pools
What is a Savings Pool?
A savings pool is a group of people who come together to pool their savings and lend money to each other interest-free. The concept is built on the principle of mutual aid, where members contribute regularly to the pool, creating a shared fund. This fund can then be used by any member who needs a loan, with the understanding that they will repay it over time. Savings pools offer an alternative to traditional financial institutions, providing a more personal and community-oriented approach to managing money.
How Does a Savings Pool Work?
Savings pools operate on a few simple principles:
Regular Contributions: Members of the pool agree to contribute a set amount regularly, building up the shared fund.
Interest-Free Loans: Members can borrow from the pool when they need funds. The loans are typically interest-free, making them much more affordable than conventional loans.
Collective Decision-Making: Decisions about lending are made collectively by the pool members, ensuring transparency and fairness.
Repayment: Borrowers repay the loan over an agreed period, replenishing the pool for future use.
This system encourages financial discipline and fosters a sense of responsibility among members while providing an accessible and sustainable financial resource for the community.
Experts in New Zealand
In New Zealand, savings pools have gained traction thanks to the efforts of several advocates and organizations. One of the leading experts is Bryan Innes from Living Economies. Bryan and the team at Living Economies have been instrumental in promoting savings pools across the country, providing education, resources, and support to those interested in starting their own pools. Their work is crucial in helping communities become more financially independent and resilient.
